Weather Forecasting Services Market Size, Share & Trends Analysis Report By Forecast (Nowcasting, Short-range, Medium-range, Long-range), By Organization Size (Large Enterprises, Small & Medium Enterprises), By Industry (Agriculture, Aviation, Energy & Utilities, Renewables, Banking Financial Services & Insurance (BFSI), Logistics & Transportation, Marine, Retail, Media, Manufacturing, Others), By Purpose (Safety, Operational Efficiency, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global weather forecasting services market size was valued at USD 2.41 billion in 2023. It is expected to reach USD 4.25 billion in 2032, growing at a CAGR of 6.53% over the forecast period (2024-32). The rising need for precise and timely weather forecasts across various industries, including agriculture, aviation, transportation, energy, and disaster management, drives market growth. Weather information enables informed decision-making, risk mitigation, and operational planning.

Services that provide weather forecasts include a wide range of methodologies and instruments that are all related to meteorology. An extensive range of technologies are employed in the weather forecasting process in order to assess atmospheric data and give present and future weather forms for an individual location. The use of organized and unstructured data to raise analytical output while boosting income for a wide range of end-use sectors is an essential component of weather forecasting

Aviation and shipping's expansion and the rise in end-use industries' safety concerns drive the market. Increases in renewable energy production are also fuelling the market's expansion. Market expansion is likely to be slowed by weather forecasting model complexity and a scarcity of qualified workers. Weather forecasting services market growth is predicted to be boosted by technical advancements in computing systems and the growing transportation industry in developing countries.

Market Dynamics

Global weather forecasting services market drivers

Weather forecasting services are in high demand in today's farming industry

Farming relies heavily on the seasons and the weather. Temperature and other atmospheric variables must be taken into account when cultivating a variety of fruits, vegetables, and legumes. Accurate weather data is critical for crop production, which is heavily reliant on the weather. Climate change has made the management of weather and climate risks in agriculture even more critical in recent years. There is no doubt that the need for agricultural products has expanded dramatically in order to feed the growing population. Agricultural management is becoming increasingly important, and this necessitates careful forethought in light of changing climates. For this reason, the farming industry is increasingly relying on weather predicting services to plan for the upcoming season.

Agricultural and food security is at risk from a variety of climate threats, according to the Intergovernmental Panel on Climate Change (IPCC). However, there are opportunities to strengthen weather and climate early warning systems to support farmers. Agricultural weather forecasting systems aim to help farmers fulfill the needs of a rapidly expanding global population.

Computer system advancements in technology

Consistent computer system breakthroughs have fueled the meteorology industry's growth. To identify a microburst (a sort of wind shear caused by a thunderstorm's outflow), a doppler radar can be utilized. Airspeed loss due to low altitude wind shear is automatically detected and reported by the terminal doppler weather radar. Dual polarization technology also makes it easier for forecasters to tell apart different kinds of precipitation and how much of each they'll get. Radar technology developed by the U.S. Navy holds great promise for improving weather forecasts. Such advancements have the potential to significantly expand the sector. Weather forecasting services also provide safe and interoperable network communications for land and vital maritime operations, such as rescue, administration, and support duties.

Global weather forecasting services market restraints

Lack of specialist weather forecasting models and high levels of complexity

Current atmospheric and oceanic conditions are used by forecast models to anticipate future weather because of the frequency with which circumstances change. Temperature, humidity, pressure, wind speed and direction are all taken into account in a weather forecast. Cloud cover is also taken into account. Weather forecasting models take into account factors such as geographical position, proximity to water sources, urban structures, and latitude and elevation. There are many variables at play in the weather, and even if a weather forecaster has a solid understanding of their model's initial conditions, the weather can be dynamic and sensitive. The inherent nonlinearity of weather forecast models complicates the forecasting process. Even more difficult is the process of integrating and analyzing such a large volume of data. Weather patterns on a long-term scale can be deduced with more accuracy, but short-term weather analysis cannot be done properly. In order to arrive at an accurate prediction, a number of factors must be taken into account, which are projected to slow the market's growth.

Global weather forecasting services market opportunites

Supercomputers are a means of boosting computing power

Uses complicated and high-energy infrastructure to make weather predictions. Big data includes environmental observation data, which has grown exponentially in the previous few years, according to a recent report. As a result, weather forecasting centers are anticipated to provide integrated solutions that fulfill the computational needs of weather forecasters while also enabling data mobility and management and the ownership of the whole cost of these activities.

Accurate weather predictions will become more likely thanks to improved supercomputers' ability to process extremely high-resolution weather forecasts and models of the climate on Earth. It is also possible for forecasters to gain a deeper grasp of the long-term weather patterns through simulation-based methodologies and complex software models Simulated weather forecasts, coupled with the power of supercomputers, guarantee very accurate weather forecasts since they incorporate data-driven models for predictive modeling and knowledge discovery. Therefore, the development of the computational capabilities of supercomputers is likely to act as a growth opportunity for the weather forecasting services market.

