Space Insurance Market Report 2025

The space insurance market size has grown strongly in recent years. It will grow from $3.71 billion in 2024 to $4.06 billion in 2025 at a compound annual growth rate (CAGR) of 9.4%. The growth in the historic period can be attributed to the increasing number of satellite launches, rising investments in space exploration activities, growing commercial space activities, increasing value and complexity of space assets, and increasing value and complexity of space assets.

The space insurance market size is expected to see strong growth in the next few years. It will grow to $5.73 billion in 2029 at a compound annual growth rate (CAGR) of 9%. Factors expected to drive this growth include advancements in satellite and launch vehicle technologies, a stronger emphasis on space sustainability, expansion of government and military space initiatives, increased involvement from developing markets, and a heightened demand for innovative and customized insurance offerings. Emerging trends during the forecast period will involve improvements in satellite and reusable launch vehicle technologies, enhanced data analytics and AI applications, integration of AI-powered solutions, and the merging of aviation, aerospace, and insurance sectors.

The rising number of satellite launches is expected to propel the growth of the space insurance market going forward. A satellite launch involves deploying a satellite into Earth's orbit or space using a rocket or launch vehicle. The rising number of satellite launches is due to increasing companies' and governments' deployment of satellites to meet the rising need for worldwide high-speed internet connectivity. Space insurance safeguards satellite launches by covering losses from launch failures, operational issues, or deployment damage. It provides financial protection, helping investors manage risks in expensive space projects. For instance, in July 2023, according to the Union of Concerned Scientists, a US-based nonprofit science advocacy organization, in 2022, around 6,718 active satellites were orbiting Earth, marking a rise of almost 2,000 satellites within a year. Therefore, the rising number of satellite launches is driving the growth of the space insurance market.

Major companies operating in the space insurance market are focusing on innovative solutions, such as satellite liability insurance, to protect operators from potential damages caused to third parties during space operations. Satellite liability insurance covers satellite operators against financial damages or legal claims resulting from harm to third parties during launch, in-orbit activities, or re-entry. For instance, in May 2024, Tata AIG, an India-based insurance company, introduced India’s first Satellite In-Orbit Third-Party Liability Insurance. The product offers vital financial safeguards for satellite manufacturers and operators against third-party injuries or property damage linked to orbital incidents. Designed in accordance with global standards, the insurance addresses growing threats in India’s swiftly evolving space industry, especially amid the surge in satellite deployments and recent solar activity. This initiative aligns with India’s goal of expanding its presence in the international space market.

In April 2023, Tokio Marine Holdings, Inc., a Japan-based provider of space insurance, partnered with Axelspace Holdings Inc. to innovate space insurance and disaster response through cutting-edge satellite technology. This partnership is aimed at creating tailored insurance products and digital tools that utilize data from microsatellites to cater to the rising needs of the space sector and to improve capabilities in responding to disasters. Axelspace Holdings Inc. is a Japan-based space company involved in building, launching, and managing microsatellites.

Major players in the space insurance market are Munich Re, Swiss Re, Tokio Marine Holdings Inc., Sompo International Holdings Ltd., SCOR SE, Marsh LLC, Aon plc, Willis Towers Watson, AXA XL, Starr Insurance Companies, Hiscox Ltd., Lockton Companies, TATA AIG, Lloyd’s of London, Global Aerospace, Odyssey Re Holdings Corp., Atrium Underwriting Group, MAPFRE Global Risks, Assure Space LLC, ExpanseInsure.

North America was the largest region in the space insurance market in 2024. The regions covered in space insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the space insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

Space insurance is a niche form of insurance developed to mitigate financial risks associated with space missions and satellite operations. This type of coverage includes multiple policies designed to protect various phases of a mission, offering financial security to stakeholders such as satellite operators, space agencies, and investors against potential significant losses.

There are several main categories of space insurance, including launch insurance, in-orbit insurance, end-of-life insurance, satellite insurance, and spacecraft insurance. Launch insurance is a targeted policy that offers protection from financial setbacks arising due to malfunctions or damages during the highly vulnerable launch stage of satellite and spacecraft operations. These insurance types are distributed through different channels such as direct sales, brokers, online platforms, reinsurance companies, and insurance agents. They serve a wide range of applications including communication satellites, earth observation satellites, navigation satellites, scientific and exploration missions, and space stations and habitats. The end-users benefiting from these insurance solutions include government space agencies, commercial satellite operators, launch service providers, space tourism companies, and academic and research institutions.

The space insurance market research report is one of a series of new reports that provides space insurance market statistics, including the space insurance industry global market size, regional shares, competitors with the space insurance market share, detailed space insurance market segments, market trends, opportunities, and any further data you may need to thrive in the space insurance industry. This space insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The space insurance market includes revenues earned by entities through third-party liability insurance, pre-launch insurance, reinsurance for space risks, launch delay insurance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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