Weather Forecasting Services Market Size and Share
Market Overview
| Study Period | 2020 - 2030 |
|---|---|
| Market Size (2025) | USD 3.47 Billion |
| Market Size (2030) | USD 4.90 Billion |
| Growth Rate (2025 - 2030) | 7.17% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Weather Forecasting Services Market Analysis by Mordor Intelligence
The weather forecasting services market size is estimated at USD 3.47 billion in 2025 and is projected to reach USD 4.90 billion by 2030, growing at a 7.17% CAGR. Rising climate volatility, intensifying regulatory mandates, the proliferation of artificial intelligence, and growing reliance on renewable energy form the primary engines behind this upward trajectory for the weather forecasting services market. Companies are integrating high-resolution nowcasting to mitigate operational disruptions, while governments are expanding early-warning networks to limit economic losses from extreme events. Parametric insurance, autonomous mobility, and precision agriculture present fresh commercial opportunities that reward providers capable of sub-kilometer accuracy. Concurrently, high-performance computing investments and satellite constellation renewals underpin technological competitiveness, though cost barriers remain steep for new entrants.
Key Report Takeaways
- By forecasting type, short-range services led the weather forecasting services market with a 46% market share in 2024; medium-range services are projected to expand at a 7.29% CAGR through 2030.
- By end user, energy and utilities dominated the weather forecasting services market in 2024 with a 23.5% share; transportation and logistics is projected to grow at a 7.33% CAGR through 2030.
- By purpose, operational efficiency accounted for the largest share of 38% in 2024; risk management and claims optimization is expected to expand at a CAGR of 7.61% through 2030.
- By delivery platform, web-based portals captured 51% of the market in 2024; mobile applications are forecasted to grow at the fastest rate, with an 8.01% CAGR through 2030.
- By organization size, large enterprises held the lion’s share of 66% in 2024; small and medium-sized enterprises are anticipated to grow at a 7.32% CAGR through 2030.
- By geography, the Asia Pacific led the market with a 55% share in 2024 and is also expected to be the fastest-growing region with a CAGR of 7.64% through 2030.
Global Weather Forecasting Services Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Intensifying climate-change-driven extreme weather events | +1.80% | Global with acute impact in Asia Pacific and North America | Medium term (2–4 years) |
| Rapid AI and ML adoption boosting forecast accuracy and speed | +1.50% | North America and Europe leading, Asia Pacific following | Short term (≤ 2 years) |
| Grid-scale renewable-energy integration needs ultra-short-term forecasts | +1.20% | Europe and North America, expanding to Asia Pacific | Medium term (2–4 years) |
| Aviation and maritime safety mandates for route optimization | +0.90% | Global, regulatory leadership in Europe and North America | Long term (≥ 4 years) |
| Parametric micro-insurance products demanding hyper-local data | +0.70% | Global South and emerging markets, expanding to developed regions | Long term (≥ 4 years) |
| Autonomous vehicles and drones requiring minute-scale nowcasting | +0.60% | North America and Asia Pacific technology hubs | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Intensifying Climate-Change-Driven Extreme Weather Events
Global economic losses from severe storms surged to USD 90 billion in 2024, doubling the count of billion-dollar disasters since 2020. As a result, insurers seek sub-daily updates and agriculture operators request 10-day rainfall probabilities exceeding 90% confidence levels. These requirements elevate demand for ensemble forecast models that communicate uncertainty bands rather than single-point predictions, pushing the weather forecasting services market toward more sophisticated, sector-specific solutions.[1]NOAA Staff, “Billion-Dollar Weather and Climate Disasters,” National Centers for Environmental Information, ncei.noaa.gov
Rapid AI and ML Adoption Boosting Forecast Accuracy and Speed
Machine-learning models such as GraphCast now generate global forecasts in minutes while improving seven-day accuracy by up to 20%. Commercial providers embed similar architectures to deliver real-time route optimization for aviation and 15-minute solar irradiance updates for utilities. The performance leap strengthens incumbent positions but raises computational and data-set barriers for newcomers.[2]Andrew Brockwell, “GraphCast AI Model Improves Forecast Speed,” Nature, nature.com
Grid-Scale Renewable-Energy Integration Needs Ultra-Short-Term Forecasts
