According to a new report, published by KBV research, The Global AI-Based Climate Modelling Market size is expected to reach USD1.48 billion by 2032, rising at a market growth of 20.6% CAGR during the forecast period.
Artificial Intelligence (AI) has profoundly reshaped the landscape of climate modelling, moving the industry beyond traditional numerical simulation methods towards data-driven, hybrid approaches. The evolution of AI-based climate models stems from a pressing need to forecast extreme weather, rising sea levels, and other climate phenomena with greater accuracy and efficiency. Early advancements involved integrating machine learning algorithms with historical climate datasets, which significantly improved the speed of simulations compared to physics-based models that required immense computational resources.
The Software segment is leading the Global AI-Based Climate Modelling Market by Component in 2024; thereby, achieving a market value of $1.01 Billion by 2032. Software solutions enable researchers, governments, and private entities to process vast environmental datasets, run complex simulations, and generate real-time climate forecasts with improved accuracy. The increasing integration of machine learning algorithms, deep learning frameworks, and cloud computing in climate modelling platforms has further accelerated the adoption of software solutions across sectors such as agriculture, energy, urban planning, and disaster management.
The Weather Forecasting segment dominated the Global AI-Based Climate Modelling Market by Application in 2024, and would continue to be a dominant market till 2032; growing at a CAGR of 20 % during the forecast period. AI’s ability to analyse vast meteorological datasets quickly and accurately, stakeholders can now generate highly precise short- and long-term weather predictions. These forecasts are essential for sectors like agriculture, aviation, shipping, and energy, where timely and reliable weather insights directly impact operations and decision-making.
The Machine Learning segment is generating maximum revenue share in the Global AI-Based Climate Modelling Market by Technology in 2024; thereby, achieving a market value of $570.2 million by 2032. Machine learning is the most widely adopted technology in AI-based climate modelling. It enables fast processing of large historical datasets to predict climate patterns such as rainfall, temperature, and extreme weather. Its adaptive capabilities improve forecast accuracy over time, making it valuable for long-term planning and real-time decision-making across sectors.
The North America region dominated the Global AI-Based Climate Modelling Market by Region in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $563.9 million by 2032. The Europe region is experiencing a CAGR of 20.2% during (2025 - 2032). Additionally, The Asia Pacific region would exhibit a CAGR of 21.3% during (2025 - 2032).
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