Carbon Accounting Software Market

Global Carbon Accounting Software Market Size, Share & Trends Analysis Report By Deployment (Cloud and On-premises), By Enterprise Size (Large Enterprises and SMEs), By End-use (IT & Telecom and Others), By Regional Outlook and Forecast, 2024 - 2031

Report Id: KBV-24516 Publication Date: September-2024 Number of Pages: 265
2023
USD 16.1 Billion
2031
USD 74.4 Billion
CAGR
21.8%
Historical Data
2020 to 2022

“Global Carbon Accounting Software Market to reach a market value of USD 74.4 Billion by 2031 growing at a CAGR of 21.8%”

Analysis of Market Size & Trends

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.

Carbon Accounting Software Market Size - Global Opportunities and Trends Analysis Report 2020-2031

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.

KBV Cardinal Matrix - Market Competition Analysis

Based on the Analysis presented in the KBV 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.

Carbon Accounting Software Market - Competitive Landscape and Trends by Forecast 2031

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.

Carbon Accounting Software Market Share 2023

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
Carbon Accounting Software Market
  • Growing corporate commitment to sustainability and carbon neutrality goals
  • Rising consumer demand for environmentally responsible products
  • Increasing carbon emission worldwide
  • High implementation costs of carbon accounting software
  • Complexity of integration with existing systems
  • Integration with renewable energy solutions
  • Development of user-friendly mobile solutions
  • 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.

Carbon Accounting Software Market Share and Industry Analysis Report 2023

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.

Free Valuable Insights: Global Carbon Accounting Software Market size to reach USD 74.4 Billion by 2031

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

Carbon Accounting Software 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.

Carbon Accounting Software Market Report Coverage
Report Attribute Details
Market size value in 2023 USD 16.1 Billion
Market size forecast in 2031 USD 74.4 Billion
Base Year 2023
Historical Period 2020 to 2022
Forecast Period 2024 to 2031
Revenue Growth Rate CAGR of 21.8% from 2024 to 2031
Number of Pages 265
Number of Tables 394
Report coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives
Segments covered Deployment, Enterprise Size, End-use, Region
Country scope
  • North America (US, Canada, Mexico, and Rest of North America)
  • Europe (Germany, UK, France, Russia, Spain, Italy, and Rest of Europe)
  • Asia Pacific (Japan, China, India, South Korea, Singapore, Malaysia, and Rest of Asia Pacific)
  • LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA)
Companies Included IBM Corporation, SAP SE, Salesforce, Inc., Microsoft Corporation, Persefoni AI Inc., Sphera Solutions, Inc., Offspend (Greenly), Diligent Corporation¸SINAI Technologies, Inc. and Net0
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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

Carbon Accounting Software 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
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