Carbon Management System Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 14.37 Billion |
| Market Size (2029) | USD 25.42 Billion |
| CAGR (2024 - 2029) | 12.09 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Carbon Management System Market Analysis
The Carbon Management System Market size is estimated at USD 14.37 billion in 2024, and is expected to reach USD 25.42 billion by 2029, growing at a CAGR of 12.09% during the forecast period (2024-2029).
The demand for carbon management systems is continuously increasing as a result of the increasing stringency of climate change regulations, the growing cost of carbon emission, and evolving technologies related to carbon management.
- The introduction of carbon emission policies is a key driver for the increasing demand for carbon management systems in the market globally. These policies create a favorable environment for adopting carbon management systems with emission reduction targets, carbon pricing and taxation, compliance, and regulatory requirements.
- The integration of advanced technologies with carbon management platforms enables real-time tracking of carbon emissions to take effective necessary prevention, driving the sales of carbon management systems in the market and is expected to continue over the forecast period as new technology evolves.
- In addition, with growing awareness among businesses about the importance of sustainability and corporate social responsibility, many organizations are setting targets for carbon reduction, aiming for carbon neutrality aligning with international climate commitment. In this way, companies' adoption of carbon management systems is increasing considerably to track progress and identify areas for development.
- The continuously evolving regulatory environment makes it difficult for businesses to compare different systems for implementation. Also, the technological change presenting challenges for carbon management systems providers to keep up with the latest technology trends are some factors challenging market growth.
- In order to preserve sustainability, market players are expanding their capacities and reach through partnerships and alliances in the area of carbon management. For instance, in November 2022, ExxonMobil and Mitsubishi Heavy Industries (MHI) formed an alliance to deploy MHI's leading CO2 capture technology as part of ExxonMobil's end-to-end carbon capture and storage (CCS) solution for industrial customers.
- Global environmental challenges, including climate change, have become more visible because of the COVID-19 pandemic. The demand for carbon management solutions has grown as organizations and governments focus on sustainability and reducing their environmental footprint. In addition, businesses have been adopting Digital solutions for the management of their environmental data and effective collaboration on sustainability initiatives, as remote work was the compulsion during the Pandemic.
Carbon Management System Market Trends
Oil and Gas Sector to Witness the Growth
- The Oil and Gas industry is expected to contribute significantly to market growth. As one of the largest and most carbon-intensive industries worldwide, the oil and gas sector is facing increased pressure to reduce its carbon footprint and transition towards a more sustainable journey.
- Furthermore, the growing number of oil and gas wells and rigs will likely support market growth. According to weekly data by Baker Hughes, in 2022, drilling for both oil- and natural gas-directed wells has increased in the United States. The number of natural gas-directed rigs reached 160 at the end of September, with an increase of 53, and oil-directed rigs reached 602, with a rise of 481 this year. With a growing number of rigs, oil and gas companies are expected to adopt reliable carbon management systems to monitor and report their carbon emission with regulatory compliance creating demand in the market.
- Digital technologies could benefit Scope 1 and 2 emissions as oil firms set more challenging targets for emissions reduction. Tracking harmful methane emissions from oil wells and pipelines is crucial, and machine learning helps refine energy use more efficiently. Drones, sensors, satellite, and camera data are also vital.
- Several companies are working on mitigating the carbon dioxide emissions of industrial operations and accelerating the transition to net zero. For instance, AVEVA is working closely with Aker Carbon Capture, that designs and builds facilities for companies in carbon-intensive industries, such as cement, steel, and oil and gas.
- Due to growing investor demand to reduce greenhouse gas emissions, more digital companies are releasing software that oil and gas producers may use to assess their carbon emissions. In March 2022, Schlumberger launched Schlumberger End-to-end Emissions Solutions (SEES). The company offers comprehensive services and leading-edge technologies designed to give operators a robust and scalable solution for oil and gas industries to measure, monitor, report, and eliminate methane and routine flare emissions from their operations.
