Boiler Insurance Market

Market Overview

The global boiler insurance market size was valued at USD 8,015 million in 2021 and is anticipated to generate USD 29,320 million by 2030, growing at a CAGR of 15.8% during the forecast period (2022–2030).

The main goal of boiler insurance is to cover physical damage to the boiler and the expense of repairing or replacing damaged equipment, such as motors, computers, phones, and electronics. In addition, a growing number of commercial and industrial end-users are purchasing boiler insurance to lower the expense of replacing a boiler that has been damaged. Furthermore, boiler insurance companies are implementing numerous rules and regulations about insurance in various nations and expanding their current offering by incorporating sophisticated technologies that handle a variety of bespoke coverages in the market.

Market Dynamics

Boiler Insurance Market Drivers

• Increased Knowledge of Industrial and Commercial Boiler Insurance

The market is expected to expand due to an increase in the use of boiler insurance in various chemical, metal and mining, and refineries for cleaning and storing multiple chemicals around the world. Furthermore, many people in different European nations are employing boilers in their homes to stay warm during the winter, fueling the market's growth. Furthermore, many industries, such as chemical and others, demand the boiler to operate continuously, which increases the likelihood of a boiler breakdown or failure. As a result, numerous organizations are adopting boiler insurance to limit the costs incurred due to boiler failure, fueling the market's growth. Furthermore, many firms worldwide are offering appealing plans for various types of customers, favorably boosting the market's growth.

• Need to Eliminate Boiler Repair and Maintenance Costs

Different boilers used in various sectors and domestic uses require regular maintenance and quarterly servicing, which means end-users must pay for each service, which is a significant element driving the market's growth. Furthermore, several insurance firms provide boiler warranty services, which cover all costs associated with boiler repair and damage, which is a major driver driving the market's growth. Furthermore, the high cost of maintaining and repairing some portions of the boiler, such as wires, pipelines, central heating systems, and other components, has a favorable impact on the expansion of the boiler insurance industry.

• New Services Offered by Major Players

Various insurance firms throughout the world are implementing innovative techniques to boost their market value, increase income, and improve client experience. Furthermore, the digitization of the insurance industry plays a critical role in the COVID-19 pandemic worldwide crisis. Some boiler insurance firms offer their customers software and other technologically advanced services to secure them from the pandemic crisis. For example, British Gas, a UK-based home and energy insurance firm, developed new digital services in December 2019 that allow consumers to get boiler insurance via voice-activated Google Home. Customers can also ask Google to ""OK Google, talk to Boiler Support"" to start a voice-enabled troubleshooting service. As a result, such advanced digitalized services have emerged as a prominent trend in the boiler insurance industry, boosting market growth.

Boiler Insurance Market Restraint

• Lack of Boiler Insurance Awareness in Emerging Countries of Asia-Pacific and LAMEA

The expansion of the boiler insurance market in developing nations of Asia-Pacific and LAMEA is primarily dependent on various pillars. These pillars include the level of education in the country, the degree of economic development in the country, and a variety of other factors. The primary issue that is having a significant adverse effect on the expansion of the market is the low level of literacy and economic development prevalent throughout emerging nations in the LAMEA area, such as those in Africa. In addition, nations in LAMEA and Asia have a lower level of general awareness regarding machinery insurance and other types of industrial equipment, which also hinders the expansion of the market. In addition to this, the increase in stringent regulations among the developing nations of Asia-Pacific toward insurance companies and the lack of knowledge regarding equipment insurance among the public of the middle class and lower middle class both have a negative impact on the growth of the market.

Boiler Insurance Market Opportunities

• Rise of Small and Medium Boiler Insurers Worldwide

Small and medium insurance companies focus on more consumers worldwide to maintain their market position and generate income opportunities. Additionally, companies are adopting modern technology to provide various additional features to expand their customer base in developing countries, presenting a lucrative opportunity for the industry. Moreover, several small insurance businesses are establishing themselves in Asia-Pacific and LAMEA developing countries to expand their worldwide reach. Furthermore, various chemical and other sectors are obtaining boiler insurance from various small and medium insurance service providers to obtain more effective insurance services, which is projected to drive the market's growth in the near future.

• Need for Third-Party Liability Insurance in Emerging Markets

Boiler insurance providers have a tremendous opportunity to grow their product and service offerings in the market. The companies offer liability coverage, comprehensive coverage, physical and property damage, and third-party medical coverage. As a result, insurers should have attractive chances to innovate and expand their services by adding particular coverages like pay-as-you-drive policies. This includes property damage, personal injury, fire, and other related claims.  

Regional Analysis

Based on region, the global boiler insurance market share is segmented into North America, Europe, Asia-Pacific, and LAMEA.

North America Acquires the Largest Share in the Regional Market

North America is anticipated to hold the largest market share of USD 9,708 million by 2030 at a CAGR of 14.5% during the forecast period. The market in this area is growing due to the increased implementation of automated boilers in various industries like healthcare, education, chemicals, and manufacturing. Furthermore, the market is predicted to develop due to the considerable presence of food processing firms and chemical industries in the United States and Canada. US has the central market in this region, with USD 2,672 million in 2021.

Asia-Pacific is the second-largest contributor to the boiler insurance market. It is expected to generate USD 10,819 million at a CAGR of 17.5% by 2030. Due to emerging economies and growing investment in various water-tube boilers for commercial and industrial sectors to reduce greenhouse emissions, the market in this area is growing at the quickest rate. 

