Europe Surety Market Forecast, Size, and Growth 2031

The Europe surety market size is projected to reach US$ 6.53 billion by 2031 from US$ 4.13 billion in 2023. The market is expected to register a CAGR of 5.9% in 2023–2031. The rise in digitalization, automation, and other technological advancements is likely to remain among the key Europe surety market trends.

Europe Surety Market Analysis

The construction sector is one of the primary drivers of the surety market in Europe. Surety bonds are commonly required in construction contracts to ensure that projects are completed as per the specified terms and conditions. For example, a contractor bidding on a public construction project might need to obtain a bid bond to demonstrate financial capacity and assurance to the project owner. Performance bonds and payment bonds are also prevalent in construction contracts to protect project owners and subcontractors against default or non-payment.

Europe Surety Market Overview

Under the terms of a construction or engineering contract or in compliance with mandatory legal requirements, bonds and guarantees are typically needed to secure the obligations of the principal debtor (sometimes referred to as the principal) against the beneficiary. They provide assurances for fulfilling a wide range of duties, including commercial ventures, licenses, and construction or service contracts. A surety bond can be used to secure almost any kind of transaction, service, or compliance agreement. Surety companies issue bonds that guarantee the performance of a party (usually a contractor) in a contract. If a contractor is unable to fulfill their obligations, the surety company takes responsibility and financially compensates the project owner.

Customize This Report To Suit Your Requirement

You will get customization on any report - free of charge - including parts of this report, or country-level analysis, Excel Data pack, as well as avail great offers and discounts for start-ups & universities

Get FREE CUSTOMIZATION

Europe Surety Market: Strategic Insights

Europe Surety Market

• Market Size 2023
  US$ 4.13 Billion
• Market Size 2031
  US$ 6.53 Billion

Market Dynamics

GROWTH DRIVERS

• Increasing Adoption of Public-Private Partnerships for Infrastructure Development
• Growing Need for Restoration of Aging Infrastructure in European Economies

FUTURE TRENDS

• Rise in Digitalization, Automation, and Other Technological Advancements

OPPORTUNITIES

• Rapid Urbanization in Europe

Regional Overview

• Europe

Market Segmentation

Bond Type

• Contract Surety Bond
• Commercial Surety Bond

End Users

• Individuals
• Enterprises

• Get Top Key Market Trends of this report.
  This FREE sample will include data analysis, ranging from market trends to estimates and forecasts.

Free Sample PDF

Europe Surety Market Drivers and Opportunities

Increasing Adoption of Public-Private Partnerships for Infrastructure Development to Favor Market

Public-private partnerships (PPPs) are being increasingly used in the assurance industry for infrastructure development projects. According to the European Investment Bank, in 2022, in Europe, the aggregate value of public-private partnership transactions that reached financial close totaled US$ 13,480.2 million, i.e., a 17% increase from 2021. Four public-private partnership projects, including CEGELOG 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 the year (2022), were financed by the EIB, for an aggregate lending volume of US$ 1,375.5 million. 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 offer tailored solutions that address the particular requirements of PPP projects.

PPPs have grown in popularity recently as governments of various countries in Europe leverage private sector expertise and financing to address infrastructure needs. For instance, in February 2024, a high-level policy dialogue between the United Nations Development Programme (UNDP) and the European Union (EU) concluded that the partnership between the two organizations is vital to tackle the growing global challenges and scale up action to achieve a more sustainable and equitable future. Thus, the increasing adoption of public-private partnerships for infrastructure development fuels the Europe surety market growth.

Rapid Urbanization in Europe – An Opportunity in the Market

Europe has showcased tremendous advancements in urbanization owing to rapid population growth in recent years. The UK, Malta, and the Netherlands have the highest population density in urban areas. Governments of the countries mentioned above are investing substantial amounts toward the development of the respective country's infrastructure, leading to the continuous construction of residential and commercial infrastructures. For instance, the Grand Paris project was launched to interconnect the entire greater Paris area. This ongoing innovative urban development project aims to transform the city, creating new ties between inhabitants and revitalizing the local economy. This project is scheduled for completion in 2030, and surety bonds will likely be crucial for securing contracts with construction companies involved in this large-scale undertaking. Furthermore, the contract awarding authorities will demand a guarantee for the completion of defined tasks in the stipulated period, which will fuel the need for surety bonds.

Europe Surety Market Report Segmentation Analysis

Key segments that contributed to the derivation of the Europe surety market analysis are bond type and end users.

• Based on bond type, the market is bifurcated into contract surety bond and commercial surety bond. The contract surety bond segment held a significant market share in 2023.
• By end users, the market is segmented into individuals and enterprises. The enterprises segment held a substantial share of the market in 2023.

Europe Surety Market Share Analysis by Geography

The geographic scope of the Europe surety market report is mainly segmented into the UK, Germany, France, Spain, Italy, and the Rest of Europe.

In Germany, the surety market is highly driven by the increasing infrastructure developments. For instance, in November 2023, Germany’s federal and state governments agreed on a package to accelerate 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. France is recognized as one of the top countries in terms of infrastructure, energy, transport, and social infrastructure (especially in healthcare, justice, education, and housing). Moreover, in 2022, France was the largest public-private partnership market in Europe not only in terms of value, with a total of US$ 4.55 billion (US$ 1.73 billion in 2021), but also in terms of the number of projects, with 21 deals closed (18 deals were closed in 2021). Thus, the increase in infrastructure and public-private partnerships is driving the surety market in France.

Europe Surety Market Market Report Scope

Europe Surety Market News and Recent Developments

The Europe surety market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the Europe surety market:

• Cadence Bank ("Cadence" or the "Company") announced that it entered into a definitive agreement to sell its insurance operations, Cadence Insurance, Inc., to Arthur J. Gallagher & Co. ("Gallagher") for US$ 904 million.

(Source: Cadence Bank, Company Website, 2023)

• Liberty Mutual Surety announced the appointment of Renee Llewellyn as senior vice president manager of Liberty Mutual Surety Plus, a unit dedicated to providing bonds for small and mid-size contractors, including subdivision, transactional, and hard-to-place bonds.

(Source: Liberty Mutual Surety, Company Website, 2023)

Europe Surety Market Report Coverage and Deliverables

The “Europe Surety Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at regional and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST and SWOT analysis
• Regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles