PUBLISHER: KBV Research | PRODUCT CODE: 1292484
PUBLISHER: KBV Research | PRODUCT CODE: 1292484
The Global Carbon Footprint Management Market size is expected to reach $33.7 billion by 2029, rising at a market growth of 21.0% CAGR during the forecast period.
Energy & Utilities is one of the major applications of carbon footprint management because of the demand for heating and cooling, as well as the robust economy in the sector. In addition, adopting carbon footprint management results from the rise in carbon footprints caused by increased energy consumption and power generation. Hence, Energy & Utilities would generate approximately 1/5th share of the market by 2029. Adopting policies aimed at lowering greenhouse gases makes it easier for organizations to report on the results and behaviors of their members. The enactment of the United Nations Climate Change Conference, also known as COP26, is anticipated to propel numerous industries' adoption of carbon footprint management.
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 November, 2021, Schneider partnered with GreenYellow for providing the global customers of both companies with energy efficiency programs. The partnership enhances the energy efficiency abilities of Schneider, thereby increasing its consulting capabilities. In addition, in February, 2023, Salesforce came into partnership with ERM, a global sustainability consultancy company. Through this partnership, both companies would help enterprises boost their decarbonization journeys and provide their sustainability goals.
Based on the Analysis presented in the Cardinal matrix; Schneider Electric SE are the forerunners in the Market. In April, 2022, AVEVA, a subsidiary of Schneider has partnered with FLSmidth for providing digital services and solutions to the mining industry. Additionally, both companies would boost the transformation to highly sustainable operations by combining world-leading processes and energy technologies for better asset performance at each level. Companies such as SAP SE, Salesforce, Inc. and IBM Corporation are some of the key innovators in the Market.
Market Growth Factors
Growing governmental efforts to implement low-carbon policies
Government programs support using carbon footprint management tools to track, monitor, and reduce emissions produced by residences and enterprises. Numerous governments and stakeholders concerned about climate change are constantly developing policies and making changes to lower GHG and emission levels in the environment. According to the United Nations Environment Programme (UNEP), over 120 nations have set new NDC goals for reducing emissions by 2030. Governments responsible for around 70% of the world's CO2 emissions have vowed to achieve net-zero emissions by 2050. Hence, the government's growing efforts to reduce emissions propel the market's growth.
Increasing use of cloud computing and promotion of a paperless economy
The world's economies are implementing paperless economies and cloud computing on a huge scale. For businesses adopting these strategies and environmentally friendly platforms to stop the emission of GHG and other carbon gases, nations provide a variety of subsidies. Using equipment as well as filtration caps in industrial settings like factories may be necessary for their adoption to reduce carbon emissions. The carbon footprint management application is used to ascertain the emission levels as well as document data through cloud or on-premise deployment before using these solutions, driving overall sales of the software. As a result, the market will soon be boosted by the inclusion and use of cloud computing for turning paperless.
Market Restraining Factors
High initial expenditure
The business has created green technologies to reduce the environmental impact of cars using cutting-edge techniques and carbon offsets to fight climate change. However, the adoption of low-carbon emission infrastructure by small firms is hampered by the challenge. The demand is also slowed down by a lack of knowledge about the advantages of funding low-carbon infrastructure. The high costs involved with upgrading to more modern infrastructure that is less harmful to the environment and produces fewer greenhouse gases limit market expansion.
Based on component, the market is characterized into solution and services. The solution segment garnered the highest revenue share in the market in 2022. Easy installation, improved responsiveness, and precise data tracking for large and small businesses are the driving forces behind this segment's rapid expansion. An engaged supply chain is another element boosting the adoption of carbon footprint management technology. Consumers are becoming increasingly environmentally conscious and are more likely to support businesses that demonstrate their commitment to sustainability.
On the basis of deployment, the market is classified into cloud and on-premise. The cloud segment witnessed the maximum revenue share in the market in 2022. It is less expensive, more scalable, and easier to execute, maintain, and upgrade a carbon footprint management program over the cloud. Additionally, it provides advantages like security, data control, speed, and round-the-clock support, making it the top option for clients. Cloud deployment allows for easy customization and configuration of the application, enabling organizations to tailor the application to their specific needs and requirements.
Organization Size Outlook
By organization size, the market is divided into corporate/enterprises, mid-tier enterprises, and small businesses. The small businesses segment acquired a substantial revenue share in the market in 2022. Due to the lesser size of their emissions, small enterprises have typically not faced governmental or stakeholder demand for emission/ESG reports. But throughout the projection period, this segment is predicted to rise quickly due to impending binding legislation in several industrialized economies worldwide and mounting investor pressure on emissions disclosure.
Based on application, the market is segmented into manufacturing, energy & utilities, residential & commercial buildings, transportation & logistics, IT & telecom, financial services, government, and others. The manufacturing segment recorded the largest revenue share in the market in 2022. One of the leading worldwide producers of carbon emissions is the manufacturing sector. Some manufacturers have come to terms with the realities of carbon emissions, while many others continue searching for ways to cut them during manufacturing.
