PUBLISHER: KBV Research | PRODUCT CODE: 1555849
PUBLISHER: KBV Research | PRODUCT CODE: 1555849
The Global Carbon Accounting Software Market size is expected to reach $74.4 billion by 2031, rising at a market growth of 21.8% CAGR during the forecast period.
The European Green Deal is an extensive plan to make Europe the first climate-neutral region by 2050. This ambitious goal requires accurate tracking and reducing carbon emissions across all sectors. This software is essential for businesses to comply with these regulations and achieve sustainability targets. Consequently, the European region would acquire nearly 30% of the total market share by 2031.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, in July, 2024, Persefoni AI Inc. partnered with AuditBoard, a compliance and risk management solutions provider, to integrate carbon accounting into ESG management. This collaboration combines Persefoni's carbon accounting expertise with AuditBoard's connected risk platform to provide a unified, audit-ready ESG data solution. Moreover, in June, 2024, Persefoni AI Inc. signed a partnership with First Street, a climate risk data solutions provider, to integrate advanced physical climate risk data into Persefoni's platform, enhancing enterprises' ability to report on physical risk for regulatory compliance.
Market Growth Factors
Many companies are prioritizing sustainability as part of their CSR initiatives. Carbon neutrality is a major goal for these companies to enhance their environmental credentials and meet stakeholder expectations. Similarly, Unilever aims to become carbon neutral in its operations by 2030 and is working towards a climate-positive goal by reducing emissions and supporting environmental regeneration. In conclusion, increased regulatory requirements and standards for carbon emissions reporting are driving the market's growth.
Consumers are becoming more aware of environmental issues and are increasingly prioritizing sustainability in their purchasing decisions. Companies demonstrating their commitment to sustainability and environmental responsibility gain a competitive edge in the market. In conclusion, rising consumer demand for environmentally responsible products drives the market's growth.
Market Restraining Factors
The upfront costs of purchasing and deploying this software can be substantial. This includes not only the cost of the software itself but also expenses related to installation, customization, and integration with existing systems. This software often requires customization to meet the specific needs of different sectors and organizations. In conclusion, the high implementation costs of this software are impeding the market's growth.
Deployment Outlook
Based on deployment, the market is divided into cloud and on-premises. The on-premises segment held 25% revenue share in the market in 2023. On-premises solutions provide organizations with complete control over their data security. For industries dealing with sensitive or proprietary information, the ability to maintain data within their IT infrastructure can offer a higher level of security and privacy.
Enterprise Size Outlook
On the basis of enterprise size, the market is segmented into large enterprises and SMEs. In 2023, the SMEs segment attained 31% revenue share in the market. SMEs are becoming more aware of their environmental impact and the importance of sustainability. As consumers and business partners emphasize environmental responsibility more, SMEs are motivated to adopt carbon accounting practices to demonstrate their commitment to sustainability.
End-use Outlook
By end-use, the market is divided into energy & utilities, IT & telecom, healthcare, transportation & logistics, retail, construction & infrastructure, food & beverages, chemicals, and others. The food & beverages segment held 16% revenue share in the market in 2023. The food and beverage sector has intricate supply chains that contribute to overall carbon emissions. This software helps manage and track emissions across the supply chain, ensuring comprehensive carbon management.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed a 41% revenue share in the market in 2023. The U.S. and Canada have implemented carbon pricing mechanisms, such as carbon taxes and cap-and-trade systems. These policies create a financial incentive for businesses to monitor and reduce their carbon emissions.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global Carbon Accounting Software Market Report Segmentation
By Deployment
By Enterprise Size
By End-use
By Geography