Utilities worldwide add roughly 440 GW of renewables annually, amplifying grid-balancing challenges that hinge on 15-minute to six-hour forecasts of wind speed, cloud cover, and temperature. Subscriptions priced at USD 100,000-$ 500,000 per utility underscore the commercial value of weather intelligence, which safeguards electricity market margins that are cleared every five to 15 minutes.[3]International Energy Agency Team, “Renewables 2024,” International Energy Agency, iea.org
Aviation and Maritime Safety Mandates for Route Optimization
Route-optimization systems save airlines 2-4% in fuel per flight and help shippers comply with emissions rules. Meeting these mandates requires hourly-resolved forecasts over five- to ten-day horizons, spurring demand for integrated weather-plus-navigation platforms as opposed to standalone data feeds.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High-performance computing and data-license costs | -1.10% | Global, acute in emerging markets | Short term (≤ 2 years) |
| Model complexity and shortage of expert meteorologists | -0.80% | Global, pronounced in Asia Pacific and Africa | Medium term (2–4 years) |
| Uneven telecom and sensor infrastructure in developing regions | -0.60% | Africa, parts of Asia Pacific and Latin America | Long term (≥ 4 years) |
| Looming satellite data gaps as aging constellations retire | -0.40% | Global, cascading forecast impacts | Medium term (2–4 years) |
| Source: Mordor Intelligence | |||
High-Performance Computing and Data-License Costs
Running state-of-the-art numerical weather prediction models requires exascale systems that consume 20-30 MW continuously and cost upwards of USD 163.5 million, mirroring the European Centre for Medium-Range Weather Forecasts' procurement in 2024. Annual satellite-data licenses, ranging from USD 50,000 to USD 200,000, augment the burden, limiting participation by small regional providers and tempering competitive dynamics in the weather forecasting services market.
Model Complexity and Shortage of Expert Meteorologists
Universities in North America and Europe graduate fewer than 1,000 qualified meteorologists annually, a figure dwarfed by industry demand. The talent gap impedes customization of hybrid AI-physics models, inflates salary costs, and slows new-product rollouts, particularly in aviation and marine verticals that require certified expertise.
Segment Analysis
By Forecasting Type: Short-Range Dominance Faces Medium-Range Challenge
Short-range products held 46% of the weather forecasting services market in 2024, reflecting their critical role in real-time operations for aviation, logistics, and emergency response. Medium-range solutions, however, outpace the overall weather forecasting services market at a 7.29% CAGR as energy trading, agriculture, and insurance seek eight- to ten-day horizons for hedging and planning. Commercial vendors increasingly package ensemble outputs that quantify confidence levels to satisfy risk-adjusted decision frameworks.
Advances from the European Centre for Medium-Range Weather Forecasts have narrowed the skill gap between ten-day and historic seven-day accuracy levels, encouraging enterprises to extend planning cycles without sacrificing precision. Long-range outlooks remain niche, yet seasonal climate projections gain relevance for crop selection and reservoir management in regions vulnerable to drought or flooding.
Note: Segment shares of all individual segments available upon report purchase
By End User: Energy Utilities Lead While Transportation Accelerates
Utilities, mining, and energy firms captured 23.5% of the weather forecasting services market in 2024, underpinned by the need for renewable integration, grid stability imperatives, and commodity-trading volatility. Transportation and logistics, which are expanding at a 7.33% CAGR, are increasingly relying on minute-scale nowcasting for autonomous fleets and just-in-time supply chains. The aviation segment maintains regulated demand, whereas insurers deploy hyper-local forecasts to price parametric products that pay automatically when predefined thresholds are breached.
Agriculture and forestry users seek precision irrigation and pest management support, and government agencies incorporate weather intelligence into disaster readiness protocols. Retailers and e-commerce platforms utilize meteorological data to refine their demand-forecast algorithms and optimize store-level inventory allocations.
By Purpose: Operational Efficiency Dominates Risk Management Growth
Operational efficiency applications accounted for 38% of the weather forecasting services market size in 2024, as enterprises focus on reducing energy bills, optimizing labor schedules, and improving asset utilization. Risk management use cases, led by parametric insurance and climate-resilience mandates, are projected to rise at a 7.61% CAGR through 2030, driving a higher willingness to pay for premium data. Safety-driven compliance, once the principal catalyst, now shares budgetary priority with financial and strategic planning applications that depend on quantified risk metrics.
