Global Surety Market Research Report 2024(Status and Outlook)

Global Surety Market Research Report 2024(Status and Outlook)

Report Overview

In finance, a surety, surety bond or guaranty involves a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults. Usually, a surety bond or surety is a promise by a surety or guarantor to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond protects the obligee against losses resulting from the principal's failure to meet the obligation. The person or company providing the promise is also known as a ""surety"" or as a ""guarantor"".

The global Surety market was valued at USD 16024.44 million in 2021 and is expected to reach USD 23190.21 million by the end of 2028, growing at a CAGR of 4.58% between 2022 and 2028.The deepening of global financial market reforms will be a key driver of market development. In recent years, the deepening of financial market reform and the advancement of financial innovation have provided good opportunities for the development of guarantee institutions. The emergence of various financial products and financing tools has provided more options for corporate financing and created a broader market for the development of guarantee business. For example, the development of the bond market, the rise of private equity funds, and the development of Internet finance have provided guarantee institutions with new business growth points. The adoption of PPPs is expected to continue to drive the growth of the surety market over the forecast period as governments and private sector players seek to collaborate on infrastructure development projects to meet rising demand.

In addition, the growth of the surety market in developing countries has also contributed an important impetus to the development of the surety market. The demand for innovative construction insurance is high in high-growth markets such as China, as the Belt and Road Initiative is expected to provide growth opportunities for the insurance market. Growing demand for innovative insurance solutions will be a major boost to the growth of the urban market.

At the same time, factors such as strengthened supervision, poor risk awareness, new entrants and more intense competition, unbalanced benefit and risk sharing mechanism, talent shortage, inflation and supply chain disruption will hinder the development of the surety market .

Segment by Type, the Surety can be split into Contract Surety Bond, Commercial Surety Bond, etc. Contract Surety Bond has a significant market share and has captured 41.18% of the market in 2021. Because they are primarily used in the construction industry, which is a major driver of the security market, these bonds are in high demand to ensure project completion, protect project owners and guarantee payment to subcontractors and suppliers. The size and value of construction projects contribute to the prominence of the contractually secured bond segment in the market. On the other hand, the commercial guaranteed bonds segment already held the largest market share of 53.75% in 2021 owing to its diverse applications across various industries and sectors. Wide applicability of commercial guaranteed bonds across different industries contributes to its high market share.

By application type, the Surety market can be split into Local and the International Underwriters. Local segment held a 75.99% market share in 2021, while the banking-backed Surety segment dominated the market. Local underwriters have in-depth knowledge of the local legal and regulatory framework, industry practices and market dynamics. They understand the specific requirements and nuances of the local market, enabling them to provide tailor-made guarantee solutions. This expertise gives local underwriters a significant competitive advantage in understanding and meeting the needs of clients in their respective regions. Additionally, bank-backed guarantee providers have the advantage of strong financial backing from established banking institutions. This financial strength gives them the ability to underwrite large projects, provide higher guarantee capacity and support complex transactions. The financial backing of banks boosts the confidence of clients and project owners, leading to a dominant position in the market.

On basis of geography, the Surety market is segmented into North America, Europe, Asia-Pacific, South America, Middle East and Africa, etc. Currently, the North America region contributes the highest market revenue. North America, especially the United States, has a thriving construction industry and significant infrastructure development projects. These projects require extensive use of deposits, primarily contract bonds, to secure contracts, secure project completion, and protect stakeholders. In addition, the North American market has a high degree of market maturity and awareness of the benefits and requirements of margin. Contractors, project owners and other stakeholders are well aware of the importance of surety bonds in reducing financial risk, securing project completion and protecting all parties to commercial transactions.

According to our calculations, the global Surety market is still in fierce competition. In 2021, the indicators used to measure market concentration, CR5 and HHI are 23.62% and 1.23% respectively. Key players in the market include Liberty Mutual Insurance Company, The Travelers Indemnity Company, Nationwide Mutual Insurance Company, Chubb, CNA Financial Corporation, Zurich Insurance Group, Allianz Trade, AXA XL, Tokio Marine HCC, The Hartford, Berkshire Hathaway Specialty Insurance, Int act US Insurance Group, Fairfax Financial (USA) Group, American Financial Group, Inc., IAT Insurance Group, Argo Group, Everest Re Group, Ltd., Sompo Holdings US Group, QBE Insurance Group Limited, Swiss Reinsurance Group.

This report provides a deep insight into the global Surety market covering all its essential aspects. This ranges from a macro overview of the market to micro details of the market size, competitive landscape, development trend, niche market, key market drivers and challenges, SWOT analysis, value chain analysis, etc.

