Report : North America Trade Credit Insurance Market Forecast to 2031 - Regional Analysis - by Enterprise Size (Large Enterprises and SMEs), Application (International and Domestic), and End User (Energy, Automotive, Aerospace, Chemicals, Metals, Agriculture, Food and Beverages, Financial Services, Technology and Telecommunication, Transportation, and Others)
At 8.9% CAGR, North America Trade Credit Insurance Market is Projected to be Worth US$ 7,264.03 Million by 2031, says Business Market Insights
According to Business Market Insights’ research, the North America trade credit insurance market was valued at US$ 3,680.52 million in 2023 and is expected to reach US$ 7,264.03 million by 2031, registering a CAGR of 8.9% from 2023 to 2031. Surge in business insolvencies and rise in inflation and high interest rates are among the critical factors attributed to drive the North America trade credit insurance market growth.
Business insolvency occurs when a company fails to meet its financial obligations or pay its due bills, which can lead to bankruptcy or legal proceedings. The increasing cases of business insolvencies surge the adoption of trade credit insurance among businesses to safeguard them against insolvency and maintain cash flow. For instance, according to the Allianz Trade report published in February 2024, the number of bankruptcies grew by 7% in 2023, and it is expected to increase by 9% by the end of 2024. The company also predicts that the number of bankruptcies worldwide is projected to remain high by the end of 2025; this is due to delays in construction and real estate projects. The growing cases of insolvencies in CEE countries are associated with low economic performance, which is caused by disrupting supply chains, geographical proximity, labor shortages, surges in energy prices, and high input costs. This increases the demand for trade credit insurance among businesses across construction, real estate, hospitality, transport, and retail industries to decrease concentration risk, reduce bad debt reserves, and maintain cash flow. Trade credit insurance also helps businesses by protecting their disrupted cash flows. Thus, the increasing cases of business insolvencies drive the North America trade credit insurance market.
On the contrary, lack of awareness among SMEs hampers the growth of North America trade credit insurance market.
Based on enterprise size, the North America trade credit insurance market is bifurcated into large enterprises and SMEs. The large enterprises segment held 71.9% market share in 2023, amassing US$ 2,645.04 million. It is projected to garner US$ 5,091.50 million by 2031 to register 8.5% CAGR during 2023–2031.
In terms of application, the North America trade credit insurance market is bifurcated into international and domestic. The international segment held 78.3% share of North America trade credit insurance market in 2023, amassing US$ 2,880.80 million. It is anticipated to garner US$ 5,821.21 million by 2031 to expand at 9.2% CAGR during 2023–2031.
By end user, the North America trade credit insurance market is segmented into energy, automotive, aerospace, chemicals, metals, agriculture, food and beverages, financial services, technology and telecommunications, transportation, and others. The energy segment held 17.4% market share in 2023, amassing US$ 640.98 million. It is projected to garner US$ 1,394.54 million by 2031 to register 10.2% CAGR during 2023–2031.
By country, the North America trade credit insurance market is segmented into the US, Canada, and Mexico. Our regional analysis states that the US captured 78.6% share of North America trade credit insurance market in 2023. It was assessed at US$ 2,893.99 million in 2023 and is likely to hit US$ 5,813.14 million by 2031, registering a CAGR of 9.1% during 2023–2031.
Key players operating in the North America trade credit insurance market are Allianz Trade, American International Group Inc, Aon Plc, Atradius NV, Chubb Ltd, COFACE SA, Credendo, Great American Insurance Company, QBE Insurance Group Ltd, and Zurich Insurance Group AG, among others.
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