Integrated decision platforms embed weather triggers within automated workflows, enabling instant adjustments to fleet dispatch, energy hedging, or construction timelines. Providers that fuse meteorological data with business KPIs, therefore, secure stickier, higher-margin contracts.
By Delivery Platform: Web Portals Lead Mobile Application Surge
Web portals retained a 51% share in 2024, serving enterprise clients that need curated dashboards, historical analytics, and role-based access controls. However, mobile applications represent the fastest-growing delivery vector, with an 8.01% CAGR, democratizing the weather forecasting services market for small and medium-sized enterprises through subscription models and API integrations. Developers embed forecast calls into IoT, fleet management, and workforce scheduling apps, expanding the market’s surface area.
APIs also lower barriers for innovators who build niche SaaS products on top of core weather data, while consulting services remain essential for verticals—such as maritime or aviation—that require certification or bespoke model tuning.
Note: Segment shares of all individual segments available upon report purchase
By Organization Size: Large Enterprises Dominate SME Acceleration
Large enterprises controlled 66% of the weather forecasting services market in 2024, leveraging global footprints to negotiate enterprise-wide licenses that link multiple sites and business units. Yet, SMEs show a 7.32% CAGR, supported by cloud-native offerings with predictable monthly fees and minimal onboarding requirements. As API costs decline, small farmers, construction firms, and outdoor event planners are adopting near-term forecasts to refine operational timing and mitigate weather-related revenue volatility.
Enterprise users increasingly demand tailored machine-learning models that integrate with enterprise resource planning or energy-management systems, whereas SMEs tend to gravitate toward off-the-shelf products that require no specialized meteorological staff.
Geography Analysis
The Asia Pacific commanded a 55% market share of the weather forecasting services market in 2024 and is projected to compound at a 7.64% annual growth rate through 2030. Government-funded radar expansions under India’s Mission Mausam and Japan’s phased-array networks enhance regional forecast precision, while China’s AI-enabled modernization continues to drive public and private demand. Southeast Asian cross-border collaborations improve typhoon and monsoon predictability, directly benefiting agriculture and insurance uptake.
North America retains the second-largest position, leveraging advanced computational grids, a mature insurance sector, and robust regulatory frameworks that mandate weather inputs across aviation, maritime, and emergency-management functions. Energy-transition priorities accelerate utility spending on ultra-short-term forecasting, further stimulating the weather forecasting services market.
Europe pursues standardization through the European Centre for Medium-Range Weather Forecasts and World Meteorological Organization guidelines, promoting shared data pools and joint satellite missions. This harmonized environment reduces duplication costs and elevates baseline accuracy for regional participants.
The Middle East and Africa, as well as Latin America, represent emerging frontiers. African Union drought-alert programs and Gulf state aviation hubs drive fresh investments, whereas Brazil’s agricultural economy underpins demand for seasonal and planting-window forecasts across Latin America.
Competitive Landscape
The weather forecasting services market remains moderately fragmented. Global technology majors leverage immense data archives, high-performance computing, and AI prowess to defend their share, whereas specialized regional providers excel in language localization, regulatory alignment, and niche vertical knowledge. Hyper-local modeling, data fusion innovations, and platform economics form key battlegrounds.
Strategic acquisitions, such as StormGeo–Climatempo, expand geographic reach and agricultural expertise, while partnerships, like AccuWeather–Perplexity AI, integrate conversational interfaces into enterprise systems. IBM’s USD 25 million Enhanced Grid platform illustrates how incumbents pivot toward energy-grid applications, and DTN’s USD 45 million radar acquisition highlights consolidation in severe-weather nowcasting.
White-space opportunities thrive in parametric insurance, autonomous mobility, and SME-focused mobile services where existing offerings lack specificity. Successful entrants couple probabilistic forecasts with business-decision layers that translate weather signals into concrete actions, thereby elevating switching costs and defending margins.
Weather Forecasting Services Industry Leaders
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AccuWeather Inc.
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Weather (Vaisala Oyj)
-
Climavision
-
DTN LLC
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ENAV S.p.A
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- October 2024: StormGeo acquired Climatempo for more than USD 15 million, strengthening Latin American reach.
- September 2024: AccuWeather partnered with Perplexity AI to embed conversational weather queries in enterprise applications.
- August 2024: IBM Weather Company launched the Enhanced Grid Weather Intelligence platform after a USD 25 million investment.
- July 2024: DTN purchased Weather Decision Technologies for USD 45 million, expanding radar-based nowcasting.