North America Accounts For Largest Market Share
- The launching of several Carbon Management Programme in North America represents region’s significant step toward making Airport Carbon Accreditation the global standard for airport carbon management. At the ceremony for the initiative's launch, Seattle-Tacoma International Airport received certification for the first time in North America.
- Several initiatives by the government regarding net-zero emissions are anticipated to fuel demand in the market. In response to government’s goal of net-zero emissions by 2050 the Department of Energy (DOE) in the United States launched Carbon Negative Shot, an all-hands-on-deck call for innovation in CO2 removal pathways that will capture carbon dioxide from the atmosphere and store it at gigaton scales for less than USD 100/net tonne of carbon dioxide-equivalent.
- The market demand is also increasing due to government measures to reduce energy emissions from several outdated public buildings. For instance, the 50 most energy-intensive buildings owned by the state and federal governments will have efficient and smart building technology installed thanks to a contract signed by the US General Services Administration with IBM Corporation.
- According to the Energy Information Administration (EIA), in 2022 industrial sector released 1,393 million metric tons of carbon dioxide into the atmosphere which was 1,383 million metric tons of carbon dioxide in 2021. The government focus on reducing carbon emission generated due to energy sector are likely to support the market demand positively in the coming years.
Carbon Management System Industry Overview
The Carbon Management System Market is fragmented as many players in the market are offering software for management and monitoring. This surge in numbers is being caused by greater uptake of cloud services. While businesses that offer consultation services grow steadily and exhibit a similar pattern during the forecasted period.
- November 2022 - AiDash, that offers satellite and AI-powered operations, maintenance, and sustainability solutions launched innovation in carbon measurement and management, which would help organizations to unlock the intact environmental value of corporate land holdings and lessen the risks of intensifying carbon credit pricing.
- June 2022 – Honeywell International Inc. launched an energy-management-as-a-service offering globally that allows companies to fully account for carbon emissions down to a device level. As part of the Honeywell Forge platform for data, analytics, and Internet of Things (IoT) capabilities, the carbon and energy management solutions are a cloud-based service to help building owners optimise energy use and carbon emissions (Scope 1 and 2), and ultimately, achieve sustainability throughout the enterprise.
- June 2022 - Alibaba Cloud announced the launch of Energy Expert on a global scale. This sustainability platform was created to help users measure, analyze, and control the carbon emissions generated by their products and company operations. Additionally, the software-as-a-service options give clients useful information and suggestions for conserving energy to speed up their sustainability journeys.
Carbon Management System Market Leaders
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Simble Solutions Ltd
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IBM Corporation
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ENGIE Impact
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GreenStep Solutions Inc.
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SAP SE
*Disclaimer: Major Players sorted in no particular order
Carbon Management System Market News
- February 2023 - ENGIE Impact announced its partnership with Mölnlycke to move from strategy to implementation. ENGIE is expanding its low-carbon energy expertise from Mölnlycke's operations in Malaysia, which is the company's global operations. Mölnlycke and ENGIE have entered a 15-year, low-carbon energy and services partnership to support Mölnlycke's ambitious new mid- and long-term greenhouse gas (GHG) emission reduction targets.
- December 2022 - Chevron New Energies (CNE), a division of Chevron U.S.A. Inc., and Svante announced that Chevron is the lead investor in Svante’s Series E fundraising round, which raised USD 318 million that would be used to accelerate the manufacturing of Svante’s carbon capture technology. These companies are advancing a full value chain carbon capture, utilization, and storage (CCUS) business and believe Svante is poised to be a leader in enabling carbon capture solutions.
