Logistics Insurance Market Size, Share, Growth, and Industry Analysis by Type (Tansportation , Marine, Aviation), by Application (Manufacturing, Services, Commerce), and Regional Insights and Forecast To 2031

Updated On: 29 April 2024

LOGISTICS INSURANCE MARKET REPORT OVERVIEW

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The global logistics insurance market size was USD 64940 million in 2021 and will touch USD 81830 million by 2028, exhibiting a CAGR of 3.3% during the forecast period.

Logistics insurance protects the insured against physical damage or loss of goods while being transported by land, sea, or air. Because of the numerous risks associated with shipping, most individuals and businesses elect to insure their goods while the goods are in transit. There are numerous types of logistics insurance available such as road transportation, marine, aviation. Logistics insurance provides comprehensive protection against loss or damage caused by external factors such as accident, damaged product, delay in delivery and others. The surge in online shopping has led to an increased demand for shipping and delivery services, necessitating more robust logistics insurance to cover the higher volume and frequency of shipments.

Growing competition in the market has led to development of different the price optimization technique, thereby propelling market demand in the upcoming years. Participants are fixing their efforts on encouraging R&D. Technological development are supporting the regional market growth. Manufacturers need to stay updated with changing market trends and develop products that meet growing consumer needs. Companies coming up with progressive technological solutions for firming their positions.

COVID-19 Impact: Pandemic Hampered The Market Due To Unexpected Disruption In The Sector

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

COVID- 19 pandemic has extremely affected the whole world. It caused many unexpected disruption and affected the industry. COVID- 19 had negative impact on the market due to economic slowdown, unpredictability in financial sector and high unstable market. The pandemic resulted in decreased demand due to a disrupted supply chain, drop in sales of products, delivery schedules. Travel bans imposed affected business collaboration and partnership. Demand had recently reduced due to travel bans and lockdown during the COVID-19 pandemic. The continuous loss in the business due to the lockdown measures is projected to directly influence the growth of the investments in the market.

LATEST TRENDS

"Use Of Innovative Products To Boost The Market Growth "

Technological improvement and development will further enhance the presentation of the product, allowing it to obtain a varied range of requests in the market. Technological advancement will improve performance and propel the market growth. Technological advancement with high demand are increasingly setting a force to increase the productivity. Some players focus on product improvement to meet consumer requirements and likings. Constant innovation in manufacturing of products is anticipated to stimulate product demand.

LOGISTICS INSURANCE MARKET SEGMENTATION

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• By Type Analysis

According to type, the market can be segmented into transportation, marine, aviation

Transportation will capture the maximum market share through forecast period.  

Transportation – Transportation could include various modes of land transportation, such as trucks, trains, and buses, focusing on the movement of goods and people over land.

Marine - This segment involves water-based transportation. It includes shipping, freight transport by sea, and other activities related to maritime navigation.

Aviation -This segment covers air transportation. It encompasses airlines, air cargo services, airports, and all aspects related to air travel and freight transport.

• By Application Analysis

According to application, the market can be segmented into manufacturing, services, commerce

Logistics insurance market players cover segment as manufacturing will dominate the market share during forecast period.

Manufacturing - It focuses on how transportation, marine, and aviation services facilitate the manufacturing process. This includes the movement of raw materials to factories, inter-factory transfers, and distribution of finished products to markets.

Services -In service industry's use of transportation, marine, and aviation. It includes logistics services, passenger transportation services, maintenance and repair services, and other support services related to these types of transportation.

Commerce – This application involves the commercial use of transportation, marine, and aviation. It includes the movement of goods for trade, business travel, cargo and freight services, and other commercial activities that rely on these forms of transportation.

DRIVING FACTORS

"Rapid Growth in Transportation Industry  To Boost The Market Growth"

The logistics transportation industry has grown due to an increase in demand for e-commerce and online shopping trends. With an increase in the demand for E-commerce, the chances of accidents, baggage theft or loss, and other occurrences of uncertainty during travel have become more common. Therefore, consumers are opting for logistics insurance to mitigate the risks associated with such occurrences.

"Technological Advancement and Innovation To Upsurge The Market"

Technological advancements and innovation activate unique revenue augmenting opportunity which will upsurge the logistics insurance market growth. Growing investment in research and development activities and growing awareness about benefits are expected to deliver profitable opportunities for the market. Constant development are one of the trends in the market in variety of practices. Innovations in tracking and monitoring technologies improve risk assessment and management in logistics, making insurance solutions more effective and appealing.

RESTRAINING FACTOR

"High Cost of Premiums To Hamper The Market Growth"

The cost of logistics insurance can be a significant expense for businesses, especially small and medium-sized enterprises, potentially limiting market growth. Technical difficulties will reduce the industry revenue.

LOGISTICS INSURANCE MARKET REGIONAL INSIGHTS

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"Asia Pacific to Dominate the Region Due To Rise In The Implementation Of Latest Technologies"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East and Africa.

Asia Pacific is further expected to witness growth in the logistics insurance market share. The region is dominating the market due to rise in the implementation of latest technologies in logistics sector, favourable laws & regulation regarding reimbursement policies, and existence of well-established logistics network in the region. Upsurge in investments by key market players for the R&D undertakings and enlargement of their production abilities and product portfolios are projected to upsurge the growth. The expansion of regional market is being aided by technological developments.

KEY INDUSTRY PLAYERS

"Key Players Focus On Partnerships To Gain Competitive Advantage"

The key players are dynamically contributing in strategic events that are aimed at maintaining strong market position and increasing market share by merger, partnerships and others. Key players are motivated to introduce new innovative products. They are spending severely on research and development in order to arise with more new technology so that they can maintain and improve their existing market. The market changes are dynamic such as market expansion, partnership and merger. The collective efforts of these major players expressively impact the competitive landscape and future path of the market.

List Of Market Players Profiled

• American International (U.S.)
• Allianz (Germany)
• DB Schenker       (Germany)
• Dawson (U.S.)
• Peoples Insurance Agency (U.S.)

INDUSTRIAL DEVELOPMENT

October 2023:  Allianz Partners USA took home 14 trophies, the most of any travel insurance provider, at "Travel Weekly's" 2023 Magellan Awards. The travel insurance and assistance company was awarded 10 gold and four silver trophies, recognizing the company's innovative digital marketing campaigns, training programs, consumer website and AgentMax travel agent booking platform.

REPORT COVERAGE

The report provides scrutiny and information according to market sectors. Business overview, financial overview, product portfolio, new project launch, recent development enquiry are the factors included in the profile. The report incorporates completely examined and appraised evidence of the noticeable players and their position in the market by methods for various descriptive tools. The report covers national and regional level market size and forecast. The report gives businesses the facility to research new prospect in many areas. The report shows to be an operational tool that players can use to gain a competitive superiority over their opponents and ensure lasting achievement in the market.