Climate risk management market to reach US $ 104.8bn by 2035, growing at 28.23 % CAGR. Financial institutions are rapidly adopting climate risk models as core infrastructure, with physical risk modelling commanding highest market share at 44.81 % currently.
MARKET TRENDS
CLIMATE MODE
TRANSITION RISK MODELLING GROWS AT
31.65 % CAGR THROUGH 2035
Transition risk is projected to grow at a CAGR of 31.65 %. Regulatory shifts, carbon pricing pressures and investor demands for net-zero strategies are driving this segment faster than traditional risk categories.
Source: Roots Analysis – Climate Risk Management Market Size & Forecast 2025
AI TRANSFORMS CLIMATE RISK PREDICTION CAPABILITIES IN 2025
This perspective explores the potential of integrated Artificial Intelligence( AI) modeling and how machine learning enables early warning systems.
Source: Nature Communications –“ Early warning of complex climate risk with integrated artificial intelligence”, March 2025
CLIMATE RISK MANAGEMENT MARKET TO REACH
$ 104.8B BY 2035
Climate risk management market to reach US $ 104.8bn by 2035, growing at 28.23 % CAGR. Financial institutions are rapidly adopting climate risk models as core infrastructure, with physical risk modelling commanding highest market share at 44.81 % currently.
Source: Roots Analysis – Climate Risk Management Market Size & Forecast 2025
98 September 2025