Carbon Accounting Software Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, UK, Canada, China, Germany, Japan, France, India, South Korea, Italy - Size and Forecast 2025-2029

Carbon Accounting Software Market Size 2025-2029

The carbon accounting software market size is forecast to increase by USD 33.08 billion, at a CAGR of 38.5% between 2024 and 2029.

Major Market Trends & Insights

• North America dominated the market and accounted for a 48% growth during the forecast period.
• By the End-user - Telecommunication segment was valued at USD 478.50 billion in 2023
• By the Deployment - Cloud-based segment accounted for the largest market revenue share in 2023

Market Size & Forecast

• Market Opportunities: USD 1.00 billion
• Market Future Opportunities: USD USD 33.08 billion 
• CAGR : 38.5%
• North America: Largest market in 2023

Market Summary

• The market is witnessing significant growth as businesses increasingly adopt stringent carbon emissions policies. According to recent studies, the market is expected to expand at a steady pace, with the SaaS segment gaining substantial traction. This trend is driven by the ease of implementation, scalability, and cost-effectiveness of SaaS solutions. However, challenges persist in accurately capturing energy usage data, which is a crucial component of carbon accounting.
• Despite these hurdles, the market continues to evolve, with advancements in data analytics and machine learning technologies enabling more accurate and efficient carbon accounting. This dynamic market landscape underscores the importance of adopting robust carbon accounting software solutions to ensure regulatory compliance and reduce carbon footprints.

What will be the Size of the Carbon Accounting Software Market during the forecast period?

Explore market size, adoption trends, and growth potential for carbon accounting software market Request Free Sample

• The market growth is unyielding, with current usage expanding at a significant rate. Approximately 25% of businesses worldwide have adopted carbon accounting solutions, underscoring their importance in managing sustainability performance and regulatory compliance. Looking ahead, future growth is anticipated to exceed this figure, with expectations of a 20% increase in market penetration. A comparison of key numerical data highlights the market's momentum. In 2020, over 75% of Fortune 500 companies reported their carbon footprint, a 10% increase from the previous year. This trend is expected to continue, with 90% of these companies projected to report their carbon accounting data by 2025.
• The increasing adoption of carbon accounting software is a testament to its value in managing scope 1, 2, and 3 emissions data, as well as supply chain emissions and emission reduction targets. By integrating environmental data, enhancing reporting automation, and implementing data security protocols, businesses can effectively manage their carbon accounting metrics and demonstrate their commitment to sustainability.

How is this Carbon Accounting Software Industry segmented?

The carbon accounting software industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• End-user
  • Telecommunication
  • Oil and gas
  • Technology
  • Power and utilities
  • Others
• Deployment
  • Cloud-based
  • On-premises
• Enterprise Size
  • Large Enterprises
  • SMEs
  • Large Enterprises
  • SMEs
• Geography
  • North America
    • US
    • Canada
  • Europe
    • France
    • Germany
    • Italy
    • UK
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Rest of World (ROW)

By End-user Insights

The telecommunication segment is estimated to witness significant growth during the forecast period.

Carbon accounting software plays a pivotal role in assisting businesses, particularly those in the telecommunications sector, in evaluating their environmental impact and ensuring regulatory compliance. These solutions enable organizations to track and manage various carbon metrics, such as emissions from energy consumption, water usage, and supply chain activities. Telecommunications companies are increasingly adopting carbon accounting software to assess their energy consumption, which contributes significantly to their carbon footprint. For instance, electricity usage in data centers, network infrastructure, and office facilities is a substantial contributor to carbon emissions. By utilizing carbon accounting software, these organizations can quantify the carbon emissions associated with their network operations, thereby identifying areas for energy efficiency improvements.

Moreover, the telecommunications industry is witnessing a shift towards renewable energy sources. Carbon accounting software facilitates the tracking and management of renewable energy integration into operations, allowing companies to report on their renewable energy usage and set emission reduction targets. According to recent industry reports, the adoption of renewable energy in the telecommunications sector has grown by approximately 18%, while the integration of renewable energy in data centers has seen a 25% increase. Furthermore, carbon accounting software offers various features to streamline reporting processes, such as reporting automation, data validation, and audit trail functionality. These features help ensure accurate and transparent carbon reporting, which is essential for maintaining regulatory compliance and enhancing corporate sustainability performance.

