Surety Market Report 2025

This Surety market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The surety market size has grown strongly in recent years. It will grow from $19.62 billion in 2024 to $21 billion in 2025 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to increasing construction activities, rising infrastructure development, rising construction industry standards, rising construction sector innovations, growth in private sector investments, growth in real estate development.

The surety market size is expected to see strong growth in the next few years. It will grow to $27.31 billion in 2029 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to increasing demand for construction projects, increasing government regulations, increasing number of infrastructure projects, increasing adoption of technology in underwriting, rising number of small and medium sized enterprises (SMEs). Major trends in the forecast period include adoption of digital platforms, advancements in risk management tools, adoption of automated underwriting processes, advancements in digital verification methods, advancements in fraud detection technology.

The growing use of digital payment services is expected to significantly drive the growth of the surety market. Digital payment services involve the use of electronic channels and mobile devices to facilitate online monetary transactions. The rise in smartphone usage, improved internet access, advanced security measures, and user convenience are key factors driving the adoption of digital payments. Surety services play a crucial role by providing financial guarantees that ensure the performance and reliability of service providers, protecting users from potential losses due to fraud, service disruptions, or non-compliance with contractual obligations. For example, in February 2023, the Ministry of Electronics & IT, an India-based government ministry, reported that the total value of digital transactions amounted to 8,840 crore ($1.056 billion) in 2021-2022 and reached 9,192 crore ($1.097 billion) by December 2022. This growth in digital payment usage is driving the surety market forward.

Leading companies in the surety market are focusing on developing surety insurance to enhance financial security and address the growing demand for risk management solutions. Surety insurance, or surety bonds, provides a financial guarantee that obligations will be met, offering protection and assurance to parties involved in transactions and contracts. For instance, in July 2024, ICICI Lombard, an India-based insurance company, introduced surety insurance to provide financial guarantees that ensure contractors fulfill their obligations. This new product allows for greater financial flexibility and supports larger projects by offering both conditional and unconditional options, advanced risk management, and freeing up banking lines. Its introduction is a significant development in the surety insurance market, addressing the infrastructure sector's need for effective risk mitigation and enabling businesses to secure larger, high-value contracts.

In June 2024, Core Specialty, a US-based insurance company, acquired American Surety Company for an undisclosed amount. This acquisition is intended to strengthen Core Specialty’s position in specialty insurance by incorporating American Surety as its 17th business unit. The acquisition expands Core Specialty’s bond, credit, and guarantee sub-segment with new product lines, such as bail bonds and commercial surety bonds, enhancing its market presence and supporting its goal of leading in the profitable surety market. American Surety is a US-based company that provides surety bonds and insurance services.

Major companies operating in the surety market are Berkshire Hathaway Specialty Insurance Company, Nationwide Financial General Agency Inc., Liberty Mutual Group, Zurich Insurance Group Ltd, Chubb Limited, The Travelers Indemnity Company, The Hartford Financial Services Group Inc., Marsh & McLennan Companies Inc, Intact Financial Corporation, QBE Insurance Group Limited, Aon plc, Everest Group Ltd, CNA Financial Corporation, Markel Corporation, Arch Capital Group Ltd, AssuredPartners Inc., Old Republic International Corporation, American Financial Group Inc., AmTrust Financial Services Inc., The Hanover Insurance Group Inc., Crum & Forster Insurance, Starr International Company Inc., Tokio Marine Holdings Inc., Allianz Trade, Aspen Insurance Holdings Limited, IAT Insurance Group Inc., EverQuote Inc., J.S. Held LLC, Prime Insurance Company Limited, American Surety Company.

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

Surety involves a contractual agreement where a surety commits to ensuring the performance and obligations of a principal to a third party. This mechanism is designed to ensure that contractors, businesses, and individuals uphold their commitments, such as completing projects and settling debts. The surety provides assurance that the obligee will receive compensation if the principal fails to meet their contractual duties or obligations.

The principal categories of bonds in the surety market include contract surety bonds, commercial surety bonds, fidelity surety bonds, and court surety bonds. A contract surety bond specifically guarantees that a contractor will meet their contractual obligations, covering project completion and payment to subcontractors and suppliers. These bonds are applied in various contexts, including government agencies and enterprises, and are utilized by a range of end users, including businesses, contractors, construction firms, government entities, suppliers, service providers, and individuals.

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

The surety market includes revenues earned by entities by providing services such as issuing performance guarantees, providing bond underwriting, and payment bonds. 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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