Carbon Management System Industry Overview
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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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.
|Greenhouse Gas Management|
|Air Quality Management|
|By End-User Verticals|
|Oil and Gas|
|IT and Telecom|
|Other End-user Verticals|
|Middle East and Africa|
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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North America Accounts For Largest Market Share
- The carbon management system market in the region remains a significant market as commercial, residential, and industrial consumers continue to drive adoption to realize energy savings. The US is currently ranked as the second-largest consumer of electricity after China.
- Further, the Carbon management program launch in North America is a decisive step in establishing Airport Carbon Accreditation as the global standard for carbon management at airports. The launch ceremony also saw Seattle-Tacoma International Airport become the first airport in North America to achieve certification within the program.
- Government initiatives to decrease energy emissions from several old and public buildings are also boosting the market demand. For instance, the US General Services Administration contracted with IBM Corporation to install efficient and smart building technologies in 50 of the state and federal government’s highest energy-consuming buildings.
- Further adding to the scenario, a potentially zero-energy district is currently being developed at the National Western Center, a multi-use campus currently under construction in Denver, Colorado, to house the annual National Western Stock Show and other public events focused on food and agriculture. Electricity used to operate the lighting, heat pumps, and other equipment will come from on-site photovoltaics and wind- and solar-generated electricity imported from off-site.
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Carbon Management System Market Competitor Analysis
The Carbon Management System Market is inclining towards fragmentation with the increase in the number of players offering software for monitoring and management. This increase in number is proliferating due to the rise in the adoption of cloud services. Whereas the companies providing services in consultation show steady growth and follow a similar trend in the forecast period.
- March 2022 - Normative, a Swedish start-up backed by Google, has launched a free version of its carbon emissions tracker. It was created to help relatively small companies get a baseline understanding of their emission. Normative's Business Carbon Calculator helps small and medium-sized businesses monitor their carbon emissions and locate emission hotspots based on data like the size of their facilities and how much they spend on heating, electricity, and gas. Normative also offers paid products for larger businesses.
- November 2021 - SGS China announced its collaboration with Microsoft to launch S-Carbon, the world's first-ever dual-standard intelligent cloud carbon management platform, based on Microsoft Azure at the 4th China International Import Expo (CIIE). As a world-renowned company specializing in carbon inventory and audit, SGS developed S-Carbon by leveraging Microsoft Azure, its data storage, and data analysis technology, adopting international ISO 14064-1 standard and Chinese national standards to track carbon emissions performance quantitatively. By effectively classifying and managing the enterprise's carbon targets, the platform helps enterprises across various industries enhance their international competitiveness, green financing opportunities, and brand influence in the context of carbon neutrality goals.
Carbon Management System Market Top Players
Simble Solutions Ltd
GreenStep Solutions Inc.
*Disclaimer: Major Players sorted in no particular order
Carbon Management System Market Recent Developments
- July 2022 - Gravity Climate has launched its carbon management software "GRAVITY" for industrial businesses and their supply chain partners, which will help them manage their carbon footprint while driving cost-effective decarbonization and long-term profitability. Furthermore, the company announced a USD 5 million seed investment from Eclipse Ventures and several new customer engagements with mid-sized manufacturers and industrial-focused private equity firms. The software was inspired by the opportunity to apply new technology to industrial supply chains, which account for more than 40% of all greenhouse gas emissions. The software focuses on industries with significant physical operations and infrastructure, such as construction, metals, and energy services. For these industries, reducing their emissions also reduces their customers' supply chain emissions.
- June 2022 - Alibaba Cloud, a subsidiary of Alibaba Group, has announced the global launch of Energy Expert, a sustainability platform designed to assist customers globally in measuring, analyzing, and managing the carbon emissions of their business activities and products. In addition, the software-as-a-service offerings provide customers with actionable insights and energy-saving recommendations to help them accelerate their sustainability journeys.
Carbon Management System Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of Impact of COVID-19 on the Carbon Management System Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Environmental Concerns and Focus on Reducing Carbon Footprints
5.2 Market Challenges
5.2.1 Managing Variable Energy and Resource Demand
6. MARKET SEGMENTATION
6.1 By Offering
6.2 By Application
6.2.2 Greenhouse Gas Management
6.2.3 Air Quality Management
6.2.5 Other Applications
6.3 By End-User Verticals
6.3.1 Oil and Gas
6.3.4 IT and Telecom
6.3.5 Other End-user Verticals
6.4 By Geography
6.4.1 North America
6.4.3 Asia Pacific
6.4.4 Latin America
6.4.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Simble Solutions Ltd
7.1.2 IBM Corporation
7.1.3 ENGIE Impact
7.1.4 GreenStep Solutions Inc.
7.1.5 SAP SE
7.1.6 Enablon SA
7.1.8 Schneider Electric SE
7.1.9 Salesforce.com Inc.
7.1.10 Greenstone+ Ltd
7.1.11 Microsoft Corporation
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Carbon Management System Market Research FAQs
What is the study period of this market?
The Carbon Management System Market is studied from 2018 - 2028.
What is the growth rate of Carbon Management System Market?
The Carbon Management System Market is growing at a CAGR of 13.31% over the next 5 years.
Which region has highest growth rate in Carbon Management System Market?
Asia-Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Carbon Management System Market?
North America holds highest share in 2021.
Who are the key players in Carbon Management System Market?
Simble Solutions Ltd, IBM Corporation, ENGIE Impact, GreenStep Solutions Inc., SAP SE are the major companies operating in Carbon Management System Market.
Carbon Management System Industry Reports
In-depth industry statistics and market share insights of the Carbon Management System sector for 2020, 2021, and 2022. The Carbon Management System research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Carbon Management System report PDF.