Carbon Accounting Software Market Size, Share, Growth, and Industry Analysis, By Type (Cloud-Based and On-Premises), By Application (Power Generation, Iron and Steel, Cement, Chemical, Oil and Gas, Non-Ferrous Metal and Others) and Regional Forecast to 2032

Updated On: 02 September 2024

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CARBON ACCOUNTING SOFTWARE MARKET REPORT OVERVIEW

The Carbon Accounting Software Market size was USD 764 million in 2023 and the market is projected to touch USD 1.36 billion by 2032, exhibiting a CAGR of 6.4% during the forecast period.

The software for accounting the carbon emissions is currently on a steadily increasing trend mostly due to mounting pressure from regulators and companies to conserve nature and bring their total emissions down to zero. Through this process companies are able to comply with environmental laws as well as aid in reaching their sustainability objectives. One of the key driving forces of growth in this sector is climate change awareness which is increasingly intense today coupled with need for precise carbon footprint measurements to achieve global standards such as GHG Protocol and TCFD. Companies are progressively embracing carbon accounting software for enhanced transparency, reduced environmental impact and competitiveness through sustainability.

The software for managing carbon footprints has advanced significantly in terms of user-friendliness and its functions due to technological improvements like real-time data monitoring, enhanced analytics as well as connectivity with other company systems. These inventions support companies’ sustainability statementing efforts and make it easy for them to undertake appropriate decisions on things such as carbon management.

Besides, corporate social responsibility (CSR) has intensified alongside rising investor demand for sustainability disclosures; thus, the market is also enriched by this trend. Various corporations across various sectors such as manufacturing, energy, transport and retail are adopting carbon accounting tools to comply with regulations as well as for shareholders concerns.

COVID-19 Impact: Market Growth During Pandemic due to the heightened health awareness and increased time spent at home

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 global pandemic came with beneficial effects for the Carbon Accounting Software market growth. This pandemic crisis revealed that sustainability and environmental responsibility are vital hence making organizations review their own carbon footprints. Furthermore, with enhanced regulatory scrutiny and increasing stakeholder’s demand for transparency, companies started embracing carbon accounting software at an alarming rate as they attempted to comprehend more precisely the greenhouse gases released by them.

The rise in remote work and digital transformation trends further fuelled the growth of the market, as businesses looked for efficient, scalable, and trustworthy devices to follow and study their carbon emissions. For this purpose, carbon accounting software offered the essential frameworks required for measuring emissions accurately, identifying opportunities for reduction, and meeting the ever-changing environmental regulations. Consequently, businesses needed to generate comprehensive sustainability reports to uphold their good names while responding to the needs of eco-friendly clients or stakeholders. Besides, the government initiatives and policies to reach net-zero emissions and encourage green recovery after COVID-19 have enhanced the demand for such software. Firms operating in diverse sectors came to understand the strategic importance of embedding carbon accounting into their activities not just as a measure against environmental devastation but also as a means of ensuring enduring strength and competitiveness.

LATEST TRENDS

"Integration of AI and machine learning for more accurate and predictive analysis to drive market growth "

The carbon accounting software market is witnessing a new trend of integrating AI and machine learning for better and predictive analysis of carbon footprints. Consequently, firms are using these technologies to collect data automatically with emission monitoring and tracking precision increased. This issue is prominent in that organizations have no choice but to meet demands from community members and governmental agencies regarding transparency as well as efficiency in sustainable operations. Therefore, organizations are able to predict their future carbon emissions reduction efforts by utilizing AI-based analytical tools which also heighten the reporting accuracy when it comes to sustainability.

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CARBON ACCOUNTING SOFTWARE MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Cloud-Based and On-Premise.

• Cloud-Based

This cloud-based carbon accounting software is easily accessible since it offers flexibility and scalability. Consequently, organizations can utilize it from any place with internet connectivity. It provides real-time updates that can be integrated with other digital tools ensuring accuracy of data. In most cases, subscription-based model of cloud solutions leads to lower initial costs and easier scalability for growing businesses.

• On-Premise

The carbon accounting software is managed and installed right on the own servers of a company thereby granting better control over data security and customization. Indeed, this kind of program usually comes with high initial prices as well as regular upkeep hence it may be good for institutions having tough rules related to data safety. Additionally, this allows for far-reaching adjustments in order to meet particular dependent on organization’s demands.

By Application

Based on application the global market can be categorized into Power Generation, Iron and Steel, Cement, Chemical, Oil and Gas, Non-Ferrous Metal and Others.

• Power Generation

Carbon accounting software is an essential tool for tracking and regulating greenhouse gas emissions from various sources of energy within the domain of power generation. It helps meet regulatory standards and promotes programs aimed at limiting the carbon footprint. Furthermore, this software assists in optimizing energy consumption patterns as well as improving general sustainability approaches.