Global Weather Forecasting Services Market Report Scope
Weather forecasting leverages advanced technology and scientific methodologies to predict atmospheric conditions for specific locations. This process forecasts variables such as cloud cover, precipitation (rain or snow), wind speed, and temperature. The study tracks the global weather forecasting industry-related trends by analyzing the demand for weather forecasting services. The weather forecasting services market is defined based on the revenues generated from the services used by various end-user industries across the globe.
The weather forecasting services market is segmented by forecasting type (short-range, medium-range, and long-range), by end users (transportation & logistics, government and defense, energy utilities and mining, banking financial services insurance (BFSI), agriculture and forestry, and other end users), and by geographies (North America, Europe, Asia Pacific, and the Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Short-range Forecasting |
| Medium-range Forecasting |
| Long-range Forecasting |
| Aviation |
| Transportation and Logistics |
| Energy, Utilities and Mining |
| Government and Defense |
| Banking, Financial Services and Insurance |
| Agriculture and Forestry |
| Media and Entertainment |
| Retail and E-commerce |
| Construction and Mining |
| Operational Efficiency |
| Safety and Security |
| Risk Management and Claims Optimization |
| Disaster Management and Emergency Response |
| Web-based Portals |
| Mobile Applications |
| API / Data-feed Services |
| Consulting and Managed Services |
| Large Enterprises |
| Small and Medium-sized Enterprises |
| North America | United States |
| Canada | |
| Mexico | |
| South America | Brazil |
| Argentina | |
| Rest of South America | |
| Europe | United Kingdom |
| Germany | |
| France | |
| Italy | |
| Spain | |
| Russia | |
| Rest of Europe | |
| Asia Pacific | China |
| Japan | |
| India | |
| South Korea | |
| Australia and New Zealand | |
| Southeast Asia | |
| Rest of Asia Pacific | |
| Middle East | Saudi Arabia |
| United Arab Emirates | |
| Turkey | |
| Rest of Middle East | |
| Africa | South Africa |
| Nigeria | |
| Kenya | |
| Rest of Africa |
| By Forecasting Type | Short-range Forecasting | |
| Medium-range Forecasting | ||
| Long-range Forecasting | ||
| By End User | Aviation | |
| Transportation and Logistics | ||
| Energy, Utilities and Mining | ||
| Government and Defense | ||
| Banking, Financial Services and Insurance | ||
| Agriculture and Forestry | ||
| Media and Entertainment | ||
| Retail and E-commerce | ||
| Construction and Mining | ||
| By Purpose | Operational Efficiency | |
| Safety and Security | ||
| Risk Management and Claims Optimization | ||
| Disaster Management and Emergency Response | ||
| By Delivery Platform | Web-based Portals | |
| Mobile Applications | ||
| API / Data-feed Services | ||
| Consulting and Managed Services | ||
| By Organization Size | Large Enterprises | |
| Small and Medium-sized Enterprises | ||
| By Geography | North America | United States |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | United Kingdom | |
| Germany | ||
| France | ||
| Italy | ||
| Spain | ||
| Russia | ||
| Rest of Europe | ||
| Asia Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| Australia and New Zealand | ||
| Southeast Asia | ||
| Rest of Asia Pacific | ||
| Middle East | Saudi Arabia | |
| United Arab Emirates | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Kenya | ||
| Rest of Africa | ||
Key Questions Answered in the Report
What is the current size of the weather forecasting services market?
The weather forecasting services market size is USD 3.47 billion in 2025.
How fast is global demand for weather intelligence growing?
Market revenue is increasing at a 7.17% CAGR between 2025 and 2030, driven by climate volatility, AI adoption, and renewable-energy integration.
Which region leads spending on commercial weather services?
Asia Pacific holds 55% of global revenue thanks to heavy government investment and vulnerability to monsoons and typhoons.
Why are utilities major customers of professional forecasts?
Utilities need ultra-short-term wind and solar predictions to stabilize grids and optimize energy trading, accounting for 23.5% of 2024 revenue.
What delivery platforms are gaining traction among small businesses?
Mobile applications are the fastest-growing channel at 8.01% CAGR, offering affordable API-based access to precision forecasts.
How concentrated is the competitive landscape?
The sector earns a concentration score of 6, indicating moderate fragmentation where the top five vendors control close to 60% of revenue.
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