USA Weather Forecasting Service Market Outlook to 2028

USA Weather Forecasting Service Market Overview

The USA weather forecasting service market, based on a five-year historical analysis, is valued at USD 539 million, driven by increasing demand for real-time and accurate weather data across various industries. Sectors such as agriculture, aviation, marine, and energy are increasingly relying on advanced forecasting tools to optimize their operations, minimize risks, and improve safety. Furthermore, the rise of Io T and AI-enabled forecasting solutions has further bolstered the market, offering improved accuracy and speed.

The USA dominates the global weather forecasting service market due to its advanced meteorological infrastructure, government investments through agencies such as the National Oceanic and Atmospheric Administration (NOAA), and strong private sector involvement. Cities like Washington, D.C., New York, and Houston are key hubs, as they are centers of decision-making for industries highly dependent on weather forecasting data, including energy, agriculture, and transport.

The Biden-Harris administration has invested $100 million in a new high-performance computing (HPC) system, Rhea, to enhance NOAA's research capabilities. This initiative supports advanced weather, climate, and ecosystem predictions by boosting NOAA's computational power. The system will accelerate the use of artificial intelligence and machine learning for improved forecasting and environmental modeling. Installed at the NOAA Environmental Security Computing Center, this investment is aimed at strengthening the nation's climate resilience and advancing scientific research.

USA Weather Forecasting Service Market Segmentation

By Service Type: The USA weather forecasting market is segmented by service type into short-range forecasting, medium-range forecasting, long-range forecasting, and severe weather alerts and warnings. In 2023, short-range forecasting held the dominant share of the market. This is largely because most industries, including transportation and logistics, depend heavily on immediate weather conditions to make quick decisions and ensure operational safety. The demand for this service type is also driven by the increasing unpredictability of weather patterns, necessitating constant updates on current conditions.

By End-User Industry: The USA weather forecasting market is segmented by end-user industry into agriculture, aviation, energy & utilities, marine, and transportation & logistics. In 2023, aviation accounted for the largest market share. The aviation industry requires precise, real-time weather data to ensure safe and efficient flight operations. Accurate forecasting helps in mitigating flight delays, managing fuel consumption, and ensuring passenger safety, making aviation a significant user of weather forecasting services. Additionally, the increasing number of flights and the rising focus on improving air travel efficiency further contribute to the dominance of this segment.

USA Weather Forecasting Service Market Competitive Landscape

The market is dominated by several key players, both from the public and private sectors. The competitive landscape is characterized by a mix of global companies providing diverse forecasting services, ranging from traditional meteorological data to advanced AI-driven solutions. These companies invest heavily in R&D to enhance their predictive accuracy and serve a broader range of industries.

Company Name

Establishment Year

Headquarters

No. of Employees

Revenue

Technological Integration

Subscription Models

Regional Coverage

Recent M&A Activities

The Weather Company (IBM)

1981

New York, USA

Accu Weather

1962

Pennsylvania, USA

DTN (Data Transmission Network)

1984

Minnesota, USA

Spire Global

2012

Virginia, USA

Earth Networks

1993

Maryland, USA

USA Weather Forecasting Service Industry Analysis

Growth Drivers

Increased Demand for Accurate Weather Prediction (Market-Specific Growth Factor): The USA sees a sharp rise in the demand for accurate weather forecasting due to its weather-sensitive industries like agriculture and aviation. In 2024, the National Weather Service (NWS is gradually implementing their Hazard Simplification Project. As of October 2024, there is some consolidation for cold weather and freeze alerts. For instance, the agriculture sectors reliance on precision forecasting for crop planning and disaster mitigation has contributed to this surge in demand.

Expansion of Weather-Dependent Industries (e.g., Agriculture, Aviation, Energy): Agriculture, aviation, and energy sectors in the US significantly rely on weather forecasts, leading to the market's expansion. The US aviation industry faces 40,087 weather-related delays in 2022, underscoring the need for real-time, precise weather data to ensure operational efficiency. Additionally, the renewable energy sector, particularly wind and solar, integrates weather data to optimize energy output, reflecting strong market reliance on forecasting services.

Rising Adoption of Advanced Meteorological Technologies (AI, Io T, Supercomputing): The adoption of AI, Io T, and supercomputing is enhancing meteorological systems by improving the accuracy and speed of weather forecasts. AI refines predictive models, Io T sensors enable real-time data collection, and supercomputers process vast datasets for high-resolution forecasts. These technologies are crucial for industries like agriculture, aviation, and logistics, which rely on precise weather information for efficient operations.

Market Challenges

High Operational Costs: Operational costs are a major challenge for the weather forecasting market. Maintaining advanced meteorological infrastructure, such as satellites and radar systems, requires significant capital investment. These high expenses are often passed down to service providers, making it difficult to offer accurate and affordable services. This issue is particularly challenging for smaller companies, which struggle to balance the costs of maintaining advanced systems with competitive pricing.

Data Privacy Concerns (Data Sovereignty and Ownership): Data privacy and sovereignty concerns are increasing for weather service providers, especially with the rise of mobile apps and Io T devices that handle weather-related data. As weather data intersects with personal information, regulatory oversight grows, leading to stricter laws on data storage and sharing. These regulations can limit the free flow of meteorological data between public and private entities, complicating service delivery.

USA Weather Forecasting Service Market Future Outlook

The USA weather forecasting service market is expected to continue experiencing significant growth over the next several years. Key factors driving this growth include ongoing advancements in AI and Io T technology, as well as the increasing need for accurate weather data across industries like agriculture, aviation, and energy. Additionally, climate change and unpredictable weather patterns are prompting a greater reliance on forecasting services to manage risks and reduce losses.

Market Opportunities

Increasing Use of Weather Data in Smart City Initiatives; Smart city initiatives in the US are increasingly using weather data to improve urban planning, traffic management, and disaster preparedness. Cities are integrating real-time weather forecasts into their systems to manage weather-related disruptions, optimize resources, and enhance public safety. This growing use of localized weather data in smart city frameworks drives the demand for precise forecasting services tailored to urban needs.

Emergence of Mobile Weather Forecasting Apps: The rise of mobile weather apps is creating new opportunities for weather forecasting providers. With a growing number of smartphone users relying on apps for on-demand weather updates, personalized and hyper-localized forecasting services are becoming more popular. Mobile apps are now a primary source of weather information, leading to the development of tailored subscription-based models for businesses and consumers alike.
Please Note: It will take 5-7 business days to complete the report upon order confirmation