Drone Insurance Market Report 2025

The drone insurance market size has grown strongly in recent years. It will grow from $1.44 billion in 2024 to $1.57 billion in 2025 at a compound annual growth rate (CAGR) of 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 rapid growth in the next few years. It will grow to $2.33 billion in 2029 at a compound annual growth rate (CAGR) of 10.3%. 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 growing adoption of drones for commercial applications is anticipated to significantly drive the growth of the drone insurance market in the coming years. Commercial drones, which are unmanned aerial vehicles (UAVs) utilized for various purposes across multiple industries such as agriculture, construction, delivery services, and insurance, require insurance to protect against liabilities for property damage or bodily injury that may arise during their operations. Utilizing drone insurance can help commercial operators save money by mitigating the costs associated with liability claims and property damage. For instance, in May 2024, the International Trade Administration, a US-based government agency, reported that the Association of Unmanned Aviation (VUL) expects a 40% increase in the global number of commercially used drones from 2022 to 2030. Consequently, the rising adoption of drones in commercial sectors is a key factor 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.

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.

Major companies operating in the drone insurance market include Allianz Global Corporate & Specialty SE, American International Group Inc., Avion Insurance Agency Inc., Coverdrone Limited, SkyWatch Space Applications Inc., Flock Inc., CapriCMW Insurance Services Ltd., Hub International Limited, BWI Aviation Insurance Agency Inc., Thimble, Global Aerospace Inc., DroneGuard Insurance, 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 2024. The regions covered in the drone insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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 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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