Market Scenario 

Global weather forecasting services market was valued at US$ 4.0 billion in 2023 and is projected to attain a valuation of US$ 11.6 billion by 2032, at a CAGR of 12.6% during the forecast period, 2024-2032.

The global weather forecasting services market is driven by several factors. With the growing frequency and intensity of natural disasters like hurricanes, typhoons and floods in the past few years has intensified the demand for precise weather forecasts. In 2023, there were 421 natural disasters worldwide that underlined an urgent requirement for accurate predictions about climate change. Moreover, it is expected that the use of such advanced technologies as big data analytics, artificial intelligence (AI) or machine learning (ML) in this field will also contribute towards its development. For example, medium range weather forecasting accuracy has been significantly improved through employment with 3D neural networks. Furthermore, another factor driving up market revenue is the rapid growth in precision agriculture adoption rate. Wherein, timely information on weather conditions helps optimize crop yields. By the end of 2023, precision agriculture market generated a revenue of over US$11 billion, which indicates growing reliance on exact prediction methods based upon reliable meteorological data.

Apart from this, aviation sector is another significant driver of the weather forecasting services market. It is essential for smooth flight operations to have accurate forecasts. In 2023, the global aviation industry witnessed air traffic rise to 38 million flights, which additionally increased the need for dependable information about climate conditions. Likewise, maritime sectors relies heavily on accurate whether forecasting as it shipped over 11.5 billion tons of cargo in 2023 alone since safety at sea mainly depends on understanding whether conditions. Besides these two sectors, there are also others like renewable energy where they heavily rely on weather forecasts; For example, 3,372 gigawatts of electricity were produced in 2023 globally through green sources which mostly come from wind farms and solar panels — both require good predictions too. These specific demands, therefore, indicate that there will still be growth in demand for whether forecast services.

In spite of good potential for growth, the weather forecasting services market faces a number of challenges. These include the high costs involved in implementing sophisticated technologies – up to $50 million per system – as well as lack of staff with enough expertise to handle these systems among other things that could be named. Worries over privacy and security when it comes collecting or storing weather data may also dampen this industry’s development but at the same time provide room for improvement. For instance, cyber security advancements can take care of data privacy issues while training programs could help solve skills’ shortage problem. Similarly, about 2 million companies worldwide adopted weather forecasting service in 2023 alone, which shows how widely applicable and necessary accurate meteorological information has become across different sectors globally.

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Market Dynamics 

Driver: Increasing Demand for Accurate Weather Predictions to Mitigate Climate Risks

With the increasing occurrence and severity of violent weather conditions, accurate weather prediction services are becoming important in the global weather forecasting services market. In 2023 alone, the US suffered the losses of US$ 22 billion primarily linked to adverse weather conditions and calamities, says the National Oceanic and Atmospheric Administration (NOAA). Additionally, over the last 50 years, the number of natural disasters around the world has risen five-fold, according to a report by the World Meteorological Organization (WMO). This dramatic uptick in extreme weather events highlights an urgent requirement for exact forecasts that can help people get ready for them as well as reduce their impact. Between 2000-2019 losses from climate-related catastrophes amounted to $2.56 trillion dollars which was indicated by Global Climate Risk Index study. Therefore, businesses such as agriculture, aviation, and maritime industries etc., must invest heavily into this technology so they don't suffer too many setbacks or lose too much money due to bad weather interfering with their operations. For example, improved predictions could save the agricultural sector alone up to US$ 30 billion per year in America says American Meteorological Society.

Moreover, the demand for weather forecasting services market has been also growing with every day due to the increased accuracy and dependability brought by technology. According to European Centre for Medium-Range Weather Forecasts (ECMWF), incorporation of artificial intelligence (AI) and machine learning (ML) into predictive models has made forecasting 20% more accurate within the past decade alone. Furthermore, it is projected that the global weather forecasting services market will grow at a CAGR of 12.6% between 2023 and 2032, eventually hitting US$11.68 billion in size by the end of 2032. This expansion can be attributed to wider availability of real time data streaming from over 10,000 different weather stations scattered across the globe as well as increased deployment numbers for 3,000 plus satellites used in meteorology around world today.

