Carbon Accounting Software Market Overview
As per MRFR analysis, the Carbon Accounting Software Market Size was estimated at 1.69 (USD Billion) in 2022. The Carbon Accounting Software Market is expected to grow from 1.76 (USD Billion) in 2023 to 2.5 (USD Billion) by 2032. The Carbon Accounting Software Market CAGR (growth rate) is expected to be around 4.01% during the forecast period (2024 - 2032).
Key Carbon Accounting Software Market Trends Highlighted
The global market for carbon accounting software is experiencing a surge in demand due to the increasing need for organizations to track and manage their carbon footprint.
This trend is driven by the growing awareness of environmental sustainability and the regulatory pressures imposed by governments and international organizations.
Companies are realizing the importance of accurate carbon accounting to reduce their environmental impact, mitigate risks, and gain a competitive advantage.
One of the key market drivers is the adoption of carbon pricing mechanisms such as carbon taxes and emissions trading schemes.
These initiatives create financial incentives for organizations to reduce their carbon emissions, leading to increased demand for software solutions that can help them comply with regulations and optimize their carbon footprint.
Furthermore, the proliferation of renewable energy sources and the shift towards a circular economy are also contributing to the growth of the carbon accounting software market.
As organizations seek to embrace sustainable practices and reduce their reliance on fossil fuels, they require robust software tools to track and manage their emissions across their entire value chain.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Carbon Accounting Software Market Drivers
Government Regulations and Carbon Taxes
Various governments around the world have started imposing regulations and carbon taxes that are aimed at reducing greenhouse gases emissions.
As a result, there is much more demand for carbon accounting software now than ever before, mainly because business owners need to monitor and report on their emissions according to the new regulations.
The trend will quicken once carbon prices start being put in place and implemented in a better way, such as through carbon taxes and cap and trade systems.
Governments have gone ahead to offer rewards or rather incentives to businesses that use carbon accounting systems and software, including tax rewards and grants.
Growing Corporate Sustainability Initiatives
Nowadays, enterprises are more and more likely to value the necessity of sustainability and establish rigorous targets to mitigate their impact on the environment.
As a result, the demand for carbon accounting software is growing extensively since firms are determined to monitor and properly respond to their emissions in order to accomplish their targets.
Currently, numerous companies have stressed the necessity to become net-zero emission-generating ones by 2050.
In other words, this particular type of software is vital to monitor companies’ beelines towards their purposes.
Furthermore, the raised importance of environmental, social, and governance reporting obviously also increases the demand for such software as firms are supposed to reflect on their sustainability activities and account for their emissions to multiple stakeholders, such as investors.
Technological Advancements and Data Availability
Advancements in technology, such as cloud computing, artificial intelligence, and the Internet of Things (IoT), are making carbon accounting software more accessible and affordable for businesses of all sizes.
These technologies enable real-time data collection, automated emissions calculations, and improved data analysis, making it easier for businesses to track and manage their carbon footprint.
The increasing availability of data on emissions factors and industry benchmarks is also making it easier for businesses to calculate their emissions accurately.
Carbon Accounting Software Market Segment Insights
Carbon Accounting Software Market Deployment Insights
The Carbon Accounting Software Market has been classified as on-premises and cloud on the basis of deployment. It is expected that the cloud segment will hold a major market share during the given forecast period.
The increasing demand and adoption of cloud-based carbon accounting software are fueling the growth of this particular segment.
The different benefits associated with cloud-based solutions include the deployment time, affordability of the solutions, and flexibility at the time of deployment of advanced features on the existing product.
The use of cloud-based carbon accounting software solutions does not require the companies to put in more investment in hardware and supporting software. Moreover, the cloud-based solutions also provide real-time data access, along with remote collaboration.
On the other hand, the on-site deployment of the carbon accounting software is expected to record a decent growth rate in the given time frame.
The adoption of on-site solutions is more as it supports the organization’s exclusive control of data and offers a high-level security option to ensure that data breaches are not carried out.
Many companies choose the on-site deployment of carbon accounting software to protect their data, which is sensitive in nature. Moreover, the flexibility associated with on-site deployments is helping companies to carve the software as per the requirements on the ground.
