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.
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.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
The competition in the Market is rapidly intensifying, driven by growing environmental regulations and corporate sustainability goals. Established software providers focus on expanding features for tracking emissions, while new entrants offer innovative, user-friendly solutions. Strategic partnerships and integration with broader sustainability platforms fuel market rivalry.
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.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation are the forerunners in the Market. In March, 2024, Microsoft Corporation partnered with Green Project, a carbon emmision tracking solutions provider, to offer a carbon accounting platform for small and medium-sized businesses on Microsoft AppSource. Utilizing Microsoft Azure, the platform automates data collection and reporting, helping SMBs comply with ESG requirements and focus on decarbonization. Companies such as IBM Corporation SAP SE and Salesforce, Inc. are some of the key innovators in Market.
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.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
Driving and Restraining Factors
Drivers
- Growing corporate commitment to sustainability and carbon neutrality goals
- Rising consumer demand for environmentally responsible products
- Increasing carbon emission worldwide
Restraints
- High implementation costs of carbon accounting software
- Complexity of integration with existing systems
Opportunities
- Integration with renewable energy solutions
- Development of user-friendly mobile solutions
Challenges
- Complexity of emissions calculations
- Ensuring data accuracy and reliability issues
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.By Regional Analysis
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.Market Competition and Attributes
The competition in the Market is rapidly intensifying, driven by growing environmental regulations and corporate sustainability goals. Established software providers focus on expanding features for tracking emissions, while new entrants offer innovative, user-friendly solutions. Strategic partnerships and integration with broader sustainability platforms fuel market rivalry.
Recent Strategies Deployed in the Market
- Apr-2024: SINAI Technologies, Inc. entered a partnership with Novisto, an ESG solutions provider, to enhance ESG management and decarbonization efforts. This partnership combines Novisto’s ESG data management with SINAI’s expertise in actionable carbon insights, helping companies achieve net-zero goals and improve sustainability.
- Mar-2024: Persefoni released Persefoni Pro, a free, enterprise-grade carbon management tool, allowing businesses of all sizes to accurately calculate and share their carbon footprints without prior sustainability experience. This tool simplifies emissions reporting, enhances data accuracy, and supports compliance with global regulations, leveraging advanced AI technology.
- Jan-2024: Sphera Solutions, Inc. took over SupplyShift, a supply chain sustainablity solutions provider. The acquisition enhances Sphera's supply chain sustainability offerings.
- Sep-2023: IBM announced the integration of NLP-based text classification into its Envizi ESG Suite to enhance the efficiency and accuracy of capturing, categorizing, and analyzing Scope 3 GHG emissions. This new capability helps organizations streamline spend data management and emissions calculations, addressing the challenges of Scope 3 reporting for ESG disclosures.
- Sep-2023: SAP SE partnered with BT, a British telecommunications company, to pilot SAP Sustainability Data Exchange (SDX), enabling BT to collect and share standardized carbon data across its supply chain. This partnership aimed to enhance sustainability reporting, helping customers track Scope 3 emissions.
List of Key Companies Profiled
- IBM Corporation
- SAP SE
- Salesforce, Inc.
- Microsoft Corporation
- Persefoni AI Inc.
- Sphera Solutions, Inc.
- Offspend (Greenly)
- Diligent Corporation
- SINAI Technologies, Inc.
- Net0
Market Report Segmentation
By Deployment
- Cloud
- On-premises
By Enterprise Size
- Large Enterprises
- SMEs
By End-use
- Energy & Utilities
- IT & Telecom
- Transportation & Logistics
- Healthcare
- Retail
- Food & Beverages
- Construction & Infrastructure
- Chemicals
- Others
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Carbon Accounting Software Market by Deployment
Chapter 6. Global Carbon Accounting Software Market by Enterprise Size
Chapter 7. Global Carbon Accounting Software Market by End-use
Chapter 8. Global Carbon Accounting Software Market by Region
Chapter 9. Company Profiles
Companies Mentioned
- IBM Corporation
- SAP SE
- Salesforce, Inc.
- Microsoft Corporation
- Persefoni AI Inc.
- Sphera Solutions, Inc.
- Offspend (Greenly)
- Diligent Corporation
- SINAI Technologies, Inc.
- Net0
Methodology
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