Sustainability and Energy Management Software Market Report 2025

The sustainability and energy management software market size has grown rapidly in recent years. It will grow from $1.5 billion in 2024 to $1.69 billion in 2025 at a compound annual growth rate (CAGR) of 12.6%. The growth in the historic period can be attributed to corporate sustainability initiatives, regulatory compliance requirements, energy cost savings, growing awareness of climate change.

The sustainability and energy management software market size is expected to see rapid growth in the next few years. It will grow to $2.82 billion in 2029 at a compound annual growth rate (CAGR) of 13.6%. The growth in the forecast period can be attributed to demand for transparency and reporting, increasing investor and consumer focus on sustainability, supply chain sustainability management, evolving ESG (environmental, social, and governance) standards. Major trends in the forecast period include decision-making through data analytics, transparency and stakeholder communication, sustainability in supply chains, renewable energy integration, digitalization and IoT integration.

The rise in investments in environmental, health & safety (EH&S) and sustainability software is a significant driver for the growth of the sustainability and energy management software market in the future. Energy management software helps in reducing energy costs and consumption while maximizing energy efficiency and sustainability. It can assist in cost reduction, lower carbon footprints, and enhance energy quality. For example, in February 2022, ArcelorMittal, a steel manufacturing company based in Luxembourg, announced a $1.8 billion investment plan for its French steelmaking operations in Fos-sur-Mer and Dunkirk by 2030, supported by the French government while maintaining equivalent production capacities. This investment aims to transform steel production in France significantly, leading to an approximate 40% reduction in ArcelorMittal's CO2 emissions in France, equivalent to 7.8 million tons per year, by 2030. This shift will contribute to a 10% decrease in greenhouse gas emissions from the manufacturing sector in France. Therefore, the growing investment in environmental, health and safety, and sustainability software will propel the sustainability and energy management software market forward.

The rise in government initiatives aimed at enhancing energy efficiency is anticipated to drive the growth of the sustainability and energy management software market in the future. Government initiatives are programs or projects implemented by governments to tackle social, economic, or environmental challenges. Various incentives are being utilized by governments to promote the adoption of sustainability and energy management software. Furthermore, financial incentives, penalties, and global harmonization efforts are contributing to the heightened demand for sustainability and energy management software to comply with evolving regulatory standards. For instance, in August 2023, the UK government’s official website reported that in 2021, it launched the Net Zero Innovation Portfolio (NZIP), a $1.37 billion (£1 billion) fund aimed at accelerating the commercialization of innovative technologies and processes. This initiative seeks to advance decarbonization in the UK and support its commitment to achieving net-zero emissions by 2050. Therefore, the growing government initiatives for energy efficiency are propelling the growth of the sustainability and energy management software market.

Major companies in the sustainability and energy management software market are creating advanced energy storage software platforms to achieve a competitive advantage. Energy storage software platforms consist of tools and systems designed to manage and control energy storage systems. These platforms enable users to monitor and analyze data in real time, facilitating improved performance of energy storage and its integration with renewable energy sources and the power grid. For example, in September 2023, FlexGen Power Systems Inc., a US-based energy storage technology company, launched HybridOS 11, the latest iteration of its energy management software platform. HybridOS 11 incorporates advanced features aimed at enhancing user experience, ensuring system stability, and providing greater control over site operations for energy storage asset owners and operators. Notable features include an Enhanced User Interface with a Dark Mode option, Scheduler Mode Upgrade for improved event scheduling, Constant Power Factor and Reactive Power POI Limits for comprehensive control, and a Performance Index that provides a quick overview of site operations. Additionally, the platform introduces a Digital Twin, a cloud-based simulation utilizing machine learning to predict expected site performance.

Leading companies in the sustainability and energy management software market are developing innovative solutions, such as energy management systems, to secure a competitive edge. An energy management system (EMS) is a combination of hardware and software that allows businesses and organizations to monitor, control, and optimize their energy consumption. For instance, in November 2022, ABB Ltd., a Switzerland-based automation firm, launched ABB Ability OPTIMAX, an energy management system tailored for the green hydrogen industry. This software aims to lower the production costs of green hydrogen by providing real-time insights into energy consumption throughout operations. Since green hydrogen production via electrolysis is energy-intensive, ABB's OPTIMAX addresses this challenge by offering a comprehensive solution that encompasses the entire lifecycle of a hydrogen plant. The software measures power flows and carbon dioxide emissions, allowing operators to optimize energy consumption levels and enhance the efficiency and safety of electrolyzer modules.

In August 2022, EnergyCAP, a software company based in the US, acquired Wattics for an undisclosed sum. This acquisition enhances EnergyCAP's platform capabilities by integrating advanced energy management analytics solutions that provide actionable insights through building- and device-level interval data analytics and dashboards, assisting customers in achieving net-zero carbon emissions. Wattics is an enterprise energy management software company located in Ireland.

Major companies operating in the sustainability and energy management software market are Accuvio lnc., Ecova Inc., Enablon North America Corp., Envizi Pty Ltd., Figbytes Inc., Gensuite LLC, International Business Machines Corporation, ICONICS Inc., SAP SE, Schneider Electric SE, UL EHS Sustainability, LogicLadder Technologies Pvt.Ltd., Urjanet Energy Solutions Pvt Ltd, Verisae, Thinkstep, Siemens AG, Johnson Controls International PLC, Honeywell International Inc., Eaton Corporation PLC, General Electric Company, Rockwell Automation Inc., Emerson Electric Co., OSIsoft LLC, Yokogawa Electric Corporation, Mitsubishi Electric Corporation, IntegrityNext, EHS Insight, VelocityEHS.

North America was the largest region in the sustainability and energy management software market in 2024. The regions covered in the sustainability and energy management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the sustainability and energy management software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Sustainability and energy management software represent digital solutions designed to automate tasks related to monitoring energy consumption and sustainability practices within an organization. These systems encompass databases containing crucial information regarding finances, energy usage, resources, and other essential metrics. They aid businesses in monitoring, analyzing, and regulating various operational activities.

The primary types of sustainability and energy management software include cloud-based and on-premise solutions. Cloud-based software operates on servers accessible via the internet, facilitating connections between specific controllers and linked sensors, such as digital power meters, enabling efficient energy-saving controls. These systems consist of different modules, including utility data management, carbon reporting and management, sustainability reporting and management, energy optimization, facility and asset management, and compliance management. They find application across industries such as automotive, construction, manufacturing, oil and gas, pharmaceuticals, utilities, and the energy sector.

The sustainability and energy management software market research report is one of a series of new reports that provides sustainability and energy management software market statistics, including sustainability and energy management software industry global market size, regional shares, competitors with a sustainability and energy management software market share, detailed sustainability and energy management software market segments, market trends and opportunities, and any further data you may need to thrive in the sustainability and energy management software industry. This sustainability and energy management software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The sustainable energy management software market consists of revenues earned by entities by providing management service through automated data analysis, energy management, and reporting. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.