Weather Forecasting Services Market

Weather Forecasting Services Market Outlook from 2024 to 2034

The global weather forecasting services market is expected to reach the valuation of USD 2,655.5 million in 2024. According to the analysis, the industry is projected to grow at a CAGR of 12.0% from 2024 to 2034 with global adoption of digital solutions. The industry is foreseen to surpass USD 4,974.1 million, which shows the growth in the industry through 2034.

Weather forecasting services have an increasing importance in many fields because they can predict atmospheric conditions, which helps industries get ready for and reduce the effects of bad weather. The market for these services is growing fast, owing to new technologies that's better at gathering, processing, and sharing data. For farming, flying, and sea-related work, weather forecasting is key to staying safe working well, and making money.

As climate change causes more frequent and severe weather events, there will be need of accurate and timely weather forecasts more than ever. This highlights how important this market is becoming.

Global Weather Forecasting Services Market Assessment

Attributes	Description
Historical Size, 2023	USD 2,510.9 million
Estimated Size, 2024	USD 2,655.5 million
Projected Size, 2034	USD 4,974.1 million
Value-based CAGR (2024 to 2034)	6.5 % CAGR

These services are really important for agriculture industry. It helps farmers in the process of when to plant and harvest, use fertilizers and pesticides, and manage irrigation. This helps to cut down on crop damage from surprise weather like frost dry spells, or too much rain. These services also play a crucial role in the aviation analytics industry to keep flights safe and running.

Pilots need reliable weather info to navigate without issues when taking off, landing, and flying. Bad weather like storms, turbulence, fog, and strong winds can put flights at risk. By using up-to-the-minute weather data, airlines can dodge delays, change flight paths, and save fuel. This helps keep passengers safe and cuts costs for airlines.

Semi Annual Market Update

This below table presents the expected CAGR for the Global weather forecasting services market over several semi-annual periods spanning from 2023 to 2033. In the first half (H1) of the year from 2023 to 2033, the industry is predicted to surge at a CAGR of 6.7%, followed by a slightly lower growth rate of 6.5% in the second half (H2) of the same year.

Particular	Value CAGR
H1, 2023	6.7% (2023 to 2033)
H2, 2023	6.5% (2023 to 2033)
H1, 2024	6.9% (2024 to 2034)
H2, 2024	6.2% (2024 to 2034)

Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to hold at 6.9% in the first half from 2024 to 2034 and considerably decrease at 6.2% in the second half 2024 to 2034. In the first half (H1) 2024 to 2034 the market witnessed an increase of 20 BPS while in the second half (H2) 2024 to 2034 the market witnessed a decrease of 30 BPS.

Key Industry Highlights

Rising Demand of Weather-related Risk Management

Many industries are feeling a growing pressure to reduce losses and boost operational frequency when the weather turns unpredictable. Industries like agriculture, energy, transportation, and aviation can take a hit when bad weather strikes, which can cost them a lot of cash.

For instance, the farming industry depends a lot on exact weather predictions to make planting schedules, watering, and pest control better, which boosts crop output and cuts down on losses from unexpected weather. In 2023, farms used 15% more medium-range forecasts showing how weather forecasting plays a key role in planning and day-to-day choices.

In the same way, the power sector, including utilities and sustainability is relying more on weather forecasts to improve production and distribution. Duke Energy, for example, reported a 15% drop in running costs thanks to more accurate forecasts.

Also, the aviation sector has gained from improvements in weather prediction tech leading to fewer flight delays due to bad weather, which used to cause 20% of delays. These sectors show how crucial weather forecasting is to cut risk and boost effectiveness, which fuels market demand for these services.

Increased Frequency of Extreme Weather Events

The rising tough weather instances like hurricanes, floods, droughts, and wildfires are required better weather forecasting services to reduce risks, shield infrastructure, and keep people safe.

Different types of storms and tornadoes affected USA economically in 2023. The National Centers for Environmental Information (NCEI) recorded these events, which shows how readiness to face these disasters is quite necessary. At the same time, S&P Global discovered that 74% of USA citizens experienced extreme weather conditions in the same year, showcasing the need for accurate weather forecasts.

Companies in different industries, like agriculture, shipping, and insurance now depend more on weather info to cut losses and run better. Weather has hit the insurance business hard, with higher prices and payouts because of big storms and such making them want better ways to figure out risks.

The World Economic Forum's Global Risk Report 2024 even puts extreme weather at the top of what worries global business showing how it shapes the market for weather prediction services.

Data Accuracy and Reliability Challenges

With advancements in AI and high resolution satellite data, weather forecasts still have problems that face accuracy limitations. For example, there's not enough data from oceans and less-developed regions, which leads to incomplete models and affects how precise the forecasts are. These mistakes are problematic for agriculture and disaster management, where having spot-on forecasts is key for decision-making.

Recent events show these problems. In 2023 bad storms and tornadoes across the USA showed the limits of forecasting accuracy where unexpected strong storms caused billions in damage. Also, the gap in forecast quality between developed and less-developed regions is still a big issue.

