Sustainability Software Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 17.58 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Sustainability Software Market Analysis
The Sustainability Software Market is expected to register a CAGR of 17.58% during the forecast period.
- As enterprises, governments, and individuals increasingly prioritize environmental, social, and governance (ESG) goals, the global demand for sustainability software is experiencing significant growth. This surge is driven by regulatory mandates, investor scrutiny, heightened consumer awareness, and the need for efficient tools to measure, track, and enhance sustainability performance. From minimizing carbon footprints to ensuring transparency in supply chains, sustainability software has established itself as a fundamental component of contemporary corporate strategy.
- Furthermore, investors are now integrating ESG performance into their decision-making processes, often favoring companies with robust sustainability practices. A study by Morningstar highlighted this trend, noting record inflows into sustainable funds in recent years. By leveraging sustainability software, organizations can demonstrate accountability and transparency to stakeholders, providing comprehensive insights into ESG metrics and advancements.
- In response to this escalating demand, numerous companies are unveiling new solutions to capture a larger market share. For instance, in March 2024, Oracle launched Oracle Cloud EPM for Sustainability, a pioneering extension of its Oracle Fusion Cloud EPM (Enterprise Performance Management). This innovative solution equips organizations to adeptly measure and manage their sustainability endeavors. It allows business leaders to strengthen their sustainability initiatives by interlinking targets, data, and plans across the organization and crafting scenarios to optimize outcomes.
- Moreover, the global ambition of achieving net-zero carbon emissions is propelling companies to adopt sustainability software. These tools, offering real-time insights into energy consumption, waste production, and emissions, empower businesses to make informed decisions and uphold their climate commitments. By utilizing such advanced software, companies can not only track their progress but also identify areas for improvement, ensuring they meet their sustainability goals effectively.
- Overall, as organizations navigate ESG compliance, stakeholder expectations, and operational efficiency, the increasing demand for sustainability software highlights a significant shift towards responsible and transparent business practices. These tools have become indispensable for businesses aiming to enhance their environmental and social performance. Additionally, by adopting sustainability software, companies can position themselves as leaders in the transition to a more sustainable future.
Sustainability Software Market Trends
Growing Demand of Carbon Management Software
- In recent years, carbon management software has become a pivotal element of the expanding sustainability software market. As the emphasis on climate change mitigation intensifies, governments, corporations, and organizations are increasingly adopting carbon management tools to monitor, control, and diminish their carbon emissions. This surge in demand is primarily driven by regulatory pressures, heightened scrutiny from investors, evolving consumer expectations, and a fundamental industry commitment to achieving sustainability goals and enhancing their environmental, social, and governance (ESG) performance.
- Also, as businesses increasingly recognize the significance of sustainability and corporate social responsibility, numerous organizations are establishing carbon reduction targets. These targets strive for carbon neutrality in line with global climate commitments. Consequently, there's a notable surge in companies adopting carbon management systems to monitor their progress and pinpoint areas for improvement. Hence, the companies have made several investments to launch new solutions.
- For instance, in June 2024, SCS Consulting Services (SCS) announced a new partnership with leading carbon accounting platform developer Sustain.Life. With this collaboration, the company aims to launch carbon accounting and management software to enable faster climate action. This software enables companies to streamline their GHG emissions measurement and reporting, track their science-based target setting, and engage suppliers.
- Aditionally, government around the countries are increasing carbon emittion tax. As per the report published by World Bank, Uruguay had the highest carbon tax rate worldwide as of April 2024, at 167 U.S. dollars per metric ton of CO₂ equivalent (USD/tCO₂e). Followed by Liechtenstein, Switzerland, and others. Such increasing tax by the govrnment is driving the adoption of carbon management software by the companies.
North America is Expected to Hold a Significant Share
- As environmental concerns mount and regulatory frameworks tighten, North American businesses are increasingly adopting sustainability software to enhance their environmental, social, and governance (ESG) efforts. This rising demand underscores a deeper commitment to embedding sustainable practices into corporate strategies, influenced by consumer expectations, investor priorities, and government mandates.
- North American governments are tightening environmental regulations to combat climate change and curb carbon emissions. In the U.S., initiatives like the Inflation Reduction Act encourage companies to embrace cleaner technologies and enhance transparency in carbon footprint reporting. Meanwhile, Canada's Net-Zero Emissions Accountability Act compels corporations to establish and meet emission reduction targets. Navigating these regulations necessitates robust data collection, monitoring, and reporting tools, underscoring the essential role of sustainability software.
- Moreover, numerous North American corporations are pursuing ambitious sustainability objectives, including net-zero emissions and circular economy transitions. Sustainability software equips them to monitor progress, pinpoint inefficiencies, and assess initiative impacts. For instance, tools that oversee energy consumption or waste management enable companies to optimize resources, cut costs, and achieve their sustainability goals.
