Weather Forecasting Services Market

Weather Forecasting Services Market Size and Share:

The global weather forecasting services market size was valued at USD 2.34 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 4.67 Billion by 2033, exhibiting a CAGR of 7.55% from 2025-2033. North America currently dominates the market, holding a market share of over 28.9% in 2024. The growth of the North American region is driven by advanced technology adoption, increasing climate variability, strong government investments, and rising demand for accurate weather data across key industries.

With the rapid expansion of renewable energy sources like solar and wind power, weather forecasts are critical for predicting energy production. Accurate data helps optimize power generation, grid balancing, and supply-demand management in the renewable energy sector. Moreover, innovations in artificial intelligence (AI), machine learning (ML), Internet of Things (IoT)-enabled sensors, and satellite technologies are significantly improving the accuracy and speed of weather predictions. Advanced satellite systems, radar technologies, and cloud-based platforms are improving forecast accuracy, real-time delivery, and coverage, enabling industries to make more informed decisions quickly. Besides this, governing bodies, disaster management agencies, and humanitarian organizations are prioritizing the development of early warning systems to reduce damage caused by natural calamities. Timely and reliable weather forecasts play a crucial role in planning evacuations, safeguarding infrastructure, and protecting human lives.

The United States plays a crucial role in the market, driven by increasing public and private investments in modern weather monitoring systems, satellites, and research initiatives, which is accelerating the development of advanced forecasting solutions. Furthermore, the increasing frequency and intensity of extreme weather events such as hurricanes, floods, droughts, and wildfires are driving the need for accurate and timely weather forecasts. Governments and businesses rely on these services to minimize economic and human losses while ensuring better preparedness. In 2024, the National Weather Service (NWS) launched the National Water Prediction Service, an advanced online tool for predicting floods up to 10 days in advance. It features dynamic, interactive maps and hydrographs, enhancing water safety decisions. Real-time flood inundation maps for the United States are expected by October 2026.

Weather Forecasting Services Market Trends:

Increasing Frequency of Extreme Weather Events

Rising cases of extreme weather conditions, such as hurricanes, floods, droughts, and wildfires, are major drivers for the weather forecasting services market demand. Climate change has exacerbated the severity and unpredictability of these events, making accurate and timely weather forecasting indispensable for disaster preparedness and response. For instance, National Oceanic and Atmospheric Administration (NOAA) revealed a surge in billion-dollar weather-related disasters in recent years; among them were 18 distinct weather and climate-related events that took place in the United States in 2022 and had a cost of over USD 1 Billion. Similarly, the Centre for Science and Environment (CSE) India reports that 2024 saw extreme weather events on as many as 93 percent of the days from January through September—255 out of 274 days—tied to heat and cold waves, cyclones, lightning, heavy rain, floods, and landslides. Governments, emergency services, and private organizations depend on forecasting services for mitigating the economic and human effects of these events through early warnings and informed decision-making. Advanced weather forecasting solutions have therefore gained more importance because of growing awareness of climate risks.

Technological Advancements

Technological advancement, especially in meteorological instruments, satellite systems, and data analytics, is supporting the weather forecasting services market growth. Improved computational models, powered by artificial intelligence and machine learning, have made weather predictions more accurate and reliable. Industry reports indicate that in 2023, 40% of weather forecasts were fine-tuned using AI algorithms, and 35 meteorological agencies used machine learning models. With big data analytics processing over 2.5 quintillion bytes daily, the predictions become more accurate and specific. For example, supercomputers can now process large amounts of atmospheric data to predict the weather with high accuracy. Additionally, geospatial analytics and remote sensing technologies allow real-time monitoring of weather patterns and their eventual prediction; hence, extreme weather phenomena can be predicted better than before. These are groundbreaking for industries such as agriculture, aviation, and energy that would require accurate prediction of weather events to operate better.

