Weather Forecasting Services Market Size, Share & Trends Analysis Report By Forecast (Nowcasting, Short-range, Medium-range, Long-range), By Organization Size, By Industry, By Region, And Segment Forecasts, 2023 - 2030

Weather Forecasting Services Market Trends

The global weather forecasting services market size was valued at USD 2.39 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 6.7% from 2023 to 2030. Factors such as the increasing need for weather solutions across industries and rising demand for weather forecast solutions due to uncertain climate conditions and energy transitions fuel the demand for weather forecasting solutions and services. Industries and businesses optimize their operations and mitigate risks using accurate weather forecasts. The COVID-19 pandemic had a negative impact on the market. It led to movement restrictions due to government guidelines with respect to the reduced number of flights operating worldwide. The marine observing system also was negatively impacted owing to the restrictions but to a lesser extent than air-based observation systems. Automated systems like satellite systems were mostly unaffected as they relied less on human actions.

Weather forecasting service providers provide weather forecasts and insights across various industries, such as agriculture, aviation, media, energy and utilities, and renewables. Many providers offer industry-specific weather solutions to their customers, helping them navigate extreme weather situations. For instance, U.S.-based DTN’s Ag Weather Station offers farmers precipitation forecasts, wind alerts, and actionable insights that help farmers manage their operations, improve yields, and maximize profits.

As per NOAA SciJinks, a 10-day or longer period weather forecast has 50% accuracy. A comparatively lesser weather forecast accuracy for a longer period is a restraint for the industry. As the forecasting accuracy for a longer range of weather forecasts is less, long-term planning concerning weather-sensitive operations is hampered, reducing the impact the weather forecasting services can have on the overall economy.

Forecast Insights

In terms of forecast, the market has been segmented into nowcasting, short-range, medium-range, and long-range. The medium-range segment held the largest revenue share of 28.4% in 2022 and is anticipated to register the highest CAGR over the forecast period. It is due to the forecast's adaptation lead time without affecting the weather forecasts' accuracy. Medium-range weather forecasts are provided by most service providers worldwide, and as per the NOAA SciJinks, a 5-day forecast is 90% accurate, and a 7-day forecast is 80% accurate.

The short-range segment is expected to register a significant CAGR of 6.7% over the forecast period. Short-range weather forecasts are highly accurate and provide a complete set of information to the users, such as air temperature, humidity, wind speed, and precipitation amount. The users of this information can take precautions in case of adverse weather conditions and reduce the damage.

Organization Size Insights

Based on the organization size, the global weather forecasting services market is segmented into large enterprises and small & medium enterprises (SMEs). The large enterprise segment captured the largest revenue share of 71.5% in 2022. It can be attributed to these enterprises' size in terms of revenue and the number of employees. Additionally, these players are early market entrants and invest in research and development to continuously innovate and provide highly accurate weather forecast solutions and insights.

The small & medium enterprises (SMEs) segment is expected to grow at the fastest CAGR of 7.0% during the forecast period. The growing emphasis on sustainable practices and environmental preservation also drives SMEs to utilize weather forecasting services. Climate change and unpredictable weather patterns have heightened the importance of sustainable resource management for businesses. SMEs, particularly those in sectors like renewable energy, agriculture, and outdoor recreation, rely on accurate weather forecasts to optimize their energy generation, water usage, and land utilization.

Industry Insights

On the basis of industry, the market is segmented into agriculture, aviation, energy & utilities, renewables, retail, manufacturing, media, logistics & transportation, marine, and others. The media segment accounted for the largest revenue share of 10.8% in 2022. With the advent of digital media platforms and the widespread use of smartphones, the audience can instantly access weather information. They rely on media outlets, including television, radio, websites, and mobile applications, to provide accurate and up-to-date forecasts. As a result, media organizations strive to deliver comprehensive and user-friendly weather reports to meet the growing expectations of their audiences.

The renewables segment is estimated to register the fastest CAGR of 7.1% over the forecast period. The growth can be attributed to the growing investments in renewable energy, such as solar and wind, to reduce greenhouse gas emissions. The renewable energy industry is weather-sensitive as most of its operations are weather dependent. Therefore, the demand for weather forecasting services will grow as the renewable industry grows.

The aviation segment held a significant revenue share in 2022. It can be attributed to the demand for weather forecasting services in the industry for safety and operational efficiency. Accurate weather solutions for the aviation industry can help prevent unnecessary costs and reduce flight delays. Timely and accurate weather data can help in safe and efficient aircraft operations. Strong winds, lightning, and icing can severely impact the aircraft. Many market players provide weather solutions specifically for the aviation industry, including U.K.-based Met Office and U.S.-based The Weather Company (IBM).

Regional Insights

North America dominated the market and accounted for the largest revenue share of 27.1% in 2022. Factors such as technology infrastructure, the presence of specialists, and investment in research and development are the reasons for the market's growth. For instance, some of the largest weather forecasting companies like The Weather Company (IBM); AccuWeather, Inc.; DTN; and Earth Networks are headquartered in the U.S. Companies based outside North America, like Netherlands-based Fugro, have offices in the region.

