Carbon Management System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The carbon management system market was valued at USD 10.93 billion in 2020, and it is projected to be worth USD 19.83 billion by 2026, registering a CAGR of 12.31% during the forecast period (2021-2026). With the COVID-19 pandemic scenario expected to halt the world's emissions growth, the software solutions that serve to optimize society's energy consumption, cut costs, and reduce carbon footprint could witness increased adoption as they help achieve carbon-neutral before the set deadline.

• Many institutions and organizations are multiplying their conservation efforts and gradually adopting measures that provide in-depth knowledge of greenhouse gases' dynamics and impacts. Considering this context, the carbon footprint is one of the most widely recognized indicators in the international sphere.
• The major driving force for the market is introducing various carbon emissions policies due to the demand for rapid decarbonization. The Carbon Research Management Initiative (CaMRI) is the latest program at the Center on Global Energy Policy (CGEP) that focuses on speeding up decarbonization and reducing climate change through carbon management.
• According to Eurostat's latest information (February 2020), in 2018, the final consumption of electricity, gas, steam, and air-conditioning had an enormous carbon footprint (764 kg of CO2 per person) in the EU-27. This is anticipated to increase the utilization of the carbon management system in this region.
• In May 2020, Döhler, a provider of technology-based natural ingredients, ingredient systems, and integrated solutions for the food and beverage industry, collaborated with SAP to run a co-innovation engagement to carry out a pilot project named Climate 21. As a part of the pilot program, the SAP Product Carbon Footprint Analytics was installed for its products.
• Moreover, enterprises in the market are expanding their capabilities and market reach via partnerships and alliances in terms of carbon management to maintain sustainability. For instance, in February 2021, BASF and Siemens Energy agreed to cooperate in carbon management. By combining BASF's technological expertise and Siemens Energy's product and services portfolio, BASF aims to extend its leading role in lowering CO2 emissions in chemical production.
• Further, Managing variable energy resources such as wind and solar energy are seen as a challenge by enterprises. Effectively reducing overall energy consumption requires planning and corporate-wide commitment; for instance, incorporating variable energy resources requires a higher investment in infrastructure and setting up the network. Moreover, large enterprises tend to build their resource networks, which have longer ROIs pushing smaller businesses to restrain their adoption.

Scope of the Report

Carbon management is the process of managing the carbon emissions associated with a business. Carbon management applies to a wide variety of business activities, products, and services and can vary depending on the size of the business and the sector an enterprise operates in. 

The scope of the study for the carbon management systems market has considered both of the offerings in the form of software and services by the vendors and their respective applications in a wide range of end-user verticals globally. 

The market estimates indicate software license subscription-based revenues of carbon management software variants deployed in organizations and revenues accrued through related services. Moreover, Audit services, implementation, consulting, and maintenance services offered as a stand-alone type or in conjunction while installing software are considered in the service segment. 

Report scope can be customized per your requirements. Click here.

Key Market Trends

Energy Sector Accounts for the Largest Market Share

• Energy efficiency is increasingly becoming the primary focus of both private enterprises and government authorities across the globe. The increasing economic activities have led to high energy consumption rates and pushed global electricity grids to their limits.
• Energy consumption is expected to increase over the coming years; according to the United States Energy Information Administration, the worldwide energy consumption is anticipated to grow by around 50% during 2018-2050, with the Asian region being the major consumer of energy over the years.
• Additionally, major economies have already formed regulations to enhance their energy efficiency, and other countries are following suit. For example, the Energy Efficiency Directive established measures to help the EU reach a 20% energy efficiency target by 2020, which was then amended in 2018 with an energy efficiency target for 2030 for at least 32.5%. Such developments in the regions are forcing businesses to adopt energy efficiency solutions.
• According to the Department of Energy data, buildings account for 40% of US energy use and waste 30% of the energy they consume. Altogether, that is a massive amount of the annual energy used and destroyed. Excess carbon is produced in the North American region, reaching over USD 100 billion in operational costs per year.
• Further, Tata Consultancy Services (TCS), a global IT service, consulting, and business solutions organization, has launched TCS Clever Energy, enterprise-level energy and emission management system. It helped commercial and industrial organizations be more sustainable, ensure energy and cost efficiency, decrease carbon emissions, and reach their carbon neutral goals in December 2020.

To understand key trends, Download Sample Report