Growing Demand Across Key Industries

The most contributing industries are agriculture, transportation, energy, and insurance, all of which depend heavily on exact weather data. In the agricultural industry, for example, farmers would need correct weather forecasts for planting, irrigation, and harvesting so as to optimize the yield. According to the American Farm Bureau Federation, revised crop and rangeland damage estimates for 2023 put total losses from significant natural disasters at more than USD 21.94 Billion, which comprises 23.6% of NOAA's total economic impact estimate. Of that sum, nearly USD 12 billion in losses were covered by existing RMA programs through February 2024. Aviation and shipping companies require forecast services to ensure improved safety and efficiency in operations as they experience adverse weather. The wind and solar renewable energy industries depend on weather information for levels of their energy generation potential. The insurance companies use the forecasts to calculate and then offset risk exposure due to natural occurrences. Increasingly, the need for incorporating weather information in the business operations of companies makes it important across all types of sectors. The growing reliance on accurate weather data across industries such as agriculture, transportation, energy, and insurance are significantly contributing to the expanding weather forecasting services market size, highlighting the critical role of weather forecasts in mitigating risks and optimizing operations.

Weather Forecasting Services Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global weather forecasting services market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on forecasting type, purpose, organization size, and end user.

Analysis by Forecasting Type:

• Short-range Forecasting
• Medium-range Forecasting
• Long-range Forecasting
   

Medium-range forecasting leads the market with 29.6% of market share in 2024. Medium-range forecasting holds the largest weather forecasting services market share, attributed to its balance between accuracy and planning needs across various industries. Covering a time frame of three to ten days, medium-range forecasts are widely used by sectors like agriculture, aviation, logistics, and energy for short-term operational decisions and risk mitigation. These forecasts enable businesses to prepare for upcoming weather events such as storms, rainfall, or temperature changes, improving resource allocation and reducing disruptions. Airlines rely on this type of forecasting for flight scheduling and route adjustments, while logistics firms use it to optimize delivery plans and ensure supply chain continuity. Energy companies, particularly in renewables, depend on medium-range forecasts to predict wind and solar power generation effectively. With advancements in predictive models and real-time data analytics, medium-range forecasts offer reliable insights that industries can act upon swiftly.

Analysis by Purpose:

• Operational Efficiency
• Safety
• Others
   

Operational efficiency segment in the market is driven by industries seeking to streamline processes, reduce costs, and optimize resources. Sectors like agriculture, energy, logistics, and transportation rely heavily on accurate weather forecasts to enhance productivity. Farmers use precise weather data to plan irrigation, planting, and harvesting activities, maximizing yields while minimizing waste. In logistics, companies leverage weather predictions to optimize delivery routes and schedules, avoiding disruptions caused by adverse conditions. Renewable energy producers depend on forecasts to align power generation with anticipated weather patterns, ensuring operational consistency. These services improve decision-making and resource allocation, delivering measurable efficiency gains for businesses.

Safety focuses on preventing damage and ensuring public and operational safety during extreme weather events. Industries like aviation, maritime, and disaster management rely on forecasts to plan for potential disruptions, reducing risks to human life and assets. Airlines use forecasts to avoid hazardous conditions like storms and turbulence, ensuring passenger safety. Disaster management agencies depend on real-time weather warnings to prepare for events such as hurricanes, floods, and wildfires, enabling timely evacuations and mitigation measures. Similarly, offshore industries like oil and gas prioritize accurate forecasts to protect employees and infrastructure from harsh weather conditions, ensuring safe operations.

Others include specialized and niche applications of weather forecasting services, such as event planning, insurance, and environmental monitoring. Event organizers rely on forecasts to ensure smooth execution of outdoor events, concerts, and sports activities. Insurance companies use weather data to assess and predict risks associated with extreme weather, aiding in claims processing and policy adjustments.

Analysis by Organization Size:

• Large Enterprises
• Small and Medium-Sized Enterprises
   

Large enterprises dominate the market with 71.2% of market share in 2024. Large enterprises represent the biggest segment due to their substantial need for accurate and customized weather data to support critical operations. Industries such as aviation, energy, shipping, and agriculture rely on large-scale, high-precision forecasts to minimize risks, optimize decision-making, and improve operational efficiency. These enterprises invest significantly in advanced weather monitoring solutions, including satellite systems, IoT-enabled sensors, and AI-based predictive analytics, to ensure reliable insights. With complex operations spanning multiple locations, large organizations require integrated weather services that offer real-time updates and long-term forecasts. These solutions help mitigate potential losses caused by extreme weather events, improving safety and productivity. Large enterprises also collaborate with key weather service providers to develop customized solutions tailored to industry-specific requirements. Their ability to adopt cutting-edge technologies and leverage extensive resources positions them as primary user of weather forecasting services.

