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The environment health and safety (EHS) market size is forecast to increase by USD 3.94 billion at a CAGR of 9.68% between 2023 and 2028. The market's expansion hinges on various factors, foremost among them being the surge in government initiatives aimed at bolstering Environmental, Health, and Safety (EHS) compliance standards. Furthermore, there is a heightened necessity for organizations to adhere to stringent regulatory mandates, propelling the demand for compliance solutions. Additionally, there is a noticeable shift in focus towards carbon reduction initiatives, driven by environmental concerns and sustainability goals. This emphasis on reducing carbon footprint is prompting businesses across sectors to adopt environmentally friendly practices and technologies. Together, these factors are shaping the market landscape, with companies increasingly investing in EHS compliance tools and strategies to navigate the evolving regulatory environment and achieve sustainability objectives. It also includes an in-depth analysis of market trends and analysis, market growth analysis, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The market is propelled by a combination of factors. The increasing emphasis on workplace safety and compliance drives demand for EHS services and software from providers like Donesafe, Enablon, and eVision. Trends in energy consumption management, ergonomics, and emergency care training reflect the industry's evolving priorities. However, challenges such as regulatory complexities and risk management in sectors like oil & gas and chemicals underscore the need for innovative solutions and strategic EHS consulting services to navigate these complexities effectively. The increase in government initiatives to strengthen EHS compliance is notably driving the Market growth, although factors such as high initial capital investments may impede the market growth. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving growth in the market is the increase in government initiatives to strengthen EHS compliance. Monitoring has become a basic expectation of EHS compliance management. Globally, organizations are concerned about managing compliance policies to eliminate compliance-related issues. Realizing the repercussions of a breach in compliance, they are introducing various stringent rules and regulations as well as conducting activities that allow them to maintain a conducive compliance culture. Therefore, many organizations are engaged in compliance management activities in conjunction with ethics.
Moreover, organizations or companies that are responsible for emissions need to possess allowances for every ton of greenhouse gas that they emit during a given period. Organizations have understood that maintaining compliance is not a single event but a process which builds and maintains a risk mitigation system in place to prevent instances of compliance breaches. EHS regulatory reforms undergo periodic modifications to include the changing requirements of enterprises, which makes it difficult for organizations to adhere to newly introduced compliance regulations, which adversely affects their overall productivity. Thus, enterprises are adopting EHS software platforms to ensure regulatory compliance and gain a competitive advantage in the Environment, Health and Safety Market. Hence, such factors are driving the market growth during the forecast period.
The shifting focus from the detection to the prevention of hazards is a market trend that is expected to have a positive impact in the coming years. There is a shift toward risk mitigation at the workplace. This is due to a rise in the number of fatal occupational injuries across the globe. Earlier, companies used to spend a significant amount of time detecting unsafe conditions where the mitigation of risks is heavily skewed to prevent accidents from recurring as opposed to preventing them from happening in the first place.
Moreover, companies can save lives by investing in accident prevention and being proactive about the safety of their employees. This trend has several benefits, including a measurable return on investment, especially for heavy industries where many hazards are encountered daily. A preventive approach to safety management results in fewer incidents and reduced long-term costs. Therefore, a shift toward risk mitigation at the workplace will make it necessary for market companies to modify their EHS software offerings, thus creating further opportunities for market growth during the forecast period.
The high initial capital investments will be a major challenge for the market during the forecast period. The replacement of existing infrastructure with EHS infrastructure involves high expenditure. Small and medium-sized enterprises (SMEs) and industries face a major challenge in adopting such infrastructure due to the high initial costs, which restricts market growth. Hence, the substantial amount of capital needed for infrastructure investments in EHS solutions limits the growth of the global market. Another significant challenge in the market is the difficulty in integrating EHS software with the ERP systems of enterprises.
Moreover, as EHS standards are involved in almost all operational activities of an enterprise, the greater benefits of EHS standards can be achieved by integrating them with the ERP system. However, this integration is quite challenging because the IT infrastructure of a company may not support the EHS software that is deployed by it. Hence, this challenge might affect the adoption of EHS software and services and thereby adversely impact the growth of the global market during the forecast period.
