Weather Forecasting Services Market

[300 Pages Report] The Weather Forecasting Services market is projected to grow from USD 1.9 billion in 2023 to USD 2.8 billion by 2028, at a CAGR of 8.2%. The demand for enhanced safety and minimize the loss in various industry is driving the market for Weather Forecasting Services.  The Forecasting services is developing rapidly by use of advanced technologies to minimize the loss due to bad weather conditions. Government support and growing investments are propelling the development of Meteological , further boosting the growth of the Weather Forecasting Services market. Increased adoption of big data, artificial intelligence (AI), the Industrial Internet of Things (IIoT), the Internet of Things (IoT), and data analytics in Weather Forecasting Services are used for accurate weather forecasting data. The Weather Forecasting Services systems help to collect and transmit the forecast data and improve safety and prevent accidents.

Weather Forecasting Services Market Forecast to 2028

To know about the assumptions considered for the study, Request for Free Sample Report

Weather Forecasting Services Market Dynamics

Driver: Integration of weather forecasting services in transport and logistics sectors

At present, there is a growing demand for faster delivery of goods, compelling the logistics sector to improve its infrastructure accordingly. To bring improvisations in infrastructure, the transport and logistics sectors largely depend on weather forecasting services. Weather patterns can create ripple effects in the manner shipments are transported all over the world, within and between countries. Weather conditions can make or break the chain of goods being transported to their final delivery stations safely and on time. Hence, it is very important for the transport and logistics service providers to pre-investigate the weather conditions for their smooth functioning. The trucking industry is a major component of logistics services to move goods daily.

According to the Federal Highway Administration (FHWA) in March 2022, weather is responsible for 23% of all roadway delays, causing over 32 billion lost vehicle hours per year and costing trucking companies between USD 2.2 billion and USD 3.5 billion. To prevent such significant losses, transport companies are utilizing weather forecasting services. By accessing these services, they can anticipate the impact of weather on their trucking routes in advance. The information from the weather service providers will also help them plan ahead for incoming delays, including whether it requires leaving early, late, or focusing on other routes. With road risk being a constant source of concern for transport and logistics companies, weather service providers can help by providing real-time updates on weather, thus helping them understand the impact of weather events like floods, fog, ice, rain, etc. Logistics companies, to keep their assets safe from damage due to harsh weather conditions, are increasingly making use of weather forecasting services.

Thus, the increasing scope of weather forecasting services in end-use industries, such as transport and logistics, is one of the key factors driving the growth of the market.

Driver: Demand for weather forecasting services in modern-day agriculture

Agriculture is mainly dependent on seasons and the weather. Taking atmospheric conditions, including temperature, into consideration is essential when it comes to the farming of different kinds of fruits, vegetables, and pulses. Weather plays an instrumental role in agriculture, and accurate weather-based information is very important for crop growth. The management of weather and climate risks has become even more important in agriculture in recent times due to climate change. It is evident that to feed the increasing population, the demand for agricultural products has increased significantly. Simultaneously, the requirement of agriculture management has increased, which requires proper planning depending upon the climatic situations. Hence, the agricultural sector is increasingly making use of weather forecasting services for planning seasonal farming.

According to the Intergovernmental Panel on Climate Change (IPCC), there are multiple climate risks for agriculture and food security, along with the potential to improve weather and climate early warning systems to assist farmers. In India, the Agromet Advisory Services helps in developing sustainable and economically viable agricultural systems; improving production and quality; reducing losses, risks, and costs; increasing efficiency in the use of water, labor, and energy; conserving natural resources; and decreasing pollution by agricultural chemicals or other agents that contribute to the degradation of the environment. The Agromet Advisory Services provides information on weather and climate-related risks in agriculture. Effective weather and climate information and advisory services can aid in the decision-making of farmers and improve their management of related agricultural risks.

The goal of weather forecasting services in agriculture is to maximize growth efficiency to meet the needs of the growing population globally.

Restraints: Complexity and lack of specialized weather forecasting models

Weather Forecasting is done by using various computational models by extensive data. The weather data is very crucial for forecasting model to give accurate Weather Forecast. There is limited availability of data and resources in some regions. The lack of specialized weather forecasting models results into less accurate predictions for certain regions. It becomes challenging to anticipate extreme weather events like hurricanes, tornadoes, or severe storms accurately due to complexity and lack of data. Some of the weather forecasting models are complex which can effect the forecasting accuracy. This is expected to restrain the growth of the market, as the entire weather forecasting process entails various functions that need to be considered to arrive at an accurate analysis.

