Carbon Management Software Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, Germany, Canada, UK, France, China, Japan, Australia, South Korea, India - Size and Forecast 2024-2028

Carbon Management Software Market Size 2024-2028

The carbon management software market size is forecast to increase by USD 11.94 billion, at a CAGR of 15.79% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing number of new launches and solutions in this space. Companies are actively investing in developing innovative technologies to help businesses effectively measure, monitor, and report their carbon emissions. Additionally, this software market is witnessing an uptick in mergers and acquisitions as larger players seek to expand their offerings and enhance their capabilities. However, a challenge persists in the form of a lack of adequate training and awareness among businesses regarding the use of carbon management software. This hinders the widespread adoption of these solutions and presents an opportunity for companies to provide educational resources and support to their clients. In summary, the market is poised for growth, with key trends including new product launches, mergers and acquisitions, and a need for increased education and support.

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Market Segmentation

The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Solution Outlook
  • Software
  • Services

• End-user Outlook
  • Large enterprises
  • SMEs

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

By Solution Insights

The Software segment is estimated to witness significant growth during the forecast period. Carbon management software plays a pivotal role in helping organizations calculate, track, and manage their carbon footprints and greenhouse gas emissions. With increasing environmental regulations, there is a growing need for advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) to aid in carbon management. IoT integration enables real-time monitoring and data collection from various sources, enhancing the efficiency of carbon management processes. Industry applications include IT and telecom, energy, transportation, government sector, and renewable energy, among others.

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The Software segment accounted for USD 5.71 billion in 2018. Carbon management software offers customized solutions to help organizations meet their sustainability goals, regulatory requirements, and environmental stewardship objectives. The software solutions encompass carbon footprint calculation, emissions tracking, sustainability performance management, carbon capture, net zero emissions, carbon offset, and decarbonization planning. Energy and power industries utilize carbon management software to optimize energy usage, reduce emissions, and comply with climate change regulations. In the transportation sector, carbon management software helps monitor fuel consumption and emissions, enabling companies to implement carbon reduction strategies. The software also supports air quality management, ensuring compliance with environmental standards and improving public image. Software companies provide user-friendly interfaces, data analysis, and advanced technologies to facilitate data-driven decision-making. By leveraging carbon management software, organizations can streamline their operations, reduce costs, and enhance their commitment to corporate sustainability.

Regional Analysis

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APAC is estimated to contribute 35% to the growth of the global market during the market forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Carbon management software plays a crucial role in addressing industrialization's environmental impact by facilitating carbon accounting and emissions reporting. With the rising national climate change initiatives and growing environmental awareness, sustainable development strategies prioritize carbon neutrality. Advanced grid management systems enable carbon footprint monitoring, particularly in heavy industries, contributing to the energy transition. The Carbon Matchmaker Tool and emission reduction strategies foster a low carbon economy. ESG reporting and carbon pricing mechanisms, including carbon taxes and carbon pricing, encourage businesses to adopt carbon management systems. Industrial gases, such as liquefied natural gas, and manufacturing hubs are significant contributors to carbon emissions. Real-time data, cloud deployment, data security, and renewable energy sources are essential features of carbon management software. Eco-friendly products and supply chain emissions also require monitoring and reduction. Carbon mitigation projects and public awareness campaigns further promote the adoption of carbon management systems.

Market Dynamics

Carbon management software plays a crucial role in helping organizations measure, monitor, and reduce their carbon footprints in alignment with sustainability goals and regulatory requirements. This software utilizes advanced technologies such as Artificial Intelligence, Machine Learning, and the Internet of Things to provide customized solutions for various industry applications, including Energy and Transportation. The software enables carbon footprint calculation, emissions tracking, sustainability performance management, carbon capture, net zero emissions, carbon offsetting, and ESG reporting. It also facilitates carbon pricing and the implementation of emissions reduction strategies. Carbon management systems are essential for organizations to meet their environmental stewardship obligations and demonstrate transparency in their carbon management efforts. Additionally, public awareness of the importance of carbon management continues to grow, making eco-friendly products and supply chain emissions a critical focus area. Our researchers analyzed the data with 2023 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.

Key Market Driver

The growing launches of new carbon management software and solutions is notably driving market growth. Carbon management software solutions continue to evolve, with companies introducing innovative platforms and tools to help businesses and organizations effectively manage their carbon footprints and comply with environmental regulations. Artificial Intelligence (AI) and Machine Learning (ML) technologies are increasingly being integrated into these software solutions to enhance data accuracy and transparency. The Internet of Things (IoT) is also playing a significant role in carbon management, enabling real-time emissions tracking and advanced data analytics. Industry applications of carbon management software span various sectors, including energy, transportation, IT and telecom, government, and renewable energy. Customized solutions are being developed to address the unique needs of each industry, driving growth in these verticals. For instance, in the energy sector, Iconic Air launched CarbonOne, a unified platform for oil and gas enterprise carbon data management and reporting.

