Takaful Market Size & Share | Industry Trends - 2034

According to the report by Expert Market Research (EMR), the global takaful market reached a value of approximately USD 33.91 billion in 2024. Supported by the rising demand for ethical financial services and the expanding Muslim population across the globe, the market is projected to grow at a CAGR of 13.00% between 2025 and 2034 to attain a value of nearly USD 115.11 billion by 2034.

Takaful is a Sharia-compliant alternative to conventional insurance that operates on the principles of mutual cooperation, shared responsibility, and risk pooling. It is structured around Islamic financial principles that prohibit elements such as uncertainty (gharar), gambling (maysir), and interest (riba). Takaful products are developed and operated in line with Islamic jurisprudence and are widely embraced by individuals seeking ethical insurance solutions.

The rapid growth of the Islamic finance industry and the increased awareness of Sharia-compliant financial instruments are contributing to the expansion of the takaful market. In both Muslim-majority and Muslim-minority countries, the appeal of takaful is growing as consumers become more conscious of their religious obligations and demand ethical financial services. Additionally, the increasing financial inclusion of underserved communities, particularly in Southeast Asia and the Middle East, is fostering the adoption of takaful solutions.

Market Size

The global takaful market has witnessed robust growth, supported by favourable demographics and rising awareness of Islamic financial principles. In 2024, the market reached a value of USD 33.91 billion, with increasing penetration in regions such as the Gulf Cooperation Council (GCC), Malaysia, Indonesia, Pakistan, and parts of Africa. The market is expected to exhibit significant growth over the forecast period, reflecting the evolving preferences of consumers and the proactive efforts of governments and financial institutions to support the Islamic finance ecosystem.

As more Islamic banks, investment houses, and fintech companies enter the space, takaful is becoming an integral part of comprehensive Islamic financial offerings. The availability of diverse takaful products—from general takaful for property, auto, and health to family takaful for long-term savings and protection—is strengthening the market’s foundation and expanding its reach across diverse customer segments.

Market Share

Family takaful currently holds a dominant share of the global takaful market, owing to the growing demand for long-term financial protection and savings plans among families in Islamic communities. General takaful, which covers health, motor, property, and other non-life segments, also represents a substantial portion of the market, particularly in markets with a high incidence of property and motor insurance claims.

Geographically, the GCC region accounts for a significant share of the market, led by Saudi Arabia and the United Arab Emirates. Malaysia remains a major hub for takaful in Asia, supported by a strong regulatory framework and public awareness. Meanwhile, countries in Africa and South Asia are emerging as high-growth markets due to increasing Muslim populations and under-penetrated insurance sectors.

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Market Trends

Rising Digitalisation in Takaful Services

The digital transformation of the takaful industry is one of the most prominent trends shaping the market. Companies are increasingly adopting online platforms, mobile applications, and digital onboarding solutions to enhance customer experience and expand market access. This shift is making takaful products more accessible, especially to younger and tech-savvy consumers.

Integration of ESG Principles

Environmental, social, and governance (ESG) principles are increasingly aligning with Islamic finance, creating new opportunities for sustainable takaful offerings. The demand for ethical and socially responsible financial products is rising, and takaful providers are exploring green takaful solutions and socially inclusive insurance models.

Emergence of Micro-Takaful Products

Micro-takaful is gaining attention as a viable solution for providing insurance coverage to low-income individuals and small businesses in developing countries. These affordable and scalable products are designed to offer financial protection against risks such as crop failure, health emergencies, and natural disasters, supporting broader goals of financial inclusion.

Drivers of Growth

Increasing Awareness of Sharia-Compliant Finance

As awareness of Islamic finance principles spreads globally, more consumers are actively seeking Sharia-compliant financial services, including takaful. Financial education initiatives and outreach by Islamic financial institutions are instrumental in broadening the market.

Growing Muslim Population

The steady growth of the global Muslim population is a fundamental driver of the takaful market. With a large proportion of Muslims residing in emerging markets, there is immense potential for expanding takaful offerings to meet the protection and savings needs of this demographic.

Supportive Government Policies and Regulations

Governments in many Muslim-majority countries have introduced regulations that support the development of takaful as part of a broader strategy to strengthen the Islamic finance industry. Regulatory clarity, licensing frameworks, and tax incentives have played a key role in fostering a favourable environment for takaful growth.

Technology and Advancement

Blockchain and Smart Contracts

Emerging technologies such as blockchain and smart contracts are poised to enhance transparency and efficiency in takaful operations. These tools can automate claims processing, ensure secure record-keeping, and foster greater trust between participants and operators.

Artificial Intelligence and Data Analytics

Takaful providers are leveraging artificial intelligence (AI) and advanced data analytics to personalise product offerings, assess risk profiles, and detect fraudulent claims. This technological advancement is enabling more accurate underwriting and improving overall operational efficiency.

Cloud-Based Platforms and Mobile Integration

The integration of cloud computing and mobile platforms is enabling takaful operators to reach remote and underserved populations. Mobile-based takaful applications are proving effective in enhancing market penetration and facilitating quick enrolment and claims management.

Competitive Landscape

Some of the major players explored in the report by  Expert Market Research are as follows:

• JamaPunji (SECP)
• Qatar Islamic Insurance
• SALAMA Islamic Arab Insurance Company
• Takaful Brunei Darussalam
• Prudential BSN Takaful Berhad
• Others

Challenges and Opportunities

Lack of Standardisation

One of the key challenges facing the takaful industry is the lack of standardisation in product structures and operational models across different regions. Variations in Sharia interpretations can hinder cross-border scalability and create confusion among consumers.

Limited Awareness in Non-Muslim Countries

In non-Muslim-majority countries, awareness of takaful and its benefits remains limited. Expanding the market in these regions requires targeted marketing, consumer education, and a focus on the ethical and inclusive nature of takaful services.

Opportunities in Untapped Markets

Sub-Saharan Africa, Central Asia, and parts of South Asia offer significant growth potential for the takaful market. With large Muslim populations and low insurance penetration, these regions are ideal for the introduction of innovative and affordable takaful solutions.

Growing Demand for Health and Retirement Takaful

As healthcare costs rise and life expectancy increases, there is a growing demand for health-focused and retirement-oriented takaful plans. This trend presents an opportunity for providers to develop long-term products that cater to evolving consumer needs.

Market Forecast

The global takaful market is expected to witness strong growth throughout the forecast period of 2025-2034. Driven by demographic trends, digital advancements, and increasing regulatory support, the market is projected to expand at a CAGR of 13.00%, reaching nearly USD 115.11 billion by 2034.

The continued development of customer-centric products, combined with investments in technology and talent, will further strengthen the position of takaful in the global insurance landscape. As the principles of ethical finance and risk sharing gain wider acceptance, takaful is well-positioned to offer inclusive and sustainable insurance solutions for the future.