New York, NY (PRWEB) June 23, 2014
A focus on product line expansion has benefited the Weather Forecasting Services industry over the past five years. Industry operators primarily provide forecasts of future weather activity, which are then disseminated through a variety of media outlets. “In recent years, heightened competition, particularly between the industry's two dominant players, The Weather Channel and AccuWeather, has driven improvements in traditional industry services, including an extension of the period for which industry operators are able to provide forecasts,” according to IBISWorld industry analyst Stephen Hoopes. Similarly, mounting consumer demand for accurate, real-time weather information spurred AccuWeather to launch its MinuteCast offering in November 2013, which forecasts the precise beginning and end times of precipitation, along with its type and intensity. Additional advertising revenue and subscriptions have become available, in line with increasing demand, thereby facilitating an annualized 0.9% increase in revenue to $529.9 million over the five years to 2014.
While industry revenue is anticipated to remain fairly stagnant in 2014, falling 0.5% that year, mobile and enterprise platforms are expected to remain key drivers of growth moving forward. Over the five years to 2014, the number of mobile internet connections is expected to increase at an annualized rate of 36.8% to 234.2 million. “With the continued adoption of internet-capable phones, consumers have rapidly bolstered their demand for minute-by-minute weather conditions while they are away from home, driving advertising revenue for the industry,” says Hoopes. Similarly, the mounting impact that weather conditions have on businesses' landscapes have spurred demand for custom business analytics and weather-risk management consulting, among other enterprise solutions.
Over the five years to 2019, industry revenue is forecast to increase. Expanded traditional, mobile and corporate offerings are anticipated to remain key drivers of growth. However, the number of industry enterprises is forecast to continue its descent, as the dominance of the industry's two largest players pose rising barriers to success in the industry. Moreover, these companies are anticipated to increase their focus on merger and acquisition activity over the five-year period, illustrated by The Weather Channel's purchase of Weather Underground in July 2012, previously the industry's third-largest player.
For more information, visit IBISWorld’s Weather Forecasting Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides forecasts of future weather activity for individuals, businesses and governmental organizations. These forecasts are then disseminated via TV, internet and radio.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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