Cargo Insurance Market

The Cargo Insurance Market is classified by Type, with Cargo Type being one of the crucial segments, which is further subdivided into Ocean Cargo Insurance, Air Cargo Insurance, and Land Cargo Insurance. Ocean Cargo Insurance is the leading segment, generating over 60% of revenue of the overall market. The volume of goods that are transferred through ocean freight is very high. Additionally, the development of e-commerce, as well as the growth of demand for imported goods, fosters growth in this segment. The second segment, Air Cargo Insurance, is responsible for about 25% of the Cargo Insurance Market revenue.

The increasing demand for air freight service determines its growth. The demand for these services is especially high in the sphere of transporting valuable and time-sensitive goods. The proportion of the final segment, Land Cargo Insurance, is about 15%. The demand for road goods traffic is increasing, and this percentage is likely to remain stable. The benefits and coverage of Cargo Insurances are different. Ocean Cargo Insurance covers goods that are transported by sea, securing the risk of loss, damage, or theft.

The Cargo Insurance Market segmentation by Coverage comprises Single-Trip Insurance, Annual Contract Insurance, and Open Cover Insurance. Single-Trip Insurance caters to specific shipments, offering coverage for a single journey. Annual Contract Insurance provides comprehensive protection for multiple shipments over a year, with premiums based on the value and frequency of shipments. Open Cover Insurance offers continuous coverage for all shipments within a specified limit, providing flexibility and convenience for businesses with varying shipping volumes.In 2024, the Single-Trip Insurance segment held a significant market share, generating revenue of 10.29 billion USD.

Annual Contract Insurance is projected to grow at a CAGR of 4.2% over the forecast period, driven by the need for long-term protection in volatile shipping environments. Open Cover Insurance is expected to witness steady growth, with increasing adoption by businesses seeking streamlined insurance solutions.

The Cargo Insurance Market is segmented into various industries, including manufacturing, retail, transportation, and logistics. Each industry has unique cargo insurance needs and requirements. Manufacturing: The manufacturing industry is a major consumer of cargo insurance, as manufacturers need to protect their valuable inventory and equipment during transportation. The Cargo Insurance Market for the manufacturing industry is expected to reach USD 5.2 billion by 2024, growing at a CAGR of 3.5%. This growth is driven by the increasing demand for manufactured goods and the growing complexity of global supply chains.

Retail: The retail industry is another major consumer of cargo insurance, as retailers need to protect their inventory while it is in transit from suppliers to stores. The Cargo Insurance Market for the retail industry is expected to reach USD 4.5 billion by 2024, growing at a CAGR of 3.8%. This growth is driven by the growth of e-commerce and the increasing value of retail inventory. Transportation: The transportation industry is a major provider of cargo insurance, as transportation companies need to protect their customers' goods while they are in transit.

The Cargo Insurance Market is segmented by commodity into High-Value Goods, Bulk Cargo, Perishable Goods, and Hazardous Cargo. High-Value Goods: High-value goods are those that are of high intrinsic value, such as jewelry, electronics, and artwork. The high value of these goods makes them attractive targets for theft and damage, so cargo insurance is essential to protect their value.

The Cargo Insurance Market for high-value goods is expected to grow at a CAGR of 4.2% from 2024 to 2030, reaching a market size of USD 6.1 billion by 2030.Bulk Cargo: Bulk Cargo is transported in large quantities, such as grain, coal, and iron ore. The Cargo Insurance Market for bulk cargo is expected to grow at a CAGR of 3.8% from 2024 to 2030, reaching a market size of USD 4.8 billion by 2030. Perishable Goods: Perishable goods are those that have a limited shelf life, such as food and flowers.

The Cargo Insurance Market is segmented by Scale into Small and Medium Enterprises (SMEs) and Large Enterprises. The Large Enterprises segment held the largest market share in 2023 and is expected to continue to dominate the market during the forecast period. This is due to the fact that large enterprises have a greater need for cargo insurance to protect their valuables. However, the SMEs segment is expected to grow at a faster rate during the forecast period as more and more SMEs are recognizing the importance of cargo insurance.

The growth of the market is attributed to the increasing demand for cargo insurance from various industries, such as manufacturing, retail, and healthcare.