Global AI-based Weather Modelling Market 2025 – 2034

Reports Description

As per the AI-based Weather Modelling Market analysis conducted by the CMI team, the AI-based weather modelling market is expected to record a CAGR of 22.37% from 2025 to 2034. In 2025, the market size was USD 421.28 Million. By 2034, the valuation is anticipated to reach USD 2583.3 Million.

Overview

The AI-based weather modelling market implies platforms and systems applying AI, ML, neural networks, and the like for forecasting weather with higher precision, resolution, and speed quotient. Such systems do ingest voluminous satellite, meteorological, geospatial, and sensor data, correct biases, recognize patterns, and provide warnings or forecasts for use by utilities, governments, transportation, agriculture, and various other sectors.

Incidences such as flash floods, heatwaves, and hurricanes are known for causing significant human casualties and economic losses, thereby compelling the industries and governments to invest in more precise forecasting tools. For instance – ML models are now able to identify the early signs of atmospheric instability up to 2 days prior to conventional systems, thereby improving emergency preparedness. The other driver is the increase in availability of high-resolution data from IoT-enabled weather stations and low-cost satellite constellations, which do feed AI models with real-time inputs.

Key Trends & Drivers

• Demand for Precision in Assessment of Weather

Increased awareness about weather changes is pushing the businesses and governments to seek highly precise prediction tools. The AI models improve disaster preparedness by enhancing early warning systems and detecting and forecasting the events with higher speed. For instance – AI-enabled early warnings have been reported to improve the lead time by 25%. This, in turn, helps in reducing damage and saving lives in the vulnerable regions. Also, advancements in data storage and computer power have made it easier to process voluminous climate datasets in real-time, which, in turn, facilitate localized weather forecasts.

Adopting user-friendly AI visualization and software tools has resulted in a 50% increase in the number of meteorological agencies that are adopting AI in their forecasting workflows, which do support better weather resilience strategies.

What’s trending in the AI-based Weather Modelling Market?

AI and ML are being used for pattern recognition in the energy, agriculture, maritime, and aviation sectors for improving efficiency and managing risks. These sectors are increasingly asking for real-time, precise forecasts for better predicting and mitigating weather risks like cyclones, droughts, and heatwaves. Also, integrating heterogeneous datasets from several sources such as met reports, satellite images, records from the past, and weather info is in the offing. Also, hyper local weather forecasting is reported to be useful in logistics and agriculture.

Key Threats

Though AI-based weather modelling ascertains showcasing high-quality and precise data, it is difficult to have consistent access to environmental data. In other words, model’s quality might get adversely affected by the quality of data, particularly in the under-developed regions wherein data sets might be sparse or incomplete. Also, sharing of data across various sectors is usually limited by fear of data theft.

Opportunities

Governments across the globe have begun recognizing the role that AI can play in weather-related science, as known from the increased need for AI in weather-oriented initiatives like the European Green Deal or the U.S. Green New Deal. Such policies do translate into incentives for investing in AI-based weather modelling for improving the forecasts pertaining to risk management, disasters, and strategies corresponding to the reduction of carbon footprints. In other words, these policies promote innovation related to and use of AI-based modelling across sectors such as insurance, agriculture, and energy

Category Wise Insights

By Component

• Software

The software segment holds more than 70% of the market share, and the status quo is expected to remain the same during the forecast period. This is due to the growing demand for advanced analytics platforms that hold the capability of processing the massive weather datasets in real time. Increased adoption of cloud-based solutions facilitates cost-efficient, scalable deployment of AI algorithms to have predictive weather insights. Integrating deep learning and ML models improves forecast precision, which is necessary for sectors such as agriculture, energy, and aviation. The adoption is further accelerated by rising investments in API-based integration, user-friendly interfaces, and visualization tools.

• Services

The services segment is driven by increased demand for real-time, personalized forecasting as well as analytics. The organizations are increasingly seeking consulting services for integrating AI-powered models into the existing workflows for energy, agriculture, disaster management, and aviation. Plus, enterprises, governments, and research institutes depend on third-party expertise for cloud deployment, model training, continuous upgrades, and maintenance.

By Technology

• Machine Learning

The machine learning segment dominates the AI-based weather modelling market due to ML’s capacity of analysing complex and massive climate datasets with higher precision and speed as compared to conventional models. ML algorithms do excel at identification of hidden patterns in radar signals, satellite energy, and historical weather records, thereby facilitating more accurate long- and short-term forecasts. Besides, ML models’ scalability through the cloud platforms and their ability to integrate heterogeneous data sources do strengthen their role with regard to precise advancements of weather prediction.

