The global Trade Credit Insurance Market, estimated at USD 10.58 billion in 2023, is anticipated to grow at a robust CAGR of 11.2% from 2024 to 2030. The increasing volume of trade across diverse geographical locations is a primary driver for the demand for trade credit insurance, as businesses seek to reduce the risk of non-payment from international buyers. Furthermore, the escalating levels of uncertainty and protectionism within global trade are expected to significantly boost the demand for trade credit insurance (TCI).

The business insights provided by insurers empower companies to identify potential payment issues, thereby allowing insured entities to conduct their operations with greater assurance. The adoption of digital software to optimize banking and insurance services, alongside the application of data analytics and blockchain technology in trade finance, is projected to stimulate market growth. Additionally, market participants are increasingly offering tailored trade credit solutions for digital platforms to gain a competitive advantage.

Detailed Segmentation:

Enterprise Size Insights

Large enterprises led the market and accounted for 60.3% of the global revenue in 2023 and is expected to retain its dominance over the forecast period. The growth can be attributed to the increasing demand for trade credit insurance policies by large enterprises to reduce the risks of non-payments.

Coverage Insights

The single buyer coverage segment, on the other hand, is anticipated to register a significant growth rate over the forecast period. The growth of this segment can be attributed to the credit limit offered that enables underwriters to cover all financial transactions with the customer. This policy provides highly tailored protection against a single buyer failing to pay for goods or services provided. The companies involved in dealing with new customers commonly opt for single-buyer insurance to avoid a customer’s payment issues.

Application Insights

The domestic application segment is expected to grow at the fastest CAGR over the forecast period. The growth of this segment can be attributed to a rise in the adoption of trade credit insurance within domestic sales. The rise in the adoption of trade credit insurance in the domestic market can be attributed to businesses focusing on avoiding bad debts and improving their cash flow.

End-use Insights

The automotive segment is anticipated to register the fastest CAGR over the forecast period. The growth of this segment can be attributed to the automotive sector being a major industry facing uncertainties due to rapid technological advancements, changing consumer tastes, government regulations, and relative pricing.

Regional Insights

The trade credit insurance market in North America is expected to grow at a significant CAGR from 2024 to 2030. There has been an increasing interest in trade credit insurance among North American businesses, as trade tensions, economic uncertainty, and supply chain disruptions have increased credit risk.

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