Equipment breakdown coverage is an optional part of a business insurance policy that helps to pay for the costs of repairing or replacing damaged or broken-down equipment. The market for equipment breakdown insurance aids in lowering the additional costs of equipment repair and damage. During the stoppage of the machinery, the insurance also covers the loss of the business cover. Furthermore, many businesses that rely solely on machinery to run their operations are creating a market demand for equipment breakdown insurance. Furthermore, due to the rising disposable income and rising consumer interest in vehicle insurance approval, the adoption of luxurious cars is on rise. It aids in the reduction of additional costs in the event of car damage. Moreover, as technology advances, the market demand for electrical equipment, computers, boilers, and pressure equipment is increasing, which is further estimated to boost the growth of the equipment breakdown insurance market in the upcoming period.
The global equipment breakdown insurance market is segmented on the basis of product type, application, service provider and region. Based on product type, the market is divided into mechanical, electrical, computers & communications, air conditioners & refrigeration systems and boilers & pressure equipment. In terms of application, the market is categorized into business and manufacturing. On the basis of service provider, the market is divided into cloud, network service, internet service, storage service, telecommunications service and others. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).
COVID-19 Scenario Analysis
- Digitization has emerged as a new way for the world to adjust to the new normal, with COVID-19 having an impact on all aspects of personal and professional life. This is especially true in the equipment breakdown insurance industry, where insurers have begun to use various digital channels to distribute their products and raise awareness.
- Insurers have developed new COVID-19-specific products to provide customers with a variety of coverages that protect them from the financial risks associated with the COVID-19 outbreak. This, in turn, is promoting the growth of the equipment breakdown insurance market.
Top Impacting Factors
Growth in the manufacturing industry and the rise in urbanization & technological advancements are expected to drive the growth of the market. In addition, emerging market investments are fueling the growth of the market.
However, lack of proper understanding regarding equipment breakdown insurance is expected to hamper the growth of the market. Contrarily, increased industrialization is expected to provide lucrative opportunities to the market in the upcoming years.
Growth in the Manufacturing Industry
As the manufacturing industry is shaping the world, there has been a rise in the demand for equipment which is quite essential in the manufacturing sector. Further, the market is being propelled by reducing the frequency and severity of equipment incidents, as it also assists in identifying dangerous conditions before any potential problems, similar to the physical inspection of the equipment. In the manufacturing industry, it is essential to reduce operating costs and to extend the equipment's useful life, as this will further help in reducing the number of incidents and its severity. Therefore, the surge in the growth of the manufacturing industry is expected to propel the growth of the equipment breakdown insurance market during the forecasted period.
Rise in Urbanization & Technological Advancements
The developing markets are being driven by rapid urbanization. Greater power demands for producing capital and consumer goods, combined with increased urbanization, continue to drive advancements in machine performance and efficient installation. New materials have been developed as a result of technological advancements that must withstand more demanding design parameters such as higher pressures, temperatures, and operating speeds, among others. As a result, there are more stresses and exposures to both material and operational failures. The continuous development of the higher performance of the machine targets, greater capacity, and efficiency are expected to push technology to its limits, as equipment breakdown insurance has always played a role in promoting the adoption of new technologies, so it is expected to continue to do so. Therefore, the rise in urbanization & technological advancements is fueling the growth of the equipment breakdown insurance market during the forecast period.
Key Benefits of the Report
- This study presents an analytical depiction of the global equipment breakdown insurance market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with a detailed analysis of the market share.
- The current market is quantitatively analyzed to highlight the global equipment breakdown insurance market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed market analysis depending on the present and future competitive intensity of the market.
Questions Answered in the Equipment Breakdown Insurance Market Research Report
- Which are the leading players active in the global equipment breakdown insurance market?
- What would be the detailed impact of COVID-19 on the global equipment breakdown insurance market?
- What are current trends that would influence the market in the next few years?
- What are the driving factors, restraints, and opportunities of the global equipment breakdown insurance market?
- What are the projections for the future that would help in taking further strategic steps?
Equipment Breakdown Insurance Market Report Highlights
| Aspects | Details |
 By Product Type |
|
 By Application |
|
 By Service Provider |
|
 By Region |
|
 Key Market Players | Westfield, Allianz SE Reinsurance, FM Global, Arch Capital Group Ltd, Axis Capital Pvt Ltd, Allstate Insurance Company, Liberty Mutual Insurance, Nationwide Mutual Insurance Company, CAN, Aviva |
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