Report : North America Surety Market Forecast to 2027 - COVID-19 Impact and Regional Analysis By Bond Type (Contract Surety Bond, Commercial Surety Bond, Court Surety Bond, and Fidelity Surety Bond); and Country
According to our new market research study on “North America Surety Market to 2027 – Regional Analysis and Forecast by bond type, and country,” the market is expected to reach US$ 13,498.40 million by 2027 from US$ 8,573.43 million in 2019; it is estimated to grow at a CAGR of 6.4% from 2020 to 2027. Many of the mature economies across the globe are facing major challenges owing to their ageing infrastructure. For instance, as per the American Society of Civil Engineers', the US would need around US$ 4.5 Tn by 2025 to upgrade the state of its roads, bridges, airports, dams, schools, and more. Moreover, ageing power generation and distribution infrastructure are becoming a key biggest challenges for utilities in developed countries. For instance, in the US, the power grid is believed to be valued an estimated US$ 876 Bn, renovating infrastructure would cost hundreds of US$ Bn, as per the US Department of Energy. Upgrading generation, as well as transmission facilities in these countries, would draw significant investments hence, the surety market is expected to bolster.
The US Small Business Administration’s Surety Bond Guarantee Program in collaboration from the surety industry, helps small construction companies in procuring requisite bonds on federal, state, local, and commercial construction projects and on service and supply contracts and subcontracts. This helps small and emerging contractors with opportunities, particularly in public sector construction, which subsequently drives the surety market in the country.
One of the key factor boosting the growth of surety market is the increasing reverse-flow business in the US attributed to more Public-Private Partnerships as well as increasing acquisitions. Major US based surety companies are operating globally, with substantial premiums from countries outside the US, helping them to enhance their profits and growth. Furthermore, investments for modernizing the country’s aging infrastructure is expected to drive the market for infrastructural development in the US.
CNA Financial Corporation, The Travelers Indemnity Company, Liberty Mutual Insurance Company, Chubb, and The Hartford are among the leading companies in the North America surety market. The companies are focused on adopting inorganic growth strategies such as mergers and acquisitions to sustain their position in the dynamic market. For Instance, in 2019, Liberty Mutual Insurance Company completed the acquisition of AmTrust Financial Services.
North America surety market
The report segments the North America surety market as follows:
By Bond Type
- Contract Surety Bond
- Commercial Surety Bond
- Court Surety Bond
- Fidelity Surety Bond
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