Sustainability and energy management software are used by organizations to track, measure, and reduce energy usage and costs associated with resource consumption. They help in monitoring greenhouse gas emissions, water usage, waste generation across operations to promote sustainability practices. With rising environmental concerns and supportive government regulations on energy efficiency and renewable targets, adoption of these solutions is growing among industries and enterprises to lower carbon footprint and optimize resource utilization.
The global Sustainability And Energy management Software Market is estimated to be valued at US$ 175 billion in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing adoption of clean and renewable energy sources like solar and wind energy is driving the sustainability and energy management software market. These solutions help organizations and governments to effectively manage the production and integration of renewable energy with the existing energy mix. They provide visibility and control over renewable assets to optimize production levels. The software also facilitates compliance with renewable purchase obligations and emission reduction targets set by regulatory bodies. With the rising demand and diminishing costs of renewables, their adoption is growing rapidly. As per IEA's report, renewable energy capacity is estimated to increase by over 60% between 2020 and 2024. This in turn is propelling the need for advanced management software to efficiently handle hybrid energy systems consisting of both conventional and renewable sources, thereby supporting the market growth over the forecast period.
SWOT Analysis
Strength: Sustainability and energy management software provide organisations visibility into energy and resource consumption and costs. This allows companies to efficiently monitor performance and identify areas for improvement.
Weakness: Implementing sustainability and energy management software requires investment of capital and resources. There is also a learning curve for users to get acquainted with new systems.
Opportunity: Increasing focus on reducing carbon footprint and energy bills presents an opportunity for growth of sustainability and energy management software market. Governments also offer incentives for companies pursuing sustainability initiatives.
Threats: Open source and low-cost alternatives limit the pricing power of established software vendors. Changing consumer preferences and technological advancements pose threat of product obsolescence.
Key Takeaways
The Global Sustainability And Energy Management Software Market Size is expected to witness high growth over the forecast period of 2024 to 2031. The global Sustainability And Energy Management Software Market is estimated to be valued at US$ 175 billion in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period 2024 to 2031.
Regional analysis shows that North America region currently dominates the market driven by developed economies like the US investing heavily in sustainability programs. The Asia Pacific region is expected to be the fastest growing market during the forecast period due to rapid industrialization and economic growth in countries like China and India.
Key players operating in the sustainability and energy management software market include Schneider Electric, IBM Corporation, SAp SE, Iconics Inc., UrJan, Enablon, Thinkstep, UL EHS Sustainability, Verisae, Inc., envizi, Gensuite LLC, Figbytes Inc., Envizi, ICONICS, Carbon Clear, Turboo, Enviance. These players are focusing on expanding to growing markets through strategic partnerships and mergers & acquisitions.
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