Asia Pacific is expected to register the fastest CAGR of 6.8% over the forecast period. The growth can be attributed to the developing technology infrastructure in the region. As per the German Watch Global Climate Risk Index 2021, many countries in the Asia Pacific are ranked high in the index, showing vulnerability to weather and climate. The demand for weather forecasting solutions is expected to rise due to growing industries in the region. For instance, the agriculture industry is important in the region, requiring custom weather forecast solutions to mitigate risks.

Key Companies & Market Share Insights

The industry players are undertaking strategies such as product launches, acquisitions, and collaborations to increase their global reach. Prominent weather forecasting service providers invest in research & development to provide highly accurate weather forecasts and solutions. Many market players offer weather data and analysis, providing actionable insights to various industries. For instance, in September 2021, DTN partnered with U.S.-based OrbitMi Inc., a Software-as-a-Service (SaaS) company providing data products and maritime software for the shipping industry. DTN will provide weather data to OrbitMi Inc.’s software product, which will then analyze and provide customer insights. This partnership aims to provide deeper insights to maritime industry customers and help them make decisions.

Key Companies & Market Share Insights

• In May 2023, Spire Global introduced the Deep Navigation Analytics (DNA) Platform. This centralized space-powered platform offers vital information to maritime organizations via three levels: maritime weather information APIs, actionable information APIs, decision-making solutions, and visualizations. The platform utilizes radio occultation (RO) data from the company's operational satellite constellation and its proprietary weather prediction model. It utilizes RO data to generate 15-day global weather predictions, ensuring that users can access the most current and accurate data accessible.

• In April 2023, AccuWeather, Inc. announced the launch of the WeatherShow Enhancer, an innovative software and hardware display system. This innovative technology enhances weather presentations with increased special effects, elevating the meteorologist's storytelling and improving the overall look and capabilities of the system. The WeatherShow Enhancer aims to make existing weather systems more dynamic and engaging while reducing production costs.

• In June 2022, General Electric announced a partnership with Climavision to assist GE Digital's electric utility clients in enhancing their weather prediction capabilities and effectively preparing for severe storms. GE Digital integrates Climavision's advanced global weather forecasting technology through this strategic partnership into its Advanced Distribution Management Solutions (ADMS), Storm Assist, and Storm Readiness solutions, bolstering their weather intelligence capabilities.

• In January 2022, AccuWeather announced the acquisition of Plume Labs. Plume Labs is part of the AccuWeather group and is its climate and environmental data hub. The acquisition aims to extend air quality forecasts to the 1.5 billion people reached by AccuWeather and utilize Plume Labs' AI technology to address various environmental risks, including climate and wildfires. The acquisition of Plume Labs also expedites AccuWeather's AI investments in weather predictions, which are crucial for improving forecast accuracy in a changing climate.

• In January 2022, Vaisala announced the acquisition of AerisWeather, which aims to enhance its burgeoning data solutions business and solidify its position as a top-tier provider of environmental data and imagery solutions worldwide. By integrating AerisWeather, Vaisala is effectively advancing its strategy in the Weather and Environment business sector, focusing on expanding its recurring revenue businesses in Data as a Service and Software as a Service.

• In November 2021, AccuWeather, Inc. collaborated with Amagi to launch AccuWeather NOW, a distinctive service designed for distribution on The Roku Channel in the United States. The new live, linear broadcast utilizes Amagi's cloud playout service, Amagi CLOUDPORT. Amagi CLOUDPORT offers advanced graphical capabilities and efficient processing of HTML5 graphics. Amagi also facilitates the delivery of AccuWeather NOW to other FAST platforms, such as Plex and XUMO. AccuWeather NOW incorporates a newly developed HTML5 ticker that provides real-time weather forecasts for numerous cities across the U.S. AccuWeather's proprietary weather data API powers the ticker.

• In August 2021, Earth Networks collaborated with Nigeria's Meteorological Agency. The project is a five-year agreement to develop the Nigeria Total Lightning and Mesoscale AWS Network (NTLMAN) for severe storm warning systems. Under the agreement's stipulations, Earth Networks and NiMet collaboratively established and operated an extensive early warning NTLMAN and co-marketed additional weather and lightning data sources to Nigeria's public and private sectors.

Weather Forecasting Services Market Report Scope

Global Weather Forecasting Services Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global weather forecasting services market based on forecast, organization size, industry, and region:

• Forecast Outlook (Revenue, USD Million, 2017 - 2030)

  • Nowcasting

  • Short-range

  • Medium-range

  • Long-range

• Organization Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Enterprises

  • Small & Medium Enterprises

• Industry Outlook (Revenue, USD Million, 2017 - 2030)

  • Agriculture

  • Aviation

  • Energy & Utilities

  • Renewables

  • Logistics & Transportation

  • Marine

  • Retail

  • Media

  • Manufacturing

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • United Arab Emirates (UAE)

    • Saudi Arabia

    • South Africa