Drone Insurance Global Market Report 2024

Drone insurance is the insurance that covers the costs associated with accidental bodily harm or damage caused to property or any assets due to drone operations. The drone insurance also covers the cost associated with damage in drones. The drone insurance provides insurance coverage for drones.

The drone insurance market covered in the report is segmented by coverage type into liability coverage, hull damage, theft coverage, loss or flyaway coverage, payload coverage, personal injury coverage, ground equipment coverage, and others, by pricing into hourly, monthly, annually, by application into commercial, personal, others.

The drone insurance market research report is one of a series of new reports that provides drone insurance global market statistics, including drone insurance industry global market size, regional shares, competitors with a drone insurance global market share, detailed drone insurance global market segments, market trends and opportunities, and any further data you may need to thrive in the drone insurance industry. This drone insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The drone insurance market size has grown strongly in recent years. It will grow from $1.33 billion in 2023 to $1.45 billion in 2024 at a compound annual growth rate (CAGR) of 8.9%. The growth in the historic period can be attributed to rapid growth in drone usage, regulatory compliance, emergence of specialized policies, risk awareness.

The drone insurance market size is expected to see strong growth in the next few years. It will grow to $2.09 billion in 2028 at a compound annual growth rate (CAGR) of 9.6%. The growth in the forecast period can be attributed to industry collaboration, expansion of commercial applications, cybersecurity concerns. Major trends in the forecast period include technological advancements, integration of ai and data analytics, customized policies, integration of iot and telematics, emergence of parametric insurance, drone fleet management solutions, market consolidation.

The increasing number of drone accidents is expected to drive the growth of the drone insurance market over the coming years. Drones are currently engaged in a variety of sectors that rely on aerial imagery, such as agriculture, insurance, manufacturing, electricity and others. As drones become more and more prominent, the risks of a catastrophic crash happening are increasing. For instance, according to DroneSec, a drone threat intelligence company, overall, the number of drone incidents increased significantly throughout 2022, culminating at 223 incidents in November 2022, a 130% increase from January 2022. Therefore, the increasing number of drone accidents drives the growth of the drone insurance market.

The increasing adoption of drones for commercial applications is expected to propel the growth of the drone insurance market going forward. Commercial drones are unmanned aerial vehicles (UAVs) that are used for several commercial purposes in various industries, including agriculture, construction, delivery services, and insurance. Drone insurance provides protection against liability for property damage or bodily injury that may occur during drone operations. The use of drone insurance can save commercial drone operators money by reducing the cost of liability claims and property damage. For instance, according to the Federal Aviation Administration, a US-based transportation agency of the government, the total number of commercial drones registered reached 352,222. Furthermore, in November 2021, according to Seed Scientific, a US-based consulting firm, the application of drones in various sectors was worth around $127 billion, and the number of jobs operating drones in the industry reached 422,000 by 2021. Therefore, the increasing adoption of drones for commercial applications is driving the growth of the drone insurance market.

The launch of different and innovative insurance products is a major trend gaining popularity in the drone insurance global market. Major companies operating in the drone insurance sector are focusing on developing advanced solutions for drone insurance. For instance, in December 2022, New India Assurance Co. Ltd., an India-based public sector general insurance company, launched the unmanned aircraft system (UAS/UAV/RPAS/drone) insurance, becoming the first public sector player to enter the segment. Its product offers more than fifteen various add-on covers, including physical damages, theft, and accidental bodily harm to third parties and/or damage to their property, all of which are tailored to meet the needs of the drone sector.

Major companies operating in the drone insurance market are adopting strategic collaborations and partnerships to expand their product line-up by offering a drone insurance protection plan. Drone. Strategic collaborations can help drone insurance companies expand their coverage options, offering more comprehensive and customized insurance plans for commercial drone operators. For instance, in November 2021, Bajaj Allianz General Insurance, an India-based insurance company, partnered with TropoGo, an India-based drone insurtech startup, for the distribution of a one-of-a-kind drone insurance product in the country. The drone insurance plan will include coverage for third-party liability, damage to the drone and its payload, and supplementary coverage for night flying endorsement and BVLOS (beyond visual line of sight) endorsement. The insurance coverage provided for the damage to the drone and its payload will cover replacement or repair costs as well as accidental loss or damage to the unmanned aircraft system (UAS) resulting from the risks covered, including the unreported disappearance of the UAS after the flight has begun. Through this strategic alliance with TropoGo, Bajaj Allianz General Insurance will be able to offer their wide consumer base a drone insurance protection plan that will guarantee a worry-free flying experience.

Major companies operating in the in the drone insurance market report are Allianz Global Corporate & Specialty SE, American International Group Inc., Avion Insurance Agency Inc., P. H. Driessen Holding B. V., Coverdrone Limited, SkyWatch Space Applications Inc., Flock Inc., CapriCMW Insurance Services Ltd., Hub International Limited, Air1 Insurance, BWI Aviation Insurance Agency Inc., Thimble, Global Aerospace Inc., DroneGuard Insurance, DroneShield Limited, EagleView Technology, InsureMyDrone, IFR Drones Ltd., Scott Sky Smith Specialty Insurance, VOLANTE GLOBAL LIMITED, U. S. Aviation Underwriters Inc., Liberty Mutual group, Starr Insurance Companies, Hanover Insurance Group Inc., Phoenix Air Unmanned LLC, Pantaenius Holding Gmbh, AON PLC, QBE Insurance Group Limited, Precision Autonomy Insurance, Apollo Insurance

North America was the largest region in the drone insurance market in 2023. The regions covered in the drone insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the drone insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The drone insurance market includes revenues earned by entities by cyber liability and commercial property insurance The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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