Weather Information Technologies Market Size, Share & Trends Analysis Report By Component (Communication Devices, Monitoring Devices), By Forecast Range, By Application, By End Use, And Segment Forecasts, 2020 - 2027

Report Overview

The global weather information technologies market size was valued at USD 9.41 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 8.5% from 2020 to 2027. The rising demand for real-time monitoring and air quality check to take preliminary measures for disaster management and mitigating risk has led to phenomenal market growth. The industry has witnessed a significant transformation from being heavily dependent on hardware to adopting advanced software for accurate results. The integration of the Internet of Things (IoT) and Artificial Intelligence (AI) technologies into weather information systems is expected to unfold significant opportunities for market growth over the forecast period.

Uncertainty in climatic conditions can cause severe damages to the environment. The criticality of extreme climatic events recently has resulted in wildfires and unseasonal hurricanes. Weather information technologies provide predictions of the present atmospheric and weather conditions. With the help of these technologies, businesses that directly depend on weather conditions can make accurate predictions to achieve maximum ROI. The increasing emphasis on disaster management by federal governments, advancements in data gathering and processing, and lesser access to low Earth orbit have prompted established companies and startups to invest in the business.

Limitations in noting observations, inconsistent and incomplete data, time lags, and complexities stemming from the changes occurring in atmospheric conditions can lead to inaccurate analysis and prediction of weather conditions. Furthermore, tasks such as monitoring weather conditions regularly, assimilating vital data, and processing it correctly can be challenging. To overcome this, system providers are adopting state-of-the-art technologies. These technologies not only collect previous patterns but also continuously observe the current weather, based on which the analyses of future situations are precisely made.

In recent decades, scientific and technological advances have improved the capability of predicting natural disasters based on weather predictions. However, forecasting capabilities for hydrologic and atmospheric events vary based on the intensity of the risk. The next generation forecast workstations are undergoing innovations to offer new methods for assimilating huge sets of observational data. This includes information-processing and new visualization techniques for assisting forecasters with data analysis and interpretation.

The outbreak of the COVID-19 pandemic has restructured the market's capabilities with various imposed regulations. One of these was travel restrictions, which limited the frequency of aircraft and cruises, thereby reducing the accuracy of weather information. According to the National Oceanic and Atmospheric Administration (NOAA), the data collected via commercial cruises and flights have declined by 75% in the U.S. However, the market participants are launching Radiosondes, which are battery-powered air balloons, as an alternative for data collection from the atmosphere. This challenge has imperiled the market; however, weather information technologies have still managed to attain accurate predictions with surface system technologies.

Component Insights

The monitoring devices segment accounted for a high revenue share of around 40.0% in 2019 and is expected to continue dominating the market over the forecast period. The segment is also expected to register a higher CAGR during the forecast period. Monitoring devices are essential components of weather information solutions. These devices are corrosion-resistant and designed to withstand the harshest environments.

Weather information technologies are coupled with highly advanced monitoring devices to accurately detect upcoming events. Remote sensors mounted on satellite systems can capture images of water bodies with rising levels, atmospheric temperature, and wind patterns. Similarly, IoT-enabled precision instruments such as anemometers, hygrometers, and rain gauges provide accurate real-time weather information of a certain location. The acute dependency of solutions on monitoring sensors and weather instruments to evaluate the extreme conditions is expected to contribute to the segment growth.

The software segment is anticipated to witness the fastest growth over the forecast period. The integration of state-of-the-art meteorological information software with hardware equipment that can offer continuous predictions has increased the demand for weather information technologies. To cope with this demand, certain start-ups and well-established companies are offering upgrades in the computation and visualization methods. The usage of monitoring, display, data collection, and processing software for weather forecasting by using historical and present weather information, is anticipated to majorly contribute to the segment growth.