Analysis by End User:

• Transportation
• Aviation
• Energy and Utilities
• Banking, Financial Services and Insurance (BFSI)
• Agriculture
• Media
• Manufacturing
• Retail
• Others
   

Transportation relies on weather forecasting services to optimize routes, schedules, and safety. Accurate predictions of rain, fog, snow, or storms allow for proactive adjustments, minimizing delays and accidents. Road transport companies utilize forecasts to plan logistics and fuel efficiency, while rail operators avoid disruptions by anticipating adverse conditions.

Aviation employes weather forecasting for flight planning, route optimization, and passenger safety. Forecasts for wind speed, turbulence, storms, and lightning enable airlines to reroute flights and avoid risks. Airports rely on live weather information to coordinate take-offs, landings, and on-ground activities.

Weather forecasting is critical for energy and utility companies, particularly those in renewable energy sectors. Solar and wind energy producers depend on forecasts to predict power generation and balance supply with demand. Utility providers use weather data to prepare for outages caused by extreme weather events, ensuring uninterrupted service.

Banking, financial services, and insurance (BFSI) leverages weather forecasting to assess risk, manage insurance claims, and design weather-based financial products. Insurance companies rely on forecasts to predict losses from extreme weather, streamline claims processing, and adjust policies.

Agriculture heavily depends on weather forecasting for crop planning, irrigation, and harvest management. Accurate forecasts of rainfall, temperature, and storms help farmers optimize their activities, improving yields and reducing crop losses. Weather data aids in pest control and resource allocation, ensuring efficient farm management.

Media uses weather forecasting services to provide accurate and real-time updates to the public. Television, radio, and digital platforms deliver daily forecasts, severe weather warnings, and climate trends, ensuring audiences are informed and prepared. Weather updates drive engagement and viewership, while businesses rely on media-provided forecasts for day-to-day planning and safety measures.

Manufacturing uses weather forecasting to manage supply chain operations and production schedules. Accurate weather data ensures raw material deliveries are not disrupted by adverse conditions. Temperature and humidity forecasts are critical for industries like chemicals, food processing, and electronics, where environmental factors impact product quality.

Retail depends on weather forecasts to manage inventory, plan marketing campaigns, and meet user demand. Seasonal and real-time weather predictions help retailers stock weather-specific products, such as winter clothing or rain gear. Forecasting also aids in supply chain management, ensuring timely deliveries and preventing stockouts.

Others include sectors like tourism, event planning, construction, and environmental monitoring. The tourism industry relies on weather data to enhance visitor experiences, while construction companies use forecasts to schedule projects and protect equipment from adverse weather.

Regional Analysis:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

In 2024, North America accounted for the largest market share, reaching 28.9%. North America dominates the market due to its advanced technological infrastructure and rising reliance on accurate weather data across key industries. The aviation sector heavily depends on precise forecasts to ensure flight safety and minimize delays caused by extreme weather conditions. Similarly, the agriculture industry leverages these services to optimize planting and harvesting schedules, improving productivity. The energy sector, particularly renewable energy, benefits from accurate weather predictions to manage power generation effectively. The region's strong government initiatives and investments in meteorological advancements are offering a favorable weather forecasting services market outlook. Additionally, increasing climate-related risks, including hurricanes, snowstorms, and wildfires, are driving the demand for real-time forecasts and early warnings to mitigate economic losses and ensure public safety. In 2024, the US Department of Commerce and NOAA announced $15.3 million in funding to improve long-term climate and extreme weather forecasting services. The initiative, supported by the Inflation Reduction Act, focuses on multi-decadal projections of rainfall, drought, temperature extremes, and coastal flooding to aid climate resilience. NOAA also co-leads the National Heat Strategy to address the growing risks of extreme heat events in the US.

Key Regional Takeaways:

United States Weather Forecasting Services Market Analysis

In North America, the United States accounted for 86.80% of the total market share. The growing economic and human toll of extreme weather events contributes substantially to the growth in the United States weather forecasting services market. Based on the data presented by NOAA, from 1980 to 2022, the damages incurred by only tropical cyclones amount to USD 1,333.6 billion with an average cost per event being USD 22.2 Billion, the highest from any type of disaster. Other major causes of the damage are severe storms (USD 383.7 Billion), droughts (USD 327.7 Billion), and inland flooding (USD 177.9 Billion). Severe storms, although with the least average cost per event with USD 2.4 Billion, have been experienced the most with USD 163 Billion events. Besides, tropical cyclones record the highest number of deaths: 6,890 while drought/heatwaves with 4,275 fatalities and severe storms with 1,982. These alarming statistics highlight the urgent need for accurate and timely weather forecasting services to reduce losses and improve preparedness. Federal agencies, businesses, and emergency response teams are increasingly seeking advanced forecasting technologies to provide early warnings, reduce fatalities, and minimize economic losses associated with these frequent and high-cost weather events.

