The carbon footprint management market is expected to expand significantly in the forecast period from 2022 to 2026. The carbon footprint management market consists of sales of carbon footprint management solutions and services by entities (organizations, sole traders, and partnerships) that use the software to track the carbon footprint of an organization.
According to a recent research report by The Business Research Company, the global carbon footprint management market size is expected to grow from $8.63 billion in 2021 to $9.42 billion in 2022 at a compound annual growth rate (CAGR) of 9.1%. The carbon footprint management industry growth is expected to reach $12.20 billion in 2026 at a CAGR of 6.7%.
The following are three major drivers expected to spur consistent growth in the carbon footprint management market during the forecast period.
1. Government Support
Carbon footprint management will be supported by government initiatives. Several governments and stakeholders across the world that are focusing on climate change are making policies and amends to reduce greenhouse gases and emission levels in the environment. For instance, in May 2021, the German government set new targets to reduce its carbon footprint and become greenhouse gas neutral by 2045. Under the new targets, Germany will aim for a 65% cut in carbon emissions by 2030 and an 88% cut by 2040.
2. Steadily Expanding Construction and Infrastructure
The growing construction and infrastructure markets are expected to contribute positively to the carbon footprint management market in the forecast period. The increasing demand for housing and infrastructure leads to more residential and commercial establishments. These establishments contribute to carbon emissions through heating and cooking needs, the management of waste and wastewater, and the use of refrigerants in homes and businesses. Carbon footprint management systems can help in tracking, monitoring, and reducing the emissions generated by homes and businesses.
3. COP26 Implementation to Limit Global Warming
The implementation of the United Nations Climate Change Conference, more commonly referred to as COP26, is expected to drive the carbon footprint management market. To accelerate adoption, 5 billion tons of carbon dioxide must be removed from the atmosphere by 2050. Carbon footprint management helps to track and suggest new ways to reduce greenhouse emissions. According to the World Energy Outlook-2021, which was published in mid-October 2021, more than 120 countries announced new targets for emissions reductions by 2030, and governments representing about 70% of global carbon dioxide (CO2) emissions have pledged to bring those emissions to net zero by 2050.
Major competitors have already started focusing on helping businesses address sustainability objectives and climate risk. For instance, in October 2021, IBM announced a suite of environmental intelligence software that leverages AI to help organizations prepare for and respond to weather and climate risks that may disrupt business, more easily assess their own impact on the planet, and reduce the complexity of regulatory compliance and reporting. The IBM Environmental Intelligence Suite aims to help companies streamline and automate the management of environmental risks and operationalize underlying processes, including carbon accounting and reduction, to meet environmental goals.
Other key players in the carbon footprint management market include Accuvio, Carbon EMS, Enviance, EnergyCAP LLC, ENGIE Impact, Envirosoft Corporation, Intelex Technologies Inc., IsoMetrix Software, Locus Technologies, NativeEnergy Inc., SAP SE, Johnson Controls, and Accenture PLC.
Carbon Footprint Management Global Market Report
Regional information on key drivers, opportunities, and strategies can be found in Carbon Footprint Management Global Market Report 2022. The report provides carbon footprint management market analysis, carbon footprint management market forecast, carbon footprint management market size, carbon footprint management market players, carbon footprint management market trends, carbon footprint management market segments and geographies, and the market’s leading competitors’ revenues, profiles, and market shares.
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