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The earth intelligence sector has been witnessing a rapid shift as private climate-risk data firms experience heightened demand amid reduced scientific spending by the US administration. Real estate investors, energy companies and governments have increasingly been turning to private providers for climate analytics previously supported by publicly funded datasets. Companies such as Climate X, GHGSat, Fugro and Planet Labs have seen expansion in capital, revenue and scope of services, even as concerns grow around data accuracy and accessibility. Industry projections indicate substantial revenue growth for private data intelligence by 2030, supported by technological advancements and global climate-related pressures.
A British real estate investment manager responsible for managing EUR 26 billion (USD 29.93 billion) in assets and assessing exposure to climate-related hazards such as floods and wildfires recently turned to the London-based data analytics firm Climate X for detailed risk modelling. The firm began processing extensive datasets using its AI-driven analytics tool, which draws partly on scientific information originating from the United States, to evaluate potential weather-related losses for 300 assets across Europe and Asia. Savills Investment Management said the insights assist in shaping investment decisions, and it is considering extending the use of Climate X models to assess several hundred more properties. Advertisement
The shift comes at a time when the US administration under President Donald Trump had been scaling back spending on scientific services, despite escalating global demand for accurate climate-risk intelligence due to intensifying extreme weather events. This withdrawal has been fuelling the growth of private data firms such as Climate X, which are increasingly offering assessments spanning drought, pollution exposure and even identification of mineral reserves. Such firms are becoming essential as companies seek actionable intelligence previously available through publicly funded infrastructure.
Market analyst Gartner indicated earlier this year that earth intelligence revenues were expected to rise by at least 10% and reach USD 4.2 billion by 2030, positioning the sector as a notable new revenue stream. The World Economic Forum suggested that earth intelligence could contribute USD 3.8 trillion in economic value by 2030, substantially higher than the USD 266 billion it currently generates, driven by improvements in risk mitigation, opportunity expansion and job creation.
However, the rapid growth of private data platforms has revived concerns about the reliability of datasets and the risk of limiting access for users who cannot afford subscription-based models. Executives from several firms pointed out that private models still depend heavily on baseline information from US agencies such as NOAA. Climate X's co-founder and Chief Operating Officer, Kamil Kluza, stated that government-supplied history of floods, landslides and subsidence helps determine whether their predictive tools reflect past patterns accurately. With the possibility of some US climate-related datasets reducing in availability, Climate X has been preparing to rely more heavily on alternative sources from the EU, Japan and the UK Met Office.
According to Gartner, private companies could soon represent more than half of global spending on data services, a sharp jump from the present share of roughly 15%. Industry executives informed Reuters that capital-raising conditions have been exceptionally favourable this year. Earth-intelligence firms secured about USD 3.2 billion across 57 funding rounds up to the past week, up from USD 1.1 billion across 89 rounds last year and USD 845 million within 99 rounds in 2023, according to data from Tracxn.
Montreal-based GHGSat, currently the world's largest methane-data provider, secured USD 47 million in September through convertible notes and debt financing, enabling the firm to begin preparing to add two more satellites to its constellation of 13 already in orbit. Its UK head, Dan Wicks, indicated that the firm has been witnessing year-on-year growth driven by governments and energy companies seeking tools to detect methane leaks both for environmental compliance and potential profit recovery.
This private-sector expansion aligns with a broader transformation in satellite monitoring. By 2023, 666 commercial satellites dedicated to earth observation or scientific monitoring were in orbit, compared to just seven in 2005, according to figures from the Union of Concerned Scientists.
Publicly traded firms have also been benefiting. Planet Labs, one of the largest in the sector, has seen its share price rise by 190% since January. Dutch-origin firm Fugro, which evolved from a soil-study specialist over seven decades into a major geospatial intelligence provider with annual revenues exceeding USD 2.2 billion, now generates two-thirds of its revenue from offshore work. Chief Executive Mark Heine explained that the company's capabilities now range from mapping and modelling to long-term monitoring of natural and built environments. Fugro's datasets aid coastal management authorities and maritime navigation systems.
Even so, private firms are still vulnerable to market fluctuations. Fugro registered 4% growth in 2024 but faced setbacks this year as several offshore wind clients scaled back activity after the US abruptly halted support for renewable energy projects. As a result, Fugro saw its third-quarter revenues decline by 14.5% compared to last year.
Seeking to expand contributions to publicly beneficial initiatives, Fugro co-chairs the UN's Ocean Decade Corporate Data Group, which aims to unlock marine datasets collected by industries such as energy, telecoms and fisheries. Heine said the consortium has invited major firms including Shell, BP, Total and Equinor to discuss releasing commercially gathered ocean information.
Further extending its collaborative reach, Fugro has joined forces with Esri, a private GIS-technology provider, to prepare coastal maps for climate-vulnerable island nations, beginning with territories in the Caribbean. Heine noted that the company believes wealthier nations have a responsibility to support small island states facing accelerating sea-level rise.
Source - Reuters
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