The global weather forecasting services market size was estimated at USD 1.9 billion in 2022 and is expected to surpass around USD 4.6 billion by 2032 and is projected to reach a CAGR of 9.3% over the forecast period 2023 to 2032.
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Applications of science and technology are used in weather forecasting services to forecast atmospheric conditions. Digital satellite photography, radar imaging, model data, and surface measurements can now anticipate weather conditions more precisely because to developments and advancements in forecasting software. Over the past several years, the market for weather forecasting services has experienced substantial growth. The market is fuelled by the increased need for weather forecasting services brought on by an expansion of the agricultural sector to fulfil the demands of an expanding population, the need to enhance aviation safety, and the uncertainty of rainfall.
In order to upgrade their infrastructure, transportation and logistics are increasingly using weather forecasting services, which is driving the industry. It is projected that the development of sophisticated radars, small satellites, big data analytics for weather forecasting, and the growth of the renewable energy sector would all lead to new market expansion opportunities. The complexity of weather prediction models and the dynamic characteristics of atmospheric factors, however, are some of the restrictions that are projected to hinder the market's growth.
Numerous companies that provide weather forecasting services cater their solutions to particular sectors' demands. Artificial intelligence (AI) and machine learning (ML)-related technological developments are anticipated to help boost the accuracy of weather predictions. Many players also provide data and analytics weather services to their customers, assisting them in risk mitigation and improving operations. For the purpose of producing incredibly precise weather forecasts, market participants are investing in technology and research such as automation and supercomputers.
Report Scope of the Weather Forecasting Service Market
|Market Size in 2023||
USD 2.07 Billion
|Market Size by 2032||
USD 4.6 Billion
|Growth Rate from 2023 to 2032||CAGR of 9.3%|
|Forecast Period||2023 to 2032|
|Segments Covered||Industry, Organization Size, Purpose, Type, and Geography|
|Companies Mentioned||AccuWeather, Inc., DTN, Earth Networks, Fugro, Met Office, Precision Weather Service, Spire Global, StormGeo, The Tomorrow Companies Inc., The Weather Company (IBM)|
Weather forecasting has long been a challenging but important aspect of human existence. Accurate weather forecasts are crucial for achieving the necessary performance and safety in a variety of industries, including agriculture, fisheries, and contemporary aircraft. Weather forecasting also aids in lowering overhead transport and logistics costs and preventing significant losses brought on by severe weather. Additionally, technical advancements in product offerings, an increase in the requirement to improve performance and operational efficiency, an increase in the use of complex data analysis models, and an expansion of application areas among end users all contribute to the market's growth.
Services for weather forecasting Safety concerns in the aviation, transportation, and end-use sectors are driving market expansion. Production of renewable energy stimulates market expansion. A personnel shortage and complicated weather forecasting techniques might impede industry expansion. The market for weather forecasting services will grow as a result of technological developments in computer systems and a booming transportation sector in emerging nations.
Key Market Drivers
Key Market Challenges
Increased complexity along with the lack of professional weather forecasting methods
Key Market Opportunities
Supercomputers boost computing power
Rising penetration of advanced technologies in weather forecasting service
In order to foresee harm from extreme occurrences and properly inform consumers about the anticipated damage due to severe weather conditions, the insurance industry employs weather forecasting services. Policyholders can start taking precautions to prevent weather-related damage when they are informed of an impending weather event. In a similar vein, insurers may allocate resources in advance of significant weather occurrences by using precise and timely meteorological data.
Profits in the agriculture sector of emerging nations are now heavily reliant on weather conditions. It is well knowledge that farmers without access to reliable insurance markets behave cautiously, making less investments in their operations and selecting crop combinations and cultivation methods that limit farm profit volatility at the penalty of lower predicted returns. Experts on climate change and decision-makers have known for a long time that the insurance sector has a sizable pool of necessary expertise. In addition to having in-depth understanding of extreme weather and the hazards it brings, the insurance sector is skilled at creating scenarios, modeling weather risk, and matching incentives to desired behavior.
Organization Size Insights
During the projection period, the category of small and medium-sized businesses is expected to increase at the greatest CAGR. The development of weather forecasting services provides SMEs with chances to control weather-related hazards. It is anticipated that a number of SME-focused businesses, government programs, and weather forecasters would contribute to the expansion of the market for weather forecasting services.
The marine sector is utilizing the forecasts to maximize production and reduce hazards as the accuracy of weather forecasts rises, made possible by better technology and instruments. The Weather Company (US) has agreed to supply weather predictions to XShip (India), a worldwide maritime advisory service provider, so that it can determine the optimal routes for ships with 95% accuracy.
During the projected period, the segment with the second biggest market size is the short-range forecast type segment. The short-range segment is expected to grow at a CAGR of 6.8% from 2023 to 2032. Weather maps, satellite photos, weather balloon data, weather charts, and other ground-based data are all used to create short-range predictions. In addition to being utilized for aircraft and maritime navigation, it is also employed for weather prediction. This kind of prediction accomplishes its goal by providing details on the anticipated weather for the next several days, giving people enough time to prepare in the event of an emergency.
Fisheries and transportation are the industries that stand to gain the most from short-range forecasting. Both of these sectors depend on accurate weather forecasts for the next 48 hours to operate.
Weather Forecasting Service Market Share, By Region, 2022 (%)
|Regions||Revenue Share in 2022 (%)|
In terms of volume, North America held the biggest market share in 2022 and is expected to have substantial increase over the next seven years. The majority of end-user sectors, such manufacturing and aviation, are dominant in nations like the USA and Canada. To reduce pollution, the area is placing more of an emphasis on alternative energy sources like solar. These are the elements that support the expansion of weather forecasting services.
Due to the rapidly expanding sectors in the region, especially the transportation sector, demand is coming from nations like India, China, Japan, and others in the Asia Pacific. For the most part, these businesses rely on weather forecasting to increase production and profitability. In India, agriculture is crucial to the country's economy. Agriculture is the industry for which weather forecasting is most well-known. The need for weather forecasting services is growing in Europe due to the rapid industrialization and expansion of the aviation and shipping sectors, which depend on ideal weather to increase production.
Key Market Players
By Organization Size
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