The market forecasting 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market 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.
W. R. Grace and Co. - The company offers EHS Performance Management platform called Enablon QEHS Software Suite under its subsidiary called Enablon.
The research 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 share growth by the energy and utilities segment will be significant during the forecast period. The energy and utilities (E&U) industry is one of the major end-users of software and services. The rapid growth in this segment is attributed to the growing investment in the energy and utilities industry and the growing importance of compliance standards at the workplace. Cority Software Inc. and Intelex Technologies Inc. are some of the major companies in this segment.
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The on-premises segment was valued at USD 3.61 billion in 2018 and continued to grow until 2022. Hazardous energy, i.e., an energy source that can be hazardous for workers, is a big challenge for end-users in the energy and utilities sector. The unexpected start or release of energy from different types of industrial equipment, such as boilers and steam generators, can lead to serious injuries to workers. Thus, regulatory agencies like OSHA have mandated stringent regulatory standards such as the control of hazardous energy. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
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North America is estimated to contribute 34% 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 growing focus of governments on good health and safety practices in workplaces will facilitate market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for companies, which assists in creating efficient business plans. Hence, such factors are driving the market in North America during the forecast period.
Segment Overview
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.
The market encompasses a wide array of industries and sectors, each grappling with unique challenges and opportunities. Companies like Donesafe and HIS (Health & Safety Institute) play crucial roles in providing EHS services and developing innovative EHS software solutions to meet the growing demand for comprehensive safety and compliance management. Moreover, industries ranging from automotive and chemicals & materials to food & beverage and healthcare are embracing EHS initiatives to ensure sustainable development and meet environmental compliance requirements. With scrutiny from regulatory bodies like the Food and Drug Administration (FDA) and Occupational Safety and Health Administration (OSHA), EHS consulting, quality, and risk management remain paramount for businesses aiming to navigate the complex landscape of environmental health and safety effectively.
Moreover, water quality, environmental protection laws, and wastewater treatment are top priorities as organizations strive for Zero Incidents and Zero Harm while adhering to stringent health and safety management standards. Risk analysis, audit & inspection, and corrective actions are integral parts of EHS services, ensuring proactive measures to mitigate hazards and prevent workplace accidents. Technological advancements in healthcare organizations, such as AI and system integration, are revolutionizing EHS consulting services and safety management solutions, enhancing performance metrics and compliance. The market also faces challenges like financial pressure, government enforcement, and evolving environmental legislation, necessitating advanced EHS software solutions and training management for workforce preparedness.
The market is a diverse and dynamic sector encompassing various facets crucial for organizational sustainability and compliance. Companies such as Donesafe, HIS (Health & Safety Institute), and Enablon are pivotal players offering a range of EHS services and innovative EHS software solutions. The market landscape depends on public concerns, Exploration & drilling and National Pollutant Inventory (NPI). EHS service providers play a critical role in addressing environmental issues and ensuring compliance with environmental protection laws. They specialize in areas like water quality, air emission measurement, and pollution control, particularly vital in industries prone to oil & gas spills and chemical hazards. Ergonomics and emergency care training are key focuses for EHS consulting services, aiming to enhance workplace safety and health standards. The automotive and mechanical engineering sectors benefit significantly from EHS management, especially concerning energy consumption and Toxics Release Inventory (TRI) management.
Industry Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.68% |
Market growth 2024-2028 |
USD 3.93 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.6 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, China, India, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AECOM, AMEC Europe LTD., Benchmark Digital Partners LLC, Cority Software Inc., Enhesa NV, Fortive Corp., Hexagon AB, International Business Machines Corp., Johnson Controls International Plc., ProcessMAP Corp., SAP SE, SGS SA, Sphera Solutions Inc., Tetra Tech Inc., Vector Solutions, VelocityEHS Holdings Inc., Verisk Analytics Inc., W. R. Grace and Co., WSP Global Inc., and Wolters Kluwer NV |
Market dynamics |
Parent market analysis, Market forecast, 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 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 Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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