• Deep Learning

Deep learning segment is driven by its capability of processing complex, massive weather as well as atmospheric datasets with higher precision and speed quotient. The deep learning models do excel at recognition of nonlinear patterns in radar data, satellite imagery, and historical weather records, thereby facilitating long-range climate projections and short-term forecasts. Their capacity for integrating different data sources like oceanic models, IoT sensors, and geospatial data does enhance the predictive reliability. Furthermore, advancements in cloud infrastructure and high-performance computing do make deep learning models more scalable and feasible at the larger scale.

• Computer Vision

Computer vision algorithms do analyse ground-based and satellite imagery for instantly tracking weather events such as cloud formations, storms, and hurricanes. This technology does facilitate “nowcasting,” which makes provisions for short-term, precise predictions with minimal lead time. For instance – certain AI systems are capable of providing 90-minute rainfall forecasts on the basis of data that keeps on updating. Players like AccuWeather are into the integration of computer vision into their platforms for delivering AI-powered, real-time weather updates with alerts to users.

By End-use

• National Meteorological Agencies & Governments

National meteorological agencies & governments dominate the market. This is due to the pressing need for enhancing climate resilience, public safety, and disaster preparedness. The governments are showing dependency on AI-powered forecasting models for improving timeliness and precision of the early warning systems for cyclones, floods, and other harsh weather events. AI facilitates affordable processing of climate datasets from sensors, satellites, and radar networks, wherein it supports sustainable development goals and national climate policies. Strengthening cross-border data sharing initiatives is also on the anvil, especially in developing economies.

• Aviation & Maritime

Airlines are using AI for predicting severe weather and turbulence with up to 90% precision, thereby making provisions for early warnings for airing flight crews and air traffic control. This aids pilots in adjusting the flight plans for avoiding hazards, thereby assuring passenger safety. The AI models do analyse wind speeds, weather patterns, and the other factors in real time for generating fuel-efficient flight paths.

Shipping companies are using AI for analysing real-time weather, traffic data, and ocean currents for determining the safest and most efficient routes. A storm forecast could also be integrated with machinery data for predicting potential issues. AI aids maritime operators in optimizing speeds and routes for lowering emissions and reducing usage of fuels. As such, they could help the companies in meeting carbon intensity indicator (CII) targets and various other sustainability goals.

• Energy & Utilities

AI-based weather models do analyse hordes of data points from sensors, satellites, and historical weather patterns for forecasting renewable energy generation with high-class accuracy. For instance – the partnership between DeepMind and Google has resulted in the development of an AI model to predict wind power output 36 hours in advance, which is expected to increase the value of wind energy by close to 20%.

• Agriculture & Agritech

Agriculture & agritech segment is expected to witness the fastest CAGR during the forecast period. AI-driven weather modelling is necessary herein in order to optimize irrigation, planting, pest control, and fertilization, which helps in the reduction of crop loss and input costs. Integration with IoT sensors, satellite imagery, and yield data does enable automated decision support and precision applications. Declining cloud-compute and sensor costs along with accessible APIs, do drive adoption amongst large farms and agritech start-ups.

Historical Context

The AI-based weather modelling market is witnessing notable trends regarding improvement in accuracy of models, with physics-AI hybrid models and deep learning enhancing spatial resolution and long-range prediction reliability. The adoption is expanded across sectors like agriculture, energy, and insurance, whereas research institutes have stayed early adopters for weather resilience projects and emission forecasting. There is also raised integration of AI models with different environmental data sources such as sensor networks, satellite imagery, and oceanographic feeds, thereby facilitating more adaptive and dynamic forecasts. Such advancements are influencing the weather risk assessment frameworks, thereby offering actionable, localized insights for urban planning, disaster preparedness, and corporate ESG reporting.

The market is also witnessing new developments in explainable AI for weather models, AI-powered decarbonisation analytics, regional climate AI startup ecosystems, and the growing role of AI in monetary weather risk management and regulatory compliance. Key catalysts encompass rising frequency of harsh weather events, advancements in ML and AI technologies, and growing requirements for improvement in disaster response and weather change mitigation strategies.

What are the Key Impacts of AI on Weather Modelling Market?

AI models are capable of generating 10-day forecasts in minutes in comparison with hours for conventional numerical weather prediction (NWP) models with less consumption of energy. AI does excel at detection of subtle patterns as well as correlations in exhaustive datasets, thereby resulting in more precise forecasts, especially for harsh weather events such as heavy rainfall and heatwaves, which prove to be challenging for the physics-based models.

