Weather Forecasting Services Market Size, Share & Trends Analysis Report By Forecast (Nowcasting, Short-range), By Organization Size, By Industry, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global weather forecasting services market size was valued at USD 2.2 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.7% from 2022 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 are fueling the demand for weather forecasting solutions and services. Industries and businesses optimize their operations and mitigate risks using accurate weather forecasts.

The COVD-19 pandemic had a negative impact on the market. It led to the 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 such as the satellite systems were mostly unaffected as they were less reliant 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 through 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 to 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 that the weather forecasting services can make on the overall economy.

Forecast Insights

The medium-range segment held the largest revenue share of over 25.0% in 2021 and is anticipated to register the highest CAGR over the forecast period. This is due to the adaptation lead time the forecast provides without affecting the accuracy of the weather forecasts. 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. In terms of forecast, the market has been segmented into nowcasting, short-range, medium-range, and long-range.

The short-range segment held the second-largest revenue share in 2021 and is expected to register the second-highest 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

The large enterprises segment captured the largest revenue share of over 70.0% in 2021 and is expected to maintain its lead throughout the forecast period. This can be attributed to the size of these enterprises in terms of both 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 and medium enterprises organization size segment is anticipated to expand at the highest CAGR of 7.0% over the forecast period. The market for weather forecasting services also has numerous small and medium enterprises like U.S.-based Precision Weather Service, U.S.-based Climavision, South Africa-based AfricaWeather (Proprietary) Limited, and U.K.-based Speedwell Weather Ltd.

Industry Insights

The media segment dominated the market and held a revenue share of over 10.0% in 2021. The renewables segment is expected to register the highest 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, as the renewable industry grows, the demand for weather forecasting services is also likely to grow.

The aviation segment held the second-largest revenue share in 2021. This 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 in preventing unnecessary costs and reducing 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 in 2021 with a revenue share of over 25.0% and is likely to maintain its lead over the forecast period. Factors such as technology infrastructure, the presence of specialists, and investment in research and development are the reasons for the growth of the market. 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 highest CAGR of 6.8% over the forecast period. The growth can be attributed to the developing technology infrastructure in the region. As per the Germanwatch 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 market for weather forecasting services has a fragmented competitive landscape as it features various regional and global market players. Prominent weather forecasting service providers are investing 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 insights to the customers. This partnership aims to provide deeper insights to maritime industry customers and help them make decisions. Some prominent players in the global weather forecasting services market include:

• 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 Report Scope

Segments Covered in the Report

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

    • Italy

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa