Report : Asia Pacific 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 7.8% CAGR, Asia Pacific Trade Credit Insurance Market is Projected to be worth US$ 4,943.95 million by 2031, says Business Market Insights
According to Business Market Insights’ research, the Asia Pacific trade credit insurance market was valued at US$ 2,714.27 million in 2023 and is expected to reach US$ 4,943.95 million by 2031, registering a CAGR of 7.8% from 2023 to 2031. Supply chain complexities and government initiatives supporting MSMEs and SMEs to adopt trade credit insurance are among the critical factors attributed to drive the Asia Pacific trade credit insurance market growth.
The expansion of the e-commerce industry leads to an increased demand for new supply chain arrangements. The development of new supply chain arrangements raises the complexity of the supply chains, which increases the demand for trade credit insurance among e-commerce to streamline business processes by keeping them running. As a result, market players are developing a new range of trade credit insurance services for the e-commerce industry. For instance, in March 2024, Allianz Trade launched Allianz Trade pay services for B2B e-commerce activities. Allianz Trade Pay is a payment solution that offers a variety of services such as a fraud module, digital buyer onboarding solution, trade credit insurance protection, and instant financing solution through Allianz Trade’s financial institution partners. The Allianz Trade pay provides flexibility, security, simplicity, and competitiveness to the e-commerce ecosystem, which increases its adoption in the e-commerce industry to manage its complex supply chains.
Various countries are adopting the multipolar system, which requires the presence of advanced market manufacturers for reshoring or friend-shoring production. This created the demand for parallel and multiple supply chains and relocation of production facilities to fulfill customers' needs across the globe. As a result, a reduction in the supply chain activity for intermediate goods leads to a rise in complexities related to trade, particularly for intermediate goods. For instance, according to the World Trade Organization (WTO) data published in October 2023, supply chain activity for intermediate goods declined by 48.5% in the first half of 2023. It fell from an average of 51.0% compared to the previous three years. Thus, supply chain complexities will raise the demand for trade credit insurance protection against counterparty risk, which is expected to create numerous opportunities for the trade credit insurance market growth during the forecast period.
On the contrary, the lack of awareness among SMEs hampers the growth of Asia Pacific trade credit insurance market.
Based on enterprise size, the Asia Pacific trade credit insurance market is bifurcated into large enterprises and SMEs. The large enterprises segment held 80.3% market share in 2023, amassing US$ 2,180.71 million. It is projected to garner US$ 3,904.76 million by 2031 to register 7.6% CAGR during 2023–2031.
In terms of application, the Asia Pacific trade credit insurance market is bifurcated into international and domestic. The international segment held 76.9% share of Asia Pacific trade credit insurance market in 2023, amassing US$ 2,087.05 million. It is anticipated to garner US$ 3,897.96 million by 2031 to expand at 8.1% CAGR during 2023–2031.
By end user, the Asia Pacific trade credit insurance market is segmented into energy, automotive, aerospace, chemicals, metals, agriculture, food and beverages, financial services, technology and telecommunication, transportation, and others. The automotive segment held 15.6% share of Asia Pacific trade credit insurance market in 2023, amassing US$ 424.09 million. It is anticipated to garner US$ 808.35 million by 2031 to expand at 8.4% CAGR during 2023–2031.
By country, the Asia Pacific trade credit insurance market is segmented into China, Japan, South Korea, India, Australia, and the Rest of Asia Pacific. Our regional analysis states that China captured 25.5% share of Asia Pacific trade credit insurance market in 2023. It was assessed at US$ 692.41 million in 2023 and is likely to hit US$ 1,427.32 million by 2031, registering a CAGR of 9.5% during 2023–2031.
Key players operating in the trade credit insurance market are Allianz Trade, American International Group Inc, Aon Plc, Atradius NV, Chubb Ltd, Credendo, COFACE SA, Great American Insurance Company, QBE Insurance Group Ltd, and Zurich Insurance Group AG, among others.
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