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Key Factor Supporting Sustainability and Energy Management Software Market Development in 2025: Rising Investments In EH&S And Sustainability Initiatives Drive Growth In The Sustainability Software Market
Sustainability and Energy Management Software
How Large Will the Sustainability and Energy Management Software Market Size By 2025?
The market size for sustainability and energy management software has seen significant expansion in the recent past. The growth is projected to escalate from $1.5 billion in 2024 to $1.69 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 12.6%. The historical growth of this market can be linked to company sustainability programs, regulatory obedience requisites, savings on energy costs, and an increasing consciousness about climate change.
How Big Is the Sustainability and Energy Management Software Market Size Expected to Grow by 2029?
In the ensuing years, a swift expansion is anticipated in the sustainability and energy management software market, which is projected to reach a value of $2.82 billion by 2029, expanding at a compound annual growth rate (CAGR) of 13.6%. The growth in this sector during the projected period can be linked to the increasing demand for transparency and reporting, a heightened focus on sustainability from investors and consumers, management of supply chain sustainability, and the evolution of ESG (environmental, social, and governance) standards. Some of the key trends for this forecasted period include data analytics in decision-making processes, enhanced transparency and communication with stakeholders, sustainability across supply chains, integration of renewable energy, and the integration of digitalization and IoT.
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Which Key Market Drivers Powering Sustainability and Energy Management Software Market Expansion and Growth?
A primary driver for the growth of the sustainability and energy management software market is the surge in investments aimed at the environment, health & safety (EH&S), and sustainability technologies. Energy management software aids in limiting energy usage and expenditure, contributing to the maximization of energy efficiency and sustainable practices. Furthermore, these software solutions assist in decreasing costs, reducing the carbon footprint, and improving energy quality. For example, in February 2022, ArcelorMittal, a steel producing corporation based in Europe, reported plans for a $1.8 billion investment initiative by 2030 within its French steel production units in Fos-sur-Mer and Dunkirk. This project, supported by the French government, is designed to maintain a balance in production whilst fostering considerable transformation in the French steel industry. The aim is to lower ArcelorMittal's CO2 emissions in France by around 40%, approximately 7.8 million tons per annum, by 2030. This alteration will lead to a 10% cut in the manufacturing industry's greenhouse gas emissions in France. Hence, the amplified interest in, and investment in, environment, health, and safety, along with sustainability software, acts as a catalyst for the development of the sustainability and energy management software sector.
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Which Fast-Growing Trends Are Poised to Disrupt the Sustainability and Energy Management Software Market?
Leading firms in the sustainability and energy management software market are innovating advanced energy storage software platforms to stay competitive. These platforms involve tools and systems which are essential in controlling and managing energy storage systems. They provide users with the ability to track and analyze data in real time, effectively enhancing the efficiency of energy storage and its amalgamation with renewable energy sources and the electric grid. For example, FlexGen Power Systems Inc., an American energy storage technology corporation, released the HybridOS 11 in September 2023, which is the newest version of its energy management software platform. HybridOS 11 presents advanced features aimed at elevating the user experience, assuring system stability, and providing greater supervision over site operations for energy storage asset proprietors and operators. Notable features consist of an Advanced User Interface with a Dark Mode option, an upgraded Scheduler Mode for enhanced event programming, Constant Power Factor and Reactive Power POI limits for exhaustive control, and a Performance Index offering a swift synopsis of site operations. A Digital Twin is also included in the platform, which is a cloud-based simulation that uses machine learning to anticipate site performance.
What Are the Emerging Segments in the Sustainability and Energy Management Software Market?
The sustainability and energy management software market covered in this report is segmented -
1) By Software: Cloud Based, On-Premise
2) By Module: Utility Data Management, Carbon Reporting And Management, Sustainability Reporting And Management, Energy Optimization, Facility And Asset Management, Compliance Management
3) By End User: Automotive, Construction, Manufacturing, Oil And Gas, Pharmaceutical, Utilities And Energy
Subsegments:
1) By Cloud-Based: SaaS (Software As A Service), Multi-Tenant Architecture, Hybrid Cloud Solutions
2) By On-Premise: Enterprise Installations, Customizable Solutions, Legacy Systems
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Who Are the Global Leaders in the Sustainability and Energy Management Software Market?
Major companies operating in the sustainability and energy management software market are Accuvio lnc., Ecova Inc., Enablon North America Corp., Envizi Pty Ltd., Figbytes Inc., Gensuite LLC, International Business Machines Corporation, ICONICS Inc., SAP SE, Schneider Electric SE, UL EHS Sustainability, LogicLadder Technologies Pvt.Ltd., Urjanet Energy Solutions Pvt Ltd, Verisae, Thinkstep, Siemens AG, Johnson Controls International PLC, Honeywell International Inc., Eaton Corporation PLC, General Electric Company, Rockwell Automation Inc., Emerson Electric Co., OSIsoft LLC, Yokogawa Electric Corporation, Mitsubishi Electric Corporation, IntegrityNext, EHS Insight, VelocityEHS
Which are the Top Profitable Regional Markets for the Sustainability and Energy Management Software Industry?
North America was the largest region in the sustainability and energy management software market in 2024. The regions covered in the sustainability and energy management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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