Surety Market is expected to reach US$ 31.85 Billion by 2031

Increase in Adoption of Public-Private Partnership for Infrastructure Development Boosts Surety Market Growth

According to our latest market study on "Surety Market Size and Forecast (2021–2031), Regional Share, Trend, and Growth Opportunity Analysis — by Technology, Product Type, and Application," the market was valued at US$ 20.26 billion in 2024 and is anticipated to reach US$ 31.85 billion by 2031. It is estimated to register a CAGR of 6.6% during 2025–2031. The report includes growth prospects in light of current surety market trends and driving the growth.

Public-private partnerships (PPPs) are being increasingly used in the insurance industry for infrastructure development projects. According to the European Investment Bank (EIB), in 2022, in Europe, the aggregate value of public-private partnership transactions that reached financial close totaled US$ 13,480.2 million, a 17% increase from 2021. Four public-private partnership projects—EGELOG Affordable Housing & Energy Efficiency in France, Community Nursing PPP in Ireland, Krakow Tramway PPP in Poland, and NeuConnect Interconnector in Germany and the Netherlands—reached financial close during 2022, were financed by the EIB for an aggregate lending value of US$ 1,375.5 million. In February 2025, in India, the Union Minister for Finance and Corporate Affairs proposed that each infrastructure-related ministry will come up with a 3-year pipeline of projects that can be implemented in PPP mode, and States will also be encouraged to initiate and seek support from the India Infrastructure Project Development Fund (IIPDF) scheme to prepare PPP proposals. In PPPs, the public and private sectors work together, with the private sector usually handling the financing, designing, building, and operations of infrastructure projects. Surety bonds are an essential feature of PPPs, offering financial stability to government agencies and reducing risks for private sector players. This offers a substantial chance for surety firms to provide tailored solutions that address the particular requirements of PPP projects.

Surety Market Analysis – by Geography

Source: The Insight Partners Analysis

Increased infrastructure development projects often require financial assurances to guarantee performance, completion, and compliance. The backing of projects under PPP encourages confidence among investors, contractors, and stakeholders. For this, in December 2024, the Asian Development Bank (ADB) approved a US$ 30 million loan to support public-private partnership (PPP) projects in the Philippines and help the country strengthen infrastructure development, advance climate action, and enhance economic competitiveness. Such developments aimed at boosting PPP encourage contractors to secure performance bonds while ensuring that private investors and the government have protection against risks associated with large infrastructure projects, fueling the surety market growth.

The scope of the surety market report focuses on North America (US, Canada, and Mexico), Europe (UK, Germany, France, Italy, Russia, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America). In North America, the US held the largest surety market share in 2024. The US Small Business Administration (SBA) is an independent agency of the US government that provides support to entrepreneurs and small businesses. The SBA secures bid, performance, and payment surety bonds issued by surety companies for contracts and subcontracts up to US$ 9 million. Guarantees provided by the authority allow companies to offer surety bonds to small businesses that might not meet the criteria for other sureties. The SBA can also guarantee bonds for federal contracts up to US$ 14 million if a federal contracting officer certifies that the SBA's guarantee is required for the small business to obtain bonding.

Further, the SBA provides a simplified bond guarantee application under its QuickApp for contracts up to US$ 500,000. As announced by the Head of the US SBA and the voice in President Biden's Cabinet for more than 34 million small businesses nationwide, SBA's Surety Bond Guarantee (SBG) Program notched its best year in 25 years in fiscal year 2024.

In Europe, Germany held the largest surety market share in 2024. In Germany, the surety market is highly driven by increasing infrastructure developments. For instance, in November 2023, Germany's federal and state governments agreed on a package to speed up the roll-out of new infrastructure projects such as railways and power grids, in part by automatically approving applications if there is no timely response by responsible authorities. Moreover, the German construction industry is anticipated to witness a positive outlook owing to an increase in its residential construction. Low interest rates and high employment rates drive the country's residential construction activities. Thus, the rise in construction activities and infrastructure developments in Germany is anticipated to positively influence the construction sector, thereby driving the surety market in Germany.

Crum & Forster; CNA Financial Corp; The Travelers Companies Inc; Liberty Mutual Holding Co Inc; The Hartford Insurance Group, Inc.; Chubb Ltd; Credendo; Great American Insurance Company; Atradius NV; and IAT Insurance Group are among the key players profiled in the surety market report. Several other major players were also studied and analyzed in the report to get a holistic view of the market and its ecosystem. The market study provides detailed market insights, which help the key players strategize their growth. The surety market forecast can help stakeholders plan their growth strategies.

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