Weather Forecasting Services in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
NAICS OD5752Revenue
$10.2bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
39,002
Businesses
33,800
Wages
$X.Xbn
Weather Forecasting Services in the US industry analysis
Demand for weather forecasting services displayed significant volatility during the current period. Since most of the economy was shut down during COVID-19, businesses couldn't afford weather forecasting services because their sales declined, hampering the industry's performance. This trend reversed in 2021 as the pandemic recovery caused corporate profit to soar. Since inflation reached record levels a couple of years ago, more companies have stopped purchasing the industry's services, as they’ve prioritized paying for more expensive inputs, causing revenue to drop in 2022 and 2023. As revenue has plunged, profit for weather forecasting companies has declined in tandem. In response to soaring inflation, the Federal Reserve has increased interest rates to combat high inflation. The elevated cost of borrowing has hindered consumer demand, raising recessionary fears. These fears have caused businesses to cut back on discretionary purchases (e.g., weather forecasts) since they’re worried about losing money in a potential economic downturn, contributing to the decline in revenue in 2023. Overall, revenue for weather forecasting service companies is expected to slump at a CAGR of 2.5% during the current period, reaching $10.2 billion in 2024. This includes a 1.6% rise in revenue in that year.
Trends and Insights
- Inflation has significantly increased the cost of raw materials, leading businesses to cut spending on discretionary items such as weather forecasting services. This has caused a notable drop in revenue in 2022 and 2023.
- Operating and modeling services form the core of the industry’s services, as sourcing observational data and building final forecasts comprise more than half of revenue. Demand for these services has risen during the current period as climate change has invoked greater uncertainty about future weather events.
- The Southeast region has a high population, so many businesses and organizations exist there. The sheer size of business activity in the region keeps demand for weather forecasting services high.
- There’s a decent amount of competition among weather forecasting service providers since concentration is low. Companies compete based on price, accuracy and product range.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.5 % over the past five years, to reach an estimated $10.2bn in 2024.
Trends and Insights
Inflation has put upward pressure on input costs
- As mass vaccination enabled the reopening of the US economy, consumers flocked to stores, restaurants and other businesses, boosting corporate profit. Higher incomes enabled businesses in most sectors of the economy to increase their investment into weather forecasting services, helping revenue expand in 2021.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The economic recovery will aid service providers
- Despite current economic challenges related to high interest rates and recessionary fears, the US economy is expected to grow steadily over the next few years. Stable economic conditions will increase wages, boosting per capita disposable income. This will encourage individuals to frequent businesses and stores more often, raising corporate profit. Elevated corporate profit will encourage businesses to invest more in weather forecasting services, helping revenue expand during the outlook period.
Biggest companies in the Weather Forecasting Services in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Accuweather, Inc. | 116.5 | 12.3 | 10.6 |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Operation and modeling services, Consulting and Measurement services. Operation and modeling services is the largest segment of the Weather Forecasting Services in the US.
Trends and Insights
Operating and modeling services form the backbone of the industry
- Operating and modeling services include the entire process of forecast production, from initially sourcing observational data to curating the final forecast and models for the client. Since providing weather forecasts is the main objective of this industry, operating and modeling services comprise more than half of revenue.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Soybean Farming in the US
- Wheat, Barley & Sorghum Farming in the US
- Fruit & Nut Farming in the US
Complementors
- Computer Manufacturing in the US
- Electrical Equipment Wholesaling in the US
- Scientific Research & Development in the US
International industries
- Global Airport Operation
- Nursery Production in Australia
- Air Transportation in Mexico
Table of Contents
About this industry
Industry definition
Weather forecasting service companies provide weather forecasts for individuals, businesses and government organizations. These forecasts are disseminated through the Internet, TV or radio. Services provided include operation and modeling services, measurement services, publications and data management.
What's included in this industry?
Engaging in operation and modeling servicesManaging dataOffering measurement servicesPublishing reportsProviding consulting servicesOffering advisory and warning servicesCompanies
Accuweather, Inc.Purchase this report to view all 1 major companies in this industry.
Related Terms
RADARDUAL POLARIZATIONMOBILE APPIndustry Code
NAICS 54199 - Weather Forecasting Services in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Inflation has significantly increased the cost of raw materials, leading businesses to cut spending on discretionary items such as weather forecasting services. This has caus...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Operating and modeling services form the core of the industry’s services, as sourcing observational data and building final forecasts comprise more than half of revenue. Dema...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Southeast region has a high population, so many businesses and organizations exist there. The sheer size of business activity in the region keeps demand for weather forec...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
There’s a decent amount of competition among weather forecasting service providers since concentration is low. Companies compete based on price, accuracy and product range.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The industry’s largest players comprise a small share of revenue because fragmentation is high. Market share concentration is low because of the declining cost of mobile devi...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Accuweather, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Accuweather, Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Weather forecasting companies must adhere to various regulations, such as FCC licenses for broadcasting and OSHA safety requirements. Compliance with intellectual property la...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit has taken a hit due to harsh economic conditions affecting the industry. High inflation has led businesses to cut back on weather forecast spending, decreasing profit'...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Weather Forecasting Services in the US industry in United States in 2024?
The market size of the Weather Forecasting Services in the US industry in United States is $10.2bn in 2024.
How many businesses are there in the Weather Forecasting Services in the US industry in 2024?
There are 33,800 businesses in the Weather Forecasting Services in the US industry in United States, which has declined at a CAGR of 3.6 % between 2019 and 2024.
Has the Weather Forecasting Services in the US industry in United States grown or declined over the past 5 years?
The market size of the Weather Forecasting Services in the US industry in United States has been declining at a CAGR of 2.5 % between 2019 and 2024.
What is the forecast growth of the Weather Forecasting Services in the US industry in United States over the next 5 years?
Over the next five years, the Weather Forecasting Services in the US industry in United States is expected to grow.
What are the biggest companies in the Weather Forecasting Services in the US market in United States?
The biggest company operating in the Weather Forecasting Services market in United States is Accuweather, Inc.
What does the Weather Forecasting Services in the US in United States include?
Engaging in operation and modeling services and Managing data are part of the Weather Forecasting Services in the US industry.
Which companies have the highest market share in the Weather Forecasting Services in the US in United States?
The company holding the most market share in United States is Accuweather, Inc..
How competitive is the Weather Forecasting Services in the US industry in United States?
The level of competition is moderate and increasing in the Weather Forecasting Services in the US industry in United States.
