1 Global Carbon Accounting Software Market Insight Analysis
The Global Carbon Accounting Software Market is valued at USD 414.2 Million in 2024, growing at a CAGR of 23.10% from 2024 to 2033.
Carbon accounting software analyzes, calculates, measures, and reports a business’ greenhouse gas (GHG) emissions for audit purposes. Using carbon accounting software helps companies manage carbon emissions, meet environmental goals, ensure companies meet regulatory and stakeholder expectations, increase transparency and protect companies from reputational damage.
Figure Global Carbon Accounting Software Market Size (M USD) and CAGR (2024-2033)
2 Carbon Accounting Software Market Growth Drivers and Restraints
Driven by enterprise management needs: Carbon accounting software can help enterprises accurately collect, process and integrate carbon emission data, and improve production and management efficiency. By quantifying carbon emissions, enterprises can clearly understand their environmental impact, so as to formulate targeted emission reduction strategies, meet regulatory requirements and enhance their social image.
For example, in industries with high carbon emissions such as energy and manufacturing, enterprises use carbon accounting software to accurately monitor carbon emissions in the production process, timely discover high-emission links and improve them, effectively reduce operating costs, and enhance market competitiveness. This has prompted more and more companies to increase their investment in the software and promote market growth.
Downstream demand continues to grow: As global attention to climate change issues continues to increase, organizations are facing tremendous pressure to save energy and reduce emissions. Carbon accounting software plays a key role in measuring, planning, and managing carbon emissions. It can help organizations quantify carbon emissions and analyze emission reduction plans to meet their energy-saving and emission reduction goals.
Therefore, demand in many industries continues to rise. Taking the transportation industry as an example, in order to achieve the goal of carbon neutrality, enterprises need to use carbon accounting software to accurately calculate carbon emissions during transportation, and then optimize transportation routes and improve transportation tools. This broad downstream demand provides the market with continuous growth momentum.
Policies and regulations drive change: Globally, many countries have introduced a series of carbon emission-related policies and regulations, such as carbon tax policies, to promote the development of a low-carbon economy. This has closely linked the production and operation costs of enterprises with carbon emissions, prompting enterprises to re-examine their carbon emission management strategies. Carbon accounting software, as an important tool for enterprises to cope with carbon tax policies, optimize tax planning, and reduce resource usage costs and carbon emission costs, has become an indispensable choice for enterprises under the new policy environment, and has strongly promoted the growth of the market.
Data security issues are prominent: Carbon accounting software is highly dependent on technology and data integration, and data security issues have become an important factor restricting market development. Risks such as cyber-attacks and data leaks will not only cause economic losses to enterprises, but may also damage their reputation. For example, software data leaks will expose sensitive information of enterprises, resulting in a decrease in customer trust. This makes enterprises particularly cautious when choosing carbon accounting software, giving priority to data security performance. Some enterprises even delay or abandon the purchase of software due to concerns about data security issues, thereby affecting the expansion speed of the market.
Cost and talent challenges coexist: Carbon accounting software is expensive to install and maintain, and its deployment is complex, requiring enterprises to invest a lot of resources in employee training and supporting tool procurement. At the same time, software updates also face many difficulties and need to constantly adapt to policy changes and customer customization needs, further increasing the cost burden of enterprises.
In addition, the carbon accounting software industry is a technology and talent-intensive industry. There is currently a shortage of professional talents, which limits the technological innovation capabilities and market competitiveness of enterprises. Small enterprises are particularly insufficient in talent reserves, making it difficult to meet the market demand for high-quality software, hindering the overall development of the market.
3 Technological Innovations in the Carbon Accounting Software Market
Innovation in data processing and analysis technology: Many companies are committed to improving the data processing and analysis capabilities of carbon accounting software. For example, Persefoni has integrated more than 750 pages of the Greenhouse Gas Accounting System and the latest Financial Carbon Accounting Partnership (PCAF) standards into the platform, which can convert the company’s financial, operational and supply chain data into reportable carbon emissions data, and achieve accurate calculation of operational and financing emissions. At the same time, by simplifying the data collection process and using the integration center to automatically collect and convert data, the data processing efficiency and accuracy have been greatly improved, providing companies with a more reliable basis for decision-making.
Integration and development with emerging technologies: With the continuous development of emerging technologies such as cloud computing, artificial intelligence, and the Internet of Things, carbon accounting software has been deeply integrated with them. For example, Salesforce’s Net Zero Cloud uses cloud computing and artificial intelligence technologies to achieve real-time management and analysis of sustainability data, automatically track supplier emissions, and predict emissions through simulation scenarios, provide emission reduction suggestions, and help companies more efficiently formulate and implement emission reduction strategies. In addition, Internet of Things technology can realize real-time collection of carbon emission data of corporate equipment, providing more comprehensive and accurate data support for carbon accounting.
