Carbon Management System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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 2021-2026. COVID-19 has exposed vulnerabilities in various industries, and climate concern among consumers has increased exponentially, pushing companies to opt for sustainable solutions. The climate crisis is seen as equally important to deal with, and people expect the eventual economic upturn to not be at the expense of climate protection.

Various governments are adopting sustainability and climate change as part of their financial stimulus packages. For instance, Germany's corona recovery package of EUR 50 billion is for developing technologies such as digitalization in combination with climate-friendly technologies such as hydrogen and e-mobility infrastructure and low-carbon buildings. Such developments are expected to push the adoption of solutions that help manage carbon footprint among enterprises.

• 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 the introduction of 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 the impact of climate change through carbon management.
• Since the renewal of global commitments to tackle climate change with the December 2015 Paris Agreement, only 70 countries out of the 197 signatories have defined national climate plans (NDCs) ambitious enough to meet their pledges, as of 2020.
• At the 2019 Climate Action Summit, about 75 countries had pledged to deliver a net-zero emissions strategy for 2050 by the end of 2020. About 47 least developed countries have pledged to deliver net-zero greenhouse gases (GHG) emissions strategy by 2050. The aim to achieve net-zero GHG emissions was aided by a combined investment of USD 2.3 trillion and asset owners controlling assets worth over USD 2 trillion by both governments and private sectors, including businesses.

Scope of the Report

Carbon management is the process of managing the carbon emissions associated with a business. Carbon management is applicable 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 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 end users can use it as an application for integrated solution or can use an individual application and are reflecetd in the estimation for the market under application segment.

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Key Market Trends

Energy Sector to Witness Significant Growth

• These systems helps in managing the carbon emissions cost-effectively with wide range of functionalities that are aimed at monitoring and reducing emissions from the energy and fuel that are being used in multiple areas such as buildings and fleets. These systems primarily aims to reduce the energy cost and carbon emissions while meeting the carbon legislation and helping organizations in moving towards a greener future.
• Energy efficiency is increasingly becoming the major focus of both private enterprises and government authorities across the globe. The increasing economic activities have to lead to high energy consumption rates and pushed global electricity grids to its limits.
• Energy consumption is expected to further 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.
• In order to enhance their energy efficiency, major economies have already formed regulations, 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, 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 data from the Department of Energy, 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 wasted, and excess carbon produced in the North American region, reaching over USD 100 billion in operational costs per year.

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