Market Insight: Geospatial Data Providers’ Opportunity In The Climate Risk Space

Executive Summary

The geospatial data industry is poised to play a crucial role in climate risk analysis. The market is predicted to be worth $681 billion by 2025 and $1.14 trillion by 2030. While the industry is highly competitive, few firms have developed comprehensive climate risk offerings. However, the increasing adoption of regulations aligned with the Task Force on Climate-related Financial Disclosures (TCFD), along with financial stress testing, are expected to drive demand for climate risk digital solutions. Financial service and insurance firms are leading the way in adopting geospatial climate data, using these to develop climate-resilient products and to predict the impact of climate events on portfolio values. Pioneering geospatial data providers such as 7 Satya, Descartes Labs, EOLAS Insight, Picterra and PropEco have launched climate risk solutions with innovative applications. To ensure wider industry uptake and overcome a lack of methodological standardization, geospatial firms can align offerings with TCFD recommendations, and translate risks into economic impact.