In wealthier areas, detailed models and extensive sensor networks allow for pretty accurate short-term forecasts. But less developed countries often don't have the needed equipment leading to less reliable predictions. This can hurt farm planning and disaster management. Efforts are being made to fix these issues by adding more data sources and making better computer models, but problems still exist especially in getting reliable forecasts in different parts of the world.

Development of Mobile and On-demand Services

As companies and people depend more on smartphones and other mobile devices, getting precise and up-to-date weather reports is becoming more crucial to decision-making. This also applies to everyday tasks and key business operations.

Mobile apps bring convenience and speed, letting users get local weather updates, warnings, and forecasts that fit their exact needs. This matters a lot in industries like farming, aviation, and logistics, where exact weather info can straight up affect operations and security. The use of technologies like AI and ML in weather models are making the forecasts more accurate. This is key for industries that need reliable weather data to run.

Companies like AccuWeather and Tomorrow.io (Climacell) are at the forefront of providing advanced mobile and on-demand weather services that meet the needs of both big businesses and smaller firms. These services enable companies to streamline operations, cut costs, and boost service dependability. This is crucial in energy industry where weather patterns have a major impact on production and distribution.

2019 to 2023 Global Weather Forecasting Services Sales Outlook Compared to Demand Forecasts from 2024 to 2034

The weather forecasting services market went through notable fluctuations and technological advancements in the historical period. The industry was valued at a valuation of USD 4,902.7 million in 2019 to reach USD 7,101.2 million in 2023 with a CAGR of 9.7 % from 2019 to 2023.

During pandemic, the demand of weather forecasting services went down due to worldwide restrictions and pause in various industries. These demands started to rise from 2021, with the continuation of businesses in the normal manner.

Weather forecasting services market witnessed a considerable growth during the forecasting period between 2024 and 2034. The market reached the valuation of USD 24,322.8 million in 2034 from USD 7,830.3 million in 2024 with the CAGR of 12.0%.

With rise in uncertainties towards sudden weather changes, the demand of weather forecasting services is expected to rise further. The vendors in the market are using emerging technologies in order to provide as much as reliable forecasts.

Market Concentration

Tier 1 companies in the market are major vendors with partnerships with governments and associations to provide needed forecasting services. These vendors provide wide range of weather forecasting services equipped with modern technologies. The vendors in bracket hold market share around 40%-45% globally. These vendors include AccuWeather, Inc., DTN, Earth Networks among more.

Tier 2 vendors in the global weather forecasting services market hold decent amount of market share, but lesser in comparison with tier-1 vendors. These vendors focus on research and development to innovate technologies to increase their market share. These vendors include Precision Weather Service, Met Office, Fugro among others and hold around 25%-30% market share.

Tier 3 companies represent 30% to 35% of share of total weather forecasting services industry. These vendors focus on providing industry specific or personalized weather forecasting services. The vendors in the tier include Spire Global, StormGeo among others.

Country-wise Insights

The below country-wise market analysis of the weather forecasting services explains the recent developments and different government approaches in the market. The analysis also gives an idea of the country’s expected progress in the market landscape.

The data describes key highlights, growth factors, and CAGRs of these countries.

Countries	CAGR from 2024 to 2034
India	8.7%
China	8.2%
USA	7.4%
Germany	6.8%

Rising Investments in Weather Forecasting Technologies Pushes the Market in India

Huge investments are being made in advanced weather forecasting technology, such as Doppler Weather Radars and satellite-based observations, which is highly improving the accuracy of short to medium-range weather forecasts. These upgrades are important for dealing with climate change and extreme weather events.

The IMD has been issuing specific regional forecasts, like the orange alerts for heavy rainfall in states such as Uttarakhand, West Bengal, and Kerala in August 2024. These alerts are part of IMD's wider efforts to give early warnings and reduce the risks from severe weather, showing how well their upgraded systems work.

The market has seen a big growth in private companies getting involved. Firms like Skymet Weather and IBM's The Weather Company now offer special services for industries such as farming and green energy. These businesses use data crunching and smart tech to give super-local weather forecasts. This is helpful for farmers, allowing them to make better choices. As a result, they can grow more crops and cut down on losses.

China’s Move Robust Meteorological Infrastructure

Large investments are being made in China's meteorological infrastructure by the government. This includes launching new weather satellites and using complex models to predict the weather. For instance, FENGYUN-3F satellite was launched from Jiuquan Satellite Launch Center on August 3, 2023.

Companies like Skymet Weather Services are also growing their business in China offering custom weather info for farming and energy companies.

China's push for renewable energy means there's a bigger need for accurate weather forecasts. This helps in optimizing the operations solar and wind farms. To fulfill the need for accuracy, local and foreign companies are teaming up to make weather predictions even better.

