Carbon Management System - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Carbon Management System Market size is estimated at USD 14.37 billion in 2024, and is expected to reach USD 25.42 billion by 2029, growing at a CAGR of 12.09% during the forecast period (2024-2029). The demand for carbon management systems is continuously increasing as a result of increasing stringency of climate change regulations, growing cost of carbon emission, and evolving technologies related to carbon management.

Key Highlights

• The introduction of carbon emtion of carbon emission policies is a key driver for the increasing demand for carbon management systems in the market globally. These policies create a favorable environment for adopting carbon management systems with emission reduction targets, carbon pricing and taxation, compliance, and regulatory requirements.
• The integration of advanced technologies with carbon management platforms enables real-time tracking of carbon emissions to take effective necessary prevention, driving the sales of carbon management systems in the market and is expected to continue over the forecast period as new technology evolves.
• In addition, with growing awareness among businesses about the importance of sustainability and corporate social responsibility, many organizations are setting targets for carbon reduction, aiming for carbon neutrality aligning with international climate commitment. In this way, companies' adoption of carbon management systems is increasing considerably to track progress and identify areas for development.
• The continuously evolving regulatory environment makes it difficult for businesses to compare different systems for implementation. Also, the technological change presenting challenges for carbon management systems providers to keep up with the latest technology trends are some factors challenging market growth.
• In order to preserve sustainability, market players are expanding their capacities and reach through partnerships and alliances in the area of carbon management. For instance, in November 2022, ExxonMobil and Mitsubishi Heavy Industries (MHI) formed an alliance to deploy MHI's leading CO2 capture technology as part of ExxonMobil's end-to-end carbon capture and storage (CCS) solution for industrial customers.
• Global environmental challenges, including climate change, have become more visible because of the COVID-19 pandemic. The demand for carbon management solutions has grown as organizations and governments focus on sustainability and reducing their environmental footprint. In addition, businesses have been adopting Digital solutions for the management of their environmental data and effective collaboration on sustainability initiatives, as remote work was the compulsion during the Pandemic.

Carbon Management System Market Trends

Oil and Gas Sector to Witness the Growth

• The Oil and Gas industry is expected to contribute significantly to market growth. As one of the largest and most carbon-intensive industries worldwide, the oil and gas sector is facing increased pressure to reduce its carbon footprint and transition towards a more sustainable journey.
• Furthermore, the growing number of oil and gas wells and rigs will likely support market growth. According to weekly data by Baker Hughes, in 2022, drilling for both oil- and natural gas-directed wells has increased in the United States. The number of natural gas-directed rigs reached 160 at the end of September, with an increase of 53, and oil-directed rigs reached 602, with a rise of 481 this year. With a growing number of rigs, oil and gas companies are expected to adopt reliable carbon management systems to monitor and report their carbon emission with regulatory compliance creating demand in the market.
• Digital technologies could benefit Scope 1 and 2 emissions as oil firms set more challenging targets for emissions reduction. Tracking harmful methane emissions from oil wells and pipelines is crucial, and machine learning helps refine energy use more efficiently. Drones, sensors, satellite, and camera data are also vital.
• Several companies are working on mitigating the carbon dioxide emissions of industrial operations and accelerating the transition to net zero. For instance, AVEVA is working closely with Aker Carbon Capture, that designs and builds facilities for companies in carbon-intensive industries, such as cement, steel, and oil and gas.
• Due to growing investor demand to reduce greenhouse gas emissions, more digital companies are releasing software that oil and gas producers may use to assess their carbon emissions. In March 2022, Schlumberger launched Schlumberger End-to-end Emissions Solutions (SEES). The company offers comprehensive services and leading-edge technologies designed to give operators a robust and scalable solution for oil and gas industries to measure, monitor, report, and eliminate methane and routine flare emissions from their operations.

North America Accounts For Largest Market Share

• The launching of several Carbon Management Programme in North America represents region’s significant step toward making Airport Carbon Accreditation the global standard for airport carbon management. At the ceremony for the initiative's launch, Seattle-Tacoma International Airport received certification for the first time in North America.
• Several initiatives by the government regarding net-zero emissions are anticipated to fuel demand in the market. In response to government’s goal of net-zero emissions by 2050 the Department of Energy (DOE) in the United States launched Carbon Negative Shot, an all-hands-on-deck call for innovation in CO2 removal pathways that will capture carbon dioxide from the atmosphere and store it at gigaton scales for less than USD 100/net tonne of carbon dioxide-equivalent.
• The market demand is also increasing due to government measures to reduce energy emissions from several outdated public buildings. For instance, the 50 most energy-intensive buildings owned by the state and federal governments will have efficient and smart building technology installed thanks to a contract signed by the US General Services Administration with IBM Corporation.
• According to the Energy Information Administration (EIA), in 2022 industrial sector released 1,393 million metric tons of carbon dioxide into the atmosphere which was 1,383 million metric tons of carbon dioxide in 2021. The government focus on reducing carbon emission generated due to energy sector are likely to support the market demand positively in the coming years.

Carbon Management System Industry Overview

The Carbon Management System Market is fragmented as many players in the market are offering software for management and monitoring. This surge in numbers is being caused by greater uptake of cloud services. While businesses that offer consultation services grow steadily and exhibit a similar pattern during the forecasted period.

• November 2022 - AiDash, that offers satellite and AI-powered operations, maintenance, and sustainability solutions launched innovation in carbon measurement and management, which would help organizations to unlock the intact environmental value of corporate land holdings and lessen the risks of intensifying carbon credit pricing.
• June 2022 – Honeywell International Inc. launched an energy-management-as-a-service offering globally that allows companies to fully account for carbon emissions down to a device level. As part of the Honeywell Forge platform for data, analytics, and Internet of Things (IoT) capabilities, the carbon and energy management solutions are a cloud-based service to help building owners optimise energy use and carbon emissions (Scope 1 and 2), and ultimately, achieve sustainability throughout the enterprise.
• June 2022 - Alibaba Cloud announced the launch of Energy Expert on a global scale. This sustainability platform was created to help users measure, analyze, and control the carbon emissions generated by their products and company operations. Additionally, the software-as-a-service options give clients useful information and suggestions for conserving energy to speed up their sustainability journeys.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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