Restraints: Dynamic nature of atmospheric variables

Most atmospheric phenomena studied in weather forecasting processes are non-linear and highly dependent on the initial weather conditions of specific areas. Although several phenomena can be predicted based on a thorough understanding of the initial conditions of a numerical weather forecasting model, weather conditions are dynamic in nature and vary due to changes in several atmospheric variables. This makes the process of weather forecasting highly complex, in addition to the intrinsic non-linearity of weather data collected by weather stations. Proper integration and analysis of a large amount of weather data make these processes complex. This is expected to restrain the growth of the weather forecasting services market

Opportunities: Development of  high-end radars and satellites for weather monitoring

The incorporation of various new technologies in weather monitoring and weather forecasting services is leading to highly accurate weather predictions. Scientists and engineers are developing different types of high-end radar, satellites, and supercomputers capable of sensing natural calamities such as tornadoes, floods, and thunderstorms beforehand to enable early issuance of warnings. Continuous efforts are being made to upgrade different satellite systems used for weather forecasting. Existing climate and weather models rely on data from satellites in high orbits. These satellites are unable to provide immediate data with enough detail to observe changes and developments in weather patterns. Small satellites can get close to storms to study them and help improve future predictions of weather and climate change.

Opportunities: Increasing computing capabilities of supercomputers

Weather forecasting centers use complex and energy-intensive infrastructure. Environmental observation data is a part of big data and has registered exponential growth in the last few years. Thus, weather forecasting centers are expected to provide integrated solutions that not only address the computing requirements of weather forecasters but also enable data movement and management, along with the ownership of the total cost involved in these processes.

The enhancement of the computational capabilities of supercomputers is expected to support the execution of very high-resolution weather forecasts and models of the Earth’s climate, resulting in highly accurate weather forecasts. Furthermore, the use of simulation-based approaches and advanced software models enables weather forecasters to obtain an enhanced understanding of weather trends. Since weather forecasting is augmented with data-driven models for predictive modeling and knowledge discovery, simulation-based approaches, coupled with the computational capabilities of supercomputers, ensure highly accurate weather forecasts. Therefore, the enhancement of the computing capabilities of supercomputers is expected to act as a growth opportunity for the weather forecasting services market.

Challenges: Lack of effective automation

The involvement of humans in weather forecasting is a time-consuming process. It may also lead to errors while analyzing the forecast data. Manual data logging or collection may also introduce errors in these processes.

Additionally, the lack of requisite analytical skills to correctly interpret the data received from different sources may also cause errors in weather forecasting. The inability of weather forecasters to correctly interpret the data could also lead to faulty analysis. Thus, the need to provide time-to-time training to weather forecasters for accurate reading and analysis of weather-related data also acts as a challenge to the growth of the market. Automation of weather forecasting services may help overcome this challenge, but only to a certain extent, since weather forecasting processes cannot be fully automated. Human intervention in weather forecasting processes for the effective analysis of weather data prior to prediction will always be required. Hence, the lack of effective automation of weather forecasting services poses a challenge to the growth of the weather forecasting services market.

Challenges: Frequent occurrence of false weather alarms

The occurrence of false alarms or a high False Alarm Ratio (FAR) could pose a challenge to the growth of the weather forecasting services market. A false alarm occurs when a warning is issued for an expected hazard, but that hazard never occurs. However, it is observed that 3 out of 4 alarms are false. A weather alarm is issued when any hazard, such as a tornado, is expected so that necessary precautions can be taken. However, on average, roughly 70% of tornado warnings issued in the US are false alarms. This means only three in 10 tornado warnings contain a verified tornado within the warned area at the time of warning. Too many false alarms may psychologically affect people and lead to the ignoring of the true alarms. The National Weather Service (NWS) has been taking initiatives to tackle this issue of false alarms.

Though technological advancements in recent years have improved the efficiency of weather forecasting services, the occurrence of false alarms still poses a challenge to the growth of the weather forecast services market.

Weather Forecasting Services Market Ecosystem

Companies that provides services Weather Forecasting Services, includes government firms, industries as key stakeholders in Weather Forecasting Services Market. Investors, funders, academic researchers, integrators, service providers, and licensing authorities are the major influencers in this market. Prominent companies in this market include The Weather Company (US), DTN (US), Accuweather (US), Fugro (Netherlands), and Enav S.P.A (Italy), Global Weather Corporation (US), Skymet Weather Services Pvt. Ltd. (India), Foreca Ltd. (Finland), Weather Routing Inc. (US), and MetraWeather (New Zealand).

Based on the Industry, the Energy and utilities segment is estimated to grow at highest rate during the forecast period.

Based on the Industry, the Energy & Utilities is estimated to grow at highest rate. Solar application are a rising in energy & utilities industry and are expected to grow by adopting advanced solar energy solutions. The generation of the energy are based on weather. The hydropower and solar energy are totally dependent on weather conditions and hence proper forecasting is needed. The Accurate Weather Forecasting is essential for the Energy and Utilities industry for optimization of energy production and distribution, anticipating energy demand, integrating renewable energy sources, responding to emergencies, and making informed business decisions.

