PUBLISHER: The Insight Partners | PRODUCT CODE: 1738031
PUBLISHER: The Insight Partners | PRODUCT CODE: 1738031
Surety Market Size and Forecast (2021-2031), Global and Regional Share, Trends, and Growth Opportunity Analysis - by Bond Type (Contract Surety Bond, Commercial Surety Bond, Court Surety Bond, and Fidelity Surety Bond), End Users (Individuals and Enterprises), and Geography (North America, Europe, Asia Pacific, Middle East and Africa, and South America)
The Surety Market size was valued at US$ 20.26 billion in 2024 and is expected to reach US$ 31.85 billion by 2031. The Surety Market is estimated to record a CAGR of 6.6% from 2025 to 2031.
In Europe, government bodies are making significant investments in infrastructure projects, including transportation, energy, and construction. According to the European Commission, in June 2023, the Commission selected 107 transport infrastructure projects to receive over US$ 6,309.3 million in EU grants from the Connecting Europe Facility (CEF), the EU's instrument for investment in transport infrastructure. More than 80% of the funding is dedicated to support projects that deliver a highly efficient, greener, and smarter network of railways, inland waterways, and maritime routes along the trans-European transport (TEN-T) network. These projects will bolster the EU-Ukraine Solidarity Lanes that are set up to facilitate Ukraine's exports and imports. Surety bonds are mostly required for these projects to ensure completion according to contract terms. With the European Union's focus on infrastructure development, the demand for surety bonds is likely to increase in the coming years. Also, a rise in regulatory changes and initiatives, such as updates in construction regulations or requirements for public-private partnerships (PPPs) and regulatory frameworks that promote transparency and risk mitigation, are boosting the demand for surety bonds across Europe.
With the growing emphasis on sustainability and environmental responsibility, there is a rising interest in green bonds for financing eco-friendly projects. Surety providers are introducing specialized bonds tailored to various sustainability initiatives, including renewable energy projects or green infrastructure development. For instance, in December 2023, the European Green Bonds Regulation (the "EuGB Regulation") was published in the European Union's Official Journal. The EuGB Regulation introduces the "European Green Bond Standard" (EuGBS), as a designation that can be used on a voluntary basis by bond issuers. The EuGBS is intended to provide issuers and investors with greater confidence when issuing and investing in green bonds. Thus, all the above factors are expected to boost the Surety Market in Europe growth in the coming years.
Based on end user, the surety market is bifurcated into individuals and enterprises. The enterprises segment held the largest Surety Market share in 2024. In a few industries, enterprises require bonds as part of a project's pre-qualification process to help them eliminate unqualified bidders. Companies that fail to obtain the appropriate bonds during bidding are unlikely to be considered good candidates for the project. The security bonds are considered highly useful in various sectors as well as other service-providing sectors. A few of them are mentioned below:
Construction: Contractors often obtain contract bonds to confirm to clients that they are financially stable and assure them of the successful completion of a project.
Government: For public entities to have surety bonds, entities such as municipalities often require contractors to perform work. If the contractor fails to fulfill their obligations, the bond provides financial protection for the municipality, ensuring the project can be completed without additional cost.
Large-scale Service Providers: Companies that contract out gardening, janitorial, or housekeeping services to large clients such as hospitals must hold various bonds, such as bid bonds.
Crum & Forster; CNA Financial Corp; The Travelers Companies Inc; Liberty Mutual Holding Co Inc; The Hartford Insurance Group, Inc.; Chubb Ltd; Credendo; Great American Insurance Company; Atradius NV; and IAT Insurance Group are among the prominent players profiled in the Surety Market report. Several other major players were also studied and analyzed in the Surety Market report to get a holistic view of the market and its ecosystem.
The overall Surety Market share has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the Surety Market. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Surety Market.