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The carbon accounting software market size is estimated to grow at a CAGR of 29.27% between 2023 and 2028. The market size is forecast to increase by USD 16,550 million. The growth of the market depends on several factors, including the increasing adoption of policies on carbon emissions, the rising need for real-time monitoring and reporting of carbon emissions and the growing need for better brand positioning. Carbon accounting software refers to specialized tools and applications designed to help organizations measure, report, and manage their greenhouse gas (GHG) emissions and overall carbon footprint. These software solutions assist businesses and institutions in tracking, analyzing, and reporting their carbon emissions data, providing insights into their environmental impact and sustainability efforts.
The report includes a comprehensive outlook on the carbon accounting software market offering forecasts for the industry segmented by End-user, which comprises industrial engineering, telecommunication, oil and gas, technology, power and utilities, and others. Additionally, it categorizes Deployment into cloud-based and on-premises and covers Geography regions, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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Increasing adoption of policies on carbon emissions is notably driving the market growth. Governments around the world are increasingly regulating carbon emissions. These regulations require businesses to track and manage their carbon emissions, which is driving demand for carbon accounting software. For instance, in the US, under Section 111 of the Clean Air Act, the US EPA regulates greenhouse gas emissions from power plants. This gives the US EPA the flexibility to implement a standard for greenhouse gas emissions, including carbon emissions, from power plants. Similarly, the cap and trade policy, also known as emissions trading, has been adopted in European countries as well as several Chinese cities and provinces.
Moreover, companies such as American Electric Power and Duke Energy are allowed to buy and sell allowances, and therefore, the market establishes a price for emissions. These regulations have created the need for enterprises to calculate the carbon footprint or greenhouse emissions during a given period. This has created the demand for carbon accounting software and solutions across the globe and is expected to drive the growth of the market during the forecast period.
Increasing demand for Software as a Service (SaaS)-based carbon accounting software is an emerging trend shaping the market growth. SaaS-based carbon accounting software allows organizations to scale their usage based on their needs. This scalability is particularly beneficial for businesses of varying sizes, from small and medium enterprises (SMEs) to large corporations, adapting to changing requirements and workloads. Cloud-based SaaS solutions provide accessibility from anywhere with an internet connection. This enables remote access, facilitating collaboration among teams and stakeholders involved in carbon accounting and sustainability reporting, regardless of geographic location.
Moreover, SaaS solutions eliminate the need for organizations to invest in and maintain extensive IT infrastructure. This is particularly beneficial for businesses that prefer to focus on their core operations without the burden of managing complex IT environments. Thus, the increasing demand for SaaS-based carbon accounting software will enhance the growth of the market in focus during the forecast period.
Lack of awareness in adopting low-carbon emission infrastructure is a significant challenge hindering market growth. Lack of awareness in adopting low-carbon emission infrastructure is one of the major challenges in the carbon accounting software market. Recent technological advances and the subsequent decline in the prices of electronic devices such as smartphones, smartwatches, and others encourage customers to buy new products frequently. This has led to a reduction in the shelf life/lifecycle of these products. Thus, there is an increased accumulation of electronic waste, which is not only unsafe but also contributes to waste generation and pollution.
Moreover, the lack of awareness about the negative effects of the improper disposal of electronic products and electronic waste is expected to reduce the demand for carbon accounting software. This overall lack of awareness is expected to restrict the growth of the market during the forecast period.
The market share growth by the industrial engineering segment will be significant during the forecast period. Carbon accounting software helps telecommunications companies monitor and analyze their energy consumption, including the energy used in data centres, network infrastructure, and office facilities. This includes electricity consumption, which is a significant contributor to carbon emissions.
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The industrial engineering segment was the largest and was valued at USD 810.00 million in 2018. Further, telecom companies have deployed carbon accounting software in order to monitor their carbon emissions and reduce their operational costs. In the telecom sector, components that are responsible for carbon emissions include antennas, feeders, cables, and other transmission equipment. Moreover, passive components, such as telecom towers, sites, and others, are also responsible for carbon emissions. Telecommunications companies use carbon accounting software to support eco-design initiatives, enabling the development of more energy-efficient products and services. This contributes to reducing the overall carbon impact of the telecommunication industry offerings. Such factors are expected to drive the growth of the telecommunication segment of the carbon accounting software market during the forecast period.
Cloud-based carbon accounting software allows organizations to scale their usage based on their needs. They can easily add or remove users, adjust storage capacity, and access new features or modules as required in the cloud-based carbon accounting software. This scalability enables organizations to adapt their carbon accounting software to changing business requirements and accommodate growth. Further, organizations in industries such as oil and gas, telecommunication, retail, and transportation are leveraging cloud-based deployment to access robust, scalable, and cost-effective carbon accounting software that helps them measure, manage, and reduce their carbon emissions effectively. Such factors are expected to drive the growth of the cloud-based segment and boost the growth of the market during the forecast period.
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North America is estimated to contribute 36% 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 carbon accounting software market has witnessed steady growth over the past five years in North America. Concerns among corporations regarding increasing CO2 emission levels are driving the growth of the carbon accounting software market in the region. In the US, small and medium-sized businesses are receiving some help from the US Department of Energy. In March 2021, the Department of Energy announced that up to USD 52.5 million would be provided to its Industrial Assessment Centers (IAC), which would help smaller American manufacturers improve their efficiency, save money, and reduce their carbon footprint.
Furthermore, In Canada, the Air Quality Management System (AQMS) continuously monitors emission levels and also provides a framework to protect human health as well as the environment from harmful air pollutants, such as carbon emissions. Hence, these factors are expected to increase the demand for carbon accounting software during the forecast. Thereby, it is expected to result in the growth of the regional carbon accounting software market during the forecast period.
The Carbon Accounting Software Market 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 growth strategies.
Global Carbon Accounting Software 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.
3E Net Zero Group Pty Ltd - The company offers carbon accounting software such as CarbonetiX Software.
Benchmark Digital Partners LLC - The company offers carbon accounting software such as CarbonRight.
BraveGen - The company offers carbon accounting software such as BraveGen ECA software.
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 carbon accounting software market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028
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Carbon Accounting Software Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 29.27% |
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Market Growth 2024-2028 |
USD 16,550 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
27.35 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 36% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
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., and Wolters Kluwer NV |
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Market dynamics |
Parent market analysis, 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 the forecast period. |
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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 End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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