The global sustainability management software market is set to experience significant growth, with an estimated increase of USD 1.47 billion from 2024 to 2028. This market is expected to grow at a Compound Annual Growth Rate (CAGR) of 15.2% during the forecast period. The driving force behind this expansion is the increasing focus on green initiatives and the rise of analytics within sustainability management software. However, integration issues with ERP solutions pose a significant challenge to market growth.
Several key players are shaping the market landscape, including Benchmark Digital Partners LLC, Dakota Software Corp., Diligent Corp., ENGIE SA, Figbytes Inc., Fortive Corp., International Business Machines Corp., LogicLadder Technologies Pvt. Ltd., Mitsubishi Electric Corp., PDS Group, Quentic GmbH, SAP SE, Schneider Electric SE, Sphera Solutions Inc., UL Solutions Inc., Urjanet Inc., VelocityEHS Holdings Inc., and Wolters Kluwer NV.
Understanding the Market Drivers:
The current business environment is witnessing a decline in energy costs, encouraging companies to adopt smarter energy consumption management strategies. Energy suppliers are imposing penalties on devices with low power factors, while governments worldwide are tightening regulations for energy compliance and carbon footprint reduction. Big data and analytics technologies are playing a critical role in reducing operational expenditures across various industries, including energy and utility, banking, finance, insurance, and healthcare. Predictive modeling techniques are being utilized effectively to achieve this goal.
Real-time data analytics enables organizations in the energy sector to meet regulatory requirements. SaaS-based analytics solutions have gained popularity due to their flexibility. In the solar industry, energy analytics is gaining traction, leveraging machine learning and predictive analytics technologies. Effective energy management systems integrate predictive analytics with the Internet of Things (IoT), improving operational efficiency and planning through smart grid initiatives. Real-time analytics optimizes functions like building-energy management, energy production, weather forecasting, and predictive maintenance of Energy Management Systems (EMS).
IoT and predictive analytics offer benefits such as asset efficiency analysis, real-time data collection, optimized warranty period definition, and cost estimation, ultimately optimizing carbon emissions and providing well-informed demand-side operations. These factors are expected to further drive the growth of the global sustainability management software market in the coming years.
The Importance of Sustainability Management Software:
Sustainability management software provides businesses with a comprehensive solution to reduce costs, manage data related to energy usage and resource management, and track their carbon footprint and pollution reduction efforts. This software is gaining traction across various sectors, particularly manufacturing and chemicals, due to its ability to automate data management, provide real-time information, and support scenario planning for energy savings and climate change mitigation.
The software can be implemented as cloud-based, on-premise, or hybrid solutions, offering consulting and implementation services. Key features include project planning, reporting, and collaboration and communication systems. By adopting sustainability management software, businesses can enhance their corporate strategy, embrace sustainable practices, and derisk their supply chains in resource-stressed areas. The software also supports green development, energy efficiency, and the use of renewable resources, ultimately contributing to a low-carbon technology future.
Navigating the Market Challenges:
While sustainability management software is instrumental in helping businesses manage and reduce their carbon emissions, integrating this software with an enterprise resource planning (ERP) system can be challenging due to the complexity of IT infrastructure. The lack of compatibility between sustainability management software and ERP systems can lead to additional costs and manual processes. Middleware solutions are available to address some of these issues, but they often require customization and can be expensive. Overcoming these integration hurdles is critical for the expansion of the global sustainability management software market.
Market Segmentation:
This sustainability management software market report provides an in-depth analysis of market segmentation across various categories:
*
Application:
IT and telecom, healthcare, automotive, manufacturing, oil and gas.*
Deployment:
Cloud, on-premises.*
Geography:
North America, Europe, APAC, South America, Middle East, and Africa.The IT and telecom sector is projected to lead the global sustainability management software market due to its significant environmental impact.
ICT is responsible for approximately 3-4% of global CO2 emissions, with telecommunications accounting for 1.6% of this total. Upstream and downstream operations contribute a significant portion of telco firms’ emissions. With data centers expected to account for 8% of global power consumption by 2030, the need for monitoring and reducing carbon emissions is becoming increasingly critical. Major telcos have committed to reducing energy usage per unit of traffic by around 70% by the end of this decade, which could potentially reduce emissions by up to 15% by 2030. In response, the ICT industry is adopting sustainability management software to manage emissions and comply with climate regulations, driving market growth within the IT and telecom sector.Sustainability Management Software: A Powerful Tool for a Sustainable Future:
Sustainability Management Software is a vital tool for businesses seeking to reduce their carbon emissions, manage energy usage, and promote the use of renewable resources. This software facilitates automated data management of energy consumption and resource usage, providing valuable insights for energy saving and pollution reduction. It also supports scenario planning and project management, helping companies implement sustainable practices and align with corporate strategy. The software can be delivered through cloud-based, on-premise, or hybrid cloud solutions, offering flexibility to meet various business needs. With databases and reporting capabilities, this software assists organizations in tracking their carbon footprint, monitoring climate change impacts, and identifying areas for improvement in their manufacturing processes. By adopting Sustainability Management Software, businesses can effectively manage their energy and resources, reduce their environmental impact, and contribute to a more sustainable future.
Key Insights from Technavio’s Market Research:
* Sustainability management software is essential for businesses seeking to reduce their carbon emissions, manage energy usage, and promote the use of renewable resources. This software enables real-time data management and reporting on energy consumption, resource usage, and environmental impact.
* It offers automated data management, project planning, scenario planning, and energy-saving strategies to help companies reduce their carbon footprint and pollution levels.
* The software can be implemented through cloud-based, on-premise, or hybrid cloud solutions, and often includes collaboration and communication systems to facilitate teamwork and information sharing.
* Sustainability management software is essential for industries such as chemicals and manufacturing, where energy efficiency and resource management are critical. It also plays a crucial role in corporate strategy and the adoption of sustainable practices.
* Cloud-based solutions offer cost-saving strategies and easy access to low-carbon technology, making them increasingly popular.
* Overall, sustainability management software is a powerful tool for businesses looking to minimize their environmental impact, improve energy efficiency, and enhance their corporate social responsibility.
About Technavio:
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