Promote industry standards and transparency: Technological innovation has made the standards of the carbon accounting software industry more unified and standardized, and improved the transparency and credibility of data. Normative’s carbon accounting method is based on international standards, combined with a large number of emission factors and industry data to ensure the accuracy and traceability of the calculation results. Its platform can not only help companies conduct carbon accounting, but also generate reports that comply with multiple standard frameworks (such as GRI, CDP, etc.), making it easier for companies to disclose carbon emission information to regulators and stakeholders, and enhancing the market’s trust in carbon accounting software.
Giants integrate resources and expand their business territory: Large companies in the industry integrate resources through mergers and acquisitions to improve their business layout. In 2022, IBM acquired Envizi. Envizi’s artificial intelligence platform can automatically collect and integrate more than 500 types of environmental data. This acquisition has significantly improved IBM’s capabilities in environmental, social and governance (ESG) data analysis, enabling customers to provide more comprehensive ESG solutions and consolidate IBM’s position in the carbon accounting software market.
Small and medium-sized enterprises unite to enhance competitiveness: Small and medium-sized enterprises also complement each other’s strengths through mergers and acquisitions and restructuring to enhance market competitiveness. In 2022, ESP acquired BraveGen. ESP has advantages in energy monitoring and consulting services, while BraveGen excels in enterprise carbon accounting and sustainability management systems. The combination of the two can provide customers with one-stop services from software monitoring, reporting to data analysis, thereby expanding market share.
4 Global Carbon Accounting Software Market Size by Type
Cloud-based carbon accounting software is expected to dominate the market in 2024. This type of software is highly scalable, flexible, and cost-effective, making it an attractive solution for businesses of all sizes. It allows users to access the software via the internet, eliminating the need for extensive hardware investments and reducing maintenance costs. Cloud-based solutions also offer enhanced data security and the ability to easily update and integrate with other systems.
In 2024, the cloud-based segment is projected to generate a market value of 313.47 million U.S. dollars. This represents approximately 75.68% of the total market share. The growth of cloud-based solutions is driven by several factors, including the increasing adoption of cloud technologies across industries, the need for real-time data access and analysis, and the growing emphasis on sustainability and carbon neutrality.
On-premise carbon accounting software, while less dominant, still holds a significant share of the market. This type of software is installed directly on the organization’s servers and offers greater control over data storage and security. It is particularly preferred by large enterprises that require high levels of data privacy and regulatory compliance.
In 2024, the on-premise segment is expected to generate a market value of 100.73 million U.S. dollars, accounting for 24.32% of the total market share. The demand for on-premise solutions is driven by organizations that prioritize data sovereignty and have specific regulatory requirements that necessitate direct control over their IT infrastructure.
Table Global Carbon Accounting Software Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Cloud-Based | 313.47 | 75.68% |
On-Premise | 100.73 | 24.32% |
5 Global Carbon Accounting Software Market Size by Application
Power generation is one of the largest contributors to the carbon accounting software market. This sector includes natural gas, nuclear power, and coal power generation, as well as renewable sources like wind, hydro, solar, biomass, and geothermal. In 2024, the power generation segment is projected to generate a market value of 37.96 million U.S. dollars, representing approximately 9.17% of the total market share.
The iron and steel industry is another significant contributor to the market. Steel is widely used in construction and infrastructure, making it a key sector for carbon accounting. In 2024, the iron and steel segment is expected to generate a market value of 36.43 million U.S. dollars, accounting for 8.80% of the total market share.
Cement production is a major source of CO2 emissions, contributing to approximately 8% of global CO2 emissions. In 2024, the cement segment is projected to generate a market value of 25.19 million U.S. dollars, representing 6.08% of the total market share.
The chemical industry produces a wide variety of products and is the largest industrial user of oil and gas. In 2024, the chemical segment is expected to generate a market value of 16.71 million U.S. dollars, accounting for 4.03% of the total market share.
The oil and gas industry is a major source of greenhouse gas emissions, primarily from the burning of fossil fuels. In 2024, the oil and gas segment is projected to generate a market value of 133.61 million U.S. dollars, representing 32.26% of the total market share. This segment is the largest contributor to the market due to its significant carbon footprint and the need for advanced carbon accounting solutions.
Non-ferrous metals are used in various industrial and residential settings. In 2024, the non-ferrous metal segment is expected to generate a market value of 13.39 million U.S. dollars, accounting for 3.23% of the total market share.
Ferrous metals, including steel and cast iron, are widely used in construction and manufacturing. In 2024, the ferrous metal segment is projected to generate a market value of 13.42 million U.S. dollars, representing 3.24% of the total market share.
