Takaful Market Report 2026

The takaful market size has grown rapidly in recent years. It will grow from $36.5 billion in 2025 to $40.9 billion in 2026 at a compound annual growth rate (CAGR) of 12%. The growth in the historic period can be attributed to rising muslim population insurance needs, increasing awareness of sharia compliant insurance, growth of islamic finance sector, rising trust in community based protection models, expansion of takaful providers globally.

The takaful market size is expected to see rapid growth in the next few years. It will grow to $63.62 billion in 2030 at a compound annual growth rate (CAGR) of 11.7%. The growth in the forecast period can be attributed to increasing demand for ethical insurance offerings, rising financial inclusion focus in islamic regions, growing diversification of takaful products, increasing support from regulatory frameworks, expansion of takaful awareness initiatives. Major trends in the forecast period include growing adoption of sharia compliant insurance solutions, increasing preference for ethical and community based protection, rising acceptance of islamic financial protection systems, increasing focus on risk sharing based insurance models, growing expansion of takaful products across applications.

The large and growing Muslim population is expected to drive the growth of the takaful market going forward. Muslims are followers of Islam and live according to the teachings of Prophet Mohammad. Takaful is founded on the principles of mutual assistance and shared responsibility outlined in Islamic teachings, making it widely adopted within the Muslim community. For instance, in 2023, according to the Muslim Population by Country 2023 report published by World Population Review, a US-based demographic data provider, Islam is the world’s second-largest religion after Christianity, with more than two billion followers globally. It is further projected that by 2050, Muslims will outnumber Christians worldwide. Indonesia accounted for the largest Muslim population, with over 231 million Muslims, representing approximately 86.7% of its total population. As a result, the expanding Muslim population is propelling the growth of the takaful market.

Major companies operating in the takaful market are increasingly focusing on launching innovative solutions, such as digital takaful offerings, to strengthen their competitive positioning. Digital takaful products are Sharia-compliant insurance solutions that are distributed, managed, and serviced through digital platforms. For instance, in August 2023, Ouch!, a Malaysia-based insurance company, introduced a digital takaful product named Pusara Pro in Malaysia. Pusara Pro is a simplified term life takaful product that offers a death benefit of up to $120 million (RM500,000). The product is fully digital and can be purchased, accessed, and serviced through the Ouch! mobile application. Additionally, the app functions as an educational platform for younger consumers by providing tools such as a coverage calculator and a referral program that allows participants to earn rewards.

In October 2025, YASH Technologies Private Limited, an India-based technology and IT services company, entered into a partnership with Gulf Insurance Group Kuwait Takaful to accelerate AI-driven digital transformation across the Middle East insurance sector. Through this collaboration, the partners aim to modernize GIG Takaful’s core insurance systems, implement advanced analytics, and enhance customer experience by combining YASH Technologies’ expertise in artificial intelligence and digital transformation with GIG Takaful’s Sharia-compliant insurance operations. Gulf Takaful Insurance Co. is a Kuwait-based insurance provider specializing in takaful products and services.

Major companies operating in the takaful market report are Gulf Insurance Group, The Company for Cooperative Insurance (Tawuniya), Walaa Cooperative Insurance, SALAMA Islamic Arab Insurance, Al Sagr Cooperative Insurance, Buruj Cooperative Insurance, Qatar Islamic Insurance Company, Takaful Re Limited, Alrajhi Takaful, Takaful International Company, Abu Dhabi National Takaful, Noor Takaful Family, Prudential BSN Takaful, Syarikat Takaful Brunei Darussalam, Re-Takaful Company, Arabia Insurance Cooperative, Amana Cooperative Insurance, Al Etihad Cooperative Insurance, Allied Cooperative Insurance Group, Islamic Insurance Company.

Asia-Pacific was the largest region in the takaful market in 2025. Asia-Pacific is expected to be the fastest-growing region in the global takaful market during the forecast period. The regions covered in the takaful market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the takaful market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The takaful market includes revenues earned by entities by providing services such as insurance and guidance, consultation, and claim settlement. 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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