• Iron and Steel

Carbon accounting software used in the iron and steel industry keeps track of emissions from production processes while supporting compliance with environmental legislation. It helps in identifying the areas where emissions can be reduced, and efficiency improved. This software is essential for achieving specific carbon reduction objectives in the industry and promoting sustainable practices.

• Cement

Carbon accounting programs keep an eye on how much CO2 do cement produces and help in managing carbon credits in the cement industry. It also helps recover better process efficiency and reducing the amount of carbon. Moreover, it plays a role in helping with compliance and sustainability reporting purposes.

• Chemical

Carbon accounting software is used by the chemical industry for tracking and managing emissions resulting from the chemical production processes. This helps to comply with the environmental regulations, besides pointing out some areas to cut down on emissions rates. Furthermore, such chemical production software includes sustainable development programs and makes it possible to report or analyse collected data.

• Oil and Gas

Carbon accounting software manages emissions data from extraction, processing, and distribution activities for the oil and gas sector. Additionally, it supports regulatory compliance and helps track progress towards emissions reduction goals. Furthermore, the software aids in optimizing operations while improving environmental performance.

• Non-Ferrous Metal

The production of metals like aluminium and copper is associated with various emissions that are tracked using carbon accounting software within the non-ferrous metal industry. This allows companies to comply with regulations while also finding ways of reducing their carbon footprints. Additionally, the program assists in achieving environmental stability and increasing efficiency across all operations.

DRIVING FACTORS

"Regulatory Compliance to Boost Market Growth"

Growth for carbon management software is driven by increasing regulations and tougher environmental policies as companies try to adhere to emissions reporting and reduction criteria. Through this software, the monitoring, documenting and validating of greenhouse gas emissions are executed precisely thus ensuring that companies comply with the law so that they do not end up paying fines.

"Corporate Sustainability Goals to Drive Market Growth"

Carbon accounting software is being widely adopted due to greater emphasis placed at corporate sustainability and environmental responsibility. The companies can then track their carbon emissions, set goals for reduction, and improve the degree of transparency in sustainability practices to meet consumer expectations as well as to adapt to growing market trends.

RESTRAINING FACTORS

"High Implementation Costs to Hinder Market Growth "

Most importantly, the development of environmental accounting software is generally hindered by huge costs that small and medium enterprises cannot afford. The expenses related to this include hardware in addition to available financial resources such as training costs which require more than just a single budget since new capital would have to be raised for integrating it into existing systems will mean additional time without immediate returns.

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CARBON ACCOUNTING SOFTWARE MARKET REGIONAL INSIGHTS

The market is primarily segregated into North America, Europe, Asia Pacific, South America, and Middle East & Africa.

"North America dominates the market due to its advanced technological infrastructure and stringent environmental regulations"

The Carbon Accounting Software market share is dominated by North America because of its sophisticated technological infrastructure and strict environmental regulations. Leading software providers including innovative companies investing in carbon management solutions are concentrated in the region. Strong governmental and corporate commitments to sustainability also lead to high demand for effective carbon accounting tools. Moreover, main multinational corporations further propel this trend through the implementation and promotion of advanced carbon tracking and reporting systems.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through driving innovation and expanding their product offerings"

Key industry players are dramatically affecting the Carbon Accounting Software sector through innovation promotion and widening product portfolios. Top enterprises invest in state-of-the-art technologies and create complex solutions aimed at addressing diverse regulatory needs as well as sustainability objectives. They also enhance their market presence and reach more consumers through strategic alliances, mergers and acquisitions. Furthermore, these actors establish benchmark practices in the field thereby driving industry change trends which compel other players to follow suit in carbon administration and reporting.

List of Market Players Profiled

• Net0 (U.K.)
• Envizi (Australia)
• Carbon Analytics (U.K.)
• Sphera (U.S.)
• CarbonetiX (Australia)
• BraveGen (New Zealand)
• The Carbon Accounting Company (U.K.)
• Normative (Sweden)
• Emitwise (U.K.)
• Planetly (Germany)
• Pangolin Associates (Australia)
• Plan A (Germany)
• Evalue8 (Canada)
• Carbonstop (China)
• Carbonbase (China)
• Anhui Donggao (China)

INDUSTRIAL DEVELOPMENT

April 2024: The development in the Carbon Accounting Software Market was announced by Salesforce. The organization revealed their own carbon accounting tool named as “Net Zero Cloud 2.0” which will step up their sustainability management assistance. This updated software provides real time tracking for organizations’ carbon emissions together with reporting that uses advanced analytics and AI-powered insights. The new features on this platform comprise of automatic data integration and improved visualisation instruments thereby making it easy for businesses to keep track and manage their ecological footprint. In supporting companies to attain net-zero targets, Salesforce’s development is consistent with the increasing need for easy-to-use carbon accounting methods that are all-inclusive.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis considers both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.