- Overall, the rising appetite for sustainability software in North America signals a fundamental shift in corporate attitudes towards environmental and social responsibility. As businesses align with global sustainability objectives, these software solutions emerge as crucial enablers of transparency, efficiency, and accountability. By adopting such technologies, North American firms not only ensure regulatory compliance but also tap into fresh avenues for growth, innovation, and enhanced stakeholder value in a market increasingly attuned to sustainability.
Sustainability Software Industry Overview
The sustainability software market is fragmented due to the significant presence of players such as Microsoft Corporation, IBM Corporation, Diligent Corporation, Benchmark Digital Partners LLC, Nasdaq, Inc., and others. These vendors are focusing on research and development activities, strategic partnerships, and other organic and inorganic growth strategies to earn a competitive edge throughout the forecast period.
Sustainability Software Market Leaders
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Microsoft Corporation
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IBM Corporation
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Diligent Corporation.
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Benchmark Digital Partners LLC
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Nasdaq, Inc.
*Disclaimer: Major Players sorted in no particular order
Sustainability Software Market News
- March 2024: EcoOnline announced the launch of its advanced Sustainability Reporting solution. This sophisticated software enables organizations to seamlessly and accurately calculate their greenhouse gas emissions, gain a comprehensive understanding of their climate impact, and ensure compliance with impending ESG and Sustainability legislation. By leveraging this tool, businesses can enhance their environmental accountability and align with global sustainability standards.
- August 2024: Microsoft has launched a new ESG reporting tool aimed at simplifying and expediting the reporting process in light of expanding sustainability disclosure requirements. The Project ESG Reporting (preview) platform offers a range of framework templates and pre-synced ESG standards, which users can complete and reuse for future reports. Furthermore, the tool empowers companies to create and implement their own custom templates.
Sustainability Software Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 corporate Sustainability Goals and ESG Initiatives
5.1.2 Increasing Investment in Sustaiable IT Solution
5.2 Market Restraints
5.2.1 Limited Exprties and Skills in Sustainable Software Devlopment
5.2.2 Highr cost of Sustainable Infrastructure and Tools
5.3 Key use cases and case studies
6. MARKET SEGMENTATION
6.1 By Deployment
6.1.1 Cloud
6.1.2 On-Premise
6.2 By Type of Software
6.2.1 Resource Management Software
6.2.2 Carbon Management Software
6.2.3 Sustainability Reporting And Management Software
6.2.4 Energy Optimization Software
6.2.5 Compliance Management Software
6.2.6 Others
6.3 By End-User Vrticle
6.3.1 Government
6.3.2 BFSI
6.3.3 IT and Telecom
6.3.4 Industrial
6.3.5 Healthcare
6.3.6 Other End-user Verticals
6.4 By Geography
6.4.1 North America
6.4.2 Europe
6.4.3 Asia-Pacific
6.4.4 Latin America
6.4.5 Middle East & Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Microsoft Corporation
7.1.2 IBM Corporation
7.1.3 Diligent Corporation.
7.1.4 Benchmark Digital Partners LLC
7.1.5 Nasdaq, Inc.
7.1.6 SAP SE
7.1.7 Salesforce, Inc
7.1.8 Wolters Kluwer N.V.
7.1.9 schneider electric SE
7.1.10 Greenly
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Sustainability Software Industry Segmentation
Sustainability software comprises applications and platforms designed to assist organizations and individuals in tracking, managing, and reducing their environmental, social, and economic impacts. These software solutions integrate tools and analytics to measure sustainability metrics such as carbon emissions, energy consumption, water usage, waste management, and supply chain efficiency. Additionally, they facilitate regulatory compliance, reporting, and decision-making processes to achieve sustainability goals.
Sustainability software market report is segmented by deployment (cloud, on-premise), by type of software (resource management software, carbon management software, sustainability reporting and management software, energy optimization software, compliance management software, others), by end-user vertical (government, BFSI, IT and telecom, industrial, healthcare, other end-user verticals) and by geography (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Deployment | |
| Cloud | |
| On-Premise |
| By Type of Software | |
| Resource Management Software | |
| Carbon Management Software | |
| Sustainability Reporting And Management Software | |
| Energy Optimization Software | |
| Compliance Management Software | |
| Others |
| By End-User Vrticle | |
| Government | |
| BFSI | |
| IT and Telecom | |
| Industrial | |
| Healthcare | |
| Other End-user Verticals |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East & Africa |
Sustainability Software Market Research FAQs
What is the current Sustainability Software Market size?
The Sustainability Software Market is projected to register a CAGR of 17.58% during the forecast period (2024-2029)
Who are the key players in Sustainability Software Market?
Microsoft Corporation, IBM Corporation, Diligent Corporation., Benchmark Digital Partners LLC and Nasdaq, Inc. are the major companies operating in the Sustainability Software Market.
Which is the fastest growing region in Sustainability Software Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Sustainability Software Market?
In 2024, the North America accounts for the largest market share in Sustainability Software Market.
What years does this Sustainability Software Market cover?
The report covers the Sustainability Software Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Sustainability Software Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Sustainability Software Industry Report
Statistics for the 2024 Sustainability Software market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Sustainability Software analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