Based on Purpose, the Safety is anticipated to dominate the market.

Based on the Purpose, the Safety holds the largest market share. Weather forecasting plays a prominent role in ensuring safety of our lives and minimizing the infrastructural lose. The Forecasted Data provides crucial information to individuals, communities, and authorities to prepare for and respond to weather-related calamities. Safety of citizens and individuals are primary focus of any country. Weather forecasting are crucial for public safety for timely warnings and advisories, facilitating evacuations, road closures, and the activation of emergency response teams. For example, The construction industry uses site-specific weather forecasting services to ensure site safety and time management of construction projects. These services help in increasing the safety of site personnel from severe weather conditions.

The Short-Range Forecasting segment of the Weather Forecasting Services market by Forecasting type is projected to dominate the market.

The Short- Range Forecasting holds the major market share of the Weather Forecasting Services market by Forecasting type segment. Short- Range Forecasting refers to      prediction of weather conditions for short period of time ranging from hours to some days. The short- range forecasting are very important for meteorological research and various industries like Agriculture, Transport & logistics and others. Short-range forecasting provides timely and accurate information for immediate decision-making, emergency response and to minimize the loss in various sectors. The accuracy of short-range forecasts is better than for long-range forecasts. The reason for accuracy is the atmosphere is more predictable over shorter timescales. The short-range weather forecasting method provides information on the upcoming weather where the projection time ranges from a few hours to 48 hours or, in some cases, up to 72 hours. It is capable of forecasting weather information for a particular location or area that covers up to a few million square kilometers.

The Large Enterprise of the Weather Forecasting Services market by Organisation Size is projected to dominate the market.

The Large Enterprise Segment holds the major market share of the Weather Forecasting Services market by Organisation Size segment. Large enterprises in the weather forecasting services industry provides accurate and reliable weather information for a wide range of industries. The Large Enterprise focus on more investment to adopt advanced technology, vast data resources, and a network of meteorologists and scientists to deliver comprehensive weather forecasts. Large enterprises need accurate and reliable weather forecasts to make informed decisions about their operations. They use weather forecasting services for a variety of purposes like planning and scheduling, risk management, and opportunity identification for new products. The services include both short-term and long-term weather predictions, as well as historical weather data for trend analysis and planning to improve business decisions.

The North America market is projected to dominate Weather Forecasting Services market.

North America is projected to dominate the Weather Forecasting Services market during the forecast period.Canada is projected to show highest growth rate  for the Weather Forecasting Services market in North America. The domination of the Weather Forecasting Services market in North America can be attributed by the presence of top weather forecasting services providers. The Weather Forecasting Services market in Canada was predicted to develop and evolve in future years, owing to advancements in technologies and rising demand for Forecasting services. Organizations in this region have been the early adopters of advanced technologies. Technological advancements, such as improvements in data analytics and computer forecast models and an increase in the use of supercomputers delivering more computing power, are working in favor of the market in North America.

Weather Forecasting Services Market by Region

To know about the assumptions considered for the study, download the pdf brochure

Key Market Players

The Weather Forecasting Services market is dominated by a few globally established players such as The Weather Company (US), DTN (US), Accuweather (US), Fugro (Netherlands), Enav S.P.A (Italy), Saildrone Inc. (US), UBIMET GmbH (Austria), Meteo-Logic (Israel), Speedwell Climate (UK), and Understory (US)  are some of the leading players operating in the Weather Forecasting Services market; they are the key service providers that secured Weather Forecasting Services contracts in the last few years. Major focus was given to the contracts and new product development due to the changing requirements of commercial, government and navy.

Scope of the Weather Forecasting Services Market Report

Weather Forecasting Services Market Highlights

The study categorizes Weather Forecasting Services market based on Forecast Type, Purpose, Industry,Organisation Size, and Region.

Recent Developments

• In April 2023,  The Weather Company :- The Weather Company is offering cloud-based services that will take map experiences to the next level by expanding high-resolution. It will provide new material and rendering techniques to create more detailed and exciting map views, especially in 3D.
• In June 2023, AccuWeather, Inc. : - AccuWeather, Inc. introduced the AccuWeather HeatWave Counter and Severity Index, a new heat index to help people better understand the severity, intensity, and duration of heat waves.
• In January 2023, DTN :-  DTN introduced WeatherFactor API to improve pre-voyage planning and better anticipate voyage duration risks. Further expanding its suite of marine data APIs for the shipping industry, the API blends and seamlessly delivers insights not only on voyage duration, but also weather impacts, fuel consumption, carbon emissions, and other bid profitability indicators.

Frequently Asked Questions (FAQs) Addressed by the Report:

To speak to our analyst for a discussion on the above findings, click Speak to Analyst