Weather Forecasting System & Solutions Market Size, Share & Trend Analysis Report, By Forecast Range (Short, Medium, Long), By System (Hardware, Software), By End-use, By Region, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The global weather forecasting system and solutions market size was valued at USD 3.22 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 6.6% from 2023 to 2030.These systems help enterprises gain real-time insights into atmospheric conditions, enabling enterprises to carefully plan all weather-sensitive operations to ensure security, sustainability, safety, and cost efficiency. Factors such as growing sea and air transportation, increasing stringency of norms about environmental protection, and high dependency on rainfall for water supply are among the key trends stimulating market growth.

Extreme weather conditions, which lead to natural disasters, have raised environmental concerns among individuals. The growing need for reliable climate information and constant monitoring fuels the growth of the weather forecasting solutions market. These systems help enterprises gain real-time insights and improve the decision-making process for profit optimization. However, issues regarding complexities in weather models and inaccurate predictions will likely hinder the market's growth for weather forecasting systems.

Weather forecasting technologies have been widely adopted across most verticals in North America. The region has a large presence of prominent technology players focusing on innovations. Owing to increasing technological advancements, organizations in this region were early adopters of these solutions.

Technological advancements such as improvements in data analytics and an increase in the use of supercomputers delivering more computing power are working in favor of the market in North America. On the other hand, Asia Pacific is anticipated to emerge as the fastest-growing region over the forecast period. Due to high technology adoption, Europe will also be a key destination for market players.

Weather forecasting systems and solutions help analyze a location's present and future atmospheric conditions. The system is important in reducing enterprises' maintenance and operational costs. Accurate weather prediction is necessary so enterprises can plan their activities accordingly. Based on range, the market has been segmented into short-range, medium-range, and long-range.

System Insights

The weather forecasting System and solutions market based on system is segmented into hardware and software. The hardware segment held the largest market share of 59.7% in 2022. Weather forecasting involves complex simulations and computations that require substantial computational power. As technology advances, more powerful hardware systems, such as high-performance processors and graphics cards, enable meteorologists to run more intricate and accurate weather models, leading to improved forecasts.

The software segment is estimated to exhibit the fastest CAGR of 8.2% over the forecast period. Intelligent building automation technology services comprise engineering services. With the advancement of high-performance computing, complex meteorological models can be run more quickly and accurately. It has opened opportunities to develop more intricate and precise forecasting models demanding powerful software components.

End-use Insights

The meteorology & weather service provider segment dominated the market with the highest revenue share of 20.2% in 2022. Increasing natural disasters and uncertain rainfall are playing a pivotal role in stirring up the adoption of weather forecasting systems and solutions in the sector. Various industries such as transportation, energy, aviation, and oil & gas require advanced systems and solutions for smooth operations all over the world.

The power & energy segment is expected to witness the fastest growth of CAGR of 7.6% over the forecast period. The increasing adoption of renewable energy sources like solar and wind power introduces higher variability in energy generation due to weather conditions. Accurate weather forecasts help energy providers anticipate fluctuations in energy production and optimize grid management.

The defense & military segment is estimated to register significant growth over the coming years owing to increasing safety and security concerns across countries. The meteorology and weather service provider segment is poised to rise significantly during the forecast year. Increasing natural disasters and uncertain rainfall are pivotal in stirring up the adoption of weather forecasting systems and solutions in the sector. Various industries, such as transportation, energy, aviation, and oil and gas, require advanced systems and solutions for smooth operations worldwide.

Forecast Range Insights

Based on the forecast range, the market has been segmented into short-range, medium-range, and long-range. The medium-range forecasting dominated the market with the highest revenue share of 48.6% in 2022. This range type varies from 7 to 10 days. It is used for applications such as water & flood management and agriculture. Medium-range weather information helps enterprises make small operational, strategic decisions. The short- and long-range segments are also poised to expand significantly over the forecast period owing to the rising need for safety and security.

On the other hand, the long-range forecasting segment is expected to grow at a significant CAGR of 7.0% over the forecast period. Life safety systems, such as fire detection, emergency evacuation, and security systems, are essential for any building to ensure the safety and security of occupants. Integrating intelligent technologies makes these systems more efficient and effective in detecting, responding to, and managing emergencies, enhancing overall safety.

Regional Insights

Asia Pacific dominated the market with the largest revenue share of 29.0% in 2022. Stringent regulatory norms, increasing sea & air transportation, and rainfall dependence on water supply are the key factors supplementing the regional market's growth. Additionally, the growing need for disaster management due to various natural calamities is expected to spur the region's demand for weather forecasting systems and solutions.

North America was at the forefront of the market in 2022, owing to prominent players such as All Weather, Inc. (AWI); Campbell Scientific, Inc.; Lockheed Martin Corporation; and Skye Instruments Limited; Vaisala Inc. (AWS). Rapid technological advancements, the proliferation of digital services across all major verticals, and early adoption of the latest technologies in various sectors such as military & defense, renewable energy, transportation, and agriculture positively influence the region's growth.

Key Companies & Market Share Insights

Prominent players operating in the market include Airmar Technology Corp.; All Weather, Inc. (AWI); Campbell Scientific, Inc.; Columbia Weather Systems Inc.; Gill Instruments Limited; Lockheed Martin Corporation; MORCOM International; Munro Instruments Limited; Skye Instruments Limited; and Vaisala.

Key players are primarily focusing on providing cost-effective and innovative solutions. They are increasing their R&D spending to develop innovative solutions to gain a competitive edge. Dominant market players have adopted expansion and new product development strategies to consolidate their position. For instance, in October 2021, The National Center for Meteorology (NCM) in the UAE took a significant step forward in enhancing weather forecasting by deploying a state-of-the-art supercomputer in collaboration with Hewlett Packard Enterprise (HPE). This collaboration has enabled NCM's researchers to make substantial advancements in modeling, simulation, artificial intelligence, and deep learning.

Recent Developments

• In August 2023, The NOAA concluded by enhancing the supercomputer system dedicated to weather and climate. This upgraded system, characterized by augmented computing power and storage capabilities, is poised to enhance forecast model guidance for the foreseeable future. Moreover, the improvements lay the foundation for further advancements in weather prediction capabilities.

• In January 2023, Fujitsu unveiled its latest achievement—an advanced supercomputer solution designed specifically for Taiwan's Central Weather Bureau (CWB). This cutting-edge system has been developed to enhance the accuracy of numerical weather predictions.

• In November 2022, in a collaborative effort, Microsoft and Tomorrow.io, the global frontrunner in Weather and Climate Security, unveiled a partnership aimed at aiding African governments, enterprises, and farmers to confront the escalating consequences of climate change.

Weather Forecasting System And Solutions Market Report Scope

Global Weather Forecasting System & Solutions Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global weather forecasting system and solutions marketbased on system, forecast range, end-use, and region:

• System Outlook (Revenue in USD Million, 2017 - 2030)

  • Hardware

    • Barometers

    • Anemometers

    • Hygrometers

    • Rain Gauges

    • Others

  • Software

• Forecast Range Outlook (Revenue in USD Million, 2017 - 2030)

  • Short-range Forecast

  • Medium-range Forecast

  • Long-range Forecast

• End-use Outlook (Revenue in USD Million, 2017 - 2030)

  • Agriculture

  • Industrial

  • Transportation

  • Power & Energy

  • Government & Defence

  • Meteorology & Weather Service Provider

  • Others

• Regional Outlook (Revenue in USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE