Drone Insurance Market Report 2026

The drone insurance market size has grown rapidly in recent years. It will grow from $1.57 billion in 2025 to $1.73 billion in 2026 at a compound annual growth rate (CAGR) of 10.1%. The growth in the historic period can be attributed to expansion of recreational and commercial drone usage, rising incidents of drone-related damage claims, introduction of aviation regulations for drones, growing adoption of drones in surveying and photography, emergence of specialized drone insurers.

The drone insurance market size is expected to see rapid growth in the next few years. It will grow to $2.55 billion in 2030 at a compound annual growth rate (CAGR) of 10.3%. The growth in the forecast period can be attributed to increasing commercial drone deployment across industries, rising regulatory enforcement for drone operations, growing demand for comprehensive liability coverage, expansion of autonomous drone applications, increasing integration of ai-based risk assessment. Major trends in the forecast period include increasing adoption of usage-based insurance models, rising demand for on-demand drone coverage, growing integration of telematics and flight data analytics, expansion of commercial drone risk coverage, enhanced focus on cyber and data liability protection.

The rising adoption of drones for commercial purposes is anticipated to drive the expansion of the drone insurance market in the coming years. Commercial drones are unmanned aerial vehicles (UAVs) utilized for various commercial activities across multiple industries, including agriculture, construction, delivery services, and insurance. Drone insurance offers coverage against liability for property damage or bodily injury that may occur during drone operations. Utilizing drone insurance can help commercial drone operators save costs by mitigating expenses related to liability claims and property damage. For example, in October 2024, the Federal Aviation Administration (FAA), a US-based government agency, projected that the recreational small UAS sector would witness around 1.75 million new drone registrations in 2023 under the base case scenario, marking a growth of over 3.7% compared to 2022. Hence, the growing use of drones for commercial purposes is fueling the development of the drone insurance market.

Leading companies in the drone insurance market are concentrating on developing innovative solutions, such as Embedded Drone Insurance, to address a wide array of risks. This type of insurance coverage is directly integrated into the purchase or usage of a drone, rather than being acquired separately. For example, in February 2024, AutoPylot, a US-based provider of a comprehensive suite of services, partnered with Stere, a US-based provider of a digital platform, to launch Embedded Drone Insurance. This innovative insurance model seamlessly integrates coverage into the purchase or operation of drones, ensuring automatic protection from the moment a drone is bought or registered. This approach significantly enhances accessibility and convenience for drone operators, especially in commercial sectors such as agriculture, construction, and delivery services.

In October 2023, SkyWatch Insurance Services Inc., a US-based insurtech company, acquired the assets of DroneInsurance.com for an undisclosed amount. Through this acquisition, SkyWatch seeks to broaden its drone insurance offerings, improve policy management tools, and ensure a smooth transition for existing DroneInsurance.com customers to its advanced digital insurance platform. DroneInsurance.com is a US-based digital insurance platform providing coverage solutions for commercial drone operators.

Major companies operating in the drone insurance market are Allianz Global Corporate & Specialty SE, American International Group Inc., Zurich Insurance Group, QBE Insurance Group Limited, Liberty Mutual Group, Starr Insurance Companies, Global Aerospace Inc., Hanover Insurance Group Inc., Tokio Marine Holdings Inc., AXA SA, Chubb Limited, Munich Re, Swiss Re, Coverdrone Limited, Flock Inc., SkyWatch Space Applications Inc., DroneGuard Insurance, InsureMyDrone, Volante Global Limited, Apollo Insurance.

North America was the largest region in the drone insurance market in 2025. The regions covered in the drone insurance market report are Asia-Pacific, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, 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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