The expansion of the travel & tourism industries, the surge in government initiatives for the development of MICE (meetings, incentives, conferences, and events) segment & SME sector, the growth of information and communication technology (ICT), rapid urbanization, industrial growth, and increase in globalization of business are expected to fuel the growth of the global travel risk management services market. However, transportation costs and time barriers hinder market growth. On the other hand, the current trend of online booking options of risk management services and lucrative offers made by the governments of developing nations to attract foreign investment will present new opportunities in the market in the coming years. Travel Risk Management

According to the Allied Market Research report, the global travel risk management services industry generated $ 96.26 billion in 2021 and is estimated to reach $223.62 billion by 2031, witnessing a CAGR of 8.1% from 2022 to 2031.

Globalization is one of the major factors supporting market growth. Companies are increasingly sending their workers to more international locations for business needs. Some locations are far away or in dangerous areas that can affect business and travellers. The amount of danger in some countries is also becoming harder to assess, especially as it is rising even in places that were once thought to be low-risk. Thus, companies are looking for effective travel risk management services to avoid unprecedented risks during travel.

Travel risk management services and globalization

Globalization in business refers to change in a business from a company associated with a single country to one that operates in multiple countries. Leading business organizations such as Toyota Motor Corporation, McDonald’s, Wal-Mart Stores Inc., and Amazon, Inc. are venturing beyond national boundaries to tap more business opportunities and support travel Risk Management Services Market demand.

The travel risk management services industry is supported by the growth of multinational companies and their international movements from a business perspective. The growth of information and communication technology (ICT) in Asian countries has favored the growth of multinational companies in the Asia-Pacific region. Moreover, the availability of different resources and cheap labor in emerging nations such as China, India, Malaysia, and Indonesia has attracted many foreign companies to operate their businesses in these regions.

Asia-Pacific is the largest business travel market across the globe

The lucrative offers made by the governments of developing nations to attract foreign investment have led to the establishment of multinational enterprises, ultimately boosting business travel. Developing countries, such as China, have become manufacturing hubs that accounted for around 28.7% of the global manufacturing output in 2019, as per the data published by the United Nations Statistics Division.

As a result, Asia-Pacific has become the largest business travel market across the globe. In addition, liberalization in market entry strategies in countries such as India encourages global business organizations to expand their market size. To operate global firms, activities such as geocentric or cross-cultural employee training and international marketing have notably increased, which is one of the prime factors that promote the travel risk management services market growth.

The crisis management segment is growing at the fastest pace Travel Risk Management

Based on service type, the travel security segment contributed to the highest share of nearly one-fourth of the global travel risk management services market in 2021 due to the growing business travel needs of people in different industries such as manufacturing, retail, IT, and others. However, the crisis management segment is projected to witness the fastest CAGR of 9.1% from 2022 to 2031, owing to the increasing concern of travelers regarding natural or financial crises.

The large enterprise’s segment to maintain its lion’s share during the forecast period

Based on enterprise size, the large enterprise’s segment held the largest share of more than two-fifths of the global travel risk management services market in 2021, and is expected to maintain prominent growth during the forecast period as large enterprises offer unique services, leisure activities, and others. However, the small enterprise segment is likely to exhibit the highest CAGR of 8.8% in 2031, owing to the increase in focus of small organizations toward the adoption of new services and technologies to expand their businesses.

Asia-Pacific to dominate in terms of revenue by 2031 Travel Risk Management

Based on region, Asia-Pacific held the largest market share in 2021, accounting for nearly two-fifths of the global travel risk management services market, and is likely to lead the trail throughout the forecast period. This is attributed to the increasing interest of international players in tapping opportunities in India and China. However, LAMEA is anticipated to manifest the fastest CAGR of 9.5% during the forecast period, 2022-2031. The growth is driven by liberalization to access trade licenses and government initiatives to encourage private investment & FDIs in the region. Moreover, initiatives to develop MICE events fueled the frequency of business travels in LAMEA.

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