PUBLISHER: Guidehouse Insights | PRODUCT CODE: 1066073
PUBLISHER: Guidehouse Insights | PRODUCT CODE: 1066073
The frequency and severity of high damage weather events have increased in the past decade. While the loss of life associated with natural catastrophes has fallen by a factor of three, the same cannot be said of economic losses, which have outpaced disaster frequency, growing by a factor of seven. Long-term climate risk analytics (CRA) are intended to mitigate climate change-related losses by combining various data sources, both public and proprietary, to forecast the risk to physical assets at various time horizons and losses under multiple plausible scenarios.
While the improvement is likely to be less dramatic for assets, which are typically less amenable to evacuation than people, more informed investment decisions, hardening efforts, and disaster preparation efforts can combine to yield shorter downtimes, reduced damage, and less costly repairs. Energy and utilities providers are among those most exposed to climate-related losses given these industries' substantial and distributed physical assets.
This Guidehouse Insights report provides an overview of five industry settings in which long-term CRA may provide substantial benefits. This report describes applications in electric utilities, telecommunications, natural gas distribution, midstream oil & gas, and upstream oil & gas. It also 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. This report concludes by providing detailed and actionable recommendations on how customers and vendors can address the fast changing market.