Global Spending on Long-Term Climate Risk Analysis for Energy, Telecoms, and Utilities Industries Is Expected to Grow at a Compound Annual Growth Rate of Nearly 34%
Energy and utility providers are among those most exposed to climate-related losses
A new report from Guidehouse Insights explores the latest market trends in long-term climate risk analytics (CRA) and provides an overview of five industry settings in which long-term CRA may provide substantial benefits.
The state of the long-term CRA market, intended to mitigate climate change-related losses, is rapidly evolving. The growing threat of weather and climate-related losses has caught the attention of a broad range of industries, and those most at risk are keen to identify and mitigate their exposure to them. According to a new report from Guidehouse Insights, global spending on long-term CRA for energy, telecoms, and utilities industries is expected to grow from $42.3 million in 2022 to $568.5 million in 2031 at a compound annual growth rate (CAGR) of 33.5%.
“As the world continues to shift its focus toward environmental, social, and governance issues, access to affordable capital is increasingly tied to an enterprise’s ability to convincingly manage long-term climate risks,” says Clay Killingsworth, research analyst with Guidehouse Insights. “CRA allows stakeholders to transparently evaluate the likelihood, magnitude, and cost of losses across many plausible scenarios.”
Long-term CRA enables more informed investment decisions, targeted hardening efforts, and disaster preparation efforts that can combine to yield shorter downtimes, reduced damage, and less costly repairs. Energy and utility providers are among those most exposed to climate-related losses given these industries’ substantial and distributed physical assets, according to the report.
The report, Climate Risk Analytics Overview, explores five industry settings in which long-term CRA may provide substantial benefits. It describes applications in electric utilities, telecommunications, natural gas distribution, midstream oil & gas, and upstream oil & gas, and provides information on key players in the long-term CRA market with an emphasis on energy and utilities applications and forecasts the expected investment in each of these industrial segments by global region through 2031. The latest market trends in long-term CRA for energy and utilities applications are discussed, and potential applications for deployment are explored. An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, Climate Risk Analytics Overview, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.