The global Equipment Breakdown Insurance market is projected to reach USD 120 billion by 2028, growing at a CAGR of 15%
This can be attributed to the introduction of equipment that have advanced design, efficiency, and accuracy which are more sophisticated, and incur costly repairs and maintenance. During the running of such equipment there might occur major breakdown due to material defects and operational failure resulting into huge financial losses. As a result industries are adopting insurance covers that may protect themselves against financial losses. However, lack of awareness and knowledge about equipment breakdown insurance and user speculations about faulty and scheming insurance policies thwart smooth adoption and restrict growth in the global equipment breakdown insurance market. Furthermore, insurers are responding to the clients’ equipment breakdown insurance needs from low value equipment insurance covers to high valued equipment insurance covers. These developments are anticipated to further attract lucrative opportunity for the global equipment breakdown insurance market in the coming years.
Equipment breakdown insurance is type of business insurance policy that may help pay for the repairing charges or damages caused due to prolonged wear and tear or accidental damage. The equipment breakdown insurance covers every equipment that are necessary to keep businesses running including mechanical, electrical, boilers, and other equipment. Equipment breakdown insurance is usually triggered when there are power surges, short circuits, mechanical breakdowns, etc., The purpose of equipment breakdown insurance is to facilitate insurance coverage for most important instruments that compensates financial loss caused due to damage for the equipment when in operations. For example, repairs after a covered incident are also classed under the equipment breakdown insurance. The market comprises of insurance companies that provide cover according to damages caused for their clients’ equipment. The high threat of new entrants coupled with additional coverage to the customers has resulted in market consolidation.
The key insurance companies in the global equipment breakdown insurance market are Gulfstream Insurance, Allied Insurance, Erie Insurance, Aviva, Travelers Insurance, Liberty Mutual, Safeco Insurance, Allstate, AIG, AXA, and Zurich. These prominent insurance providers are implementing strategies such as flexible insurance services to the clients covering equipment of less value to equipment worth greater value. Additionally, new product launches and mergers & acquisitions are some other strategies utilized by the insurers to stay ahead in the competitive environment. This has resulted into effective service to clients and better client satisfaction.
Equipment Breakdown Insurance Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 120 billion|
|Growth Rate||CAGR of 15% during 2021-2028|
|Segment Covered||By Materials, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Nationwide,Erie Insurance,Allianz Re,Central Insurance Companies,Swiss Re,Aviva,Allstate,Westfield Insurance,Patriot Insurance Company,The Hartford,Zurich,Allied Insurance,Arch Capital Group,AXIS Capital,Gulfstream Insurance,CNA Insurance,Munich Re,FM Global Group,AIG,Liberty Mutual|
Key Segments of the Global Equipment Breakdown Insurance Market
Type Overview, 2021-2028 (USD Billion)
- Computers & Communications
- Boilers & Pressure Equipment
Application Overview, 2021-2028 (USD Billion)
Regional Overview, 2021-2028 (USD Billion)
- Rest of Europe
- Rest of Asia-Pacific
- Rest of Latin America
Middle East and Africa
Reasons for the study
- The study covers world outlook of the global equipment breakdown insurance market with demand dynamics and potential industry earnings for the countries in study.
- The report does comparative study which allows the interested public quickly gauge a country vis-à-vis others.
- In order to make the market estimates the report has employed multi-dimensional methodologies which make the estimated market study more reliable for the market players.
- This report enables better insights of the market to ensure growth oriented business investments.
What does the report include?
- The report provides sector specific intelligence, real-time growth opportunities, strategic planning, and business development strategies.
- The report includes global “keyword” market sizing, 100 countries coverage, sectors & sub-sectors, and five year forecasts.
- The innovative environment that exists in the leading firms is summarized in the report so that it will help the other market players to improve quality, productivity, and efficiency in their operations.
- Several troubling trends that observed in the market are included in the report.
- The crucial factors that excite concern about the international competitiveness of the global “keyword” market are focused in the report.
- Sustainability strategies that would strengthen the market position of the market players are studied in detail.
Who should buy this report?
- This report enlightens agents, brokers, attorneys, mangers, business owners, and others who want to know more about the insurance covered offered in individual countries and want to reduce exposures from equipment breakdown losses
- This report has been compiled for the benefit of businesses considering insurance coverage for broken down equipment and those who reduce financial losses.
- This report is created for the wellbeing of global strategic planner, customers and prospective customers, BI vendors, CFOs, CXOs, and other intermediaries across the value chain who looking for insights shaping the world market of Global Equipment Breakdown Insurance Market.
Frequently Asked Questions (FAQ) :
The growing technology innovations of equipment in commercial and industrial sectors that may lead to accidental damages are the key reasons driving the demand for equipment breakdown insurance solutions. Equipment breakdown insurance coverages are becoming primary needs of the manufacturing and other industries to safeguard from further financial losses and run the business smoothly. Equipment breakdown insurance also renders optimum financial protection against several instances incurring financial losses. These events might include sudden breakdown of the machinery and equipment during commercial or production practices.
The growing adoption of insurance by small, medium, and large businesses is accelerating the global equipment breakdown insurance market. Also, equipment breakdown insurance cover programs allow companies to save huge damage costs caused due to the breakdown. An increasing number of commercial and manufacturing firms are availing the services offered through the insurance covers.
Depending on Type segment, the market is studied on the basis of segments namely electrical, mechanical, computers & communications, boilers & pressure equipment, and others. The mechanical and electrical segment gathered the highest share in 2020 and is likely to see a considerable growth in the years to come. The aforementioned advantages coupled with better cost management and improved business capabilities are expected to boost the market value for the mechanical and electrical segment in the global equipment breakdown insurance market in the forecasted period.
Depending on Application segment market is studied on the basis of segments namely manufacturing and business. In 2020, the manufacturing segment recorded the maximum market share and is projected to hold similar lead during the forecast years as well. The growth of this market segment is mainly ascribed to the growing technology innovation, advanced designs, and installations of high performing equipment that may lead to sudden and unforeseen breakdown and losses inclining the business and manufacturing firms adopt insurance policies that will protect them from further financial losses.
The North American region witnessed major growth in 2020 and is anticipated to capture good growth in the forecasted years. This is due to increasing instalments of sophisticated equipment, costly repairs and high maintenance cost. At the same time, China is also projected to record highest growth in the market due to increasing manufacturing plants in the region and the facilities adopting insurance policies to get protection against future equipment damages. These are key factors driving growth of co-working space management software market in the region.