What Has Driven the Growth of the Sustainability and Energy Management Software Market in Recent Years?
The sustainability and energy management software market has seen considerable growth due to a variety of factors.
• In recent times, the market size for sustainability and energy management software has seen swift expansion. It's projected to increase from $1.5 billion in 2024 to $1.69 billion in 2025, with a compound annual growth rate (CAGR) of 12.6%. Various factors such as corporate sustainability programs, regulatory compliance obligations, energy cost reductions, and enhanced awareness of climate change have contributed to this growth in the historical period.
What Are the Future Growth Projections for the Sustainability and Energy Management Software Template Market?
The Sustainability and Energy Management Software market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market for sustainability and energy management software is anticipated to witness swift expansion. It is projected to reach a worth of $2.82 billion in 2029, with a compound annual growth rate (CAGR) of 13.6%.
This anticipated growth during the forecast period can be linked to a rise in demand for transparency and reporting, an expanded focus on sustainability by both investors and consumers, sustainability management in supply chains, and the development of ESG (environmental, social, and governance) standards. The forecast period is likely to see trends such as decision-making based on data analytics, improved transparency and communication with stakeholders, the application of sustainability in supply chains, the incorporation of renewable energy, as well as digitalization and IoT integration.
What Are The Core Factors Supporting Growth In The Sustainability And Energy Management Software Market?
The surge in funding for environment, health & safety (EH&S), and sustainability software is a critical element propelling the sustainability and energy management software industry. This software aids in minimizing energy costs and consumption, promoting maximum energy efficiency, and sustainability and can contribute to cost savings, carbon footprint decrease, and improving energy quality. For example, in February 2022, ArcelorMittal, a steel production company based in Europe, unveiled a $1.8 billion investment initiative by 2030 for its steel production operations in Fos-sur-Mer and Dunkirk, in partnership with the French government yet maintaining the same production abilities. This investment will dramatically restructure steel production in France, resulting in a nearly 40% reduction, or 7.8 million tons annually, in ArcelorMittal's CO2 emissions in France by 2030. This shift will lead to a 10% decrease in France's manufacturing industry's greenhouse gas emissions. Hence, the rise in environment, health and safety, and sustainability software investments will boost the sustainability and energy management software market.
What Are The Major Segments Within The Global Sustainability And Energy Management Software Market?
The sustainability and energy management software market covered in this report is segmented –
1) By Software: Cloud Based, On-Premise
2) By Module: Utility Data Management, Carbon Reporting And Management, Sustainability Reporting And Management, Energy Optimization, Facility And Asset Management, Compliance Management
3) By End User: Automotive, Construction, Manufacturing, Oil And Gas, Pharmaceutical, Utilities And Energy
Subsegments:
1) By Cloud-Based: SaaS (Software As A Service), Multi-Tenant Architecture, Hybrid Cloud Solutions
2) By On-Premise: Enterprise Installations, Customizable Solutions, Legacy Systems
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Which Trends Are Expected To Transform The Sustainability And Energy Management Software Market?
Leading firms in the sustainability and energy management software market are innovating advanced energy storage software platforms to stay competitive. The term energy storage software platforms are understood as tools and systems that aid in managing and controlling energy storage systems, allowing real-time data monitoring and analysis thereby facilitating performance improvement of energy storage and its integration with renewable energy sources and the power grid. For example, FlexGen Power Systems Inc., an American energy storage technology firm, in September 2023, launched the latest version of its energy management software platform, HybridOS 11. This software introduces advanced features aimed at improving user experience, maintaining system stability, and giving asset owners and operators of energy storage increased control over site operations. Key additions include an improved User Interface featuring a Dark Mode option, an optimized Scheduler Mode for enhanced event scheduling, comprehensive control through constant Power Factor and Reactive Power POI Limits, and a Performance Index that gives a quick summary of site operations. In addition, the platform incorporates a Digital Twin, a cloud-based simulation that employs machine learning to determine expected site performance.
Who Are the Key Players In The Sustainability And Energy Management Software Market?
Major companies operating in the sustainability and energy management software market include:
• 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
What Is The Most Dominant Region In The Sustainability And Energy Management Software Market?
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.
