Market Trends of EHS Software Industry
Increasing Data Management and Reporting Requirements may Drive the Market Growth
- Organizations face more pressure to collect, manage, and report EHS data to stakeholders, regulatory bodies, and investors. EHS software offers robust reporting and analytics capabilities, making it easier to collect and analyze data, generate accurate reports, and demonstrate compliance. The need for effective data management and reporting drives the adoption of EHS software.
- Stakeholders, including investors, employees, customers, and communities, are increasingly interested in organizations' environmental and social performance. They expect transparency, accountability, and measurable progress in EHS management. EHS software helps organizations meet these expectations by providing accurate data, robust reporting, and clear visibility into their EHS efforts.
- Effective data management and reporting contribute to an organization's reputation and risk management efforts. By implementing EHS software, organizations can demonstrate their commitment to environmental sustainability, workplace safety, and regulatory compliance. This, in turn, enhances their reputation, reduces operational risks, and improves stakeholder confidence.
- Moreover, according to the KPA Survey 2022, EHS software users report better performance than non-users. Respondents claiming "good" or "excellent" satisfaction percentages are more significant among EHS software users in all categories, from incident reporting and tracking to data collecting and analysis. For instance, compared to 35% of software users, 55% of non-users expressed average satisfaction with their program's data collecting and processing.
- Considering these factors, increasing data management and reporting requirements drive the adoption of EHS software by enabling organizations to efficiently collect, manage, analyze, and report EHS data. The software's capabilities support compliance efforts and contribute to improved decision-making, risk management, and overall operational performance in environmental health and safety.
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North America Holds Significant Market Share
- North America, particularly the United States and Canada, has been a significant market for EHS software. The region has stringent environmental and occupational health and safety regulations, driving the adoption of EHS software solutions. Additionally, industries such as manufacturing, energy, and healthcare in North America have been early adopters of EHS software to manage compliance, safety, and risk mitigation.
- Moreover, the region has a strong foothold of EHS software vendors contributing positively to the market's growth. Some vendors based out of North America include Intelex Technologies Inc., VelocityEHS, Sai Global Pty Limited, Dakota Software Corporation, and Gensuite.
- Several players are taking the initiative to strive for zero safety incidents and minimize the impact of their operations on the environment. For instance, ProcessMAPCorporation, a data-intelligence-driven software solutions provider which helps empower customers to transform into a sustainable enterprises, recently announced that Fortune Brands Home & Security, Inc., a Fortune 500 company, will drive the digital transformation of its global EHS and ESG initiatives by leveraging ProcessMAP'ssmart and actionable data-intelligence solutions.
- Vendors in the region are enhancing their EHS software solutions. VelocityEHS, a player in cloud-based environmental, health, safety (EHS), and sustainability software, recently acquired Kinetica Labs, a pioneer in developing sensing and simulation technology for occupational safety and health in Ann Arbor.
- Similarly, VelocityEHS recently acquired OneLook Systems, an Irish software firm. The acquisition will boost its enterprise-wide platform services and capacity to assist users in addressing emerging risk management concerns related to the COVID-19 outbreak and beyond.
- The countries and their respective regional states have developed regulations and requirements to protect their citizens' natural environment and health. Products manufactured, sold, distributed, and imported are subject to an expanding list of complex local, regional, and federal (mandatory and self-regulated) environmental requirements in the United States and Canada. These environmental and safety measures create new compliance challenges for global and local businesses.
- In the North American region, the Environmental Protection Agency (EPA) and the US Occupational Safety and Health Administration (OSHA) strictly implement industrial safety, driving the adoption of EHS Software. Almost all businesses in the United States are subject to OSHA standards, so they are a relevant concern for employers and employees in many industries.
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