The analysis helps the reader to shape the competition within the industries and strategies for the competitive environment to enhance the potential profit. Furthermore, it provides a simple framework for evaluating and accessing the position of the business organization. The report structure also focuses on the competitive landscape of the Global Surety Market, this report introduces in detail the market share, market performance, product situation, operation situation, etc. of the main players, which helps the readers in the industry to identify the main competitors and deeply understand the competition pattern of the market.

In a word, this report is a must-read for industry players, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the Surety market in any manner.

Global Surety Market: Market Segmentation Analysis

The research report includes specific segments by region (country), manufacturers, Type, and Application. Market segmentation creates subsets of a market based on product type, end-user or application, Geographic, and other factors. By understanding the market segments, the decision-maker can leverage this targeting in the product, sales, and marketing strategies. Market segments can power your product development cycles by informing how you create product offerings for different segments.

Key Company

Liberty Mutual Insurance Company

The Travelers Indemnity Company

Nationwide Mutual Insurance Company

Chubb

CNA Financial Corporation

Zurich Insurance Group

Allianz Trade

AXA XL

Tokio Marine HCC

The Hartford

Berkshire Hathaway Specialty Insurance

Intact US Insurance Group

Fairfax Financial (USA) Group

American Financial Group, Inc.

IAT Insurance Group

Argo Group

Everest Re Group, Ltd.

Sompo Holdings US Group

QBE Insurance Group Limited

Swiss Reinsurance Group

Market Segmentation (by Type)

Contract Surety Bond

Commercial Surety Bond

Court Surety Bond

Fidelity Surety Bond

Market Segmentation (by Application)

Local

International Underwriters

Geographic Segmentation

North America (USA, Canada, Mexico)

Europe (Germany, UK, France, Russia, Italy, Rest of Europe)

Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)

South America (Brazil, Argentina, Columbia, Rest of South America)

The Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)

Key Benefits of This Market Research:

Industry drivers, restraints, and opportunities covered in the study

Neutral perspective on the market performance

Recent industry trends and developments

Competitive landscape & strategies of key players

Potential & niche segments and regions exhibiting promising growth covered

Historical, current, and projected market size, in terms of value

In-depth analysis of the Surety Market

Overview of the regional outlook of the Surety Market:

Key Reasons to Buy this Report:

Access to date statistics compiled by our researchers. These provide you with historical and forecast data, which is analyzed to tell you why your market is set to change

This enables you to anticipate market changes to remain ahead of your competitors

You will be able to copy data from the Excel spreadsheet straight into your marketing plans, business presentations, or other strategic documents

The concise analysis, clear graph, and table format will enable you to pinpoint the information you require quickly

Provision of market value (USD Billion) data for each segment and sub-segment

Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market

Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region

Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled

Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players

The current as well as the future market outlook of the industry concerning recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions

Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis

Provides insight into the market through Value Chain

Market dynamics scenario, along with growth opportunities of the market in the years to come

6-month post-sales analyst support

Chapter Outline

Chapter 1 mainly introduces the statistical scope of the report, market division standards, and market research methods.

Chapter 2 is an executive summary of different market segments (by region, product type, application, etc), including the market size of each market segment, future development potential, and so on. It offers a high-level view of the current state of the Surety Market and its likely evolution in the short to mid-term, and long term.

Chapter 3 makes a detailed analysis of the market's competitive landscape of the market and provides the market share, capacity, output, price, latest development plan, merger, and acquisition information of the main manufacturers in the market.

Chapter 4 is the analysis of the whole market industrial chain, including the upstream and downstream of the industry, as well as Porter's five forces analysis.

Chapter 5 introduces the latest developments of the market, the driving factors and restrictive factors of the market, the challenges and risks faced by manufacturers in the industry, and the analysis of relevant policies in the industry.

Chapter 6 provides the analysis of various market segments according to product types, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.

Chapter 7 provides the analysis of various market segments according to application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.

Chapter 8 provides a quantitative analysis of the market size and development potential of each region and its main countries and introduces the market development, future development prospects, market space, and capacity of each country in the world.

Chapter 9 introduces the basic situation of the main companies in the market in detail, including product sales revenue, sales volume, price, gross profit margin, market share, product introduction, recent development, etc.

Chapter 10 provides a quantitative analysis of the market size and development potential of each region in the next five years.

Chapter 11 provides a quantitative analysis of the market size and development potential of each market segment (product type and application) in the next five years.

Chapter 12 is the main points and conclusions of the report.