Carbon Footprint Management market size was valued at $8.5 billion in 2019, and it is estimated to grow at a CAGR of 5.21% during 2020-2025. The growth is mainly attributed to the mandatory regulations and standard policies set to drive the market growth. Furthermore, strict carbon emission compliances and increasing government initiatives in order to minimize the carbon emissions propel the market growth.
- North America dominated the Carbon Footprint Management market in term of revenue in 2019 owing to the presence of major number of players.
- Utilities is the fastest growing industry for carbon footprint management with increasing need of electricity which set to push the market growth.
- Stringent regulations in order to reduce carbon emissions set to drive the market growth.
- High initial investment is the major challenge that hampers the market growth.
Deployment – Segment Analysis
Cloud based deployment held the major share of 58.96% in 2019. Cloud based deployment mode is more preferred for mobile and web application security and this is poised to drive the market growth. Cloud deployment provides greater flexibility and offer much less in the means of customization when compared to on-premises. It also offers better control of the data and reduce the risk of data loss. This drives the market growth.
Industry Vertical – Segment Analysis
Utilities is the fastest growing segment in Carbon Footprint Management market and estimated to grow at a CAGR of 6.02% during forecast period 2020-2025. Increase in investments in utilities sector is set to drive the market growth. Approximately 20% of global Carbon emissions are emitted from electricity generation through the combustion of fossil fuels to generate heat that is required to power steam turbines. Increasing higher electricity demand, energy needs witnessed an upsurge. As a consequence, CO2 emissions has been rising due to the high energy consumption which set to create opportunities for the market growth.
Geography- Segment Analysis
North America dominated the Carbon Footprint Management market in 2019 with a market share of 35.82%, followed by Europe and APAC owing to the presence of large number of players and stringent regulations. According to U.S. Environmental Protection Agency (EPA), in 2018, U.S. greenhouse gas emissions had totaled 6,677 million metric tons of carbon dioxide. Increase in greenhouse gas emissions has created demand for carbon footprint management which set to drive the market in this region.
Drivers –Carbon Footprint Management Market
- Growing awareness and stringent regulations pertaining to carbon emissions
Environmental Protection Agency (EPA) regulates greenhouse gas emissions from power plants under Section 111 of the Clean Air Act, which allows EPA and the states greater flexibility in implementing a standard. For instance, in June 2019, EPA had issued greenhouse gas (GHG) emission regulations for existing fossil fuel fired power plants in the Affordable Clean Energy (ACE) Rule. The regulation would direct states to require coal-fired power plants in order to use prescribed technologies to improve their heat rate and increase efficiency and this set to drive the market growth.
- Increasing adoption of carbon footprint management in transportation sector
Transportation is one of the largest source of carbon emissions. In many countries, personal automobile is the single greatest polluter because of emission of carbon from millions of vehicles. So, there has been increase in investments on production of electric vehicles due to stringent government regulations and to reduce carbon emissions. This is poised to drive the carbon footprint management market.
Challenges – Carbon Footprint Management Market
- High initial investment
The high cost associated with the replacement of existing infrastructure with greener and low carbon emitting infrastructure hampers the market growth. Small industries pose a major challenge in adopting low carbon emitting infrastructure restricts the market growth. Additionally, lack of awareness in adopting low carbon emission infrastructure restrain the market growth.
Technology launches, Acquisitions, Collaboration, and R&D activities are key strategies adopted by players in the Carbon Footprint Management market. Carbon Footprint Management top 10 companies include Ecova INC, Enablon SA, Enviance Inc, Firstcarbon Solutions, Greenstone, Processmap Corporation, SAP, Thinkstep AG, Verisae Inc, Natural Capital Partners, VelocityEHS, Aurecon Group, Carbon Solutions Global Ltd, Schneider Electric, and others.
- In June 2020, SAP had launched carbon emission accounting system in order to address climate change. Development of new systems increase the Company’s carbon footprint management market share.
- In February 2020, Schneider Electric has announced its membership with the Climate Group’s EV100 initiative in order to launch a green fleet policy which aims to replace 100% of its car fleet with electric vehicles by 2030. This set to drive the market in future.