Sustainability and energy management software are comprehensive solutions that help organizations track, measure, and reduce energy usage and greenhouse gas emissions. These solutions monitor the consumption of utilities such as electricity, natural gas, water, and other resources across various facilities to analyze the environmental impact by generating performance reports. The software solutions help organizations plan their sustainability efforts, lower operating costs by improving efficiency, enabling compliance with environmental regulations, and achieving sustainability goals.
The global Sustainability And Energy Management Software Market is estimated to be valued at US$ 175 in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
With industries committing to achieving net-zero targets to curb climate change, these software solutions help track emission inventories, forecast emission levels, and implement strategies to lower emissions from operations. The software also evaluates the carbon impact of business activities and value chains. This allows organizations to get visibility into emission hotspots and take informed actions to reduce emissions through energy efficiency projects, renewable energy procurement, and other initiatives. As industries focus on slashing emissions by 30-50% by 2030 to keep global warming under safe levels, the demand for sustainability and energy management software is expected to increase considerably.
Porter’s Analysis
Threat of new entrants: The sustainability and energy management software market has moderate threat of new entrants due to the presence of established players and requirement of significant investment for R&D.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of various products and vendors in the market.
Bargaining power of suppliers: Suppliers have low bargaining power due to presence of numerous players providing components for sustainability and energy management software.
Threat of new substitutes: Low threat of substitution exists as there are no cost-effective alternatives available for sustainability and energy management software.
Competitive rivalry: The market witnesses high competitive rivalry due to presence of numerous international and regional players focusing on new product launches and mergers & acquisitions.
SWOT Analysis
Strength: Sustainability and energy management tools enable organizations to reduce operational costs through resource optimization and minimize carbon footprints. They help track and analyze energy consumption to enhance operational efficiency.
Weakness: High initial costs associated with procurement and implementation of software. Lack of technical expertise to use sophisticated tools.
Opportunity: Growing focus on reducing carbon emissions and energy costs present significant growth opportunities. Rising adoption of IoT and cloud-based technologies also favors market growth.
Threats: Data privacy and security concerns can hamper adoption of cloud-based sustainability solutions. Lack of compliance with standards and regulations also acts as a restraint.
Key Takeaways
The Global Sustainability And Energy Management Software Market Size is expected to witness high growth over the forecast period owing to stringent government norms and rising focus on energy optimization from organizations. The global Sustainability And Energy Management Software Market is estimated to be valued at US$ 175 in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2031.
The North American region currently dominates the market and is expected to maintain its dominance over the forecast period. This can be attributed to early adoption of sustainability measures and presence of key players in the region. Growth in the Asia Pacific region is expected to be the fastest during the forecast period due to rapid industrialization and implementation of energy efficiency programs in the region.
Key players operating in the sustainability and energy management software market are IBM, SAP, Enablon, ICONICS, Thinkstep, Schneider Electric, Envizi, Envirosoft, UL EHS Sustainability, Verisae, Gensuite, Sphera, Figbytes. These players are focusing on new product launches and partnerships with technology providers to consolidate their market position.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
