Carbon Footprint Management Market

[273 Pages Report] The global carbon footprint management market is projected to reach USD 30.8 billion by 2028 from an estimated USD 11.3 billion in 2023, at a CAGR of 22.2% during the forecast period. The market for carbon footprint management is primarily driven by rising energy demand by industries, the implementation of COP27 targets to limit global warming. Additionally, an increase in initiatives by governments to reduce carbon emissions is aiding the growth of the carbon footprint management market.

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Carbon Footprint Management Market Dynamics

Driver: Increase in government initiatives for low carbon policy

Carbon footprint management system market can help in tracking, monitoring, and reducing emissions generated by homes and businesses and are supported by government initiatives. Policies and amends to reduce greenhouse gases and emission levels in the environment are made continuously by several governments and stakeholders across the world that are focusing on climate change. According to World Energy Outlook-2021, more than 120 countries announced new targets for emission reductions by 2030, and governments representing approximately 70% global CO2 emissions have pledged to bring emissions to net zero by 2050. To attain these targets, initiatives have been taken globally such as the Carbon Action Initiative and Net-Zero Government Initiative.

Restraints: High Initial Investment

The benefits of the economic progress with an associated energy consumption increase for undeveloped and developing countries are high. Carbon emission concerns people in these countries as well; however, when asked to rank issues it comes out to be the last and below security, food, education, health, and energy and transport related issues. It is considered near the bottom of the list in most countries, except for the most highly developing ones. The industries contributing to carbon emissions are transportation, electricity production, industry, commercial and residential, agriculture, land use and forestry. Deploying carbon footprint management solutions and working on mitigation measures requires some capital investment, which restricts companies in emerging countries with limited capital from investing in such solutions.

Opportunities: The shift Towards Cloud Computing and Paperless Economy

Cloud computing and paperless economy is being implemented on a large scale across global economies. Countries such as China, India, and the Middle East offer several subsidies for industries using these methods and sustainable platforms to prevent the release of GCG and other carbon gases Their implementation may require steps which involve using tools and filtration caps in factories and industries to decrease carbon emissions. Before using these tools, the carbon footprint management software is used to determine the emission levels and document data through the cloud or on-premises deployment, pushing the overall sales of carbon footprint management software.

Challenges: Challenges in comprehensively measuring, monitoring, and reporting Scope 3 emissions

Scope 3 emissions consist of all indirect emissions that occur in the value chain of a company. Scope 3 greenhouse gas (GHG) emissions are a critical component of overall emissions in the financial services industry. A growing body of research shows that scope 3 emissions can account for many times the impact of a company’s scope 1 and 2 emissions. For financial institutions, almost all emissions stem from the value chain. Several industries and investor initiatives are calling for the disclosure of scope 3 emissions. While scope 3 emissions are increasingly understood as an important risk indicator, it is also worth acknowledging that there are challenges involved in determining scope 3 emissions.

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The services segment, by component, is expected to grow at the fastest rate during the forecast period

The carbon footprint management market, by component, is segmented into solutions and services. The effective provision of services is essential since it boosts operational effectiveness, system dependability, and cost savings for businesses. Consulting, integration and deployment, as well as support and maintenance are included in the services segment. Many firms and companies lack the technical expertise in carbon footprint management and hence there is a need for professional service providers. The urgency to integrate solutions in carbon footprint management by companies and businesses has increased the growth of the market for services at a faster pace.

The cloud segment, by  deployment mode, is expected to dominate the carbon footprint management market

By deployment mode, the cloud segment is estimated to be the largest in the carbon footprint market during the forecast period. The deployment of a carbon footprint management software over cloud is cost-effective, highly scalable and provides easier execution, maintenance, and upgradation. Moreover, it offers benefits like security, control over data, speed, and all-time support making it the primary choice of customers.

By organization size, the small businesses segment is expected to lodge the highest growth rate in the carbon footprint management market during the forecast period

Carbon footprint management software market can serve corporates/enterprises, mid-tier enterprises, and small businesses. Large enterprises like the corporate enterprises are among the early adopters of carbon management solutions due to the large sizes of their facilities and increased pressure from stakeholders. Small businesses, on the other hand, have traditionally not had regulatory/stakeholder pressure for emission/ESG disclosures due to the smaller scale of their emissions. However, anticipated binding regulations in several developed economies around the world and increasing pressure from investors on emissions disclosure is expected to drive the fast growth of this segment during the forecast period.

The manufacturing segment, by vertical, is expected to be the largest in the carbon footprint management market during the forecast period

The manufacturing industry has been identified amongst the top sources of carbon emissions globally. Some manufacturing companies have accepted the reality of carbon emissions, and a significant number of businesses are still looking for ways to reduce carbon emissions during the manufacturing process. The majority of manufacturing companies that are adopting low-carbon practices are not doing so merely for the benefit of the environment; rather, they are driven by a recognition of the risks (such as regulatory risk, competitive risk, litigation risk, reputation, and brand value risk) and other elements that are connected to non-compliance. The need to minimize these risks and ensure compliance is expected to drive the demand for carbon footprint management software during the forecast period.

Key Players

IBM (US), Schneider Electric (France), Salesforce (US), SAP (Germany), ENGIE (France), Enviance (US), Isometrix (South Africa), ESP (New Zealand), Dakota Software (US), Accuvio (US), ProcessMap (US), Locus Technologies (US), NativeEnergy (US), EnergyCap (US), Carbon Footprint Ltd (UK), EcoTrack (US), Carbon Trust (UK), Envirosoft (Canada), Intelex (Canada), Enablon (France), and Trinity Consultants (US).

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Scope of the Report

This research report categorizes the carbon footprint management market based on Component, Deployment Mode, Organization Size, Vertical, and Region.

Based on Component:

• Solutions
• Services
  • Consulting
  • Integration & Deployment
  • Support & Maintenance

Based on deployment mode:

• Cloud
• On-premises

Based on organization size:

• Corporates/Enterprises
• Mid-Tier Enterprises
• Small Businesses

Based on vertical:

• Manufacturing
  • Food & Beverages
  • Metals & Mining
  • Chemical & Materials
  • Electronics & Consumer Goods
  • Automotive
  • Pharmaceutical & Healthcare
  • Others
• Energy and Utilities
• Residential and Commercial Buildings
• Transportation and Logistics
• IT and Telecom
• Financial Servies
• Government

Based on region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Recent Developments

• In February 2023, Enablon and Makersite announced strategic collaboration to help enterprises reach ESG goals. The two industry leaders will help organizations manage Net Zero ambitions through decarbonizing supply chains. This involves data collection, modeling, reporting, planning, forecasting, and operational execution across all three Scopes of greenhouse gas (GHG) emissions.
• In September 2022, Enviance acquired an ESG performance software platform and consultancy, Reporting 21. The Reporting 21 solution will be incorporated into Enviance/Cority’s Sustainability Cloud to better support customers in managing, reporting, and actioning their sustainability and ESG initiatives.
• In July 2022, Trinity Consultants acquired an aquatic environmental consulting firm, Ecofish Research. This acquisition brings Trinity’s water ecology and aquatic sciences consulting service teams to approximately 250 professionals, with the ability to deliver a wide range of water ecology-related services.

Frequently Asked Questions (FAQ):

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