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ESG Rating Services Market Size (2024 - 2029)

The ESG Rating Services Market is poised for significant growth, driven by increasing demand for transparency and accountability from stakeholders such as investors and regulators. The market's expansion is fueled by the rising importance of sustainability and responsible investment, prompting companies to integrate ESG considerations into their strategies. Regulatory mandates for ESG reporting, such as those under the European Union's Sustainable Finance Disclosure Regulation, are further propelling market growth. Additionally, advancements in technology, including Artificial Intelligence and Big Data analytics, are enhancing the efficiency and credibility of ESG data analysis, contributing to the market's positive outlook.

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Market Size of ESG Rating Services Industry

ESG Rating Services Market Summary
Study Period 2020 - 2029
Market Size (2024) USD 10.37 Billion
Market Size (2029) USD 15.42 Billion
CAGR (2024 - 2029) 8.25 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

ESG Rating Services Market Major Players

*Disclaimer: Major Players sorted in no particular order

ESG Rating Services Market Analysis

The ESG Rating Services Market size is estimated at USD 10.37 billion in 2024, and is expected to reach USD 15.42 billion by 2029, growing at a CAGR of 8.25% during the forecast period (2024-2029).

ESG rating has become increasingly important as stakeholders, including investors, customers, employees, and regulators, demand better company transparency and accountability. The outlook of the ESG rating services market is highly promising. The growing awareness and importance of sustainability, responsible investment, and corporate governance practices are driving the demand for ESG reporting. Companies are realizing the need to integrate ESG considerations into their business strategies to mitigate risks, improve operational efficiency, and enhance stakeholder trust. As a result, the demand for ESG reporting services is expected to witness significant growth.

The industry is also growing since regulatory authorities are mandating ESG reporting to increase. Financial institutions are required to publish information about their sustainability policies and ESG risks under the Sustainable Finance Disclosure Regulation (SFDR) of the European Union. Such regulations are likely to impact the market’s expansion positively. Technological breakthroughs like Artificial Intelligence and Big Data analytics are also making it easier to gather and analyze ESG data, which improves the effectiveness and legitimacy of ESG reporting. It is anticipated that corporations may use ESG rating services more frequently due to these technical developments.

ESG Rating Services Industry Segmentation

ESG rating services is a market that focuses on providing companies with tools and services to measure, report, and disclose their environmental, social, and governance (ESG) performance. The ESG rating services market is segmented by type, application, and geography. By service type, the market is segmented into ESG assessment and ratings, ESG data verification, ESG reporting and disclosure, ESG strategy consulting, assurance and compliance services, and other customized ESG solutions. By application, the market is segmented into investment and asset management, corporate governance and risk management, sustainability and supply chain management, climate change and resource management, regulatory compliance and stakeholder communication, and other sector-specific applications. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East and Africa. The report offers market size and forecasts for ESG rating services market in value (USD) for all the above segments.

By Service Type
ESG Assessment and Ratings
ESG Data Verification
ESG Reporting and Disclosure
ESG Strategy Consulting
Assurance and Compliance Services
Other Customized ESG Solutions
By Application
Investment and Asset Management
Corporate Governance and Risk Management
Sustainability and Supply Chain Management
Climate Change and Resource Management
Regulatory Compliance and Stakeholder Communication
Other Sector-specific Application
By Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Russia
Italy
Spain
Rest of Europe
Asia-Pacific
India
China
Japan
Australia
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Mexico
Rest of Latin America
Middle East and Africa
United Arab Emirates
Saudi Arabia
South Africa
Rest of Middle East and Africa
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ESG Rating Services Market Size Summary

The ESG Rating Services Market is poised for significant growth, driven by the increasing demand for transparency and accountability from stakeholders such as investors, customers, employees, and regulators. The rising awareness of sustainability, responsible investment, and corporate governance practices is propelling the demand for ESG reporting services. Companies are increasingly integrating ESG considerations into their business strategies to mitigate risks, enhance operational efficiency, and build stakeholder trust. This trend is further supported by regulatory mandates requiring ESG reporting, such as the European Union's Sustainable Finance Disclosure Regulation, which is expected to positively impact market expansion. Technological advancements in Artificial Intelligence and Big Data analytics are also enhancing the effectiveness of ESG data collection and analysis, encouraging more frequent use of ESG rating services by corporations.

The market is experiencing growth due to the rising number of investments focused on sustainability and quality standards, driven by policymakers, investors, and other key stakeholders. Ethical business practices and the evaluation of company performance through ESG standards are becoming increasingly important. Technologies in renewable energy, energy efficiency, clean technology, and sustainable agriculture are advancing ESG practices by facilitating the efficient collection and analysis of ESG-related data. The North American market, particularly the United States, is a significant contributor to global market growth, driven by a focus on climate change mitigation, renewable energy transition, and the adoption of ESG reporting software across various industries. The market is moderately consolidated, with major players like Sustainalytics, Refinitiv, MSCI Inc., Vigeo Eiris, and Dow Jones Sustainability Indices engaging in strategic partnerships and expansions to strengthen their regional presence.

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ESG Rating Services Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Demand for Ethical and Sustainable Investments

      2. 1.2.2 Steady Growth in Corporate Data Volumes

    3. 1.3 Market Restraints

      1. 1.3.1 Lack of Standardized Frameworks

      2. 1.3.2 Self-Reported Data by Organizations

    4. 1.4 Industry Attractiveness: Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights into Technological Advancements in the Industry

    6. 1.6 Insights into Various Regulatory Trends Shaping the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service Type

      1. 2.1.1 ESG Assessment and Ratings

      2. 2.1.2 ESG Data Verification

      3. 2.1.3 ESG Reporting and Disclosure

      4. 2.1.4 ESG Strategy Consulting

      5. 2.1.5 Assurance and Compliance Services

      6. 2.1.6 Other Customized ESG Solutions

    2. 2.2 By Application

      1. 2.2.1 Investment and Asset Management

      2. 2.2.2 Corporate Governance and Risk Management

      3. 2.2.3 Sustainability and Supply Chain Management

      4. 2.2.4 Climate Change and Resource Management

      5. 2.2.5 Regulatory Compliance and Stakeholder Communication

      6. 2.2.6 Other Sector-specific Application

    3. 2.3 By Geography

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

      2. 2.3.2 Europe

        1. 2.3.2.1 United Kingdom

        2. 2.3.2.2 Germany

        3. 2.3.2.3 France

        4. 2.3.2.4 Russia

        5. 2.3.2.5 Italy

        6. 2.3.2.6 Spain

        7. 2.3.2.7 Rest of Europe

      3. 2.3.3 Asia-Pacific

        1. 2.3.3.1 India

        2. 2.3.3.2 China

        3. 2.3.3.3 Japan

        4. 2.3.3.4 Australia

        5. 2.3.3.5 Rest of Asia-Pacific

      4. 2.3.4 Latin America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Argentina

        3. 2.3.4.3 Mexico

        4. 2.3.4.4 Rest of Latin America

      5. 2.3.5 Middle East and Africa

        1. 2.3.5.1 United Arab Emirates

        2. 2.3.5.2 Saudi Arabia

        3. 2.3.5.3 South Africa

        4. 2.3.5.4 Rest of Middle East and Africa

ESG Rating Services Market Size FAQs

The ESG Rating Services Market size is expected to reach USD 10.37 billion in 2024 and grow at a CAGR of 8.25% to reach USD 15.42 billion by 2029.

In 2024, the ESG Rating Services Market size is expected to reach USD 10.37 billion.

ESG Rating Services Market Report Snapshots

Esg Rating Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)