Europe Weather Forecasting Services Market Analysis

Europe weather forecasting services market is witnessing significant growth. Climate change is leading to the higher intensity and occurrences of weather-related natural catastrophes. As EEA pointed out, the summer of 2024 marked the most sizzling for Europe and the entire globe, creating significant ecological and social disturbances. Above 370,000 hectares of forest have been razed by fires during the first nine months of this year. In addition, Central Europe experienced severe flooding in September, affecting nearly two million people, and floods in Valencia in October killed 230 people and destroyed thousands of homes and businesses.

Europe is experiencing an increasing number of extreme weather events such as droughts, forest fires, heatwaves, storms, and heavy rainfall. These are hazards that are enhanced by climate change and will only become more frequent and severe in the coming years. This is why demand for weather forecasting services has risen drastically with governments, businesses, and communities increasingly depending on these to help reduce risks, build preparedness in disasters, and protect lives and resources. Such an increasing demand for weather data reliability makes a leading reason for the expansion of the market for weather forecasting services in Europe.

Asia Pacific Weather Forecasting Services Market Analysis

The Asia-Pacific weather forecasting services market is growing at an excellent rate due to increasingly frequent and intense extreme heat events and other climate events across the region. Recently, the World Meteorological Organization pointed out that in 2023, many parts of Asia experienced unprecedented heatwaves with such urgency that required accurate and reliable forecasts. Japan had its warmest summer ever, while China faced 14 high-temperature events during the summer with a total of 70 percent of national meteorological stations having reported temperatures above 40℃. In addition, 16 stations set new all-time records.

In India, an estimated 110 fatalities by heatstroke resulted from heatwaves in April and June, 2024, indicating how seriously these extreme weather events have the human and economic impacts. These increasing heat events, coupled with the more general impacts of climate change, have brought to the fore the critical role that weather forecasting services play in disaster preparedness, risk mitigation, and the saving of lives and livelihoods. As a result, governments, industries, and communities in the Asia-Pacific region are increasingly looking to advanced weather forecasting solutions to help address these challenges, thus driving market growth.

Latin America Weather Forecasting Services Market Analysis

There is significant growth in Latin America weather forecasting services as frequent and intense climatic hazard events intensify. The World Meteorological Organization reported that there were the most extreme climate events that Latin America and the Caribbean had ever registered in 2023. Hurricane Otis was one of those, gaining strength rapidly ahead of landfall as an extremely catastrophic Category 5 storm in Acapulco, Mexico. Dozens were killed by the torrential rains while billions were lost in damages in dollars.

Widespread flooding also occurred in other parts of the region, and the severe drought was able to lower the flow of the Negro River of Brazil's Amazon to its lowest in more than 120 years, causing significant disruption in local economies and affecting shipments through the Panama Canal. Such events highlight the immense requirement for proper and prompt weather forecasting services to combat the social and economic fallout in extreme weather.

Rising demand for forecasting solutions in Latin America indicates a growing dependence on such services by governments, industries, and communities in enhancing preparedness for disasters, protecting infrastructure, and livelihoods. This increased focus on climate resilience is going to lead to significant growth in the weather forecasting services market in the region.

Middle East and Africa Weather Forecasting Services Market Analysis

The Middle East and Africa weather forecasting services market is growing rapidly due to the increasing need for accurate weather predictions in aviation safety, disaster preparedness, and climate resilience. In the UAE, over 100 airport weather monitoring stations operate 24/7, issuing forecasts and warnings for adverse conditions like heavy winds, rain, and turbulence. These systems are crucial for guiding pilots during take-offs and landings, ensuring operational efficiency and passenger safety.

