Surety Market

Surety Market Overview

The global Surety Market Size was valued at USD 21.03 billion in 2024, and it is projected to surge to USD 28.96 billion by 2030, with a CAGR of 5.5% from 2025-2030.

The surety market refers to the issuance of surety bonds to guarantee the performance of an obligation or the fulfilment of a contract. A surety bond involves three parties, the principal who must fulfil an obligation, the obligee who required the obligation to be fulfilled, and the surety that guarantees the principals obligation to the obligee. In this market, sureties provide assurance that if the principal fails to meet the contractual obligations the surety compensates the obligee up to the bond’s value by ensuring that obligee does not suffer a financial loss. Surety bonds are commonly used in construction industry, where they guarantee the completion of projects and the payment of subcontractors and suppliers. These bonds protect project owners and stakeholders from financial losses in case a contractor default on their obligation.

Market Dynamics and Trends

The expansion of economic activities fuels the growth of the market as increased businesses and infrastructure investments necessitates the demand for surety bonds to ensure contract performance and financial security for project owners and contractors. According to the Organization for Economic Cooperation and Development (OECD) latest report, the global GDP growth accounted for 3.1% in 2024 and it is projected to reach to 3.2% in 2025. As income increases, it becomes important to address the growing need for risk management solutions to ensure obligations are met and to lower clients' financial risks.

Moreover, the government initiatives promoting the use of surety bonds further fuels the growth of the surety market demand by encouraging compliance and financial security in contractual obligation. These initiatives include mandating surety bonds for public and private projects that builds trust among stakeholders and reduce risks associated with project completion and financial defaults. For instance, the Ministry of Housing and Urban-Rural Development of China introduced new regulations to promote the growth of surety bonds insurance to alleviate the financial pressures on property developers.

Furthermore, the Court of Protection in the UK established the Office of the Public Guardian (OPG) that requires deputies to obtain a surety bond. This bond insurance is designed to protect the assets of individuals whose affairs and property are being managed by the deputies. The introduction of such government initiatives stimulates the demand for surety bond that leads to further market expansion and the development of innovative bonding solutions to meet diverse needs.

Additionally, the expanding micro, small & medium enterprises (MSME) sector propels the growth of the market as increased business activities and need for financial security drive demand for surety bonds by seeking secure contracts. According to the latest report published by the United Nations (UN), the MSME sector accounted for 90% of businesses, created more than 50% of employment, and contributed more than 50% towards GDP worldwide. The thriving MSME sector across various industries increases the need for robust risk management that creates opportunities for further market expansion and innovation in surety products.

However, the high cost of obtaining surety bonds particularly for smaller business limits their ability to participate in project requiring bonds that hinders the surety market expansion.

On the contrary, the development of tailored surety products such as construction surety bonds, government contract bonds, and others to address the specific needs of various industries or project types creates significant future growth opportunities in the market. The customized bonds guarantee to help surety providers stand out, attract niche markets, and better meet specialized client needs. These solutions enhance customer satisfaction by addressing their specific operational needs more effectively.

Market Segmentation and Scope of Study

The surety market report is divided on the basis of type, application, and region. Based on type, the market is classified into contract surety bond, commercial surety bond, court surety bond, and fidelity surety bond. Based on the application, the market is segmented into government agency and enterprise. Regional breakdown and analysis of each of the aforesaid classifications include regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America dominates the surety market share at present and is projected to continue its dominance throughout the forecast period. This is attributed to the increasing government initiatives aimed at promoting infrastructure development and enhancing the regulatory framework that drives the demand for surety bonds. For instance, in August 2024, the Bureau of the Fiscal Service launched the Surety Bond Program that aims to enhance the efficiency and accessibility of federal bonding by allowing companies to directly write and reinsure federal bonds. This change attracts more participants that ultimately leads to the market growth, increased demand for bonds, and a more competitive, innovative environment.

Moreover, the presence of major market players such as The Chubb Corporation, Munich Re Specialty Insurance (MRSI), and other are taking strategies including product launches is further accelerating the surety market growth. For example, in May 2022, Munich Re Specialty Insurance (MRSI) launched two surety solutions Contract and Commercial surety bonds to expands its product offerings in the market. This innovative product launches enhances the surety sector by expanding product offerings and meeting diverse client needs.

On the other hand, Asia Pacific is considered the fastest growing region in the surety industry. This is due to the growing disposable income in the region that enhances economic activity and investments ultimately drives the demand for surety bonds as businesses seek financial security and risk management solutions. As per the Government of China, the country’s per capita disposable income accounted for USD 5,451 in 2023 and that is a growth of 6.3% from the previous year. As individuals and businesses gain financial resources they tend to invest in new ventures, renovations, and expansions that necessitates the use of surety bonds to guarantee performance and compliance with contractual obligations.

Moreover, the governments in the region are investing heavily in infrastructure development, such as transportation and energy project that further fuels the demand for surety bonds in the region. For instance, in December 2022, Ministry of road transport and highways of India launched Surety Bond Insurance product from Bajaj Allianz aimed at providing financial security and assurance to businesses and contractors. The promotion of transparency, enforcement of compliance, and support for key sectors such as construction and infrastructure through government policies helps to reduce risks and encourage investment.

Competitive Landscape

Various key players operating in the surety industry include Crum & Forster, CNA Financial Corporation, American Financial Group, Inc., The Travelers Indemnity Company, Liberty Mutual Insurance Company, Corvus Insurance, Tokio Marine Holdings, Chubb, AmTrust Financial Services, and IFIC Security Group. These market players are adopting various strategies such as innovation and collaboration to maintain their dominance in the global market.

For instance, in November 2022, Corvus Insurance collaborated with the Travelers Companies, Inc. to back its Smart Cyber Insurance offering. This partnership aims to provide cyber insurance products and services to companies in the Europe continent.

Moreover, in November 2022, AmTrust financial services, a US-based property and casualty insurance firm acquired Contractor Managing General Insurance Agency (CMGIA) to expand their surety bond market presence.

Key Benefits

• The report provides quantitative analysis and estimations of the market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future surety market trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.

• Competitive analysis of the key players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Surety Market Key Segments

By Type   

• Contract Surety Bond

• Commercial Surety Bond

• Court Surety Bond

• Fidelity Surety Bond

By Application  

• Government Agency 

• Enterprise

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

Key Players

• Crum & Forster

• CNA Financial Corporation

• American Financial Group, Inc.

• The Travelers Indemnity Company

• Liberty Mutual Insurance Company

• Corvus Insurance

• Tokio Marine Holdings

• The Chubb Corporation

• AmTrust Financial Services

• IFIC Security Group

​​​​​​REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2024	USD 21.03 Billion
Revenue Forecast in 2030	USD 28.96 Billion
Growth Rate	CAGR of 5.5% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	The expansion of economic activities fuels the growth of the market The government initiatives promoting the use of surety bonds drives the growth of the market The expanding MSME sector propels the growth of the market
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.