PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1859825
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1859825
According to Stratistics MRC, the Global Climate Risk Advisory Market is accounted for $2.8 billion in 2025 and is expected to reach $9.2 billion by 2032 growing at a CAGR of 18.2% during the forecast period. Climate Risk Advisory refers to expert guidance provided to organizations, governments, or communities to help them understand, assess, and manage the risks posed by climate change. This includes evaluating exposure to climate-related hazards such as floods, droughts, heatwaves, and sea-level rise, and identifying vulnerabilities in infrastructure, ecosystems, and social systems. Advisors offer strategic insights to support climate adaptation, resilience planning, and sustainable investment decisions. They integrate scientific data, risk modeling, and policy frameworks to inform actions that reduce long-term climate impacts. Ultimately, Climate Risk Advisory empowers stakeholders to make informed, proactive choices in the face of evolving environmental challenges.
Regulatory Pressure & Disclosure Mandates
The growing emphasis on climate-related financial disclosures and regulatory compliance is a key driver for the Climate Risk Advisory market. Governments and financial institutions are mandating transparent reporting of climate risks, pushing organizations to seek expert guidance. Advisory services help firms align with frameworks like TCFD and CSRD, ensuring accountability and resilience. This regulatory momentum is accelerating demand for strategic climate risk assessments, making advisory firms' indispensable partners in navigating evolving environmental and policy landscapes.
High Cost of Services
High service costs significantly hinder the growth of the Climate Risk Advisory market by limiting access for small and mid-sized enterprises. This financial barrier reduces demand, stifles innovation, and discourages widespread adoption of climate risk solutions. As a result, critical data and strategic guidance remain concentrated among wealthier clients, undermining equitable climate resilience. The market's potential to drive systemic change is curtailed, slowing progress toward global sustainability goals.
Increasing Frequency of Climate Events
The rising frequency of climate events is catalyzing growth in the Climate Risk Advisory market by intensifying demand for predictive analytics, resilience planning, and regulatory compliance solutions. Businesses across sectors-especially real estate, insurance, and infrastructure-are increasingly seeking expert guidance to navigate evolving risks. This urgency fuels innovation in climate intelligence tools and model-based risk assessments, positioning advisory firms as essential partners in strategic decision-making. As climate volatility escalates, the market is becoming a cornerstone of sustainable and risk-aware corporate governance
Limited Awareness and Expertise
Limited awareness and expertise significantly hinder the growth of the Climate Risk Advisory market. Many organizations lack understanding of climate risks and the value of advisory services, leading to underinvestment and missed opportunities for resilience. Without internal capacity to interpret climate data or implement strategies, demand remains constrained. This knowledge gap stalls market expansion, especially in developing regions, where the need is high but engagement is low due to insufficient education and technical know-how.
Covid-19 Impact
The COVID-19 pandemic disrupted global priorities, temporarily diverting attention from climate risk initiatives. Budget constraints and operational challenges slowed investment in advisory services. However, the crisis also underscored the importance of resilience and long-term planning. As economies recover, there's renewed interest in integrating climate risk into strategic frameworks. The pandemic served as a wake-up call, reinforcing the value of expert guidance in navigating complex, interconnected risks-including those posed by climate change.
The healthcare segment is expected to be the largest during the forecast period
The healthcare segment is expected to account for the largest market share during the forecast period, due to its heightened vulnerability to climate-related disruptions. Rising temperatures, extreme weather, and disease outbreaks directly impact public health infrastructure and service delivery. Hospitals and health systems are increasingly seeking advisory support to assess risks, ensure continuity, and protect vulnerable populations. With climate change posing both operational and ethical challenges, healthcare organizations are prioritizing resilience planning, driving demand for specialized advisory expertise.
The risk mitigation implementation segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the risk mitigation implementation segment is predicted to witness the highest growth rate, due to reflecting a shift from assessment to action. Organizations are moving beyond identifying climate risks to actively deploying solutions-such as infrastructure upgrades, nature-based interventions, and adaptive technologies. Advisory firms play a critical role in translating insights into tangible strategies. As climate threats intensify, the urgency to implement protective measures is accelerating, making this segment the most dynamic and investment-ready area of the market.
During the forecast period, the Asia Pacific region is expected to hold the largest market share due to its exposure to diverse climate hazards and rapid urbanization. Countries like India, China, and Indonesia face rising sea levels, extreme weather, and resource stress, prompting governments and businesses to seek expert guidance. The region's proactive policy shifts, infrastructure investments, and growing awareness of climate vulnerabilities are fueling demand for advisory services, positioning Asia Pacific as a global leader in climate resilience.
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, owing to stringent regulatory frameworks and corporate sustainability commitments. The U.S. and Canada are witnessing increased adoption of climate disclosure standards and ESG integration. Advanced analytics, strong institutional capacity, and investor pressure are driving rapid growth in advisory services. As climate litigation and financial risk intensify, North American firms are prioritizing expert-led strategies to safeguard assets and ensure long-term viability.
Key players in the market
Some of the key players profiled in the Climate Risk Advisory Market include McKinsey & Company, Swiss Re, Boston Consulting Group (BCG), Munich Re, Deloitte Touche Tohmatsu Limited, JPMorgan Chase & Co., PricewaterhouseCoopers (PwC), Ernst & Young (EY), Verisk Analytics, Moody's Corporation, KPMG International, Environmental Resources Management (ERM), Aon plc, S&P Global and Willis Towers Watson (WTW)
In May 2025, BCG published a strategic analysis highlighting collaboration trends among top reinsurers like Munich Re and Swiss Re. The report explores how these companies are expanding offerings and partnerships to outperform in a saturated market. It emphasizes M&A activity and strategic alliances as key growth levers.
In September 2024, Microsoft and Swiss Re announced the successful deployment of Copilot for Microsoft 365 at Swiss Re. This collaboration marks a significant milestone in their longstanding strategic partnership, highlighting the power of smart AI deployment in enhancing operational efficiency and upskilling the workforce in highly regulated sectors.