AI can also downscale the global model outputs to provide high-resolution, actionable information for the localized decision-makers. Also, AI models are into extendingpredictive capabilities to longer time spans, right from weeks to seasons. This does provide valuable insights for verticals such as agriculture and energy. AI is also able to integrate different data sources inclusive of sensor data and satellite imagery, along with adaptation to new pieces of information more readily as compared to rule-based, fixed NWP models.

How are the U.S. Tariffs affecting AI-based Weather Modelling Market?

The U.S. tariffs are primarily impacting the AI-based weather modelling market by raising the costs of essential hardware, which, in turn, does drive industry in the direction of more efficient cloud-based solutions and drives the supply chains’ diversification. For small companies, this does translate into higher potential innovation slowdowns and operational expenses.

Tariffs on various data center components inclusive of cooling units and servers result in higher operational costs for the major CSPs (cloud service providers). Such raised expenses are passed on frequently to the customers relying on cloud computing for their AI-based weather models, thereby resulting in increased cost of deployment and development. The players have begun investing in model optimization and compression, which are expected to let them obtain better results with lesser computational power.

Report Scope

Regional Perspective

The AI-based modelling market is classified into North America, Europe, Asia Pacific, and LAMEA.

• North America

North America’s AI-based weather modelling market dominates with over 40% of the market share. Herein, the AI-based weather models help in predicting weather-related risks, demanding precise long- and short-term forecasts, and asking governments across the globe to invest in weather resilience. Integrating predictive analysis in several sectors like energy, aviation, and agriculture does accelerate the adoption further.

• Asia Pacific

The AI-based weather modelling industry in Asia Pacific is driven by governments’ investments in disaster management, speedy digitalization, and growing weather uncertainties. Growing demand for real-time, precise forecasts from aviation, agriculture, and energy sectors also drives the adoption. Expansion in AI infrastructure, supportive frameworks, and cloud computing penetration are market boosters.

• Europe

Europe’s AI-based weather modelling market is driven by rising investments in weather resilience, stringent regulations on the part of governments, and demand for precise forecasting for supporting energy, agriculture, disaster management, and aviation sectors. The adoption is catalyzed by data integration from IoT sensors and satellites, advancements in supercomputing, and robust private-government collaborations.

• LAMEA

An AI model provided by Ignitia does give tropical weather predictions with 84% precision in Brazil and West Africa, thereby outshining conventional methods. These models do help in the management of the impact of extreme weather like tropical droughts and cyclones, on both – urban and rural populations.

Key Developments

The AI-based weather modelling market is witnessing a notable organic and inorganic expansion. Some of the key developments include –

• In June 2025, Nvidia launched Earth-2 (one of the cutting-edge generative AI foundation models called cBottle), designed for simulating global weather at the kilometer-scale resolution with superior energy efficiency and speed. Earth-2, through collaborations with major research organizations like the Allen Institute for AI and max Planck Institute, is pushing boundaries of high-resolution weather modelling and improving accessibility to weather-related data.

• In June 2025, AccuWeather entered into a partnership with Perplexity for providing AI-powered, real-time weather updates and alerts. Perplexity, by integratingthe former’s proprietary features like RealFeel temperature and MinuteCast, is bound to improve its AI-generated weather responses with precise data.

• In January 2025, Meteomatics launched its US1k weather model, whereby it started delivering street-level forecasts across the contiguous U.S. at 1 km resolution and nine times quicker as compared to the top U.S. models in existence. The model claims to update on an hourly basis from 110 data sources inclusive of satellites, drones, and ground-based sensors for providing precise predictions of events such as hail, storms, and fog.

Leading Players

The AI-based weather modelling market is highly niche. Some of the key players in the market include:

• IBM
• Google
• Microsoft
• AWS
• Nvidia Corporation
• AccuWeather
• ClimateAI
• Atmos AI
• Open Climate Fix
• Meteomatics AG
• Others

These firms apply numerous strategies to enter the market, including innovations and mergers and acquisitions, as well as collaboration. The AI-based weather modelling market is shaped by the presence of diversified players that compete based on product innovation, vertical integration, and cost efficiency.

The AI-based Weather Modelling Market is segmented as follows:

By Component

• Software
• Services

By Technology

• Machine Learning
• Deep Learning
• Computer Vision

By End-use

• Weather Forecasting
• Disaster Prediction
• Weather Risk Assessment
• Carbon Emission Tracking

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America