AI-Based Climate Modelling Market Size Worth USD 2,203.68 Million by 2034 | CAGR: 20.4%

The AI-based climate modelling market size is expected to reach USD 2,203.68 Million by 2034, according to a new study by Polaris Market Research. The report “AI-Based Climate Modelling Market Share, Size, Trends, Industry Analysis Report: By Component (Hardware, Software, Services), By Technology, By Deployment, By Application, By End User, and By Region; Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

AI-based climate modelling systems use machine learning platforms, deep learning, and advanced data analytics to simulate and forecast climate behavior using vast datasets from satellites, sensors, and historical observations. These models are deployed across government agencies, research institutions, energy utilities, and ESG-compliant industries to improve forecasting accuracy, emissions monitoring, and climate risk assessment.

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Market growth is primarily driven by the rising incidence of extreme weather events, increasing global commitment to net-zero targets, and growing regulatory demand for climate risk disclosures. The integration of AI in climate modelling is enabling faster, more accurate and high-resolution simulations to support policy planning, disaster response, and environmental monitoring.

AI-Based Climate Modelling Market Report Highlights

• Based on component, the software segment held the largest revenue share in 2024, owing to widespread use in real-time simulation, emissions modelling, and regional climate impact forecasting.
• In terms of technology, the machine learning segment dominated the market in 2024. This is fueled by its application in data-driven weather prediction, trend analysis, and model training.
• Based on deployment, the cloud-based segment is projected to reach at a substantial share by 2034, enabled by scalable processing capacity and cross-platform data accessibility for climate analytics.
• North America accounted for the majority share of 40.5% in the global AI-based climate modelling market in 2024, fueled by robust climate R&D funding and integration of AI platforms across federal agencies such as NOAA and NASA.
• Asia Pacific is projected to grow fastest during the forecast period, fueled by expanding deployment in national early warning systems and AI-based emissions tracking platforms.
• A few global key market players include IBM Corporation, Microsoft Corporation, Alphabet Inc., NVIDIA Corporation, ClimateAi, Jupiter, AccuWeather, Inc., Atmos Climate, Open Climate Fix, Atmo Inc., and LUNARTECH.

Polaris Market Research has segmented the market report on the basis of component, technology, deployment, application, end user, and region:

By Component Outlook (Revenue, USD Million, 2020–2034)

• Hardware
• Software
• Services
  • Consulting
  • Managed Services

By Technology Outlook (Revenue, USD Million, 2020–2034)

• Machine Learning
• Deep Learning
• Computer Vision
• Other Technology

By Deployment Outlook (Revenue, USD Million, 2020–2034)

• Cloud-Based
• On-Premise

By Application Outlook (Revenue, USD Million, 2020–2034)

• Weather Forecasting
• Carbon Emissions Monitoring
• Disaster Risk Assessment
• Climate Risk Assessment

By End User Outlook (Revenue, USD Million, 2020–2034)

• Government and Public Sector
• Energy and Utilities
• Agriculture
• Insurance
• Transportation

By Regional Outlook (Revenue, USD Million, 2020–2034)

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Netherlands
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Malaysia
  • South Korea
  • Indonesia
  • Australia
  • Vietnam
  • Rest of Asia Pacific
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Israel
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Mexico
  • Brazil
  • Argentina
  • Rest of Latin America