Surety Market Growth Drivers and Opportunities by 2031
The surety market size is projected to reach US$ 35.52 billion by 2031 from US$ 21.14 billion in 2023. The market is expected to register a CAGR of 6.7% in 2023–2031. Growing digitalization and increasing focus on sustainable development are likely to remain a key surety market trend.
Surety Market Analysis
The surety market is growing at a rapid pace due to the growing number of construction activities and digital transformation in bonding processes. The market is expanding steadily, driven by the availability of customized bonds and growing adoption surety for managing financial risks. Moreover, the growing use of advanced technologies and increased focus on environmental, social, and governance (ESG) factors are providing lucrative opportunities for market growth.
Surety Market Overview
Surety is financial guarantees or bonds, a pledge to be liable for another's debt, default, or failure. It is a three-party agreement in which one party (the surety) guarantees the performance or obligations of another (the principal) to a third party (the obligee). A surety functions as an assurance that a person or organization will accept responsibility for meeting financial commitments if the debtor defaults and is unable to pay. The party that guarantees the debt is known as the surety or guarantor. Sureties can be obtained by issuing surety bonds, which are legal contracts that require one party to pay if the other fails to live up to the arrangement. These bonds are highly used by the construction, real estate, finance, and transportation industries to safeguard the oblige against the principal's noncompliance.
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Surety Market: Strategic Insights
Market Size Value in US$ 16.07 Billion in 2019 Market Size Value by US$ 25.18 Billion by 2027 Growth rate CAGR of 6.4% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Surety Market: Strategic Insights
Market Size Value in | US$ 16.07 Billion in 2019 |
Market Size Value by | US$ 25.18 Billion by 2027 |
Growth rate | CAGR of 6.4% from 2020-2027 |
Forecast Period | 2020-2027 |
Base Year | 2020 |
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Speak to AnalystSurety Market Drivers and Opportunities
Digital Transformation in Bonding Processes is Driving the Market
Digital transformation has become one of the noticeable drivers in recent years. The digital revolution of bonding operations is replacing the traditional paper-based system, which supports users in reducing the additional operational costs are driving the market. Traditional paper-based systems are being replaced by digital platforms that simplify bond applications, approvals, and issuances. Middle-market construction companies can consider using these digital solutions to decrease paperwork, increase efficiency, and shorten bond application processing times.
Growing Use of Advanced Technologies
Technology will become increasingly crucial in the surety industry. Surety organizations are heavily investing in advanced technologies such as artificial intelligence, blockchain, and big data analytics to streamline and improve their operations. For instance, blockchain is used to streamline surety bond issuance and claims processing, while big data analytics can help uncover possible hazards and fraud. Thus, significant benefits offered by advanced technologies are creating lucrative opportunities in the market during the forecast period.
Surety Market Report Segmentation Analysis
Key segments that contributed to the derivation of the surety market analysis are bond type.
- Based on bond type, the surety market is divided into contract surety bond, commercial surety bond, fidelity surety bond, and court surety bond. The contract surety bond segment held a larger market share in 2023.
Surety Market Share Analysis by Geography
The geographic scope of the surety market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
In terms of revenue, North America accounted for the largest surety market share, due to the growing industrialization and increasing number of small businesses in the US and Canada. These countries have a strong economy and favorable support from the government in promoting and establishing start-ups is boosting the market. Surety bonds are highly adopted by small businesses to obtain contracts to assure their customer that the particular work will be performed and completed on time. Surety bonds, issued by surety businesses, are required for a variety of governmental and commercial transactions. The growing number of small enterprises in the North American construction industry, together with the presence of a significant number of surety market participants in the US and Canada, is predicted to drive the surety market.
Surety Market Report Scope
Surety Market News and Recent Developments
The 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 market for telecom billing and revenue management and strategies:
- Core Specialty Insurance Holdings, Inc., a property and casualty insurer, will acquire American Surety in a stock and cash transaction, forming a Bond, Credit, and Guarantee subsegment alongside Specialty Casualty, Property & Short-Tail, and Fronted Programs. This acquisition deal is expected to be completed in Q1 2024. (Source: Core Specialty Insurance Holdings, Inc., Press Release, 2023)
Surety Market Report Coverage and Deliverables
The “Surety Market Size and Forecast (2023–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, 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/Porter’s Five Forces and SWOT analysis
- Global and 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
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Bond Type , and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Saudi Arabia, South Africa, South Korea, Spain, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The global surety market was estimated to be US$ 21.14 billion in 2023 and is expected to grow at a CAGR of 6.7% during the forecast period 2023 - 2031.
The growing number of construction and infrastructure projects, rising concerns related to financial security among consumers, and increasing adoption of surety bonds among investors and project owners are the major factors that propel the global surety market.
The rising public-private partnerships (PPPs) in emerging economies and rising demand for green bonds among customers to play a significant role in the global surety market in the coming years.
The key players holding majority shares in the global surety market are Crum & Forster, CNA Financial Corporation, American Financial Group, Inc., The Travelers Indemnity Company, and Liberty Mutual Insurance Company.
The global surety market is expected to reach US$ 35.52 billion by 2031.
The incremental growth expected to be recorded for the global surety market during the forecast period is US$ 14.38 billion.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.