Sustainability Management Software Market Size to grow by USD 988.75 million between 2023-2027
According to a research report “ Sustainability Management Software Market” by Application (IT and telecom, Healthcare, Automotive, Manufacturing, Oil and gas) Deployment (Cloud, On-premises) Geography (North America, Europe, APAC, South America, Middle East and Africa)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 988.75 million, at a CAGR of 12.1% during the forecast period. In today's business landscape, the importance of minimizing Greenhouse Gas (GHG) emissions is paramount. Sustainability management software plays a crucial role in this regard by offering organizations detailed reports on their carbon footprint, specifically the CO2 emissions per unit of production. This software enables businesses to monitor, measure, plan, store, and report on their carbon emission data, promoting the adoption of green energy sources. By increasing awareness of the environmental hazards associated with GHG emissions and suggesting efficient measures to reduce electricity and heating and cooling bills, sustainability management software is an indispensable tool for organizations seeking to mitigate their carbon footprint and enhance their sustainability initiatives. Green energy, derived from renewable resources, is a key component of these initiatives, as it offers an effective solution to the challenges posed by GHG emissions.
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By Application, the IT and telecom segment is projected to dominate the market size in 2024
The global sustainability management software market is experiencing a significant technological evolution, driven primarily by the adoption of cloud computing technology. According to recent industry analysis, the cloud-based segment of the market is projected to exhibit faster growth than the on-premise segment during the forecast period. This shift towards cloud-based solutions is attributed to their energy efficiency, with businesses potentially reducing energy consumption by up to 80-85%. Notably, a study conducted by Google-funded Lawrence Berkeley National Laboratory in collaboration with NorthWestern University revealed that the migration of software applications to the cloud could result in an impressive 87% reduction in energy usage. This trend underscores the growing importance of cloud-based sustainability management software for businesses seeking to minimize their environmental footprint and optimize operational costs.
By Deployment, Cloud segment is expected to hold the largest market size for the year 2024
The Information Technology (IT) and Telecommunications sector is projected to lead the global Sustainability Management Software Market due to the significant carbon emissions associated with their operations. According to recent estimates, ICT accounts for approximately 3-4% of global CO2 emissions, with telecommunications contributing 1.6% to this total. Upstream and downstream processes, such as energy usage in supplier operations, account for up to 90% of telco firms' emissions. With data traffic projected to increase dramatically by 2040, the carbon footprint of ICT is expected to rise to 14%. Thus, the implementation of sustainability management software within this sector becomes crucial for reducing emissions and improving overall environmental performance.
North America is forecasted to hold the largest market size by region in 2024
The Sustainability Management Software Market represents a significant business investment for organizations seeking to enhance their environmental, social, and governance (ESG) performance. This software facilitates the tracking, reporting, and analysis of crucial sustainability data, enabling companies to make informed decisions, streamline operations, and mitigate risks. Adopting sustainability software is a strategic move towards improved corporate responsibility and long-term value creation.
The Sustainability Management Software Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Sustainability Management Software market is witnessing significant growth due to the increasing importance of sustainability in business operations. This software helps enterprises manage and mitigate risks related to sustainability, comply with frameworks and standards, and collect and calculate sustainability data. Forrester reports that sustainability management software is becoming essential for project planning and efficiency in operations. Compliance requirements, such as the EU Taxonomy Regulation and the Sustainability Accounting Standards Board (SASB), are driving the adoption of these solutions. Sustainability management software enables the collection and analysis of financial data and resources used in business operations, providing valuable insights for sustainability reporting and strategy development. Effective sustainability management software should offer robust risk assessment capabilities, seamless integration with other business systems, and user-friendly interfaces. By implementing sustainability management software, enterprises can streamline their sustainability efforts, reduce costs, and enhance their reputation as responsible and sustainable businesses.
Market Research Overview
The Sustainability Management Software Market is experiencing significant growth due to economic volatility and the increasing regulatory obligation for enterprises to reduce their carbon footprint and ensure compliance with sustainability frameworks and standards. This market caters to various industries, including transport and logistics, energy, chemicals, and financial services, among others. Core functionalities of sustainability management software include data collection, calculation of carbon footprint and energy usage, supply chain management, and portfolio management. Specialist startups and software providers offer advisory services, impact analysis, scenario planning, and management consulting to help businesses meet their environmental goals and mitigate risks. Data management, accounting, and regulatory compliance requirements are crucial aspects of sustainability management software. Visualizations and reporting tools enable businesses to monitor their sustainability performance and identify areas for improvement. The software also helps enterprises manage energy supplies, optimize business processes, and enhance efficiency in operations. Investors and shareholders are increasingly interested in the sustainability performance of companies, making it a critical business value driver. The market for sustainability management software is expected to grow significantly in the coming years, with investment pockets in energy saving, process optimization, and output improvement. Future estimations suggest that the market will continue to expand as awareness of climate change and the importance of scarce resources grows.
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Jesse Maida
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Email: media@technavio.com
Website: www.technavio.com/
