What Has Been the Growth of the Carbon Accounting Software Market So Far?
The carbon accounting software market has seen considerable growth due to a variety of factors.
• The market size of carbon accounting software has seen a massive expansion in recent periods. An anticipated growth from $18.56 billion in 2024 to $22.77 billion in 2025, with a compound annual growth rate of 22.7%, is expected.
The historical growth can be credited to the rise in environmental regulations and reporting obligations, corporate efforts towards sustainability, reduction goals for greenhouse gas emissions, an increased cognizance about climate change and environmental influences, advancements made in data analysis and reporting technologies, and the mounting pressure from stakeholders to provide transparent emissions reporting.
What Are the Future Growth Projections for the Carbon Accounting Software Market?
The carbon accounting software market is expected to maintain its strong growth trajectory in upcoming years.
• There's an anticipated surge in the carbon accounting software market size in the coming years with it expected to reach $52.35 billion in 2029, experiencing a compound annual growth rate (CAGR) of 23.1%.
The growth within this forecast period can be tied to factors such as the expansion of carbon pricing and emissions trading schemes, integration of this type of accounting into enterprise resource planning (ERP) systems, the increasing implementation of artificial intelligence and machine learning for better data analysis, requirement for real-time monitoring and reporting abilities, and concentration on managing supply chain emissions. Key trends expected during this forecast period involve a move to cloud-based carbon accounting solutions, increased focus on standardization in compliance with international reporting frameworks, growing utilization of blockchain technology to track and verify emissions, the rising popularity of integrated sustainability management platforms, and the sharing of data and collaboration among organizations for a collective effect on reducing emissions.
What Are The Core Factors Supporting Growth In The Carbon Accounting Software Market?
The uptick in government strategies aimed at achieving net-zero emissions is predicted to stimulate the expansion of the carbon accounting software market. Net-zero emissions initiatives from the government encompass the range of measures, plans, and policies enacted by leading nation's governments to attain a state wherein the overall greenhouse gas (GHG) emissions generated are equal to the amount eliminated from the atmosphere, leading to a neutral carbon footprint. The surge in these initiatives is due to escalating worries over climate change and its detrimental impact on the natural environment, ecosystems, and human health. Carbon accounting software aids businesses in adhering to these regulations by supplying the necessary instruments to precisely measure, monitor, and report emissions data. For example, a report released by the White House in December 2023 indicated that the U.S. government has set a goal to achieve net-zero emissions in its operations by 2050, with a specific objective of curbing emissions by 65% by 2030. In addition, it intends to maintain a net-zero emissions building portfolio by 2045, aiming for a 50% cut in emissions by 2032. As such, the rise in government strategies aimed at achieving net-zero emissions is fuelling the expansion of the carbon accounting software market.
What Are The Major Segments Within The Global Carbon Accounting Software Market?
The carbon accounting software market covered in this report is segmented –
1) By Software Type: Emission Management Software, Software For Carbon Offsetting, Software For Energy Management
2) By Deployment: Cloud-Based, On-Premise
3) By Industry: Energy And Utilities, IT And Telecom, Healthcare, Transportation And Logistics, Retail, Construction And Infrastructure, Food And Beverages, Chemicals, Other Industry
Subsegments:
1) By Emission Management Software: Carbon Footprint Calculation And Reporting, Emission Tracking And Monitoring, Emission Reduction Target Setting, Emission Data Analytics, Regulatory Compliance Management, Carbon Reporting For Stakeholders
2) By Software For Carbon Offsetting: Carbon Credit Management, Carbon Offset Portfolio Management, Offset Project Tracking, Carbon Offset Validation And Verification, Integration With Carbon Offset Providers, Reporting And Documentation For Offsetting Activities
3) By Software For Energy Management: Energy Consumption Tracking And Analysis, Energy Efficiency Optimization, Renewable Energy Integration, Smart Grid Management, Energy Data Analytics And Reporting, Demand Response Management
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How Are New Trends Impacting The Size Of The Carbon Accounting Software Market?
Major players in the carbon accounting software sector are leveraging artificial intelligence (AI) to produce innovative solutions like CERius, boost data precision, automate analyses, and yield practical recommendations for effective carbon footprint mitigation. This includes the use of AI to enhance decarbonization strategies, improve emissions monitoring, and assist in making informed, sustainable choices across various sectors. For example, GE Vernova, a US firm that excels in providing carbon emissions supervision solutions, unveiled an AI-powered carbon emissions management software called CERius in September 2023. The tool is devised to help energy firms progress towards their net-zero targets by providing data accuracy and mitigation planning features. This enables corporations to precisely track, manage, and implement insights crucial for achieving carbon-neutral emissions targets. CERius automates the collection of greenhouse gas data, offers situation analysis, facilitates team cooperation, and delivers standardized reports based on greenhouse gas protocols. It is designed to support energy firms in decarbonization planning, team collaboration, emissions tracking, and compliance reporting, thereby facilitating more precise decision-making for carbon reduction initiatives.
Who Are the Key Players In The Carbon Accounting Software Market?
Major companies operating in the carbon accounting software market are:
• Persefoni AI Inc.
• SAP SE
• Net0 Software Limited
• Diligent Corporation
• IBM Environmental Intelligence Suite
• Sphera Solutions Inc.
• Envizi
• Emitwise Ltd.
• OneTrust LLC
• Carbon Analytics
• Greenly Company
• Carbon Clear Limited
• Sinai Technologies
• CarbonetiX
• Salesforce Inc.
• Rev-ID International Ltd.
• CarbonChain Inc.
• Watershed Technology Inc.
• Pangolin Associates Pty. Ltd.
• eValue8 B.V
• Carbonstop
• South Pole Group
• Ecometrica
• Climate Earth Inc.
• TerraPass Inc
What Is The Most Dominant Region In The Carbon Accounting Software Market?
North America was the largest region in the carbon accounting software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the carbon accounting software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