In the retail sector, Carbon Direct introduced a new SaaS-based end-to-end carbon management platform for measuring, reducing, and removing carbon dioxide (CO2) emissions. Schneider Electric's Zeigo software is another recent launch, designed to help businesses and enterprises set accurate and achievable decarbonization targets. The competitive landscape is becoming increasingly crowded, with frequent launches of carbon management software driving innovation and pushing companies to continuously improve their offerings. These solutions are essential for companies seeking to implement carbon reduction strategies, meet sustainability goals, and enhance their public image as environmentally responsible organizations. Additionally, regulatory requirements and the growing importance of environmental stewardship are further fueling the demand for advanced carbon management software and services. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

The increasing number of mergers and acquisitions among companies is the key trend in the market. The market is experiencing significant growth due to increasing environmental regulations and the growing importance of corporate sustainability. Carbon footprint calculation and emissions tracking are essential components of carbon management, which can be facilitated through advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML). The Internet of Things (IoT) is also playing a crucial role in carbon management by enabling real-time monitoring and data analysis. Industry applications, including energy, transportation, banking, IT and telecom, government sector, insurance services, and renewable energy, are adopting carbon management software solutions to meet sustainability goals, regulatory requirements, and improve environmental impact. Customized solutions are becoming increasingly popular, allowing organizations to address their unique carbon reduction strategies and decarbonization planning. Carbon management software solutions offer advanced features such as greenhouse gas management, air quality management, carbon capture, net zero emissions, and carbon offset. These solutions help organizations to effectively manage their carbon emissions, monitor their environmental performance, and enhance their public image.

Advanced technologies like AI, ML, and data analytics are being integrated into these software solutions to provide user-friendly interfaces, data analysis, and reporting capabilities. Major companies in the market are focusing on innovation and expansion through mergers and acquisitions (M&A). These activities enable companies to combine their technologies, expertise, and customer bases, resulting in more comprehensive and sophisticated carbon management solutions. Additionally, M and A help companies to quickly enter new markets or industry verticals, expanding their reach and customer base. Overall, the market is expected to continue its growth trajectory, driven by the increasing importance of sustainability initiatives and regulatory requirements. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

The lack of training to use carbon management software is the major challenge that affects the growth of the market. Carbon management software plays a crucial role in helping organizations measure, manage, and reduce their carbon footprints in alignment with environmental regulations and sustainability initiatives. Advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) are increasingly being integrated into these solutions to enhance data analysis capabilities. The Internet of Things (IoT) enables real-time monitoring and reporting of energy consumption and transportation emissions. Industry applications include IT and telecom, government sector, energy and power, renewable energy, and transportation. Carbon management software solutions offer customized services for calculating carbon emissions, tracking and reporting, and sustainability performance management. Advanced features include carbon capture, net zero emissions, carbon offset, and decarbonization planning.

Effective utilization of these software solutions necessitates proper training and ongoing support for users. Proper input of data, interpretation of reports, and leveraging features to drive carbon reduction strategies require expertise. Many organizations lack the in-house expertise to effectively implement and utilize these complex systems. Inadequate training can lead to inaccurate data input, misinterpretation of results, and inability to translate insights into actionable sustainability strategies. Therefore, user-friendly interfaces, data analysis, and advanced technologies are essential to ensure successful implementation and maximization of benefits. Carbon management software is a critical tool for organizations seeking to meet regulatory requirements, demonstrate environmental stewardship, and improve their public image. Hence, the above factors will impede the growth of the market during the forecast period.

Exclusive Customer Landscape

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

 Customer Landscape

Key Companies & Market Insights

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.

Carbon Direct Inc. - The company offers carbon management software solutions such as The Carbon Direct Platform-carbon management software.

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

• Carbon Direct Inc.
• CarbonetiX
• Cority Software Inc.
• Cozero GmbH
• Emex Software Ltd.
• ENGIE SA
• Iconic Air Inc.
• International Business Machines Corp.
• Microsoft Corp.
• Newco Emitwise Ltd
• North Star Carbon Management Inc
• Persefoni AI Inc.
• Sage Group Plc
• Salesforce Inc.
• SAP SE
• Schneider Electric SE
• Simble Solutions Ltd.
• Sphera Solutions Inc.
• Wolters Kluwer NV
• Workiva Inc.

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.

Market Analyst Overview

Carbon management software plays a crucial role in helping organizations measure, manage, and reduce their carbon footprints in alignment with environmental regulations. This software utilizes advanced technologies such as Artificial Intelligence and Machine Learning, along with the Internet of Things, to collect and analyze data related to carbon emissions and air quality management. Industry applications include Energy, Transportation, IT and telecom, Government sector, and Renewable Energy. Software solutions offer customized services for carbon emissions tracking, greenhouse gas management, sustainability initiatives, and decarbonization planning.

Further, these tools enable corporations to meet sustainability goals, ensure regulatory requirements, and promote environmental stewardship. User-friendly interfaces facilitate data analysis and advanced technologies like Data analytics provide insights for carbon reduction strategies. Carbon management software also includes features for carbon capture, net zero emissions, carbon offset, and climate change mitigation planning. By implementing these solutions, organizations can improve their sustainability performance management, enhance their corporate social responsibility, and bolster their public image.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• 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 growth of market companies

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