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What Is Driving Global Sustainability and Energy Management Software Market Growth in 2025: The Role of Rising Investments In EH&S And Sustainability Initiatives Drive Growth In The Sustainability Software Market
Sustainability and Energy Management Software Market
Sustainability and Energy Management Software Market Size Growth Forecast: What to Expect by 2025?
The market size of sustainability and energy management software has seen significant expansion in past years. The market, which was worth $1.12 billion in 2024, is projected to grow to $1.24 billion in 2025, representing a compound annual growth rate (CAGR) of 11.1%. Corporate sustainability initiatives, regulatory compliance obligations, energy cost reductions, and an enhanced understanding of climate change have all contributed to this growth during the referenced historical period.
How Will the Sustainability and Energy Management Software Market Size Evolve and Grow by 2029?
The market size for sustainability and energy management software is anticipated to experience swift expansion in the years to come, reaching $1.98 billion by 2029 with a compound annual growth rate (CAGR) of 12.3%. The expansion during the predicted period is chiefly due to the desire for transparency and reporting, amplified consumer and investor concentration on sustainability, management of sustainability in supply chain, and evolving ESG (environmental, social, and governance) norms. Foreseen trends over the forecast period encompass data analytics-led decision making, transparent stakeholder communication, sustainability within supply chains, integration of renewable energy, and the incorporation of digitalization and IoT.
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What Drivers Are Propelling the Growth of Sustainability and Energy Management Software Market Forward?
The key element propelling the sustainability and energy management software market is the surge in investment in Environment, Health, and Safety (EH&S) and sustainable software. The purpose of energy management software is to curb energy expenses and consumption. It is designed to optimize energy efficiency and sustainability, and the software can facilitate the reduction of cost, the minimization of the carbon footprint, and the upgrading of energy quality. In February 2022, ArcelorMittal, a European-based steel manufacturer, declared an investment plan of $1.8 billion by 2030 at its French steel manufacturing operations in Fos-sur-Mer and Dunkirk. This sizeable investment, facilitated by the French government, ensures that the level of production remains consistent. As a result, France's steelmaking will undergo a significant transformation and ArcelorMittal's CO2 emissions in the country will decrease by nearly 40%, or 7.8 million tons yearly by 2030. This progression will lead to a 10% decline in greenhouse gas emissions from France's industrial manufacturing. Hence, the increase in investments in environment, health, safety, and sustainable software promotes the growth of the sustainability and energy management software market.
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Which Emerging Trends Are Transforming the Sustainability and Energy Management Software Market in 2025?
Leading businesses in the sustainability and energy management software market are innovating in advanced energy storage software platforms to secure a competitive advantage. These platforms comprise of tools and systems that assist in managing and controlling energy storage systems, providing real-time monitoring and data analysis capabilities. This simplifies the optimisation of energy storage performance and its integration with renewable energy sources and the power grid. An example would be FlexGen Power Systems Inc., a US energy storage technology firm that in September 2023, unveiled the latest version of its energy management software platform, HybridOS 11. The advanced features in HybridOS 11 are designed to enhance user experience, stabilize system, and offer more control over site operations for energy storage asset managers and operators. Key upgrades include an enhanced user interface that offers a Dark Mode, a Scheduler Mode Upgrade for improved event scheduling, Constant Power Factor and Reactive Power POI Limits for total control, and a Performance Index for a quick site operations overview. The platform also features a Digital Twin - a cloud-based simulation which uses machine learning to estimate expected site performance.
What Are the Key Segments in the Sustainability and Energy Management Software Market?
The sustainability and energy management softwaremarket 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 Key Players Shaping the Sustainability and Energy Management Software Market's Competitive Landscape?
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
What Geographic Markets Are Powering Growth in the Sustainability and Energy Management Software Market?
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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