USD 0.70 billion
Global ESG Software Market Size, Share, Growth Analysis, By Component(Solutions, Services), By Vertical(BFSI, IT and ITeS), By Type(Climate change software, sustainability reporting software), By Organization size(Small and medium-sized enterprises (SMEs) and large enterprises), By Deployment(On-premises and Cloud) - Industry Forecast 2024-2031
Report ID:
SQMIG45E2078 |
Region:
Global |
Published Date: April, 2024
Pages:
197
|
Tables:
145 |
Figures:
78
Global ESG Software Market Insights
Global ESG Software Market size was valued at USD 0.70 billion in 2022 and is poised to grow from USD 0.81 billion in 2023 to USD 2.64 billion by 2031, at a CAGR of 15.90% during the forecast period (2024-2031).
Companies use ESG software to manage and report on their sustainability programs, which include monitoring supply chain risks, tracking carbon emissions, and disclosing diversity and inclusion initiatives. Increased regulatory requirements for ESG reporting, expanding consumer demand for sustainable goods and services, and mounting investor pressure to invest in companies that are socially and ecologically conscious are just a few of the drivers driving the market for ESG software.
The ESG software market has a broad number of participants, including both established large enterprise software firms and smaller startups. Sustainalytics, MSCI, SASB (Sustainability Accounting Standards Board), and GRI are a few of the leading companies in the field (Global Reporting Initiative). As more businesses prioritize sustainability and ESG reporting becomes more crucial for investors and stakeholders, the market for ESG software is predicted to expand over the coming years. Yet, as new competitors enter the market and established players increase their offerings by adding fresh features and capabilities, the industry is also getting more competitive.
US ESG Software Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
BFSI
Fastest Growth
BFSI
Growth Rate
15.90% CAGR
Global ESG Software Market 2022-2030 ($ Bn)
Country Share for North America Region- 2022 (%)
Global ESG Software Market Size By End User 2022-2030 ($ Bn)
Global ESG Software Market Size By End User 2022-2030 ($ Bn)
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Global ESG Software Market Segmental Analysis
Global ESG Software Market is segmented based on component, deployment type, type, organization size, vertical, and region. Based on Component the ESG Software Market is segmented into Solutions, Services. Based on deployment type the ESG Software Market is segmented into On-premises, Cloud. Based on organization size the ESG Software Market is segmented into SMEs, Large Enterprises. Based on Vertical, the ESG Software Market is segmented into BFSI, IT and ITeS, government and public sector, manufacturing, retail and consumer goods, healthcare and life sciences, energy and utilities other verticals. By type, the ESG Software Market is segmented into Climate change software, sustainability reporting software, ESG data management software, ESG risk management software, and others. Based on region the global ESG Software Market is segmented into North America, Europe, Asia-Pacific, Latin America, and MEA.
ESG Software Market Analysis by Vertical
During the projected period, the BFSI segment dominated the market for ESG Software in 2022. Strict laws, such as those controlling reporting and transparency, apply to the BFSI sector's ESG activities. To assist businesses in complying with these standards, these restrictions have prompted the use of ESG software solutions.
ESG Software Market Analysis by Deployment
The cloud-based deployment segment is expected to witness the highest growth due to its flexibility, scalability, and cost-effectiveness. Cloud-based deployment refers to the installation of ESG software on a remote server and accessed through the internet. This deployment mode is preferred by organizations looking for flexibility, scalability, and cost-effectiveness. The cloud-based deployment mode is expected to witness significant growth due to the increasing adoption of cloud-based solutions and the benefits offered by cloud-based deployment, such as reduced capital expenditure and easy accessibility.
The on-premises deployment mode is expected to witness moderate growth due to the need for complete control over the software and data. On-premises deployment refers to the installation of ESG software within an organization's IT infrastructure. This deployment mode offers complete control over the software and data and is preferred by organizations with stringent security and compliance requirements. The on-premises deployment mode is expected to witness moderate growth due to the high cost of implementation and maintenance.
Global ESG Software Market By End User 2022 (%), 2023 (%)
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Global ESG Software Market Regional Insights
The North America region is anticipated to dominate the global ESG Software market. The presence of large players, established diagnostic and screening infrastructure, technological breakthroughs, high patient awareness, and reimbursement regulations are the main drivers of this region's dominance.