Trend: Integration of AI and Big Data in Weather Forecasting Services

A disruptive trend that is turning around the weather forecasting services market is the fusion of big data analytics and artificial intelligence (AI). The AI segment of this industry was worth $200 million in 2023 and is projected to keep growing at a significant CAGR of 25.1% in the years to come. Weather forecasts can be made more accurate and timelier when AI algorithms process huge amounts of meteorological data. IBM’s GRAF system, for instance, provides hourly updates on a kilometer scale resolution as opposed to the traditional 12 kilometers resolution. Furthermore, big data analytics make it possible for different types of information sources like satellite images or radar data or IoT sensors etc., to be integrated thus refining the granularity and accuracy levels in weather forecasting even further than before. It was discovered by National Center for Atmospheric Research (NCAR) that their studies using AI models reduced forecast errors by 25% when compared against conventional methods.

Moreover, the use of AI and big data is advancing rapidly in the weather forecasting services market thanks to growing amount of meteorological information produced each day. Approximately 463 exabytes of data will be generated daily by 2025, according to the World Economic Forum, a great deal of which will pertain to weather. This means being able to analyze and understand this data as it comes in becomes more important than ever if we want accurate and timely forecasts. For instance, Copernicus – the European Union’s Earth observation program – handles over 8 petabytes worth of environmental records yearly which are then used for everything from disaster prevention all the way through agricultural planning. Also, International Renewable Energy Agency (IRENA) found that artificial intelligence powered weather predictions can increase renewable energy efficiency by 15%. These are only some possibilities brought about with progressions made thus far in AI as well as Big Data.

Challenge: High Costs and Complexity of Advanced Weather Forecasting Systems

Among the major challenges in the growth of the weather forecasting services market are the high expenses and difficulties associated with advanced prediction systems. The construction and support of modern weather forecast infrastructure demand considerable capital input. The U.S. National Weather Service estimates that running their weather forecasts operations costs more than $1 billion yearly. Additionally, in their latest forecast Centre for Medium-Range Weather Forecasts (ECMWF) spent over €80 million on a supercomputer capable of 20 petaflops (quadrillion calculations per second). Financial entry barriers are especially high for developing countries, which lack resources for investing into up-to-date technologies. According to World Bank’s report, only 20% low-income countries have access to good quality weather forecasts compared with 80% high-income countries.

The challenges are also significant in the complexity of integrating different sources of data and technologies in the weather forecasting services market. Modern weather forecasting relies on many sources of data, such as satellites, radars, weather stations and IoT devices. The World Meteorological Organization (WMO) has reported that more than 100 countries contribute to the Global Telecommunication System, which delivers over 50 terabytes of weather data each day. Software needs to be complex and technical skills need to be extensive enough for this data to work in real-time with each other. For example, AI and machine learning models can’t be put into effect without a good understanding of meteorology as well as data science. This problem is made worse by the fact that there aren’t enough qualified people who have these skills. According to the US Bureau of Labor Statistics there will be an increase in demand for 22% more data scientists by 2030 than what exists now. So, it follows then that advanced systems of predicting the weather should be expensive and difficult to use widely because they are costly or complicated.

Segmental Analysis 

By Service Type

Public weather forecast services provided by government agencies and meteorological institutions are still the biggest players in the weather forecasting services market, accounting for over 28% revenue share. The demand for these services has grown significantly in the past few years as climate change has caused extreme weather conditions to become more frequent and drastic than before. People need public weather forecasts to protect themselves against natural disasters. Authorities also rely on this information when planning relief efforts. Aviation safety standards cannot be maintained without accurate predictions, which is why marine transportation companies also use them. In fact, according to National Oceanic and Atmospheric Administration data, there was 15% growth in aviation sector’s reliance on their service in 2023 compared 2022. While European Centre for Medium-Range Weather Forecasts revealed that their forecasts have improved by 12% in 2023 — a move welcomed by many stakeholders who benefit from such improvements.