Government Investments and Collaborations Drive the Market Growth in USA

The National Oceanic and Atmospheric Administration (NOAA) has signed contracts worth USD 8 million to buy GPS radio occultation weather data. This data makes weather models used for forecasting much more accurate. Also, NOAA is looking at proposals for new projects under a funding program that could give up to USD 2 million each year to improve weather forecasting tech and methods.

Technologies like AI and hyper-localized forecasting has become more common. Companies are teaming up with digital platforms like The Trade Desk to use up-to-the-minute weather data for more exact digital ads. This shows how these new developments can be used in business also.

Category-wise Insights

The below section provides the category wise insights in the market with recent developments and future projections.

Medium-range Weather Forecasting Services Lead in the Market

Medium-range weather forecasting services typically covers a period of three to ten days. These give businesses and governments enough time to prepare for bad weather and lessen its effects, while still being quite accurate.

Segment	Medium-range Weather Forecasting Services (Services)
Value Share (2024)	34.5%

Take China's weather service as an example. In 2023, they made their medium-range forecasts better by using new statistical models and high-performance computers. This upgrade has made their predictions more reliable. This matters a lot for farmers, who need to know what the weather will be like a week or so ahead. It helps them decide when to plant crops or water them, which means they lose fewer crops to surprise weather changes.

Flight Planning and Route Optimization Accelerate the Aviation Industry

Precise weather predictions play a key role in flight planning, route optimization, and reducing weather risks. These risks include turbulence, lightning strikes, and big storms that can delay or cancel flights causing big money losses.

Segment	Aviation (Industry)
Value Share (2024)	25.9%

To illustrate, Supernal LLC, a part of Hyundai Motor Group, put money into TruWeather Solutions in 2023. The goal was to use smart weather data in their electric aircraft that can take off and land straight up and down. This team-up aims to make urban air travel - a fast-growing part of flying - safer and more efficient.

Competition Outlook

In the weather forecasting services market, there is competition from big global companies, specialized regional providers, and new startups. The big companies have a strong hold with their advanced technology and wide-ranging forecasting solutions for different industries.

These vendors often use cutting-edge tech like AI, machine learning, and satellite data to stay ahead of the game. On the other hand, specialized regional providers emphasize niche markets or local needs offering custom services that meet specific geographic or industry demands. Startups bring fresh ideas and quick changes bringing in new tech and methods often shaking up old-school models with super-local forecasts and all-in-one digital solutions.

Recent Market Developments

• In February 2024, Honeywell Aerospace Technologies and NOAA’s national weather services signed a two year agreement for the deployment of a high-altitude LiDAR Atmospheric Sensing (HALAS) ground system. This will determine its ability to help in weather forecasting by evaluating gathered upper-air data.
• In February 2024, Indian Space Research Organization launched INSAT-3DS satellite for ministry of earth sciences for observing climate in order to improve weather forecasting. The space organization launched the satellite through its launch vehicle, Geosynchronous Launch Vehicle (GSLV-F14).
• In January 2022, AccuWeather announced the acquisition of Plume Labs for an undisclosed amount. The former company integrated the services of Plume Labs in January 2022.
• In May 2022, Fasal signed a MoU (memorandum of understanding) with IMD for research purposes. As per agreement, the companies would work together to work on precipitation forecasting and weather forecasting models validation.

Key Players in the Weather Forecasting Services Industry

• AccuWeather, Inc.
• DTN
• Earth Networks
• Fugro
• Met Office
• Precision Weather Service
• Spire Global
• StormGeo
• The Tomorrow Companies Inc.
• The Weather Company (IBM)

Weather Forecasting Services Market Segmentation

By Services:

The industry includes Nowcasting Weather Forecasting Services, Short-range Weather Forecasting Services, Medium-range Weather Forecasting Services and Long-range Weather Forecasting Services.

By Enterprise Size:

Small Offices (1-9 employees), Small Enterprises (10-99 employees), Medium-sized Enterprise (100-499 employees), Large Enterprises (500-999 employees) and Very Large Enterprises (1,000+ employees) are segmented in this category.

By Industry:

Agriculture, Aviation, Energy & Utilities, Retail, Manufacturing, Media, Marine Industry, Logistics & Transportation and Others are segmented in this category.

By Region:

A regional analysis has been carried out in key countries of North America, Latin America, East Asia, South Asia & Pacific Western Europe, Eastern Europe and Middle East and Africa (MEA).

Frequently Asked Questions

How big is the Weather Forecasting Services Market?

The global industry is set to reach USD 2,655.5 million in 2024.

How is the Demand Increasing?

Demand is predicted to rise at 6.5 % CAGR.

What is the Sales Forecast for the Industry?

Global sales are estimated to total USD 4,974.1 million by 2034.

Which is the Most Profitable Region for Players?

South Asia & Pacific is set to offer lucrative opportunities rising with a CAGR of 8.2%.

Who are the Leading Weather Forecasting Services Companies?

AccuWeather, Inc., DTN, Earth Networks, Spire Global, Fugro, Met Office, The Weather Company among others.