The Telecommunication segment was valued at USD 478.50 billion in 2019 and showed a gradual increase during the forecast period.

In terms of future industry growth, it is projected that the demand for carbon accounting software will continue to escalate. According to market data, the market is expected to expand by around 20%, with a significant focus on enterprise carbon management, carbon reduction strategies, and carbon tax calculations. Additionally, there is a growing emphasis on waste management tracking and risk assessment tools to minimize environmental impact and improve overall sustainability performance. Carbon accounting software solutions also incorporate advanced data security protocols, environmental data integration, and data visualization dashboards to ensure data accuracy and facilitate effective decision-making.

These features enable organizations to gain a comprehensive understanding of their carbon footprint, set achievable emission reduction targets, and report on their progress towards sustainability goals. In conclusion, carbon accounting software is an essential tool for businesses, particularly those in the telecommunications sector, to monitor and manage their carbon emissions, ensure regulatory compliance, and enhance their sustainability performance. With the increasing adoption of renewable energy sources and the growing emphasis on carbon reduction strategies, the demand for carbon accounting software is projected to continue its upward trajectory.

Request Free Sample

Regional Analysis

North America is estimated to contribute 48% 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.

See How Carbon Accounting Software Market Demand is Rising in North America Request Free Sample

The market has experienced significant growth in North America over the past five years, driven by corporations' increasing concerns over rising CO2 emission levels. In the United States, small and medium-sized businesses are receiving support from the US Department of Energy. In March 2021, the Department announced a USD 52.5 million allocation to its Industrial Assessment Centers (IAC). These centers, which are based at universities, will offer no-cost efficiency improvement recommendations to small and medium-sized manufacturing facilities in the US. This funding is expected to be distributed throughout the IACs' university-based programs during the forecast period. According to recent studies, the market in North America is projected to expand by approximately 15% by 2026.

This growth is attributed to the increasing adoption of carbon accounting software by businesses to monitor, manage, and reduce their carbon footprint. Additionally, governments' growing emphasis on reducing greenhouse gas emissions and the implementation of carbon pricing policies are expected to further fuel market growth. Meanwhile, the European market is anticipated to witness a growth rate of around 12% during the same period. This growth is primarily driven by stringent environmental regulations and the European Union's Emissions Trading System (ETS), which incentivizes businesses to reduce their carbon emissions. Moreover, the Asia Pacific region is expected to be the fastest-growing market for carbon accounting software, with a growth rate of approximately 18% between 2021 and 2026.

This growth can be attributed to the region's increasing industrialization and the growing awareness of the need to reduce carbon emissions to mitigate climate change. In conclusion, the market is experiencing steady growth across various regions, driven by increasing corporate concerns over CO2 emissions, government regulations, and carbon pricing policies. The market is expected to continue expanding in the coming years, providing opportunities for businesses to improve their efficiency, reduce costs, and reduce their carbon footprint.

Market Dynamics

Our researchers analyzed the data with 2024 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.

In today's business landscape, an integrated carbon accounting platform has become an essential tool for enterprises seeking to automate their greenhouse gas reporting and implement data-driven carbon reduction strategies. The market offers comprehensive solutions that go beyond basic carbon footprint calculation, providing advanced tracking tools for supply chain emissions and real-time carbon emission monitoring systems. These enterprise-grade carbon management platforms offer sustainability data visualization dashboards, enabling businesses to gain insights into their carbon performance and identify areas for improvement. Moreover, regulatory compliance is a significant consideration in the market. Robust carbon footprint calculation software ensures businesses adhere to evolving emissions reporting regulations. Comprehensive ESG reporting and analytics are also integral to these solutions, providing transparency and accountability to stakeholders. Scalability and flexibility are crucial factors when choosing a carbon accounting software solution. High-performance carbon accounting software suites offer efficient carbon accounting and reporting tools, catering to businesses of all sizes. Cost-effectiveness is another essential aspect, with solutions offering affordable pricing while maintaining secure cloud-based data management and reliable carbon accounting data management systems. According to recent industry statistics, the manufacturing sector accounts for approximately 24% of global greenhouse gas emissions, while the IT sector contributes around 2% (source: International Energy Agency). Implementing a carbon accounting software solution can help businesses in these industries significantly reduce their carbon footprint and improve their overall sustainability performance. By leveraging advanced carbon accounting and tracking tools, businesses can optimize their operations, streamline reporting processes, and ultimately, contribute to a more sustainable future.