Overall, the Carbon Accounting Software Market is expected to record good growth in the future years with the implementation of more regulatory compliance, a groundswell of corporate sustainability measures, and an increased interest in cutting down the overall carbon footprint.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Carbon Accounting Software Market Organization Size Insights
The Carbon Accounting Software Market is segmented by organization size into SMEs and Large Enterprises. SMEs hold a significant market share due to the increasing adoption of carbon accounting software to comply with regulations and manage their carbon footprint.
The growing awareness of environmental sustainability and the need for SMEs to demonstrate their commitment to responsible business practices are driving the demand for carbon accounting software in this segment.
On the other hand, Large Enterprises are expected to witness a higher growth rate during the forecast period.
This is attributed to the complex operations and supply chains of large enterprises, which require sophisticated carbon accounting solutions to track and manage their carbon emissions effectively.
Carbon Accounting Software Market Vertical Insights
The Carbon Accounting Software Market is segmented by industry vertical into Energy Utilities, Manufacturing, Transportation Logistics, Agriculture Forestry, and IT Telecom.
Among these segments, Energy Utilities is expected to account for the largest share of the market in 2023, with a market value of around USD 0.6 billion.
This is due to the increasing adoption of carbon accounting software by energy and utility companies to track and manage their carbon emissions. The Manufacturing segment is also expected to grow significantly in the coming years, with a market value of around USD 0.5 billion in 2032.
This growth is being driven by the increasing demand for carbon accounting software from manufacturers to comply with government regulations and improve their environmental performance.
Carbon Accounting Software Market Functional Scope Insights
The functional scope segment of the Carbon Accounting Software Market comprises solutions that cater to specific carbon accounting functions.
Inventory Management: Software that helps organizations track and manage their greenhouse gas (GHG) emissions inventory, including sources, emission factors, and data collection.
Reporting: Software that facilitates the creation of carbon reports, including GHG emissions disclosures, sustainability reports, and compliance statements.
Verification: Software that assists organizations in verifying the accuracy and completeness of their carbon accounting data, often involving third-party auditors.
Data Analysis: Software that provides advanced analytics capabilities to analyze carbon accounting data, identify trends, and develop insights to optimize emission reduction strategies.
Scenario Planning: Software that enables organizations to simulate different emission reduction scenarios and assess their potential impact, aiding in long-term planning and decision-making.
The Carbon Accounting Software Market for these functional areas is projected to grow significantly in the coming years due to increasing regulatory requirements, corporate sustainability initiatives, and investor pressure for transparency in carbon emissions data.
Carbon Accounting Software Market Regional Insights
The Carbon Accounting Software Market is segmented into North America, Europe, APAC, South America, and MEA. North America is the largest regional market for carbon accounting software, accounting for over 40% of the global market revenue in 2023.
The region has a strong regulatory landscape and a growing number of businesses committed to reducing their carbon footprint. Europe is the second-largest regional market, followed by APAC.
The APAC region is expected to witness significant growth in the coming years, driven by increasing awareness of climate change and government initiatives to promote sustainability.
South America and MEA are relatively smaller markets, but they are expected to grow at a steady pace in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Carbon Accounting Software Market Key Players and Competitive Insights
Carbon Accounting Software Market major players are continuously innovating and developing new features to meet the needs of their customers.
Additionally, those companies are paying much attention to the research and development area. The Carbon Accounting Software Market's major players' environment is rather competitive. Enablon, Sphera, Bureau Veritas, and SAP are among the key players in the industry.
These companies provide a wide range of solutions for customers operating in different industries. As anticipated, the Carbon Accounting Software Market is going to grow significantly within the next years due to the increasing demand for accounting software across the globe.
Additionally, the market growth is driven by the fact that the organizations need to track, manage and reduce their carbon footprints to comply with the existing regulations. Finally, the market will benefit from the growing adoption of the cloud-based solutions by the enterprises.
Enablon is a significant player in the Carbon Accounting Software Market as it provides a wide range of solutions that allow organizations to track, manage, and reduce their carbon emissions.
The company has a broad base of customers among which are Fortune 500 companies, government agencies, and non-profit organizations.