Application Insights

The weather monitoring and forecasting segment accounted for a dominant share of over 55.0% of the overall weather information technologies market in 2019. The segment is also expected to register a high CAGR over the forecast period. The weather monitoring and forecasting technique is deployed by almost every industry participant that relies on weather conditions, such as agriculture, meteorology, and transportation sectors. It has emerged as a significant method for determining future critical events and related strategic decisions to be made.

Day-to-day weather variables such as air temperature, humidity, rainfall, and wind speed are significant for evaluating a wide range of incidents. The amalgamation of data analytics that leverage historical and real-time weather feeds for monitoring and forecasting information has proven beneficial for end-users to attain better outcomes. Additionally, machine learning technology is used for pattern matching wherein future predictions are made based on patterns observed in the past. These solutions can also offer critical weather-related information to underserved areas with lower technology adoption rates, such as Latin America and Africa. The ability of these technologically upgraded forecasting and monitoring solutions to display continuous and up-to-date information is expected to drive the growth over the forecast period.

The air quality monitoring segment accounted for a significant revenue share in 2019. In recent times, air pollution has posed a substantial threat to the ecosystem. The imbalance in air quality due to short and long-term pollution has resulted in acid rains and the extinction of animal species. Growing environmental concerns have led to the rising adoption of air quality monitoring systems in the manufacturing, automotive, and oil and gas sectors. Governments worldwide are thereby favoring initiatives for environment conservation, such as the provision of funds for the installation of air quality monitoring systems and solutions, thereby propelling the growth. As a result, companies are coming up with upgraded solutions to assist end-users in precise air quality monitoring. For instance, Horiba offers an Air Quality Monitoring System (AQMS), which measures the real-time concentration of multiple air pollutants, including hazardous Nitrogen Oxides (NOx) and Carbon Monoxide (CO).

End-use Insights

The transportation segment is held the largest revenue share of around 18.0% in 2019 and is expected to witness the fastest CAGR from 2020 to 2027. The growth can be attributed to the rapid deployment of weather information technologies in the marine, roadways, and airways sectors for analyzing the favorable conditions for functioning. The aviation industry is one of its primary applications, wherein these technologies are widely used for air traffic control and coherent updates during take-off and landing. These technologies also enable real-time monitoring of air quality levels, allowing users to adopt precautionary strategies to attain human health objectives.

The agriculture segment is highly dependent on the seasons. The segment accounted for a significant revenue share in 2019. Sudden weather changes can prove to be unfavorable for the growth and development of crops, as crop sowing and harvesting are directly linked to seasonality Furthermore, weather aberrations cause soil erosion and physical damages to crops. To prevent such damages, forecasting solutions that consider aspects such as temperature, precipitation, humidity, and wind speeds provide aid to farmers, especially for cost-saving or making crop-related decisions in farm operations.

The power and energy segment is expected to witness rapid growth over the forecast period. Precise forecasts are one of the prominent elements needed for energy generation from solar, wind, hydro, and other renewable energy sources. With an immense requirement to keep the grids stable, energy generation from renewable sources is entirely dependent on weather conditions and requires continuous monitoring for making energy generation-related decisions.

Forecast Range Insights

The medium-range forecast segment accounted for the largest revenue share of over 44.0% in 2019. Medium-range forecasts help in scenario planning and risk management to reflect likely conditions. Moreover, improvements in numeric prediction models are expected to contribute to the segment growth. The short-range forecast range offers higher accuracy for day-to-day weather event forecasts. On the other hand, long-range forecasting is preferred for determining the change in seasons for preparedness. Long-range forecasting is a significant tool for predicting erratic temperature fluctuations as a result of climate change. Moreover, improvements in numerical prediction models coupled with digitization are expected to increase the segment growth over the forecast period.

The short-range forecast segment is expected to register the highest CAGR of around 10.0% over the forecast period. The growth can be attributed to the system’s ability to generate warnings related to critical weather events, including typhoons, hurricanes, and cyclones, several hours in advance. These short-range forecasting techniques prompt end-users to adopt disaster management programs at the initial stages to avoid reparations. Moreover, significant developments in the internet, wireless communication, computing systems, and smartphones are anticipated to lead to effective real-time transmission of atmospheric conditions over the forecast period.