Region wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment garnered the highest revenue share in the market in 2022. Due to the region's aggressive efforts to mitigate the consequences of climate change, North America has a growing market. As a result, the nations in the region have established strict nationally determined contribution (NDC) goals and enforceable environmental, social, and governance (ESG) laws. As a result, over the coming years, demand is anticipated to increase significantly.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Schneider Electric SE, SAP SE, Salesforce, Inc., IBM Corporation, ENGIE, Intelex Technologies, ULC, IsoMetrix, Cority Software, Inc. (Thoma Bravo), Dakota Software Corporation and Locus Technologies.
Recent Strategies Deployed in Carbon Footprint Management Market
Partnerships, Collaborations and Agreements:
Feb-2023: Salesforce came into partnership with ERM, a global sustainability consultancy company. Through this partnership, both companies would help enterprises boost their decarbonization journeys and provide their sustainability goals.
Apr-2022: AVEVA, a subsidiary of Schneider has partnered with FLSmidth, a sustainability solutions provider for the cement and mining industry. The partnership aims at bringing digital services and solutions to the mining industry. Additionally, both companies would boost the transformation to highly sustainable operations by combining world-leading processes and energy technologies for better asset performance at each level.
Feb-2022: SAP SE came into partnership with BearingPoint, a technology and management consultancy to address the issues regarding environmental and carbon footprint. Under this partnership, both companies aim to innovate, design and develop solutions for customers to help them reach zero emissions. This partnership boosts the SAP Product Footprint Management solution and helps make SAP a pioneer in product footprint solutions that support its customers in enhancing the sustainability of its products and solutions.
Nov-2021: Schneider partnered with GreenYellow, a trusted energy partner of private companies. The partnership aims at providing the global customers of both companies with energy efficiency programs. The partnership enhances the energy efficiency abilities of Schneider, thereby increasing its consulting capabilities.
Apr-2021: SAP SE partnered with Accenture, a company leading in information technology services and consulting. The partnership aims to help enterprises implant sustainability across the complete range of their business operations. Moreover, with this partnership companies plan to co-develop and co-innovate SAP's new solution for responsible design and production consisting of abilities that help enterprises embed sustainability metrics in their value and supply chain.
Feb-2021: ENGIE joined hands with Orange, a developer of solar and wind power across France. The collaboration aims to offer a worldwide renewable energy supply solution across France. Furthermore, ENGIE would put its specialization in energy management to utilize to deploy an ongoing energy strip.
Jan-2021: Salesforce extended its partnership with Accenture, a company leading in information technology services and consulting. Through this partnership, both companies would help enterprises embed sustainability into their business, meet emerging customer and stakeholder expectations and contribute to advancing the United Nations Sustainable Development Goals (SDGs).
Product Launches and Product Expansions:
Dec-2022: Salesforce announced the launch of Automate ESG Reporting, a solution to help organizations meet emerging stakeholder demand for transparency in environmental, social, and governance (ESG). The launched solution allows enterprises to manage ESG data in real-time and generate framework-specific reports.
May-2022: Schneider Electric unveiled EcoStruxure Building Operation 2022 and Space Logic Insight-Sensor. EcoStruxure Building Operation is a building management solution that is used by managers to oversee and optimize isolated operations. Key features of the solution include a dashboard and report User Interface for better insights, cybersecurity features, wider data accessibility, and scalability for the subscription. SpaceLogic Insight-Sensor is a mounted sensor that is used to sense humidity, light, and temperature. Key features include reconfiguration ability, data analytics, and quick installation.
Feb-2022: Salesforce announced the launch of Net Zero Cloud 2.0, a system for measuring greenhouse gas emissions. The product would aim to offer companies greater insights, supplier management, and reliable reporting to achieve net-zero status as soon as possible.
Sep-2021: ENGIE introduced Ellipse, a net zero carbon platform to boost global decarbonization efforts. The product boosts global decarbonization efforts for businesses across scopes 1, 2, and 3. Moreover, the product launched is in support of organizations facing the emerging urgency to decrease carbon emissions and implement a strategic action plan.
Aug-2021: Cority unveiled Sustainability Cloud, a sustainability and ESG solution. The solution allows companies to manage, measure and meet goals to enhance sustainable performance and build a greener future. Additionally, Cority's Sustainability Cloud makes sure the data is accurate, auditable, and ready to be aligned for building transparent ESG disclosures and sustainability reports.
Jan-2021: Schneider Electric unveiled Climate Change Advisory Service aimed at addressing issues regarding business sustainability. The service features AI-powered resource data management, forecasting and budgeting, supply chain management solutions, Decarbonization strategy buildout, and renewable energy opportunity evaluation.
Acquisitions and Mergers:
May-2023: Cority acquired Greenstone, a company engaged in offering Sustainability & ESG Reporting Software. This acquisition strengthens Sustainability & ESG Capabilities as well as focuses to both private Market Investors and Enterprise Corporations.
Jan-2022: IBM acquired Envizi, a provider of data and analytics software. The acquisition aimed to allow consumers to speed up environmental initiatives. This move would add value to the company's increasing investments in AI-powered software that include IBM Sterling for supply chain analysis and IBM Maximo for asset management.
Jun-2021: Schneider Electric acquired Operation Technology, Inc., a company specializing in engineering and energy management solutions. This acquisition enhances Schneider's market position in maintenance, design, and operations.
Feb-2023: Schneider Electric added new product lines in its Bengaluru manufacturing facility. The expansion of the facility aims at addressing the increasing demand for energy management solutions.
Market Segments covered in the Report:
By Organization Size
Unique Offerings from KBV Research
List of Figures