Carbon Management System Market Report - Table of Contents
1. INTRODUCTION
- 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
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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 Substitute Products and Services
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increasing Environmental Concerns and Focus on Reducing Carbon Footprints
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5.2 Market Challenges
- 5.2.1 Managing Variable Energy and Resource Demand
6. MARKET SEGMENTATION
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6.1 By Offering
- 6.1.1 Software
- 6.1.2 Services
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6.2 By Application
- 6.2.1 Energy
- 6.2.2 Greenhouse Gas Management
- 6.2.3 Air Quality Management
- 6.2.4 Sustainability
- 6.2.5 Other Applications
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6.3 By End-user Verticals
- 6.3.1 Oil and Gas
- 6.3.2 Manufacturing
- 6.3.3 Healthcare
- 6.3.4 IT and Telecom
- 6.3.5 Other End-user Verticals
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6.4 By Geography
- 6.4.1 North America
- 6.4.2 Europe
- 6.4.3 Asia
- 6.4.4 Australia and New Zealand
- 6.4.5 Latin America
- 6.4.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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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
- 7.1.7 IsoMetrix
- 7.1.8 Schneider Electric SE
- 7.1.9 Salesforce.com Inc.
- 7.1.10 Greenstone+ Ltd
- 7.1.11 Microsoft Corporation
- 7.1.12 Sphera
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Carbon Management System Industry Segmentation
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 Carbon Management System Market is segmented by offering (software, services), by application (energy, greenhouse gas management, air quality management, sustainability), by end-user verticals (oil and gas, manufacturing, healthcare, IT and telecom), and by Geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Offering | Software |
| Services | |
| By Application | Energy |
| Greenhouse Gas Management | |
| Air Quality Management | |
| Sustainability | |
| Other Applications | |
| By End-user Verticals | Oil and Gas |
| Manufacturing | |
| Healthcare | |
| IT and Telecom | |
| Other End-user Verticals | |
| By Geography | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Carbon Management System Market Research FAQs
How big is the Carbon Management System Market?
The Carbon Management System Market size is expected to reach USD 14.37 billion in 2024 and grow at a CAGR of 12.09% to reach USD 25.42 billion by 2029.
What is the current Carbon Management System Market size?
In 2024, the Carbon Management System Market size is expected to reach USD 14.37 billion.
Who are the key players in Carbon Management System Market?
Simble Solutions Ltd, IBM Corporation, ENGIE Impact, GreenStep Solutions Inc. and SAP SE are the major companies operating in the Carbon Management System Market.
Which is the fastest growing region in Carbon Management System Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Carbon Management System Market?
In 2024, the North America accounts for the largest market share in Carbon Management System Market.
What years does this Carbon Management System Market cover, and what was the market size in 2023?
In 2023, the Carbon Management System Market size was estimated at USD 12.63 billion. The report covers the Carbon Management System Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Carbon Management System Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What drives the Carbon Management Software Market?
The Carbon Management Software Market is driven by a) Increasing regulatory requirements b) Growing environmental concerns c) Need for businesses to enhance their sustainability practices and reduce carbon footprints
What are the challenges faced by the Carbon Management Software Market?
Major Challenges faced by the Carbon Management Software Market include a) High implementation costs b) Complexity of data management c) Need for continuous updates to comply with evolving regulations
Carbon Management System Industry Report
The carbon accounting software market is experiencing robust growth, fueled by stringent environmental regulations and a heightened focus on sustainability and corporate social responsibility. Advanced technologies such as AI and machine learning are enhancing the efficiency of carbon accounting solutions in monitoring and reporting GHG emissions. This market expansion is supported by the rising demand for energy-efficient solutions and the global drive towards net-zero emissions, leading businesses across various sectors to adopt carbon accounting software. The market is segmented by deployment, with cloud-based solutions gaining traction due to their cost efficiency and real-time monitoring capabilities. Industry-specific adaptations are increasing, especially in sectors like energy and utilities, which face high regulatory scrutiny and have substantial carbon footprints. The global landscape of the carbon accounting market is also benefiting from government initiatives aimed at reducing carbon emissions and promoting cleaner technologies. For detailed statistics on the carbon management system market share, size, and revenue growth rate, access a free report PDF download from Mordor Intelligence™ Industry Reports.
