Enjoy complimentary customisation on priority with our Enterprise License!
The carbon accounting software market size is estimated to grow by USD 16.55 billion at a CAGR of 29.27% between 2023 and 2028. The growth of the market depends on several factors, including the increasing adoption of policies on carbon emissions, the rising need for real-time monitoring and reporting of carbon emissions, and the growing need for better brand positioning. These factors collectively drive market expansion by aligning with regulatory requirements, technological advancements, and strategic business goals. The adoption of stricter carbon emission policies reflects global efforts to combat climate change. Simultaneously, the need for real-time monitoring and reporting underscores the importance of accurate data in managing and reducing carbon footprints. Additionally, the growing emphasis on brand positioning highlights the competitive advantage companies gain by showcasing their commitment to sustainability. Thus, the interplay of these factors shapes the landscape for the anticipated growth of the carbon management market.
For More Highlights About this Report, Download Free Sample in a Minute
The market is evolving rapidly as businesses seek innovative solutions for auditing and managing carbon releases. Companies like McKinsey and Catalyst Zero are leading the way, offering decarbonization solutions that provide significant financial opportunities. These platforms leverage high-tech knowledge and sustainability proficiency to aid commercial operations in their transformation efforts. For city planners and building owners, such software can predict, design, and optimize the carbon footprint of physical objects, such as buildings, by analyzing factors like traffic flow and room temperatures. By integrating these advanced tools, organizations can enhance their sustainability proficiency and achieve greater efficiency in carbon releases management.
Increasing adoption of policies on carbon emissions is notably driving market growth. Governments around the world are increasingly regulating carbon emissions. These regulations require businesses to track and manage their carbon emissions, which is driving demand in the market. For instance, in the US, under Section 111 of the Clean Air Act, the US EPA regulates greenhouse gas emissions from power plants. This gives the US EPA the flexibility to implement a standard for greenhouse gas emissions, including carbon emissions, from power plants. Similarly, the cap and trade policy, also known as emissions trading, has been adopted in European countries as well as several Chinese cities and provinces.
Moreover, companies such as American Electric Power and Duke Energy are allowed to buy and sell allowances, and therefore, the market establishes a price for emissions. These regulations have created the need for enterprises to calculate the carbon footprint or greenhouse emissions during a given period. This has created demand across the globe and is expected to drive the growth of the market during the forecast period.
Increasing demand for Software as a Service (SaaS)-based carbon accounting software is an emerging market trend. SaaS-based software allows organizations to scale their usage based on their needs. This scalability is particularly beneficial for businesses of varying sizes, from small and medium enterprises (SMEs) to large corporations, adapting to changing requirements and workloads. Cloud-based SaaS solutions provide accessibility from anywhere with an internet connection. This enables remote access, facilitating collaboration among teams and stakeholders involved in carbon accounting and sustainability reporting, regardless of geographic location.
Moreover, SaaS solutions eliminate the need for organizations to invest in and maintain extensive IT infrastructure. This is particularly beneficial for businesses that prefer to focus on their core operations without the burden of managing complex IT environments. Thus, the increasing demand for SaaS-based segment will enhance the growth of the market in focus during the forecast period.
Lack of awareness in adopting low-carbon emission infrastructure is a significant challenge hindering market growth. Lack of awareness in adopting low-carbon emission infrastructure is one of the major challenges in the market. Recent technological advances and the subsequent decline in the prices of electronic devices such as smartphones, smartwatches, and others encourage customers to buy new products frequently. This has led to a reduction in the shelf life/lifecycle of these products. Thus, there is an increased accumulation of electronic waste, which is not only unsafe but also contributes to waste generation and pollution.
Moreover, the lack of awareness about the negative effects of the improper disposal of electronic products and electronic waste is expected to reduce the demand. This overall lack of awareness is expected to restrict the growth of the market during the forecast period.
The market share growth by the industrial engineering segment will be significant during the forecast period. They helps telecommunications companies monitor and analyze their energy consumption, including the energy used in data centres, network infrastructure, and office facilities. This includes electricity consumption, which is a significant contributor to carbon emissions.
