Global Satellite Launch and Space Insurance Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Satellite Launch and Space Insurance Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Satellite launch and space insurance refer to the general term of insurance for satellites and various risks related to satellite launch services. A satellite will encounter various risks during the process of launching from the factory through the launch tool to launching into the space orbit. Therefore, a variety of insurance forms are needed to protect. Satellite risks can be divided into normal risks and abnormal risks. The satellite launches and space insurance market is a global market. Satellite owners, satellite manufacturers, launch service providers, insurance brokers, underwriters, financial institutions, reinsurance companies, and government agents around the world are all cooperating to coordinate satellite launches for any given insurance plan. Satellite launch and space insurance have evolved from simple launch insurance to a complex discipline that combines contract analysis and advice, risk assessment, alternative risk transfer concepts, insurance plan design, and implementation, and claim negotiation.

Market Overview:

The latest research study on the global Satellite Launch and Space Insurance market finds that the global Satellite Launch and Space Insurance market reached a value of USD 634.29 million in 2022. It’s expected that the market will achieve USD 799.29 million by 2028, exhibiting a CAGR of 3.93% during the forecast period.

COVID-19 Impact on Satellite Launch and Space Insurance Industry

At the beginning of 2020, the COVID-19 disease began to spread globally, and major countries in the world have implemented foot bans and work suspension orders. As of October 2021, more than 230 million people worldwide have been infected with the COVID-19 disease. Except for the medical supplies and life support product industries, most industries have been greatly affected, and the satellite launch and space insurance industries have also been greatly affected, which is largely affected by the downstream aerospace industry.

On the one hand, certain structural weaknesses in the aerospace industry make it particularly vulnerable to economic shocks. The aerospace sector includes a series of intricate activities, from aerospace manufacturing, rocket launches, and satellite operations to increasingly diverse commercial applications that rely on satellite data and signals. These market segments often consist of small and medium enterprises (SMEs). The severe short-term negative impact brought about by the epidemic is mainly concentrated on smaller suppliers. The difficulty of capital turnover has forced many projects to be delayed or suspended and even made business operations difficult. For example, OneWeb, a satellite operator that develops broadband services for low-Earth orbit satellites, filed for bankruptcy protection because it failed to raise enough funds to complete its constellation construction.

On the other hand, a considerable number of companies are still struggling due to manufacturing delays, which are mainly due to restrictions on raw materials and on-site labor. For some aerospace manufacturers, due to social distancing measures and supply chain delays, the crisis has slowed down product delivery and mission deployment and has had a certain impact on revenue.

As a result, the COVID-19 pandemic has caused delays in satellite launch and manufacturing, leading to some delays in insurance companies’ premium income. Although the epidemic has not had any observable negative impact on the underwriting terms and conditions provided by insurance companies, the overall business interruption claims due to COVID-19 are high and many insurance categories will be affected, including satellite launches and space insurance.

In addition, the pandemic has caused broader problems throughout the insurance industry. Affected by the epidemic, insurance companies are now paying more attention to reducing volatility and ensuring profitability, which is the top priority of every management team. Due to the temporary contraction of the capital market, the commercial satellite mission was postponed, and in some cases, the available insurance capacity was insufficient. The crisis will lead to a high risk of increased industry concentration, and smaller and young companies may face the risk of being eliminated.

Region Overview:

North America had the highest growth rate of all regions.

Company Overview:

Munich Re is one of the major players operating in the Satellite Launch and Space Insurance market, holding a share of 6.45% in 2021.

Munich Re is one of the world's leading providers of reinsurance, primary insurance and insurance-related risk solutions. The group is composed of the reinsurance and ERGO business units and the capital investment company MEAG, which can provide protection for special risks such as rocket launches, renewable energy, cyber-attacks or epidemics.

AXA XL is the property insurance and professional risk department of AXA, known for solving complex risks. AXA XL is a leading insurance company in the space insurance industry, working closely with customers and brokers around the world to develop innovative and professional products covering all types of spacecraft and launch vehicles through development, pre-launch, launch and in-orbit.

Segmentation Overview:

Among different product types, Launch insurance segment is anticipated to contribute the largest market share in 2028.

Application Overview:

By application, the Distributor segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Satellite Launch and Space Insurance market covered in Chapter 3:

Atrium Underwriting Group
Allianz
Assure Space (AmTrust)
Global Aerospace
Brit Group Services
PICC Property and Casualty Company Limited
AXA XL
Munich Re
HDI Global Specialty SE
Starr

In Chapter 4 and Chapter 14.2, on the basis of types, the Satellite Launch and Space Insurance market from 2018 to 2029 is primarily split into:

Pre-launch insurance
Launch insurance
In-orbit insurance
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Satellite Launch and Space Insurance market from 2018 to 2029 covers:

Direct Sales
Distributor

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)