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The investor ESG software market size is projected to increase by USD 859.6 million at a CAGR of 15.7% between 2023 and 2028. The growth of the market depends on several factors, including steady growth in corporate data volumes, a shift toward green initiatives, and increased demand across enterprises. is becoming increasingly important in investment decisions and portfolio management techniques. ESG performance and engagement are factored into investors' long-term investment decisions and portfolio management techniques. ESG software is a multi-module system used for EHS, risk management, regulatory compliance, and sustainability management.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about key companies, including Anthesis Consulting Group, Conservice, Cority Software Inc., Diginex, Diligent Corp., Dynamo Software Inc., Emex Software Ltd., Fincite GmbH, Fortive Corp., International Business Machines Corp., Locus Technologies, Metrix Software Solutions Pty Ltd., Nasdaq Inc., Novisto Inc., PricewaterhouseCoopers LLP, Refinitiv, Sphera Solutions Inc., Vervantis Inc., Wolters Kluwer NV, and Workiva Inc. Additionally, Diligent Corp. offers namely Diginex ESG an intuitive and exceptional software tool to work with clients on their ESG requirements.
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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.
Emex Software Ltd.: The company offers ESG Software for implementing, facilitating, and measuring responsible investing programs.
Market analysis and report of 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 market share growth by the software segment will be significant during the forecast period. Software solutions make it easier to collect, analyze, and publish ESG measurement data as sustainability and responsible investing grow in popularity. By helping investors evaluate companies' ESG performance, smarter investment decisions that adhere to ethical and environmental standards are made possible.
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The software segment showed a gradual increase in the market share of USD 306.50 million in 2018. The software industry offers the most advanced ESG software, including data collection and integration, predictive analytics, and visualization. The software market continues to grow, becoming an important channel for integrating ESG concerns into investment strategies across the globe as the rules and investor requirements for ESG transparency grow. This will drive the growth of the investor environmental, social, and governance (ESG) software market during the forecast period.
The growth of the on-premises ESG investor software segment is expected to outpace the cloud-based ESG investor software segment during the forecast period. The Energy and Utilities (E&U) industry is one of the key end users of ESG software and services. Furthermore, China is one of the top investment destinations for smart grid solutions. China is expected to reduce energy intensity by 13.5% (ratio of total annual energy consumption to annual GDP) and reduce carbon emissions by 18% between 2012 and 2022 under the new five-year plan. announced in March 2021. Therefore, end-users operating in the E&U industry are subject to such standards, which will boost the demand for various services and software during the forecast period.
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North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
The US is the leading country in implementing these software and services for investors. Due to the increasing attention of governments toward good workplace health and safety practices in the region, the regional market has gained tremendous popularity and prominence in various industries including E&U, as well as chemicals and materials.
Moreover, factors such as the presence of a strong economy, the enforcement of the Clean Air Act, clean air technology advances, and the presence of several industrial clean air technology companies make North America the leading regional segment for these software for marketplace investors. The significant reduction in industrial emissions can also be attributed to the country's strict regulations aimed at reducing industrial emissions, which will also increase the need for sustainability management and software for investors during the forecast period.
The market is experiencing significant growth driven by increasing emphasis on sustainability programs and diversity in response to regulatory requirements and investor pressure. Both large enterprise software firms and startups are actively participating in this space, with prominent players like Sustainalytics and MSCI offering solutions for on-premises deployment as well as cloud deployment. These platforms enable large enterprises to effectively manage their environmental impact, adhere to ethical practices, and fulfill social responsibilities in line with stakeholder demand and their commitment to sustainability. Particularly in the finance sector, where Morningstar Sustainalytics provides valuable insights, investor ESG software facilitates informed decision-making and fosters sustainable investment practices. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The shift toward green initiatives has been a major driver of the significant growth of the global market. Investors are starting to put more emphasis on ESG considerations in their decision-making due to a growing awareness of concerns including corporate governance, social challenges, and climate change. The demand has been further strengthened as governments and regulators across the globe have introduced rules to encourage companies to adopt sustainable practices.
Furthermore, prominent examples, such as the Paris Agreement, have highlighted the importance of environmental stewardship and encouraged investors to seek in-depth ESG data and analysis. Major asset management firms, such as BlackRock and Vanguard, have incorporated ESG criteria into their investment strategies, setting outstanding examples for other institutional investors. Hence, these factors will drive the market growth during the forecast period.
Regulatory and reporting compliance is the primary trend in the global market. Enterprises are looking for ESG reporting software to help them to manage reporting challenges across a variety of frameworks and standards, such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD) as sustainability becomes more crucial in investment decisions. By streamlining data collection, analysis, and reporting, these software solutions ensure the accuracy and transparency of ESG information.
For example, a global company can track TCFD requirements by using this software to track and report on its carbon footprint across multiple facilities. Investor demand for comprehensive data to make informed decisions is driving this trend and encouraging a sustainable approach to corporate governance and investment. Due to these factors, the market is expected to grow significantly during the forecast period.
High initial capital investments is a challenge that affects the growth of the market. Replacing existing infrastructure with EHS infrastructure is costly. SMEs and industries face a significant challenge in adopting such infrastructure due to high upfront costs that limit market growth. As a result, the substantial capital required for infrastructure investments in EHS solutions has limited the growth of the market for investors.
Furthermore, the difficulty in integrating this software with corporate ERP systems is another important investor market challenge. The integration is quite challenging because the company's IT infrastructure may not support the investor software that the company deploys. This challenge is therefore likely to affect the adoption of these software and services and thus impede the growth of the global market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, 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 and trends strategies.
Global Market Customer Landscape
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
ESG Reporting Software Market: ESG Reporting Software Market by Deployment, End-user and Geography - Forecast and Analysis
Carbon Accounting Software Market: Carbon Accounting Software Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast
Impact Investing Market: Impact Investing Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, Germany, UK - Size and Forecast
The market caters to diverse industries across various verticals such as IT and ITeS, Manufacturing, Retail and consumer goods, and Healthcare and life sciences. With a growing focus on addressing climate change and promoting sustainability, organizations are increasingly adopting solutions for sustainability reporting, ESG data management, and ESG risk management. Leveraging cloudbased deployment, these platforms facilitate ethical and sustainable investments by enabling real-time tracking of sustainability metrics and ESG activities.
In addition, from the energy sector to technology companies, entities are embracing sustainability practices to enhance resource management and navigate economic uncertainties while ensuring cost efficiency and return on investment. As ESG regulations evolve and industry standards emerge, investor ESG software becomes pivotal in supporting stakeholder engagement and driving environmental performance through comprehensive data analytics and reporting capabilities with user-friendly interfaces.
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Market Scope |
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Report Coverage |
Details |
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Page number |
164 |
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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 15.7% |
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Market growth 2024-2028 |
USD 859.6 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
13.76 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 41% |
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Key countries |
US, China, Germany, UK, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Anthesis Consulting Group, Conservice, Cority Software Inc., Diginex, Diligent Corp., Dynamo Software Inc., Emex Software Ltd., Fincite GmbH, Fortive Corp., International Business Machines Corp., Locus Technologies, Metrix Software Solutions Pty Ltd., Nasdaq Inc., Novisto Inc., PricewaterhouseCoopers LLP, Refinitiv, Sphera Solutions Inc., Vervantis Inc., Wolters Kluwer NV, and Workiva Inc. |
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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 forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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