Northbrook, IL 60062 -- (SBWIRE) -- 08/29/2023 -- The Weather Forecasting Services Market is projected to reach USD 2.7 billion by 2026, it is expected to grow at a CAGR of 9.9% during the forecast period.
Weather forecasting services involve the application of science and technology to predict atmospheric conditions. Advancements and improvements in forecasting software have enabled digital satellite imagery, radar imagery, model data, and surface observations to predict weather conditions with greater accuracy.
North America, Europe, Asia Pacific,Middle East, Latin America,and Africa have been considered for the study of the weather forecasting services market. North America accounts for the largest weather forecasting services market in 2021.Major companies providing weather forecasting services in the North American region include The Weather Company (US), DTN (US), and AccuWeather, Inc. (US).
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The insurance segment accounts for the largest market size during the forecast period
The insurance sector uses weather forecasting services to predict damage from severe events and provide proper communication to customers regarding the expected damage due to severe weather conditions. When policyholders are alerted to an imminent weather event, they can begin taking steps to avoid weather-related damage. Similarly, insurers can use accurate and timely weather data to move resources into place before major weather events. In the current scenario, developing countries' agriculture industry's profits depend strongly on weather realizations. It is well-known that farmers without access to good insurance markets act conservatively, investing less on their farms and choosing crop mixes and cultivation techniques that reduce the volatility of farm profits at the expense of lower expected profits. Climate change experts and policymakers have long recognized that the insurance industry holds a significant reservoir of needed skills and knowledge. The insurance industry not only possesses in-depth knowledge of extreme weather and its associated risks but also has expertise in weather risk modelling, scenario building, and aligning incentives with desired actions.
The small and medium-sized enterprises segment is projected to grow at the highest CAGR during the forecast period
Large enterprises and Small & Medium-Sized Enterprises are considered in the organization segment of the market. The emergence of weather forecasting services offers opportunities to SMEs to manage weather-related risks. Several SME-focused companies, government initiatives, and weather forecasters are expected to add to the growth of the weather forecasting services market. As the accuracy of weather forecasts increases, enabled by better technology and tools, the marine industry is tapping into the predictions to optimize productivity and cut risks. XShip (India), a global marine consultancy service provider, has signed up for weather forecasts from The Weather Company (US) to predict the best routes for ships with 95% accuracy.
The short-range forecast type segment accounts for the largest market size during the forecast period
By forecast type,the weather forecasting services market is segmented into nowcast, short-range, medium-range, extended-range, and long-range forecast types. Short-range forecasts are based on weather charts, maps, satellite images, weather balloons, and ground-based information. It is used for weather prediction and other applications like aviation, ship routing, etc. This type of forecast serves its purpose by providing information on the predicted weather for the upcoming few days, providing sufficient time to prepare in the event of a disaster. The most benefitted sectors from short-range forecasting are fisheries and transportation. Knowing weather conditions for up to 48 hours is essential for both these industries to function.
Key Market Players
The Weather Company (US), AccuWeather (US), DTN (US), StormGeo (Norway), Fugro (Netherlands), and ENAV S.p.A. (Italy) are among the major companies in the weather forecasting services market.