In the year 2023, public weather forecasting services market have grown in breadth as they have adapted more intricate technologies including artificial intelligence and machine learning that better their precision and dependability when predicting the weather. For instance, Met Office of UK has adopted models driven by AI which were reported to increase short-term weather accuracy by 10%. The necessity for these facilities is also being fueled by growing knowledge among citizens coupled with urgent demand for timely information during dangerous meteorological conditions. A recent study indicated that 78% of its participants admitted to using state-provided updates on weather forecasts so as to plan for their day-to-day activities and emergencies. In addition, aviation revealed a decline in flights delays caused by weather from 20%. These enhancements highlight the crucialness of public weather forecast systems in saving lives while supporting different sectors.

By Forecast Range

Based on forecast range, the global weather forecasting services market is divided into short range, medium range, and long range. Wherein, short-range forecasting remains essential for immediate planning and response activities as it delivers weather information up to 48 hours in advance. However, medium-range forecast that gives predictions for ten days ahead and is projected to continue dominating the market with over 30% market share due to its accuracy vis-à-vis usefulness balance for longer term planning. In 2023, it has been witnessed that most of the revenue of this segment is driven by prominent end use industries such as agriculture and energy whose revenue can be affected greatly by operational decisions made according to weather forecasts. For example, European Centre for Medium Range Weather Forecasts (ECMWF) improved their models which increased its forecast accuracy level with 12%. Apart from this, it he last 2 years, the market has witnessed a 15% growth in the number of times agricultural sector uses medium range forecast, an indication showing its significance in crop management and planning.

Strategic planning and risk management are increasingly relying on long-range forecasting in the weather forecasting services market, which extends to about one month ahead. Such forecasting is especially valuable for industries that demand more time for decision-making processes like construction and retail. In 2023, climate modeling improvements together with data analytics have resulted in more reliable extended weather forecasts that can be acted upon by businesses. For instance, AccuWeather’s long-term precision has risen by 10% after they started using machine learning and artificial intelligence methods in their systems. Further, retailers have increased their use of extended weather forecasts for stock management and planning promotions by 20%. These milestones indicate the need for accurate diverse range weather predictions to support strategic decisions while enhancing efficiency in operations based on forecasts made over different time spans.

By Enterprise Size

Based on enterprise size, the weather forecasting services market is segmented into large, medium and small enterprises. Wherein, large enterprises are projected to keep dominating the market by holding more than 57% revenue share thanks to their substantial resources and the importance of accurate meteorological data for managing intricate operations. Throughout 2023, big enterprises in energy like utilities have been increasingly relying on forecasts to maximize production and distribution efficiency while cutting costs down and improving service reliability. For example, Duke Energy has said that it cut operational cost by 15% because projections became better than before. Also, there is a 20% rise in adoption among retail chains with respect to supply chain optimization, which led them into good inventory management too.

The significance of climate information in operation is being realized by small and medium-sized enterprises (SMEs) is giving impetus to the growth of the weather forecasting services market. Nonetheless, the cost has been prohibitive for ordinary weather prediction services. In 2023, there were cheaper and more accessible forecasting solutions designed specifically for SMEs that came into the market. For instance, companies like Climacell (now Tomorrow.io) have created innovative yet affordable platforms of weather intelligence and is targeting smaller businesses’ unique requirements. This has resulted in a surge by 25% for such services among these establishments thereby empowering them to make better choices while also reducing risks associated with the weather. Furthermore, according to a recent survey, it was discovered that about 60% all SMEs claimed having recorded increased operational efficiency following incorporation of this aspect into their planning processes. These advancements indicate an increasing acknowledgement of how valuable weather forecasting services can be within firms regardless of size.

By Application

On the basis of application, the global weather forecasting services market is categorized into safety, transport, energy, agriculture, among others. Wherein, the safety applications is leading the market by contributing over 75% revenue. This is fueled by the necessity to safeguard lives and property during natural calamities and severe weather conditions. In 2023, the worlds witnessed a significant rise in hurricanes, wildfires and floods, which has highlighted the need for accurate emergency responders’ weather prediction information as well as that used by governmental bodies. Federally managed F.E.M.A alone reported using 30% more disaster preparedness and response data sourced from meteorological predictions. At the same time, installing 20% additional early warning systems against extreme weathers helped them building stronger communities with better readiness levels.

