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Renewable Energy Insurance Market Market Size (2024 - 2029)

The renewable energy insurance market is experiencing growth driven by the increasing reliance on solar and wind power, which are expected to significantly contribute to global energy production. This market expansion is characterized by a soft market environment due to substantial capital influx, although challenges such as rate and deductible adequacy persist. Despite North America's slower progress in offshore renewable sources compared to Europe and parts of Asia, it remains a leader in solar and wind energy deployment. The market's trajectory indicates a substantial increase in market size over the coming years, reflecting the broader shift towards sustainable energy solutions.

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Market Size of Renewable Energy Insurance Industry

Renewable Energy Insurance Market Summary
Study Period 2020-2029
Market Size (2024) USD 18.74 Billion
Market Size (2029) USD 22.98 Billion
CAGR (2024 - 2029) 4.16 %
Fastest Growing Market Asia Pacific
Largest Market Europe
Market Concentration High

Major Players

Renewable Energy Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order

Renewable Energy Insurance Market Analysis

The Renewable Energy Insurance Market size is estimated at USD 18.74 billion in 2024, and is expected to reach USD 22.98 billion by 2029, growing at a CAGR of 4.16% during the forecast period (2024-2029).

The sun and wind are the two main resources driving the expansion of renewable energy. Other forms are relevant in some areas, but they are typically more complicated, less standardized, have smaller economies of scale, and need more initial financial outlays to be utilized. In the next two decades, energy from solar and wind power should make up nearly half of global production. In contrast, coal production is expected to decrease due to the possibility that it will be outlawed or subject to heavy taxes in the future, as well as the longer-term cost, cleaner nature, and greater sustainability of renewable energy sources.

The renewable energy insurance market is expanding and has drawn much capital, making it a soft market with many obstacles for insurers. However, issues regarding the adequacy of rates and deductibles have been highlighted by recent loss trends in some parts of the renewable energy business.

Over the decade, the global market for renewable energy insurance is expected to expand by more than USD 200 billion. While North America lags behind Europe and some areas of Asia in developing offshore renewable sources, the continent leads the world in deploying solar and wind energy.

Renewable Energy Insurance Industry Segmentation

Renewable energy insurance provides comprehensive coverage for the total replacement expenses of energy generated by renewable energy facilities, even extending to the construction or installation phases. Renewable Energy Insurance can help solar, green energy, and alternative energy companies. The renewable energy insurance market is segmented by type, application, and region. By type, the market is segmented into fossil fuels, sustainable and renewable energy, and nuclear power. By application, the market is segmented into residential and commercial. By region, the market is segmented into North America, Europe, Asia-Pacific, and Middle East and Africa. The report offers market size and forecasts for the renewable energy insurance market for all the above segments in value (USD).

By Type
Fossil Fuels
Sustainable and Renewable Energy
Nuclear Power
By Application
Residential
Commercial
By Region
North America
Europe
Asia-Pacific
South America
Middle East & Africa
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Renewable Energy Insurance Market Size Summary

The renewable energy insurance market is experiencing significant growth, driven by the increasing adoption of solar and wind energy, which are becoming dominant sources of global energy production. This shift is largely due to the declining reliance on coal, influenced by regulatory pressures and the inherent advantages of renewable energy, such as sustainability and cost-effectiveness. The market is characterized as soft, attracting substantial capital but facing challenges related to rate adequacy and deductibles, particularly in certain segments. Despite these challenges, the market is poised for expansion, with North America leading in solar and wind deployments, while Europe and Asia are advancing in offshore renewable energy development.

The growth in renewable energy investments is fueled by favorable economic conditions, high fossil fuel prices, and supportive policies like the US Inflation Reduction Act and initiatives in Europe, Japan, and China. These policies align with global climate change and energy security goals, encouraging countries to enhance their industrial strategies in the clean energy sector. The mining, oil, and gas industries are also increasing their investments in renewable technologies to diversify and reduce carbon emissions. Asia-Pacific is witnessing rapid growth, with significant investments in solar, offshore wind, and hydroelectric power, driven by China's large market and government support. The region is also a leader in lithium-ion battery production, further bolstering its renewable energy sector. The market is consolidated, with major players like BKS Partners, Liberty Specialty Markets, WTW, RSA Insurance, and Swiss Re playing pivotal roles in its development.

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Renewable Energy Insurance Market Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

      1. 1.1.1 Market Drivers

      2. 1.1.2 Strong Demand for Renewable Energy Driving Market Growth

      3. 1.1.3 Global Energy Infrastructure Project Expansion Driving Market Growth

    2. 1.2 Market Restraints

      1. 1.2.1 Demand for Increased Power Generation

      2. 1.2.2 Impact of Renewable Assets Susceptible to Flood and Wind Losses on Market

    3. 1.3 Market Opportunities

      1. 1.3.1 Combining Risk Modelling and Data Analytics Techniques to Enhance Underwriting and Claims Handling

      2. 1.3.2 Rising Insurance Coverage Needs in Developing Nations as Energy Infrastructure Develops

    4. 1.4 Industry Attractiveness: Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights into Government Initiatives in the Renewable Energy Insurance Market

    6. 1.6 Insights into Technological Advancements in the Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Fossil Fuels

      2. 2.1.2 Sustainable and Renewable Energy

      3. 2.1.3 Nuclear Power

    2. 2.2 By Application

      1. 2.2.1 Residential

      2. 2.2.2 Commercial

    3. 2.3 By Region

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-Pacific

      4. 2.3.4 South America

      5. 2.3.5 Middle East & Africa

Renewable Energy Insurance Market Market Size FAQs

The Renewable Energy Insurance Market size is expected to reach USD 18.74 billion in 2024 and grow at a CAGR of 4.16% to reach USD 22.98 billion by 2029.

In 2024, the Renewable Energy Insurance Market size is expected to reach USD 18.74 billion.

Renewable Energy Insurance Market Report Snapshots

Renewable Energy Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)