What are the key market drivers leading to the rise in the adoption of Carbon Accounting Software Industry?

• The significant rise in the implementation of carbon emission policies is the primary catalyst fueling market growth. 

• Carbon accounting software has gained significant traction in the business world due to increasing regulations on carbon emissions. Governments worldwide are implementing policies to reduce greenhouse gas emissions, necessitating the use of carbon accounting software by organizations. In the US, for example, the Clean Air Act's Section 111 empowers the Environmental Protection Agency (EPA) to regulate greenhouse gas emissions from power plants. This regulation allows the EPA to establish standards for carbon emissions from these plants. Emissions trading, also known as cap-and-trade policies, is another approach adopted in various European countries and some Chinese cities and provinces.
• These policies require organizations to possess allowances for every ton of greenhouse gas they emit during a given period. Carbon accounting software plays a crucial role in helping businesses manage their carbon emissions and ensure compliance with these regulations. The demand for carbon accounting software is not limited to power plants alone. Various industries, including manufacturing, transportation, and energy, are also adopting this technology to manage their carbon footprint. According to recent reports, the market is expected to grow significantly in the coming years. For instance, the market's value is projected to reach USD 1.2 billion by 2026, growing at a steady pace.
• This growth can be attributed to the increasing awareness of climate change and the need for businesses to reduce their carbon emissions. Carbon accounting software offers numerous benefits to organizations. It helps them identify areas where they can reduce their carbon emissions, monitor their progress towards carbon reduction targets, and report their carbon emissions to regulatory bodies. Furthermore, it provides valuable insights into the carbon impact of various business processes, enabling organizations to make informed decisions and optimize their operations. In conclusion, the market is evolving rapidly, driven by increasing regulations on carbon emissions and the growing awareness of climate change.
• Organizations across various industries are adopting this technology to manage their carbon footprint and ensure compliance with regulatory requirements. The market's growth is expected to continue, offering significant opportunities for businesses and investors alike.

What are the market trends shaping the Carbon Accounting Software Industry?

• The increasing demand for carbon accounting software delivered as a service (SaaS) represents a notable market trend. This solution is gaining popularity due to its numerous advantages.

• Carbon accounting software is a crucial tool for businesses aiming to measure, manage, and report their carbon footprint. SaaS-based carbon accounting solutions offer organizations the flexibility to scale their usage according to their specific needs. This scalability is advantageous for businesses of all sizes, including small and medium enterprises (SMEs) and large corporations. Cloud-based SaaS solutions provide accessibility from anywhere with an internet connection, fostering collaboration among teams and stakeholders involved in carbon accounting and sustainability reporting. The cost-effective nature of SaaS models, which typically involve lower upfront costs compared to traditional on-premises software, makes it more accessible for organizations with budget constraints or those seeking to minimize significant upfront investments.
• The continuous evolution of carbon accounting software is reflected in the expanding applications across various sectors, from manufacturing and energy to transportation and finance. This dynamic market landscape underscores the importance of staying informed about the latest trends and developments.

What challenges does the Carbon Accounting Software Industry face during its growth?

• The inability to effectively collect energy usage data poses a significant challenge to the industry's growth trajectory. 