In order to secure the safety and efficiency of their activities, transport and energy industries in the global weather forecasting services market depend on weather information. For example, accurate weather forecasts are necessary in aviation for route planning optimization and avoidance of dangerous conditions. Predictive analytics have increased precision of aviation weather forecasts by 20% hence reducing flight delays associated with poor weather in 2023. In a similar manner, renewable energy companies like those dealing with wind power or solar energy utilize it for production planning purposes. This has led to an operational efficiency increase of about 15%. Apart from this, the integration of advanced models into traditional systems has resulted into 25% more accurate predictions on crop yield within farming sector among other things too.

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Regional Analysis 

In the global weather forecasting services market, North America is holding more than 35% of the market share, which is attributed to a solid infrastructure and presence of key players like The National Oceanic and Atmospheric Administration (NOAA) as well as The Weather Company. This position is further strengthened through creative breakthroughs and strategic moves made in 2023. For instance, real-time weather monitoring in the US has been made even better by GOES-T satellite that was launched recently by NOAA. This has led to higher precision and dependability of forecasts among other things. On the other hand, IBM’s Watson AI being incorporated into the Weather Company’s system has enabled accurate predictive analytics which caters for different industries depending on such information. In fact, the year 2023 saw an increase of 20% in funding for researches related to technological advancements in climate prediction across North America, which shows how committed they are towards remaining at the top in this sector.

A complex network of government agencies as well as private concerns make the United States the top North American weather forecasting services market driver. For example, in order to boost flight safety and operational efficiency, there has been a significant increase in utilization of sophisticated weather systems within the US aviation industry. The Federal Aviation Administration (FAA) adopted NextGen Weather Program which is aimed at minimizing weather-related disruptions. These developments have led to 15% reduction of flight delays caused by bad weather during 2023 alone. Additionally, marine and energy sectors have stepped up their reliance on accurate forecasts by investing in cutting-edge prediction tools for risk management optimization purposes while making sure that operations are not affected too much by adverse conditions such as storms or hurricanes alike. It was reported by US Department of Energy that there was a 10% reduction in power outages caused by bad atmospheric conditions after they improved their ability to forecast them correctly; also, they invested more into this area so as to enhance grid reliability when it comes down to how certain types of weather would affect different parts within an electrical system.

North America weather forecasting services market has seen a big rise in using weather data to help with precision farming. Precision agriculture is adopted more often as it bases on accurate weather forecasts. Climate-Smart Agriculture Program, an initiative of the U.S. Department of Agriculture (USDA), shows that climate information can be used for increasing agricultural productivity and sustainability. Since 2023, over half a million farmers from North America have been using advanced tools for predicting the weather in order to maximize crop outputs and reduce negative impacts from bad weather conditions while achieving positive results: regionally across these continent yields were upped by 12%. 

Moreover, driven by integrating with meteorology systems, precision agriculture market in Northern America weather forecasting services market grew by 18% during the same year. It also showed other staggering numbers such as like improving accuracy rates by 15% through machine learning algorithms applied within artificial intelligence designed specifically around forecasting future atmospheric phenomena.

Top Players in Global Weather Forecasting Services Market 

• Accuweather, Inc.
• BMT Group
• DTN
• Earth Networks
• Fugro
• Global Weather Corporation (UCAR)
• Met Office
• Precision Weather Service
• Skyview Systems Ltd.
• Spire Global
• StormGeo (Alfa Laval AB)
• The Tomorrow Companies Inc.
• The Weather Company (IBM)
• Other Prominent players

Market Segmentation Overview

By Service Type

• Public Weather Forecasting Services
• Custom Weather Forecasting Service
• Offshore Forecasting Services
• Hurricane & Typhoon Forecasting Services
• Risk Management Services
• Others

By Forecast Range

• Nowcasting
• Short Range
• Medium Range
• Long Range

By Enterprise Size

• Small & Medium Enterprises (SMEs)
• Large Enterprises

By Application

• Safety
• Operational Efficiency
• Others

By Industry

• Agriculture
• Aviation
• Renewables
• BFSI
• Energy & Utilities
• Media
• Oil & Gas
• Transportation
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America