Additional sophistication in techniques involves AI-based simulations which enhance the forecasting with more reliability in atmospheric activities and a historical database of storms that can be considered for appropriate preparation and reduction of damages caused by these storms. Extreme climate events increase urgency for weather service. This period, between June 11–13, 2024, recorded an unprecedented heatwave with over 290 million persons affected in Northern Africa, the Mediterranean, and the Middle East. This event, made significantly more likely due to human-induced climate change, underlines the critical role of precise forecasting in managing risks, protecting lives, and reducing economic disruptions. These factors are driving the adoption of advanced weather forecasting solutions across the Middle East and Africa.

Competitive Landscape:

Key players in the market are focusing on technological advancements to improve forecast accuracy and delivery speed. They are investing in AI, ML, and big data analytics to enhance predictive capabilities. Strategic collaborations with industries such as agriculture, aviation, and energy are expanding their service portfolios. Companies are also prioritizing cloud-based solutions and real-time weather updates to meet growing demand. To maintain competitiveness, they are integrating IoT-enabled sensors and satellite technologies for data collection and analysis. Additionally, increasing investments in research operations are helping to address climate variability and improve risk management solutions. In June 2023, AccuWeather, Inc. launched the AccuWeather HeatWave Counter and Severity Index, an innovative measure to enhance public understanding of heatwaves. This index brings forth the intensity and length of heatwaves while making severe heatwaves clear, giving individuals and organizations ample opportunity for preparation and response in advance of extreme heat events.

The report provides a comprehensive analysis of the competitive landscape in the weather forecasting services market with detailed profiles of all major companies, including:

• AccuWeather Inc.
• AerisWeather
• BMT Group
• Custom Weather
• DTN
• ENAV S.p.A.
• Fugro
• International Business Machines Corporation
• Met Office
• Precision Weather Services
• Skymet Weather Services Pvt. Ltd.
• StormGeo AS.
   

Latest News and Developments:

• November 2024: The India Meteorological Department initiated a dedicated weather forecasting system for the Sabarimala Pilgrimage. The system includes rain gauges at key locations and will soon provide real-time weather updates to help pilgrims navigate the region's extreme weather conditions.
• October 2024: The Telangana government collaborated with the IMD to start the service that gives weather forecasts at a village level. This is for improving agricultural planning and disaster preparedness with five-day advance forecasts to the farmers and the rural population. The service can be accessed via digital platforms. It includes SMS alerts on extreme weather events.
• August 2024: WMO Polar Coupled Analysis and Prediction for Services project aimed at improving weather forecasting in both the Arctic and Antarctic regions. The PCAPS project targeted the improvement of climate services and prediction in the region that includes extreme weather and global warming impacts. It will run until 2028, focusing on better observation systems and Earth models for safer travel and living in the polar areas.
• May 2024: Tuvalu introduced a weather forecasting system powered by AI in partnership with Atmo and the Global Centre for Climate Mobility. This advanced system gives ultra-precise and highly accurate forecasts that update every 15 minutes, helping Tuvalu address climate challenges such as sea level rise and extreme weather events. The project aims to improve disaster management and climate adaptation strategies for the country.
• March 2024: Huawei Cloud, in collaboration with the Meteorological Bureau of Shenzhen Municipality, launched Zhiji Regional Model, an AI-based weather forecasting system. It provides highly accurate, localized five-day forecasts with a 3 km resolution and significantly improves the accuracy of weather prediction compared with traditional global models. It enhances disaster prevention and mitigation efforts using AI to process large data sets for precise forecasting.
• February 2024: Honeywell Aerospace Technologies and the National Oceanic and Atmospheric Administration (NOAA)'s National Weather Services have signed a two-year agreement for the installation of a ground system for a high-altitude LiDAR Atmospheric Sensing (HALAS) system. This partnership will test the ability of the system to provide better weather forecasting through gathering and analysis of upper-air data that will increase the precision and dependability of weather forecasts.
• February 2024: Indian Space Research Organization (ISRO) put in orbit for Ministry of Earth Sciences the INSAT-3D S that, launched onboard the Geosynchronous Satellite Launch Vehicle GSLV -F14 would help it enhance its climate-observing and weather-forecasting capacities of India. A satellite very importantly enhances this capability of observing better and anticipating rain and climate variability in more appropriate ways to manage the risk by the people themselves.

Weather Forecasting Services Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the weather forecasting services market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global weather forecasting services market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the weather forecasting services industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.