Climate Data Analysis Global Market Report 2024

The climate data analysis market size has grown exponentially in recent years. It will grow from $0.88 billion in 2023 to $1.18 billion in 2024 at a compound annual growth rate (CAGR) of 33.5%. The growth observed in the historical period can be ascribed to several factors, including heightened concerns about climate change, a focus on regulatory compliance and reporting, an escalation in the frequency of extreme weather events, increased applications in research and academia, and government initiatives coupled with funding support.

The climate data analysis market size is expected to see exponential growth in the next few years. It will grow to $3.44 billion in 2028 at a compound annual growth rate (CAGR) of 30.7%. The anticipated growth in the forecast period is linked to a heightened emphasis on climate resilience, the expanding application of climate data analysis across various sectors, a rise in corporate sustainability initiatives, international collaboration for climate solutions, and an increasing demand for actionable insights. Noteworthy trends expected in the forecast period encompass the integration of geographic information systems, the application of blockchain for enhanced data security, market growth driven by policy initiatives, and the emergence of startups in the climate data analysis domain.

The increasing emphasis on strategies to address climate change is anticipated to propel the expansion of the climate data analysis market. Climate change mitigation strategies involve implementing measures to curtail greenhouse gas emissions, aiming to minimize the impact of human activities on the Earth's climate. This concerted effort aims to slow down global warming and alleviate long-term environmental consequences. The surge in demand for precise insights to facilitate decision-making in climate-related endeavors is fostering the uptake of sophisticated data analysis tools and technologies. Notably, in April 2023, the World Trade Organization, the World Bank Group, and the World Economic Forum jointly introduced the Action on Climate and Trade (ACT) initiative. This initiative is geared towards assisting developing economies, including the least developed, in utilizing trade to attain climate objectives. Through collaborative efforts with these economies, this pilot project will generate trade-specific climate analyses. Additionally, in November 2022, the Climate Change Conference of the Parties (COP27) launched the Net-Zero Government Initiative, aiming to achieve net-zero emissions from domestic government operations by 2050. This initiative includes bolstering support for clean growth, climate adaptation, and managing climate-related financial risks. Consequently, the growing focus on climate change mitigation strategies is set to drive the climate data analysis market.

The incorporation of artificial intelligence (AI) and machine learning (ML) in weather forecasting is poised to stimulate the expansion of the climate data analysis market. AI refers to a field of study leveraging information technology and extensive databases to solve problems, while ML, a subset of AI and computer technology, employs algorithms and data to mimic human learning, progressively refining its accuracy. The integration of AI and ML into weather forecasting and climate data analysis holds the promise of enhancing the precision, timeliness, and relevance of weather information. This advancement stands to benefit various industries and improve the capability to address climate-related challenges. For instance, as reported by Freethink, the utilization of AI in weather forecasting presents the potential for a groundbreaking transformation in the field. This innovation could make global weather prediction over 10,000 times more efficient and cost-effective compared to the current standard technology, all while potentially maintaining or improving accuracy levels. Thus, the adoption of AI and ML in weather forecasts is expected to propel the climate data analysis market.

The anticipated hurdles in regulatory compliance linked to climate data analysis are poised to present a significant impediment to the expansion of the climate data analysis market. The intricate and constantly evolving regulatory framework governing climate data, varying across regions and industries, poses substantial obstacles. These challenges include escalated compliance expenditures and potential legal and reputational hazards for organizations engaged in climate data analysis. These factors could potentially hinder the widespread adoption of climate data analysis tools and services. For instance, in March 2022, the U.S. Securities and Exchange Commission (SEC) implemented rule adjustments requiring companies to include specific climate-related disclosures in their registration statements and regular reports. These disclosures must encompass details concerning climate-related risks that could significantly impact their business, financial performance, or overall financial stability. Additionally, companies are mandated to incorporate particular climate-related financial metrics to supplement their audited financial statements. Consequently, regulatory obstacles are expected to impede the growth of the climate data analysis market in the foreseeable future.