China is the most significant contributor to the market compared to other countries, valued at USD 1,090 million in 2021. Japan and South Korea gradually grew their market with market revenue of USD 396 million and USD 471 million, respectively, in 2021.

The boiler insurance market in Europe is expected to witness slow growth. It is anticipated to generate USD 6,968 million at a CAGR of 15.4% by 2030. The growth is accredited to significant manufacturers of various boilers, such as fire-tube and water-tube boilers, and a surge in chemical production industries. Germany and UK have more market revenue compared to Italy and France. The market revenue of Germany and the UK were valued at USD 363 million and USD 572 million, respectively, in 2021.

LAMEA has the lowest market share. In 2021, the market revenue in LAMEA was valued at USD 633 million, with Latin America being their major contributor. Growing petrol and oil refineries will boost the boiler insurance market. Rising boiler adoption in refineries and industrial needs also drive market expansion.

Segmental Analysis

The global boiler insurance market share is categorized by boiler type, end-user, boiler fuel, and coverage type. Based on the types of boilers used, the global boiler insurance market is segmented into Fire-Tube and Water-Tube.

• On the Basis of Types

Water-Tube has the largest market share due to industrial and commercial investment and the replacement of traditional boilers. It is projected to generate USD 19,217 million by 2030 at a CAGR of 16.6%. Various governments implement rules to utilize water-tube boilers to minimize greenhouse gas emissions and increase safety, boosting the market. Low heating costs, high efficiency, and low pollution promote global demand for water-tube boilers. The global market for Fire-Tube is projected to generate USD 10,881 million by 2030 at a CAGR of 14.6%. Fire-tube boilers are compact and easily installed in small places, driving market growth in commercial and industrial sectors. This sector is driven by fewer carbon emissions, energy efficiency, and operational expenses. Government steps to promote energy-efficient heating will support industrial growth. Based on the end-users, the global boiler insurance market is segmented as Chemicals, Refineries, Metal and Mining, and Food and Beverages.

• On the Basis of End-User

Chemicals are the largest market shareholder. It is projected to generate USD 8,118 million in 2030, growing at a CAGR of 14%. Various chemical firms worldwide continually demand a large quantity of steam and water supply while producing different chemical formulations, which positively impacts the market's growth. Food and Beverages account for the second-largest market share. It is projected to generate USD 6,498 million in 2030, growing at a CAGR of 14.5%. Many food and beverage industries utilize two or more boilers for various purposes, including cooking, curing, drying, sterilization, and disinfection of food, fueling market expansion. Based on the boiler fuel used, the global boiler insurance market is segmented as Natural Gas, Coal, and Oil.

• On the Basis of Boiler Fuel Used

Natural Gas is the largest market holder. It is projected to generate USD 14,191 million at a CAGR of 14.5% by 2030. Demand for natural gas boilers in food & beverage, manufacturing, and other industries drives market expansion. The industry is also fueled by the rising popularity of natural gas boilers and their cheap maintenance costs. The global market for Oil is projected to generate USD 5,278 million at a CAGR of 17.2% by 2030. The growing deployment of coal-based power plant boilers in North America and Europe supports market expansion in this sector.

Artificial intelligence and demand for compact coal boilers also drive market expansion. The global market for Coal is projected to generate USD 1,976 million at a CAGR of 13.6% by 2030. Chemical, paper and pulp, and other industries demand oil-fired boilers. Low oil prices, easy installation of oil-fired boilers, and increased electricity traffic fuel market growth. The oil-fired boilers' harsh-condition performance, low maintenance costs, and quick installation boost the market. Based on the type of coverage, the global boiler insurance market is segmented into Boiler Cover, Boiler & Central Heating Cover, and Boiler, Central Heating, Plumbing, & Wiring Cover.

• On the Basis of Type of Coverage

Boiler and Central Heating Cover hold the highest market. It is anticipated to generate revenue of USD 11,733 million at a CAGR of 15.2% by 2030. Many individuals and companies embrace this insurance coverage to minimize boiler maintenance costs and boost boiler efficiency and life span, driving the market growth. Major market players introduce inexpensive and improved policies to increase their market worth and improve their customers, driving the market growth. The market for Boiler Cover is anticipated to generate revenue of USD 9,318 million at a CAGR of 14.6% by 2030. The rise in boiler cover insurance coverage for annual service and maintenance, repairing the boiler, and other service expenses boost this industry.

Many house brokers purchase boiler cover insurance while renting their homes, expanding the market. Annual or quarterly boiler maintenance decreases energy costs, growing the market category. Companies choose boiler cover policies to promote the industry to save money on boiler problems. The market for Boiler, Central Heating, Plumbing, and Wiring Cover is anticipated to generate revenue of USD 9,281 million at a CAGR of 18.6% by 2030. The rise in individual coverage policy awareness and complete body coverage policy adoption in Europe boosts market growth in this sector.  

Recent Developments

• May 2022- Milan - Generali completed the acquisition from Future Enterprises Limited of 25% of the shares of Future Generali India Insurance (FGII) and will now hold a stake of around 74% in FGII. Generali received approval from the relevant regulatory and competition authorities.
• March 2022- Aviva plc announced the acquisition of Succession Wealth1 for £385 million.
• March 2022- Tata subsidiary joined insurance consortium to provide cover to Air India. Tata AIG is a part of the USD 12 billion insurance package for A-I.
• September 2021- AXA and Bharti announced today that they have completed the combination of their non-life insurance operations in India, Bharti AXA General Insurance Company Limited into ICICI Lombard General Insurance Company Limited. AXA and Bharti’s ownership of Bharti AXA GI was 49% and 51%, respectively.