Regional Analysis

The global weather forecasting services market share is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

In 2021, North America held a dominant position in the market with a revenue share of more than 28 percent, and it is probable that it will continue to hold this dominant position throughout the forecast period. The expansion of the market can be attributed to a number of different causes, including investments in research and development, the availability of qualified professionals, and technological infrastructure. For instance, the United States is home to the headquarters of several of the world's most prominent weather forecasting organizations, including The Weather Company (IBM), AccuWeather, Inc., DTN, and Earth Networks. Companies with headquarters located in countries other than North America, such as the Netherlands' Fugro, have established offices in the region.

Over the course of the projected period, it is anticipated that Asia Pacific would have the greatest CAGR of 7 percent. The rise can be ascribed to the expanding technology infrastructure in the region. According to the Germanwatch global climate risk index 2021, a large number of nations in the Asia Pacific region are ranked high in the index, indicating that they are susceptible to the effects of the weather and climate. It is anticipated that the increased number of businesses in the region would lead to an increase in demand for weather forecasting technologies. For instance, the agriculture business is significant in the area and necessitates individualized approaches to weather forecasting in order to reduce the likelihood of adverse outcomes.

Segmental Analysis

The global weather forecasting services market share is divided into different segments according to the Forecast, Organization Size, Industry, and Region (Geography).

By Forecast, the global market is segmented into Nowcasting, Short-range, Medium-range, and Long-range. It is predicted that the medium-range sector would have the highest CAGR over the forecast period. In 2021, the medium-range segment held the largest revenue share, which was greater than 27 percent. This is because the forecast provides a lead time for adapting without compromising the accuracy of the weather forecasts. The majority of service providers across the globe offer medium-range weather forecasts. According to NOAA SciJinks, the accuracy of a 5-day forecast is approximately 90%, while the accuracy of a 7-day forecast is approximately 80%. When considering projections of the market's future, it has been broken down into four categories: nowcasting, short-range, medium-range, and long-range.

In 2021, the short-range sector was responsible for the second-largest revenue share and is expected to post the second-highest CAGR of 6.72 percent. The accuracy of short-range weather forecasts is very high, and they offer consumers a comprehensive collection of data, including air temperature, humidity, wind speed, and expected precipitation. Users of this information can prepare for potentially hazardous weather and mitigate harm.

By Organization Size, the global market is segmented into Large Enterprises and Small & Medium Enterprises. The large enterprise category is expected to maintain its dominance throughout the projected period since it attained the greatest revenue share in 2021. (More than 72 percent). This is due to the size of these enterprises, which can be assessed by their income and the number of people they employ. These companies were among the first to enter the market, and they invest much in research and development to sustain constant innovation and provide reliable weather forecasting goods and insights.

Over the forecast period, the organization size sector for small and medium enterprises is expected to develop at a CAGR of 7.1%. Numerous small and midsize firms offer weather forecasting services. These businesses include Precision Weather Service in the US, Climavision in the US, AfricaWeather (Proprietary) Limited in South Africa, and Speedwell Weather Ltd. in the UK.

By Industry, the global market is segmented into Agriculture, Aviation, Energy & Utilities, Renewables, Logistics & Transportation, Marine, Retail, Media, Manufacturing, and Others. In 2021, the media sector was the most dominant part of the market and held a revenue share of more than 15 percent. Over the course of the forecast period, it is anticipated that the CAGR that is highest will be achieved by the renewables section at 7.23 percent. The expansion can be linked to the increased investments in renewable energy sources like solar and wind, which are being made in an effort to reduce emissions of greenhouse gases. The weather may make or break the renewable energy business because the majority of its processes are dependent on the environment. As a result, there will likely be an increase in demand for weather forecasting services in tandem with the expansion of the renewable energy industry.

In 2021, aviation was the sector with the second-largest revenue share. This is because enterprises in this industry need accurate weather forecasts to maximize safety and operational efficiency. Accurate weather solutions for the aviation industry helps reduce wasteful costs and aircraft delays. Weather data that is timely and reliable can help ensure the safety and efficacy of aircraft operations. Lightning, heavy winds, and icing can all damage an airplane. Many market actors, such as the Met Office in the UK and The Weather Company in the US, offer weather solutions customized to the aviation industry (IBM).

By Region, the global market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Over the projection period, North America is expected to keep its dominance in the market, with a revenue share of over 28%. Technological infrastructure, the presence of experts, and investments in R&D are all reasons for the market's expansion. Over the forecast period, Asia Pacific is expected to have the highest CAGR of 7%. Developing technical infrastructure in the region is to blame for the rise.

Recent Developments

• February 2024 - The INSAT-3DS satellite for the Ministry of Earth Sciences was successfully launched by the Indian Space Research Organization on board its Geosynchronous Launch Vehicle (GSLV-F14).
• February 2024 - NOAA's National Weather Service and Honeywell Aerospace Technologies entered into a two-year Cooperative Research and Development Agreement. This agreement aims to install a ground system called High-Altitude LiDAR Atmospheric Sensing (HALAS) and assess the upper-air data collected to determine its potential usefulness in weather forecasting.