Carbon Footprint Management Market: Current Analysis and Forecast (2022-2028)

Carbon footprint management is considered as the total amount of greenhouse gases (including methane and carbon dioxide) that are generated by our actions. It also includes the total greenhouse gas (GHG) emissions in a direct or indirect way by an entity or individual, energy, transport, food, and manufacturing among others. The rise in greenhouse gas emissions across different industries requires different software tools to optimize the emission of greenhouse gas. The government norms towards the reduction of greenhouse across industries and individuals will grow the market size of carbon footprint management in the coming time. The rising global temperature and Paris agreement among the countries will force the countries to implement optimized solutions to reduce carbon emissions and greenhouse emissions gas and therefore increase the market size in the forecast period. For instance, in 2006, the green new deal was drafted by the US for one hundred percent clean as well as renewable energy utilization by 2030.

The Carbon Footprint Management Market is expected to grow at a steady rate of around 7% owing to the stringent government regulation to reduce carbon dioxide emissions and lower the overall global temperature. There are several measures that have been taken by the government in recent times across the world, for instance, in the USA EPA (Environmental Protection Agency) issued mandatory reporting of GHG whereas in Australia the government issued an act for reporting & dissemination of GHG along with the government several companies also participating in the reduction of the GHG such as in June 2020, SAP launched carbon emission accounting system to keep a track on carbon emission. Such software will enhance the carbon footprint management market in the coming time.

Based on deployment, the market is segmented into on-premises and cloud. The cloud segment is expected to show significant growth during the forecast period owing to the lower cost of implementation & lower hardware cost, better efficiency & control over data, easy scalability, and higher safety & security. Furthermore, the cloud servers provide a better server utilization rate of nearly 65% compared to the on-premise which is approximately 15% and are comparatively greener alternatives than the on-premises.

On the basis of service, the market is categorized into consulting, integration & deployment, and support & maintenance. The consulting segment is expected to show significant market growth in the coming time owing to government regulation for the implementation of carbon footprint management software. To reduce the several costs associated with the operation such as operational, legal, and reputational risk the enterprise seeks the resources for the proper guidance. However, the market for integration & development also shows higher demand during the forecast period owing to the requirement of the GHG tracking software for the small enterprise as well.

Based on the vertical, the carbon footprint management market is segmented into energy & utilities, transportation, manufacturing, building & construction, and others. The energy and utility segments showed a higher contribution in the year 2020 and the same trends are expected to continue during the forecast period due to the increasing demand for energy around the world for electricity generation, transportation, industrial purpose, heating, and others.

For a better understanding of the market adoption of the carbon footprint management industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is anticipated to grow at a substantial CAGR during the forecast period. This is mainly due to the stringent government policy for the implementation of suitable solutions for carbon tracking equipment. In addition, technological advancements such as the integration of the IoT, AI, and ML continuously optimize the solutions for carbon footprint management. Also, major players in the market continue to invest in R&D to provide efficient carbon footprint management. For instance, SAP launched cloud deployment & enterprise-scaled solutions.

Some of the major players operating in the market include: ENGIE, IBM, Schneider Electric, Carbon Footprint Ltd, SAP, Dakota Software, ISOMETRIX, Salesforce, ProcessMAP, and Wolters Kluwer N.V.