Leading enterprises within the climate data analysis market are directing their efforts towards developing cutting-edge solutions, notably employing artificial intelligence (AI) for environmental insights, to secure competitive advantages. AI in environmental intelligence refers to software technologies harnessing AI to collect, analyze, and interpret extensive environmental data. For example, in October 2021, IBM Corporation launched AI-powered software catering to Environmental Intelligence. This software amalgamates weather, climate, operational data, and environmental performance management into a unified solution, aiding companies in anticipating and addressing climate risks like flooding and wildfires. This product stands out as the first of its kind to combine AI, weather data, climate risk analytics, and carbon accounting capabilities. Its implementation allows businesses to focus more on enhancing their operations and less on managing this complex data intricacy.

In March 2022, Tetra Tech Inc., a prominent US-based consulting and engineering service provider, completed the acquisition of Axiom Data Science LLC for an undisclosed sum. This strategic move enables Tetra Tech Inc. to enhance its offerings with advanced analytics capabilities in oceans and ecosystems, thereby advancing climate science for its clients. Notable among these clients are the National Oceanic and Atmospheric Administration (NOAA) and the National Aeronautics and Space Administration (NASA). Axiom Data Science LLC, the acquired entity, is a US-based company specializing in informatics and software development, particularly focused on the creation of climate data analytics solutions.

Major companies operating in the climate data analysis market report are IBM Corporation, Schneider Electric SE, Verisk Analytics Inc, MSCI Inc, Risk Management Solutions Inc., Environmental Systems Research Institute Inc., Vaisala Corporation, Meteo-France, National Oceanic and Atmospheric Administration, AccuWeather Inc., StormGeo, Climate Corporation, The Climate Corporation, Environics Analytics Group Ltd, Earth Networks Inc., Climeworks AG, Climatempo, Planalytics Inc., Meteomatics AG, Climate X Ltd., Climate Analytics GmbH., Jupiter Intelligence Inc., Weather Source LLC, Sensible Weather, Climatiq Technologies GmbH.

North America was the largest region in the climate data analysis market in 2023. The regions covered in the climate data analysis market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in the climate data analysis market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The climate data analysis market consists of revenues earned by entities by providing climate modeling and simulation, weather forecasting, climate risk assessment, and climate monitoring and surveillance. The market value includes the value of related goods sold by the service provider or included within the service offering. The climate data analysis market also includes sales of research reports, software solutions, and data licensing. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Key tools utilized in climate data analysis encompass Climate Data Operators (CDO), the Climate Forecast System (CFS), the Climate Model Intercomparison Project (CMIP), National Centers for Environmental Prediction (NCEP) reanalysis data, European Center for Medium-Range Weather Forecasts (ECMWF) ERA5, National Aeronautics and Space Administration (NASA), Modern-Era Retrospective Analysis for Research and Applications (MERRA), National Oceanic and Atmospheric Administration (NOAA), Climate Prediction Center (CPC) data, Global Historical Climatology Network (GHCN), and others. Climate Data Operators (CDO) refer to a software package extensively employed in climate science. It facilitates the alteration and analysis of climate datasets, offering robust command-line capabilities for tasks such as data extraction, aggregation, and computation, contributing to insightful climate data analysis. Various analytical approaches, including climate model evaluation, variability in Earth system models, climate data processing and visualization, climate data formats, and statistical methods, are employed. These methods are applied to analyze various data types such as precipitation, temperature, wind speed, and humidity. The outcomes of this analysis find application in diverse fields, including weather forecasting, climate change research, renewable energy, natural resource management, urban planning, and infrastructure. End users of climate data analysis include government agencies, research institutions, energy sectors, agriculture and food industries, insurance and risk management, as well as transportation and logistics.

The climate data analysis market research report is one of a series of new reports that provides climate data analysis market statistics, including climate data analysis industry global market size, regional shares, competitors with a climate data analysis market share, detailed climate data analysis market segments, market trends and opportunities, and any further data you may need to thrive in the climate data analysis industry. This climate data analysis market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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