The paper industry is the fourth-largest industrial energy user in Europe. In 2024, the paper segment is expected to generate a market value of 6.52 million U.S. dollars, accounting for 1.57% of the total market share.
Glass production is energy-intensive and polluting. In 2024, the glass segment is projected to generate a market value of 12.89 million U.S. dollars, representing 3.11% of the total market share.
Plastics are durable, lightweight, and inexpensive, but their production and disposal contribute significantly to greenhouse gas emissions. In 2024, the plastic segment is expected to generate a market value of 12.13 million U.S. dollars, accounting for 2.93% of the total market share.
Packaging materials include paper, plastic, and wood. In 2024, the packaging segment is projected to generate a market value of 12.16 million U.S. dollars, representing 2.94% of the total market share.
The logistics and transportation sector is responsible for a significant amount of CO2 emissions due to the energy required to move goods globally. In 2024, this segment is expected to generate a market value of 35.52 million U.S. dollars, accounting for 8.58% of the total market share.
The publishing and media industry uses a significant amount of paper, contributing to its carbon footprint. In 2024, this segment is projected to generate a market value of 1.53 million U.S. dollars, representing 0.37% of the total market share.
The printing industry emits volatile organic compounds (VOCs) and requires the use of substrates like paper and plastic. In 2024, the printing segment is expected to generate a market value of 4.63 million U.S. dollars, accounting for 1.12% of the total market share.
Marketing activities, including advertising and promotional materials, contribute to carbon emissions. In 2024, the marketing segment is projected to generate a market value of 6.47 million U.S. dollars, representing 1.56% of the total market share.
The food and beverage industry has a significant carbon footprint due to land use changes, farming, processing, transportation, and packaging. In 2024, this segment is expected to generate a market value of 20.19 million U.S. dollars, accounting for 4.87% of the total market share.
The personal care industry contributes to carbon emissions through chemical production and packaging. In 2024, this segment is projected to generate a market value of 9.18 million U.S. dollars, representing 2.22% of the total market share.
Table Global Carbon Accounting Software Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Power Generation | 37.96 | 9.17% |
Iron and Steel | 36.43 | 8.80% |
Cement | 25.19 | 6.08% |
Chemical | 16.71 | 4.03% |
Oil and Gas | 133.61 | 32.26% |
Non-Ferrous Metal | 13.39 | 3.23% |
Ferrous Metal | 13.42 | 3.24% |
Paper | 6.52 | 1.57% |
Glass | 12.89 | 3.11% |
Plastic | 12.13 | 2.93% |
Packaging | 12.16 | 2.94% |
Logistics/transportation/distribution | 35.52 | 8.58% |
Publishing/media | 1.53 | 0.37% |
Printing | 4.63 | 1.12% |
Marketing | 6.47 | 1.56% |
Food & beverage | 20.19 | 4.87% |
Personal care | 9.18 | 2.22% |
Others | 16.28 | 3.93% |
6 Global Carbon Accounting Software Market Size by Region
North America led the pack with a market revenue of 156.52 million USD in 2024. This region has been at the forefront of adopting carbon accounting software, driven by several factors. Stringent environmental regulations and a high level of corporate social responsibility awareness among businesses have spurred demand. Major economies like the United States and Canada have been actively promoting sustainable development initiatives.
Many large – scale enterprises in sectors such as energy, manufacturing, and finance are investing in carbon accounting software to meet regulatory requirements and enhance their environmental performance. For example, in the energy sector, companies are using these software solutions to accurately measure and report their greenhouse gas emissions, which is crucial for compliance with cap – and – trade systems and other environmental policies.
Europe followed closely, with a market revenue of 139.73 million USD. Europe has long been a pioneer in environmental protection and sustainable development. The European Union’s ambitious climate targets, such as the Green Deal, have created a strong impetus for businesses across the region to adopt carbon accounting software. The regulatory environment in Europe is highly conducive to the growth of this market. Companies are not only required to report their emissions accurately but also to develop strategies for reducing them. Additionally, there is a growing consumer demand for environmentally friendly products and services, which further incentivizes businesses to invest in carbon accounting software to demonstrate their sustainability efforts.
The Asia – Pacific region had a market revenue of 94.30 million USD in 2024. This region is experiencing rapid economic growth, accompanied by an increasing awareness of environmental issues. In countries like China, Japan, and South Korea, industries are gradually recognizing the importance of carbon accounting. China, in particular, with its large – scale manufacturing sector, is under pressure to manage and reduce emissions.
The government’s push towards carbon neutrality goals has led many enterprises to start exploring and adopting carbon accounting software. However, compared to North America and Europe, the adoption rate is still relatively lower in some parts of the Asia – Pacific region, mainly due to differences in economic development levels and regulatory stringency across countries.