Get a glance at the market contribution of various segments Download the PDF Sample
The industrial engineering segment was the largest and was valued at USD 810.00 million in 2018. Further, telecom companies have deployed this accounting software to monitor their emissions and reduce their operational costs. In the telecom sector, components that are responsible for carbon emissions include antennas, feeders, cables, and other transmission equipment. Moreover, passive components, such as telecom towers, sites, and others, are also responsible for these emissions. Telecommunications companies use this accounting software to support eco-design initiatives, enabling the development of more energy-efficient products and services. This contributes to reducing the overall carbon impact of the telecommunication industry offerings. Such factors are expected to drive the growth of the telecommunication segment of the market during the forecast period.
Cloud-based carbon accounting software allows organizations to scale their usage based on their needs. They can easily add or remove users, adjust storage capacity, and access new features or modules as required in the cloud-based carbon accounting software. This scalability enables organizations to adapt their product software to changing business requirements and accommodate growth. Further, organizations in industries such as oil and gas, telecommunication, retail, and transportation are leveraging cloud-based deployment to access robust, scalable, and cost-effective software that helps them measure, manage, and reduce their carbon emissions effectively. Such factors are expected to drive the growth of the cloud-based segment and boost the growth of the market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market has witnessed steady growth over the past five years in North America. Concerns among corporations regarding increasing CO2 emission levels are driving the growth of the market in the region. In the US, small and medium-sized businesses are receiving some help from the US Department of Energy. In March 2021, the Department of Energy announced that up to USD 52.5 million would be provided to its Industrial Assessment Centers (IAC), which would help smaller American manufacturers improve their efficiency, save money, and reduce their carbon footprint.
Furthermore, In Canada, the Air Quality Management System (AQMS) continuously monitors emission levels and also provides a framework to protect human health as well as the environment from harmful air pollutants, such as carbon emissions. Hence, these factors are expected to increase the demand during the forecast. Thereby, it is expected to result in the growth of the regional market during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3E Net Zero Group Pty Ltd - The company offers CarbonetiX Software.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Investor ESG Software Market: Investor ESG Software Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Germany, UK, France - Size and Forecast
Activated Carbon Market: Activated Carbon Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, India, The Netherlands, Belgium - Size and Forecast
Accounting Software Market: Accounting Software Market Analysis North America, Europe, APAC, MEA, South America - US, China, UK, India, Germany - Size and Forecast
The market is gaining traction among investors and potential investors due to its role in driving net-zero emissions. This market leverages digital twin technology and artificial intelligence (AI) to model and manage the carbon footprint of physical objects in various sectors, including construction and wind power. Companies like Eday are innovating decarbonization solutions, reducing fossil fuel consumption, and achieving their net-zero targets.
At events like COP27, the demand for transparent and effective carbon accounting increases, combating greenwashing practices by fossil fuel companies such as ExxonMobil. With advancements in digital alternatives like online banking and mobile payment apps, and cloud solutions from providers like Alibaba Cloud, organizations can achieve paperless progress. This evolution is further fueled by the rising product demand for on-premise and cloud-based solutions in new and existing buildings, highlighting the driving factors of the market. Utilizing innovating solutions and transformation expertise, companies are developing decarbonization solutions such as digital twins of physical objects to advance the production of algae biofuels and achieve net-zero target.
|
Market Scope |
|
|
Market Report Coverage |
Details |
|
Page number |
169 |
|
Base year |
2023 |
|
Historic period |
2018-2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 29.27% |
|
Market Growth 2024-2028 |
USD 16.55 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
27.35 |
|
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
|
Performing market contribution |
North America at 36% |
|
Key countries |
US, China, Japan, Germany, and UK |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
3E Net Zero Group Pty Ltd, Benchmark Digital Partners LLC, BraveGen, Brightest Inc., Carbon Analytics Ltd., ENGIE SA, ESG Enterprise, GreenStep Solutions Inc., Intelex Technologies ULC, Lisam Systems SA, Locus Technologies, Net0, Persefoni AI Inc., ProcessMAP Corp., Sage Group Plc, SAP SE, SIERRA ODC Pvt. Ltd., Simble Solutions Ltd., Sphera Solutions Inc., and Wolters Kluwer NV |
|
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
