Boiler Insurance Market Report 2025

The boiler insurance market size has grown rapidly in recent years. It will grow from $12.18 billion in 2024 to $14.06 billion in 2025 at a compound annual growth rate (CAGR) of 15.4%. The growth in the historic period can be attributed to industrial growth, risk mitigation, boiler safety concerns, globalization of industries, rise in boiler installations, preventive maintenance, energy sector dynamics.

The boiler insurance market size is expected to see rapid growth in the next few years. It will grow to $24.4 billion in 2029 at a compound annual growth rate (CAGR) of 14.8%. The growth in the forecast period can be attributed to renewable energy sources, increasing boiler efficiency, global energy transition, customization of policies, cybersecurity concerns. Major trends in the forecast period include remote monitoring, boiler retrofits, integration of IoT and sensors, digitalization of claims processing, enhanced data analytics for underwriting, market expansion in developing regions.

The rising incidence of explosions and associated damage in industries is fueling the growth of the boiler insurance market. Boilers are closed vessels utilized to heat water and generate steam for various industrial applications. Operating at high temperatures necessitates strict safety precautions; however, failures in these precautions can lead to catastrophic explosions. Such incidents can incur significant costs for companies, making boiler insurance essential for mitigating financial losses. For example, a report by Hans India, an India-based media outlet, highlighted that over the past decade, there have been approximately 23,000 boiler accidents worldwide, with India alone contributing to 34% of all fatalities. Therefore, the increasing frequency of explosions and related damages is propelling the boiler insurance market forward.

The expansion of the manufacturing industries is expected to drive the growth of the boiler insurance market. Manufacturing industries encompass any sector that employs technology or manual labor to transform raw materials into finished goods. As these industries grow and expand, the demand for boilers rises, subsequently increasing the need for boiler insurance to protect against potential damages and losses. For example, in May 2024, the Australian Bureau of Statistics, a national statistical agency in Australia, reported that manufacturing industries recorded an increase in EBITDA (earnings before interest, taxes, depreciation, and amortization) to 51,574 in 2022, up from 50,446 in 2021. Consequently, the growth of manufacturing industries is poised to bolster the boiler insurance market.

The global energy demand is anticipated to fuel the growth of the boiler insurance market. Rising energy demand, quantified as the need for electricity, heat, or fuel within specified periods, directly impacts the boiler insurance market. With industries expanding, adopting advanced technologies, and facing evolving risks associated with energy production, there is an increased requirement for comprehensive coverage. According to the US Energy Information Administration, primary energy consumption is projected to rise by 16% to 57% by 2050 compared to 2022. The escalating global energy demand acts as a catalyst for the growth of the boiler insurance market, aligning with industries' evolving risk landscapes.

The boiler insurance market is witnessing a significant trend towards the adoption of advanced technologies. Key players in the market are incorporating cutting-edge technologies into their insurance services to maintain a competitive edge. For example, in September 2022, Hartford Steam Boiler Inspection and Insurance Company, a US-based firm specializing in engineering and technical risk insurance, introduced Meshify Protect - a mobile application for sensor monitoring and alerts in industrial operations. This application utilizes IoT technology to streamline sensor activation, monitor facility conditions, and promptly notify stakeholders about potential issues such as water leaks, frozen pipes, extreme temperatures, and equipment failures. Meshify Protect not only offers real-time alerts but also supports predictive and preventive loss analyses, contributing to operational optimization and enabling innovative business models with financial coverage.

Major companies in the boiler insurance market are strategically partnering to enhance their capabilities. Strategic partnerships involve leveraging the strengths and resources of partnering companies to achieve mutual benefits and success. For instance, in October 2022, Munich Re, a German-based reinsurance provider, and HSB Group, a US-based boiler insurance company, collaborated with Schneider Electric SE, a France-based digital automation and energy management company. This strategic partnership aims to integrate risk solutions, including uptime guarantees and unwarned failure warranties, with IoT technology to offer comprehensive services to clients. This collaborative approach enhances the overall capabilities of the companies involved, providing clients with advanced and comprehensive boiler insurance solutions.

Major companies operating in the boiler insurance market include Aviva plc, Axa S.A., Centrica plc, CORGI HomePlan Ltd., Domestic & General Group Limited, Future Generali India Insurance Co. Ltd., HDFC ERGO General Insurance Company Limited, HomeServe Membership Ltd., Liberty Mutual Group Inc., Tata AIG General Insurance Company Limited, The Travelers Indemnity Company, Zurich Insurance Group Ltd., British Gas Services Ltd., Allianz SE, Chubb Limited, American International Group Inc., Münchener Rückversicherungs-Gesellschaft, Swinton Insurance Ltd., Admiral Insurance Co., Churchill Insurance Company Limited, Legal & General Group plc, Hartford Steam Boiler Inspection and Insurance Company, Factory Mutual Insurance Company, Allianz Global Corporate & Specialty SE, Berkshire Hathaway Specialty Insurance Co., AXA XL, Travelers Companies Inc.

North America was the largest region in the boiler insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the boiler insurance market report during the forecast period. The regions covered in the boiler insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the boiler insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Boiler insurance is a protective plan designed to safeguard companies against financial losses resulting from boiler and machinery breakdowns or failures, offering coverage for potential monetary setbacks.

The primary types of boiler insurance include coverage for boiler repairs, servicing, plumbing and drainage repairs, among other related aspects. Boiler repair insurance specifically covers the costs incurred for repairing boilers, proving beneficial in maintaining operational efficiency in the event of boiler breakdowns. Insurance policies often categorize boilers into types such as fire-tube and water-tube, offering varying levels of coverage such as gold, platinum, and others. These insurance plans are commonly utilized by industries such as chemicals, refineries, metal and mining, food and beverages, among others.

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

The boiler insurance market includes revenues earned by entities by providing services such as insurance guidance, consulting, 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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