Additionally, the company is rather innovative and has the highest recognition in the Carbon Accounting Software Market.
Sphera is the main competitor of Enablon as it provides the customers with carbon accounting software solutions to manage their environmental performance. Additionally, the company serves the same range of customers as Enablon, and the two companies have rather similar market share.
Key Companies in the Carbon Accounting Software Market Include
- South Pole
- Verra
- SAP
- Trucost
- Oracle
- IBM
- Enablon
- Carbon Trust
- Anthesis Group
- Schneider Electric
- BSI Group
- ERM
- Sphera
- GHD
- Bureau Veritas
Carbon Accounting Software Market Developments
The Carbon Accounting Software Market is projected to grow significantly in the coming years, driven by increasing environmental regulations and corporate sustainability initiatives.
Key trends shaping the market include the adoption of cloud-based solutions, the integration of artificial intelligence (AI) and machine learning (ML) for data analysis and automation, and the growing demand for real-time emissions monitoring and reporting.
Recent developments include the launch of new products and services by major players such as SAP, Oracle, and IBM, as well as strategic partnerships and acquisitions to expand market reach and enhance capabilities.
The market is expected to witness continued growth as organizations seek to reduce their carbon footprint and meet regulatory requirements.
Carbon Accounting Software Market Segmentation Insights
-
Carbon Accounting Software Market Deployment Outlook
-
Carbon Accounting Software Market Organization Size Outlook
-
Carbon Accounting Software Market Vertical Outlook
- Energy Utilities
- Manufacturing
- Transportation Logistics
- Agriculture Forestry
- IT Telecom
-
Carbon Accounting Software Market Functional Scope Outlook
- Inventory Management
- Reporting
- Verification
- Data Analysis
- Scenario Planning
-
Carbon Accounting Software Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
1.69(USD Billion) |
| Market Size 2023 |
1.76(USD Billion) |
| Market Size 2032 |
2.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.01% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
South Pole, Verra, SAP, Trucost, Oracle, IBM, Enablon, Carbon Trust, Anthesis Group, Schneider Electric, BSI Group, ERM, Sphera, GHD, Bureau Veritas |
| Segments Covered |
Deployment, Organization Size, Industry Vertical, Functional Scope, Regional |
| Key Market Opportunities |
Growing adoption of ESG reporting Rising demand for carbon footprint disclosure Increasing government regulations Technological advancements Expanding need for data transparency and accuracy |
| Key Market Dynamics |
Growing corporate sustainability initiatives Rising demand for carbon footprint tracking Increasing government regulations Technological advancements Expanding adoption in various industries |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Carbon Accounting Software Market is expected to reach 1.76 billion USD in 2023 and is projected to grow at a CAGR of 4.01% to reach 2.5 billion USD by 2032.
North America is expected to dominate the Carbon Accounting Software Market throughout the forecast period. The region's dominance can be attributed to the presence of stringent environmental regulations and a strong focus on sustainability initiatives.
Key applications of Carbon Accounting Software include tracking and managing greenhouse gas emissions, carbon footprint analysis, and reporting in accordance with various regulations.
Some of the key competitors in the Carbon Accounting Software Market include SAP SE, Oracle Corporation, IBM Corporation, Microsoft Corporation, and Enablon.
Major growth drivers for the Carbon Accounting Software Market include increasing environmental concerns, stringent government regulations, and growing awareness of corporate social responsibility.
Challenges faced by the Carbon Accounting Software Market include data accuracy and consistency issues, lack of standardization, and the high cost of implementation.
Key trends shaping the Carbon Accounting Software Market include the adoption of cloud-based solutions, the integration of artificial intelligence and machine learning, and the growing demand for real-time data.
The Carbon Accounting Software Market is expected to grow at a CAGR of 4.01% from 2024 to 2032.
Factors influencing the growth of the Carbon Accounting Software Market include the increasing demand for carbon accounting and reporting, the growing awareness of climate change, and supportive government policies.
Key opportunities for the Carbon Accounting Software Market include the expansion into emerging markets, the development of new technologies, and the growing demand for sustainability-focused solutions.