Regional Insights

The Asia Pacific dominated the market with a revenue share of over 30.0% in 2019. The region is expected to continue its dominance over the forecast period. Countries such as China, Japan, and South Korea are contributing to market growth. Furthermore, the rising government investments in commercial solutions, apart from their privately launched satellites, are also anticipated to drive growth. For instance, the Meteorological Service Act of Japan intends to increase commercial opportunities for private meteorological services in Japan.

With the U.S. at the forefront, the North America market accounted for a significant revenue share in 2019. The early adoption of the latest technologies, such as IoT sensors, AI, and data analytics, for collecting environmental information in industries such as military & defense, renewable energy, transportation, and agriculture is expected to positively influence the growth of the region. Key industry participants such as All Weather, Inc. (AWI); Campbell Scientific, Inc.; and Vaisala have their headquarters in the U.S. These companies are actively engaged in developing advanced and innovative solutions such as data loggers, telemetry systems, and personal weather stations for monitoring and forecasting.

The Middle East and Africa (MEA) market is expected to grow significantly over the forecast period. The rising demand for advanced solutions that alert users about possible future calamities is anticipated to contribute to the revenue share of the region. Due to the continuous rising temperatures and changes in hydrological cycles, the region has witnessed significant climate changes in recent years. The increasing demand for solutions that can monitor air quality to detect pollution levels in urban settlements is expected to drive the MEA market growth.

Key Companies & Market Share Insights

The market has lately attained increased visibility and companies have recently started expanding into the weather information technologies business with the availability of Unmanned Aerial Vehicle (UAVs) and drones, wearables, and data processing systems. The market is dominated by various global and regional market players that are continually thriving to attain a competitive edge over their counterparts. Mergers and collaborations with software providers are some of the key strategies undertaken by the market participants to develop novel solution offerings. For instance, National Oceanic and Atmospheric Administration collaborated with Spire, a data analytics start-up that has launched a fleet of satellites for tracking aircraft and ships to attain one, three, and five-day forecasts with the radio occultation soundings collected.

Obtaining accurate weather data has become a matter of concern for industries that heavily rely on atmospheric conditions. The major players in this industry are continuously upgrading their product portfolio with upgraded monitoring and communication components to enable end-users with quick and exact predictions. For instance, The Weather Company, a part of IBM Corporation, offers tailored solutions for different industries. The company has incorporated advanced analytics solutions to offer real-time insights accurately to multiple users at one time. Some of the prominent players in the weather information technologies market include:

• All Weather, Inc. (AWI)

• Campbell Scientific, Inc

• Columbia Weather Systems, Inc.

• General Acoustics e.K.

• Gill Instruments Limited

• IBM

• Lockheed Martin Corporation

• Met One Instruments Inc.

• MORCOM International

• Optical Scientific, Inc.

• Pulsonic

• Skye Instruments Limited

• The Weather Company

• Vaisala

Weather Information Technologies Market Report Scope

Segments Covered in the Report

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 2016 to 2027. For this study, Grand View Research has segmented the global weather information technologies market based on component, forecast range, application, end-use, and region:

• Component Outlook (Revenue, USD Billion, 2016 - 2027)

  • Communication Devices

  • Monitoring Devices

  • Software

  • Others

• Forecast Range Outlook (Revenue, USD Billion, 2016 - 2027)

  • Short-range Forecast

  • Medium-range Forecast

  • Long-range Forecast

• Application Outlook (Revenue, USD Billion, 2016 - 2027)

  • Air Quality Monitoring

  • Weather Monitoring & Forecasting

• End-use Outlook (Revenue, USD Billion, 2016 - 2027)

  • Agriculture

  • Industrial

  • Transportation

  • Power & Energy

  • Government & Defense

  • Meteorology & Weather Service Providers

  • Others

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa