The escalating significance of artificial intelligence (AI) in climate modelling and network optimisation is becoming increasingly evident. A recent report projects that the Global AI-Based Climate Modelling Market will experience substantial growth, expanding from USD 280.9 million in 2024 to USD 2.473 billion by 2034, marking a compound annual growth rate (CAGR) of 24.30% during the period from 2025 to 2034. North America currently leads this burgeoning market, accounting for over 32.6% of the share with revenues of approximately USD 91.5 million in 2024.
AI-based climate modelling utilises machine learning algorithms to simulate and predict climate phenomena by processing vast datasets sourced from historical climate records, satellite imagery, and various sensors worldwide. This rapidly evolving market is attracting interest as industries increasingly recognise the necessity of accurate climate predictions amidst rising global temperatures and extreme weather patterns.
Factors contributing to the growth of the AI-based climate modelling sector include heightened frequency of extreme weather events and increasing governmental support for climate research. Speaking to Market.us, a representative noted, "The ability of AI models to process and analyse large datasets quickly and accurately helps in enhancing prediction accuracy, which is vital for developing effective climate change mitigation strategies." Companies like ClimateAi, which recently secured USD 22 million in Series B funding for its innovative climate risk forecasting solutions, are leading the charge in this area, alongside tech giants such as Google, whose DeepMind division has introduced a model named GraphCast, noted for its predictive accuracy.
Meanwhile, the Global Next Generation Network Optimisation Market is projected to grow from USD 32.8 billion in 2024 to USD 117 billion by 2034, registering a CAGR of 13.60%. The North American market leads this sector as well, accounting for approximately 41.5% of total revenues, estimated to reach USD 13.6 billion in 2024. This growth trajectory is propelled by the increasing demand for high-speed, reliable networks, particularly as reliance on cloud computing and the Internet of Things (IoT) continues to expand.
The optimisation of Next Generation Networks (NGN) involves modern advancements aimed at enhancing network performance, reliability, and scalability. Innovations such as Software-Defined Networking (SDN) and Network Function Virtualisation (NFV) play a crucial role in this evolution, allowing networks to manage and optimise traffic more effectively. According to findings reported by Ericsson, NGN optimisation has realised significant performance enhancements, including a 31% reduction in cells with poor spectral efficiency and a 15% increase in user throughput during peak hours.
Both market segments are significantly influenced by the integration of AI and machine learning technologies. In the case of network optimisation, these technologies facilitate intelligent analytics and automate network management, thereby enhancing overall efficiency. Yet, challenges remain, particularly concerning the requirements for initial investment and ensuring data quality.
As the landscape for AI-driven climate models and NGN optimisation rapidly evolves, opportunities for businesses to leverage these technologies are on the rise. The convergence of innovation, governmental support, and increasing market demand underscores a transformative phase for sectors reliant on predictive modelling and robust network infrastructure.
Key stakeholders in these markets, such as IBM and Microsoft for AI-based climate modelling, and Cisco Systems and Huawei for NGN optimisation, are poised to capitalise on the benefits of these advancements, improving operational efficiencies, predicting climate-related disruptions, and ultimately paving the way for more sustainable business practices.
Source: Noah Wire Services