Geospatial Data Providers: Climate Risk Is Your Next Big Opportunity

Geospatial Data Providers: Climate Risk Is Your Next Big Opportunity

The geospatial data industry is poised to play a vital role in climate risk analysis. By 2025, the global geospatial market is projected to be worth $681 billion, reaching $1.14 trillion by 2030. This growth is fuelled by advancements in software and data solutions, as well as innovations in digital twin and metaverse technologies.

As yet, few geospatial data providers have developed comprehensive, commercially focused climate risk offerings. However, with the rise of regulations aligned with the Task Force on Climate-related Financial Disclosures (TCFD) and increased financial sector stress testing, the necessity of climate risk digital solutions – and investment in such offerings – is expected to rise substantially.

Leaders in the insurance and financial service industries are driving the adoption of geospatial climate data. According to a recent Verdantix market size and forecast report, these sectors account for the largest proportion of spending, with financial service firms projected to have the highest growth rate, at a CAGR of 33% until 2027. Insurance firms use geospatial climate data to develop climate-resilient products and inform premium pricing, risk selection and loss estimation, while financial firms use geospatial climate data to assess exposure to physical climate risks, calculate value at risk and identify climate-related investment opportunities.

Large providers are yet to fully commit to the market, but several pioneering geospatial data providers have launched climate risk solutions, including 7 Satya, Descartes Labs, EOLAS Insight, Picterra and PropEco.

Geospatial data providers that get in front of this emerging market stand to gain a valuable competitive advantage. To find out more, see Verdantix Market Insight: Geospatial Data Providers’ Opportunity In The Climate Risk Space.