Latin America had a market revenue of 13.88 million USD. Although the market size is relatively small compared to the larger regions, there is growing potential. The region is rich in natural resources, and as environmental concerns gain more traction, there is an emerging need for carbon accounting in sectors such as agriculture, mining, and forestry. For instance, in the agriculture sector, which is a significant part of many Latin American economies, there is a need to measure emissions from livestock and agricultural practices. However, limited financial resources and technological infrastructure in some areas have been challenges to a more rapid expansion of the carbon accounting software market.
The Middle East & Africa region had the lowest market revenue of 9.78 million USD in 2024. In the Middle East, the focus has traditionally been on the oil and gas industry, and while there is a growing realization of the need for environmental management, the transition towards adopting carbon accounting software has been relatively slow. In Africa, economic development levels vary widely across countries, and in many areas, there is a lack of awareness and resources regarding carbon accounting. However, with the increasing global emphasis on climate change and the potential for growth in sectors such as renewable energy in the region, there is room for the market to expand in the future.
Figure Global Carbon Accounting Software Market Size (M USD) by Region in 2024
7 Global Carbon Accounting Software Market Analysis by Major Players
Sphera
Company Profile: Sphera is a leading provider of Environmental, Social, and Governance (ESG) performance and risk management software, data, and consulting services. Established in 1991 and headquartered in the USA, Sphera serves clients worldwide with a focus on Environment, Health, Safety & Sustainability (EHS&S), Operational Risk Management (ORM), Product Stewardship, and Supply Chain Risk Management (SCRM).
Business Overview: Sphera’s comprehensive suite of solutions includes SaaS software, proprietary data, and consulting services designed to help organizations manage risks and improve sustainability performance. The company’s expertise in ESG reporting and management enables businesses to meet regulatory requirements and achieve their sustainability goals efficiently.
Product Offered: Sphera’s Carbon Accounting Software, known as the Corporate Sustainability Software, provides robust tools for managing and reporting sustainability data. It supports organizations in meeting ESG reporting frameworks and improving their overall sustainability performance through advanced analytics and reporting capabilities.
2023 Financial Summary: In 2023, Sphera reported a revenue of 43.02 million U.S. dollars, with a gross profit of 30.14 million U.S. dollars, resulting in a gross margin of 70.05%. This strong financial performance underscores Sphera’s leadership in the carbon accounting software market.
Enablon
Company Profile: Enablon, a Wolters Kluwer business, is recognized as the world’s leading provider of Sustainability, EHS, and Operational Risk Management Software. Established in 2000 and headquartered in France, Enablon serves over 1,000 global companies with its comprehensive enterprise EHS software platform.
Business Overview: Enablon’s mission is to enable sustainable companies by providing technology, content, and services that help organizations manage risks, ensure compliance, and improve operational excellence. The company also hosts the Sustainable Performance Forum (SPF), a global conference series for EH&S, Sustainability, Risk, and IT professionals.
Product Offered: Enablon’s Carbon Accounting Software, the GHG Emissions Management Software, helps companies accurately calculate and report their greenhouse gas emissions. It streamlines data collection, analysis, and reporting, enabling organizations to meet regulatory requirements and reduce their environmental impact effectively.
2023 Financial Summary: In 2023, Enablon achieved a revenue of 21.53 million U.S. dollars, with a gross profit of 15.22 million U.S. dollars, resulting in a gross margin of 70.69%. This financial performance highlights Enablon’s strong position in the market and its commitment to delivering high-quality solutions.
Salesforce
Company Profile: Salesforce, established in 1999 and headquartered in the USA, is the world’s leading customer relationship management (CRM) platform. The company offers a wide range of cloud-based applications for sales, service, marketing, and more, designed to help businesses grow by strengthening customer relationships.
Business Overview: Salesforce’s Net Zero Cloud is a comprehensive sustainability management solution that helps organizations reduce costs and emissions simultaneously. The platform is designed to support businesses in their journey towards decarbonization by providing efficient management of sustainability data and enabling real-time tracking of supplier emissions.
Product Offered: Salesforce’s Carbon Accounting Software, Net Zero Cloud, offers features such as efficient management of sustainability data, risk prediction and mitigation, and the ability to convert energy consumption data into carbon emissions data. It also provides comprehensive reporting tools and what-if analysis capabilities to help organizations achieve their net-zero goals.
2023 Financial Summary: In 2023, Salesforce’s carbon accounting software business generated a revenue of 20.32 million U.S. dollars, with a gross profit of 13.79 million U.S. dollars, resulting in a gross margin of 67.84%. This financial performance reflects Salesforce’s growing influence in the carbon accounting software market and its ability to provide innovative solutions for sustainability management.