Carbon Management System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Carbon Management System Market Analysis

The Carbon Management System Market is expected to grow at a CAGR of 13.31% over the forecast period (2022 to 2027).

• The primary driving force for the market is the implementation of various carbon emission policies in response 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 carbon management to accelerate decarbonization and reduce climate change.
• Many institutions and organizations are multiplying their conservation efforts and gradually adopting measures that provide in-depth knowledge of greenhouse gases' dynamics and impacts. In this context, the carbon footprint is one of the most widely recognized indicators on a global scale.
• Moreover, enterprises in the market are expanding their capabilities and market reach via partnerships and alliances in 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.
• The COVID-19 pandemic and lockdown restrictions across the region are expected to halt the world's emissions growth. The software solutions that optimize society's energy consumption, cut costs, and reduce carbon footprint could witness increased adoption as they help achieve carbon-neutral status before the deadline.
• The market's growth is hampered by a lack of training, development, and standards. Customers are frequently purchasing products that are new to the market as a result of technological advancements and price decreases. This results in a large amount of electronic waste, which is hazardous to the environment. For instance, many manufacturers in South America sell electronic goods, as the awareness is low. This adds to carbon emissions. Developing nations such as India lack sufficient carbon emission standards.

Carbon Management System Industry Segments

Carbon management is 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 company's size and the sector in which an enterprise operates.

The scope of the study for the carbon management systems market has considered the offerings in 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.

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Carbon Management System Market Trends

This section covers the major market trends shaping the Carbon Management System Market according to our research experts:

Energy Sector Accounts for the Largest Market Share

• Energy efficiency is increasingly becoming the primary focus of 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, 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.
• According to EMBER, China is the largest contributor to CO2 emissions from electricity generation in 2021, with 4,646.87 million metric tons. This was roughly three times the amount of carbon dioxide produced by the United States. While China's emissions from the power sector are far higher than those of the United States, the country's per capita emissions from electricity generation are lower.
• Additionally, major economies have already formed regulations to enhance their energy efficiency, and other countries have followed suit. For example, the Energy Efficiency Directive established measures to help the EU reach a 20% energy efficiency target by 2020, amended in 2018 with an energy efficiency target for 2030 of 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 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.
• Vendors are increasingly focusing on expanding their presence in the sector. For example, , Schneider Electric announced its EcoStruxure Microgrid Solution for Small and Medium Buildings in Canada. The all-in-one solution provides easy integration of distributed energy resources (DERs) across facilities, including commercial and industrial buildings, healthcare facilities, and educational institutions, providing organizations with greater energy resiliency, reduced energy costs, and a lower carbon footprint in January 2021.

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