Carbon Footprint Management Market Size, Share & Trends Analysis Report By Deployment, By Organization Size, By Vertical, By Region, And Segment Forecasts, 2021 To 2028

The global carbon footprint management market growth is attributable to the rising concerns pertaining to the environment and increasing emphasis by regulatory bodies worldwide. Regulations and standards such as the U.S. Green Deal and the new EU taxonomy for sustainable activities have compelled companies operating in various sectors to adopt carbon management software.

There is different software that includes a wide range of processes for managing the emissions. Some of the services offered include consulting, maintenance, system integration, and deployment.                          

Carbon Footprint Management Market Segmentation

Carbon footprint is total greenhouse gas (GHG) emissions caused by any individual or entity, directly or indirectly. Transportation, energy, manufacturing, food, and agriculture among others, are some of the key industries accountable for GHG emissions. Rise in GHG emissions is compelling different sectors to adopt the management software.

In terms of deployment, the market is segmented into cloud and on-premises. The demand for cloud deployment is increasing on account of factors such as low capital expenses on onsite hardware, easy scalability, connectivity, security, and safety. In October 2021, Google Cloud announced a new feature for its users that will provide a custom carbon footprint report. This new feature aims at supporting customers in achieving their climate goals.

Moreover, cloud servers are a greener alternative than on-premises. According to a report by NRDC, a large-scale cloud provider has a server utilization rate of 65% compared to on-premises, which is only 15%. This indicates towards lesser usage of running machines leading to reduction in power requirement. Thus, cloud is an energy-efficient and greener alternative, which is a positive aspect for the segment growth.

Based on size of organization, the large enterprises are anticipated to dominate the market over the forecast period. The large enterprises are accountable for higher share in carbon emissions depending upon the nature of their business, thus, they ought to follow standards and regulations. Moreover, the installation of software is an expensive approach, which becomes infeasible for many SMEs.

Rising climatic concerns are encouraging companies to literate their employees about the crucial scenario. For instance, in August 2021, Deloitte announced the roll out of a new program related to climate learning for all its 330,000 people globally. The program will help employees learn impacts of climate changes by making responsible changes at individual levels. Such initiatives are expected to help promote market popularity among the different spheres of the society.

Based on vertical, market is segmented into manufacturing, energy, building & construction, transportation, and others. The energy industry is anticipated to account for major share of the market on account of increasing need and production of energy. According to IEA, the CO₂ emissions are expected to rise by 1.5 billion tons in 2021, for energy industry, on account of rising demand for coal in electricity generation.

Based on region, North America is anticipated to be the major consumer for carbon footprint management software in the world. The concerns pertaining to rising CO₂ levels are compelling regulatory authorities to revise existing standards and introduce new standards for curbing the emissions.

For instance, transportation is the major source for GHG emissions in the U.S., accounting for a total share of around 29%. U.S. EPA, NHTSA, and CARB are the designated agencies that set standards for fuel economy and vehicle emissions in the country. In August 2021, EPA and NHTSA proposed to revise the exiting GHG emission and fuel economy standards for passenger cars and light trucks.

The U.S. President signed an executive order on Strengthening American Leadership in Clean Cars and Trucks in August 2021. This sets a non-binding target of producing 50% zero emission vehicles by 2030 in form of passenger vehicles and light-duty trucks. Such initiatives are anticipated to propel the market growth in North America over the forecast period.

The competitive scenario is intense in the market as major companies are involved in offering different services and solutions pertaining to carbon footprint management. Major players are engaged in collaborations and new product development to gain a higher market share in the industry.

For instance, in April 2021, Schneider Electric launched a Zero Carbon Project, under which the company will partner with its 1,000 suppliers that account for 70% of company’s carbon emissions. Schneider Electric will offer tools and resources under this program to all participants for them to set and achieve carbon reduction targets. This aims at reducing carbon footprints at supply-chain levels.

Carbon Footprint Management Market Report Scope