Enjoy complimentary customisation on priority with our Enterprise License!
The ESG reporting software market size is estimated to grow at a CAGR of 15.9% between 2022 and 2027. The market size is forecast to increase by USD 765.45 million. The growth of the market depends on several factors, including the steady growth in corporate data volumes, the shift toward green initiatives, and the increasing demand for ESG reporting software across enterprises. ESG reporting software is defined as a comprehensive solution that includes many modules used for EHS (environment, health, and safety), risk management, regulatory compliance, and sustainability management. ESG reporting software is often used for sustainable, financial, and investment recommendations. Investors are majorly focusing on investments and transparency connected to ESG.
This ESG reporting software market report extensively covers market segmentation by deployment (on-premises and cloud-based), end-user (large enterprises and SMEs), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
The steady growth in corporate data volumes is driving market growth. Digitization offers many advantages for companies such as efficient resource planning, data-driven decision-making, innovations in products and services, and cost reduction. Moreover, there is a data boom in various industries due to the increased usage of mobile, social, and other online communication methods increasing data regarding customers, operations, suppliers, and other stakeholders. Monetization of this data will allow companies to make more informed decisions and allocate resources more efficiently.
Furthermore, this increased data necessitates storage at a low cost which often results in the adoption of a cost-effective cloud-based information management infrastructure. Minimal IT infrastructure support, rapid and predictable implementation, automatic and seamless upgrades, and the ease of leveraging cloud-based data are some of the reasons it is preferred. Hence the need to store massive volumes of data on servers at low costs and reduce corporate risks will drive the growth of the market during the forecast period.
The emergence of analytics in ESG reporting software is a key trend in the market. Companies are increasingly adopting new techniques and technologies to reduce energy costs and comply with regulations regarding energy efficiency. Governments globally are increasing their targets for energy standards and emission limits. The usage of big data and analytics technologies is helping energy sector organizations reduce their total operating expenditure by using predictive modeling techniques that are based on real-time data. Due to such benefits, analytics spending has increased in numerous industries like banking, financial and insurance, healthcare, and E&U.
Furthermore, in the solar industry, energy analytics using machine learning and predictive analytics technologies is especially gaining traction. Effective and smart energy management systems (EMS) integrate predictive analytics with IoT. Automation has helped in increasing the operational efficiency of smart grid initiatives. Real-time analytics also enhances the functions such as building-energy management, energy production, weather forecasting, and predictive maintenance of EMS. Additionally, the optimal warranty period and cost of the equipment can be determined by predictive analytics. Hence such factors will boost the growth of the market during the forecast period.
High initial capital investments are challenging market growth. The integration of EHS infrastructure into existing software will make companies incur significant costs. Costs associated such as the large initial cost can make adoption for SMEs very challenging, resulting in limited scope for adoption. This poses a serious challenge to the integration of environmental, sustainability, and governance (ESG) reporting software with the ERP systems of enterprises.
Despite the immense benefits of implementing EHS infrastructure at almost every operational stage, there exists another challenge for effective deployment besides high costs. There is a possibility that the existing IT infrastructure of a company may not support the ESG reporting software being deployed. Hence such challenges might affect the adoption of ESG reporting software and services and thereby hinder market growth during the forecast period.
The market share growth by the on-premises segment will be significant during the forecast period. On-premises-based ESG reporting software is preferred as they reduce energy costs by 80%-85% while also offering high system security and data and system control. With on-premises software, organizations have complete control over maintenance and updates. It is usually provided as a standard and enterprise plan wherein only one user can access the plan. Increasing investment in the energy and utilities (E&U) industry and the presence of numerous vendors such as Cority Software Inc. and Intelex Technologies Inc are also boosting market growth. In fact, global energy investments rose by 10% in 2021 compared with 2020, as per International Energy Agency (IEA) statistics.
Get a glance at the market contribution of various segments View Free PDF Sample
The on-premises segment showed a gradual increase in the market share of USD 251.06 million in 2017 and continued to grow by 2021. Increasingly stringent government regulations and initiatives to improve ESG are responsible for boosting the market. The European Union mandated fund managers who market ESG reporting software to demonstrate how they satisfy particular standards in March 2021. The EUs Green Deal initiatives target stimulation of investment by forcing ESG products to disclose the impact of their products on climate change. Additionally, in APAC, China is targeting to become carbon-neutral by 2060 and according to its 14th Five-Year Plan (2021-2025), it aims to reduce its energy intensity by 13.5% and carbon emissions by 18%. Hence such factors will increase the growth of this segment during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 41% 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. In North America, the US is the largest market due to the large-scale implementation of environmental, sustainability, and governance (ESG) reporting software to minimize environmental hazards. In the US, the presence of regulatory agencies such as the Occupational Safety and Health Administration (OSHA) which promote workplace safety standards have compelled numerous industries like E&U, chemicals, and materials, to adopt ESG reporting software. This helped eliminate occupational hazards.
Moreover, there are several technological advancements to guide compliance with regulations and acts such as the Clean Air Act in the US. These have resulted in reduced industrial emissions and promoted the adoption of sustainability management and environmental, sustainability, and governance (ESG) reporting software. Moreover, the Environmental Protection Agency (EPA) in the US aims at improving air quality by setting targets for air pollutant emission levels. Additionally, in Canada, the Air Quality Management System (AQMS) targets emission reduction as per the Canadian Ambient Air Quality Standards (CAAQS). Hence such factors will boost regional market growth during the forecast period.
The COVID-19 outbreak negatively impacted the regional ESG reporting software market due to the ceasing of operations of various end-use industries like power, oil and gas, chemical, and others. However, stimulus packages such as by the US government which announced a USD 1.9 trillion stimulus package proposal in January 2021 to jump-start the economy helped demand to recover. Moreover, the implementation of large-scale vaccination drives resulted in the easing of operations and resumption of businesses which is predicted to further fuel market growth during the forecast period.
The ESG Reporting 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 ESG Reporting 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.
Benchmark Digital Partners LLC - The company offers ESG reporting software such as ESG Compass, which helps companies measure, manage, and report on their ESG performance.
Brightest Inc. - The company offers ESG reporting software such as Brightest ESG, which helps companies measure and report on their ESG performance using a cloud-based platform.
ESG Enterprise - The company offers ESG reporting software such as ESG Enterprise, which helps companies measure, manage, and report on their ESG performance.
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 ESG reporting 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 2017 to 2027.
ESG Reporting Software Market Scope |
|
Report Coverage |
Details |
Page number |
147 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.9% |
Market growth 2023-2027 |
USD 765.45 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.6 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 41% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Benchmark Digital Partners LLC, Brightest Inc., Diginex Solutions HK Ltd., Diligent Corp., DNV Group AS, ESG Enterprise, Global Software LLC, Intelex Technologies ULC, International Business Machines Corp., Metrix Software Solutions Pty Ltd., Morningstar Inc., Nasdaq Inc., Newgen Software Technologies Ltd., PricewaterhouseCoopers LLP, Salesforce Inc., Sustain.Life Inc., UL Solutions Inc., Updapt CSR Private Ltd., Wolters Kluwer NV, and Workiva Inc. |
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, and Market condition analysis for the forecast period. |
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 Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.