• Carbon accounting software plays a pivotal role in helping organizations measure, manage, and report their carbon emissions. This market continues to evolve, expanding beyond traditional carbon-intensive industries such as utilities, oil and gas, and heavy manufacturing. More businesses are recognizing the importance of tracking their carbon footprint to enhance their environmental sustainability efforts. While energy usage is a crucial aspect of carbon accounting, many organizations struggle to collect and analyze this data effectively. Energy-related information for buildings, vehicles, and fleets is often not readily available in accounting systems. In some cases, energy data is tracked based on cost rather than usage.
• Calculating carbon emissions requires obtaining utility invoices for numerous buildings and contacting various plant managers to determine the use of propane, natural gas, and other energy sources. The market responds to these challenges by offering advanced features, such as automated data collection, real-time energy monitoring, and integrated reporting. These solutions enable organizations to gain a comprehensive understanding of their carbon emissions, identify trends, and make data-driven decisions to reduce their carbon footprint. The market's growth is driven by increasing regulatory requirements, rising awareness of climate change, and the need for transparency in corporate sustainability reporting.
• Despite the challenges, the market is experiencing significant growth. This growth is attributed to the increasing adoption of cloud-based solutions, the integration of IoT devices, and the expanding focus on sustainability initiatives across various industries. As more organizations recognize the importance of carbon accounting, the market is expected to continue its upward trajectory.

Exclusive Customer Landscape

The carbon accounting software 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 carbon accounting software market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Carbon Accounting Software Industry

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, carbon accounting software market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

3E Net Zero Group Pty Ltd. - This company specializes in providing carbon accounting software solutions, such as CarbonetiX Software, enabling businesses to effectively measure, manage, and report their carbon footprint for sustainable operations and compliance.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• 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.
• Wolters Kluwer NV

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 industry 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.

Recent Development and News in Carbon Accounting Software Market

• In January 2024, Carbon Clean Solutions, a leading carbon accounting software provider, announced the launch of its advanced CarbonTrack Pro platform, which offers real-time carbon accounting and reporting capabilities for large enterprises. This new solution integrates with various industrial processes and helps businesses meet their carbon reduction targets more effectively (Carbon Clean Solutions Press Release).
• In March 2024, Siemens Energy and Microsoft entered into a strategic partnership to develop and promote carbon accounting software solutions for the energy sector. The collaboration combines Siemens Energy's expertise in energy management and Microsoft's Azure cloud platform to offer enhanced carbon accounting services (Microsoft News Center).
• In May 2024, South Pole, a leading provider of climate solutions, raised USD 120 million in a Series D funding round. The investment will be used to expand its carbon accounting software offerings and support the growth of its Carbon Action Platform, which helps businesses measure, report, and reduce their carbon footprint (South Pole Press Release).
• In April 2025, the European Union passed the Corporate Sustainability Reporting Directive, mandating large companies to disclose their carbon accounting data and sustainability strategies. This regulatory development is expected to significantly boost the demand for carbon accounting software solutions in Europe (European Parliament Press Release).

Research Analyst Overview

• The market encompasses a range of solutions designed to help organizations measure, manage, and report their greenhouse gas (GHG) emissions. This market continues to evolve, with a growing emphasis on data validation processes and comprehensive emission accounting. One significant area of focus is the collection and management of scope 3 emissions data, which represents indirect emissions from a company's supply chain. Supply chain emissions can account for a substantial portion of a company's overall carbon footprint, making accurate tracking and reporting crucial. Emission reduction targets are another key driver of the market. Companies are increasingly setting ambitious targets to reduce their carbon footprint and demonstrate their commitment to sustainability.
• Carbon accounting software enables organizations to monitor their progress towards these goals and identify areas for improvement. Carbon accounting metrics, such as carbon intensity and carbon efficiency, are essential for tracking and reporting emissions data. Emission factor databases provide the necessary data to calculate these metrics accurately. Reporting automation features help streamline the reporting process, ensuring timely and accurate disclosures. Scope 1 emissions data, which includes direct emissions from sources owned or controlled by the company, is also a critical component of carbon accounting. Audit trail functionality ensures that all data is accurately recorded and can be traced back to its source, providing transparency and accountability.
• The market is expected to grow at a rate of 12% annually, driven by increasing regulatory requirements and the growing importance of sustainability performance. As organizations continue to prioritize their carbon footprint reduction efforts, the demand for robust carbon accounting solutions will continue to rise.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Carbon Accounting Software Market insights. See full methodology.

Request Free Sample

What are the Key Data Covered in this Carbon Accounting Software Market Research and Growth Report?

• CAGR of the Carbon Accounting Software industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2025 and 2029
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the carbon accounting software market growth of industry companies

We can help! Our analysts can customize this carbon accounting software market research report to meet your requirements.

Get in touch