Due to the rising incidence of breast cancer and the adoption of cutting-edge diagnostic methods, the market for ESG Software in Asia Pacific region is anticipated to experience the greatest CAGR over the forecast period. Additionally, it is anticipated that expanding healthcare infrastructure and bettering reimbursement policies will promote market growth.
Global ESG Software Market By Geography, 2022-2030, 2024-2031
- Largest
- Fastest
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Global ESG Software Market Dynamics
ESG Software Market Drivers
- The main factor fueling market expansion is the rise in demand for ethical and sustainable investments. There is an increasing need for tools and solutions that can assist assess and analyze a company's ESG performance as more investors seek to engage in businesses that place a high priority on sustainable and responsible practices. Investors can evaluate a company's ESG policies and follow their development over time with the aid of ESG software. It offers a framework for assessing an organization's social responsibility, environmental impact, and corporate governance standards, enabling investors to spot possible risks and opportunities associated with ESG concerns. ESG software can also assist investors in matching their assets with their values and objectives. ESG software aids in the assessment of a company's long-term financial success and helps investors make more informed investment decisions by supplying transparency and accountability regarding a company's ESG policies. Hence, as investors look to assess and gauge the ESG performance of the companies they invest in, the demand for sustainable and responsible investment is driving the need for ESG software.
- Economic reductions, improved risk management, and company reputation management are a few additional drivers for the market. Customers are calling for more responsibility and transparency from businesses as they become more conscious of the effects that enterprises have on the environment and society. ESG software offers insights into a company's sustainability and social responsibility activities, which can assist businesses manage their reputation. Therefore, these are a few of the key elements fueling the market's growth.
ESG Software Market Restraints
- To replace current infrastructure with EHS (Environment, Health & Safety) infrastructure, more money is needed. As a result, infrastructure investments in EHS solutions necessarily entail a sizable sum of money, which eventually restricts the expansion of the worldwide investor ESG software market. Another large and important market barrier is the difficulty of integrating ESG software with the ERP systems of businesses. Most of an enterprise's operational actions, regardless of industry or locale, incorporate ESG criteria. The benefits of EHS standards can be attained, though, by incorporating them with an ERP system. Having stated that, this integration is made all the more difficult by the possibility that a company's IT infrastructure (design and structure) may not accommodate investor ESG software.
- Governments and large corporations are increasingly setting net zero emissions targets for the year 2050. Nevertheless, these promises frequently included a setback in the form of interim targets for reducing emissions or measures to stop or reduce indirect emissions that occur in the supply chain. It is anticipated that, pressure from shareholders and other stakeholders will increase on these entities and organizations to create realistic, short-term strategies and start taking action to reduce emissions along the whole value chain. Investors will probably want more than just making long-term climate pledges because the stakes are so high. Governments and businesses are expected to have to offer verifiable, realistic near-term milestones on their route to decarbonization. Beyond the already-established focus on emission reductions, attention will also be paid to how these organizations manage their exposure to physical climate hazards, including the presence and appropriate design, implementation, and resiliency planning of adaption measures.
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Global ESG Software Market Competitive Landscape
In recent years, the market for ESG (Environmental, Social, and Governance) software has expanded quickly as more and more businesses understand the value of sustainability and ethical business practices. As a result, there are currently numerous businesses that provide ESG software solutions, and the industry is highly competitive. The breadth and depth of their ESG data and analytics, the adaptability and customizability of their software solutions, and the caliber of their customer service and support are important characteristics that distinguish ESG software suppliers. It is anticipated that competition in the industry will only get tougher as long as demand for ESG solutions increases.
ESG Software Market Top Player’s Company Profiles
- Sustainalytics
- Refinitiv
- MSCI Inc.
- Moody's Corporation
- Bloomberg L.P.
- ISS ESG
- RobecoSAM
- Arabesque AI Ltd.
- Truvalue Labs Inc.
- RepRisk AG
- Enablon (Wolters Kluwer)
- FactSet Research Systems Inc.
- CSRHub LLC
- Goby Inc.
- EcoVadis
- Vigeo Eiris
- Measurabl Inc.
- ERM Group Inc.
- Verisk Maplecroft
- Datamaran
ESG Software Market Recent Developments
- In February 2023, The Asia-Pacific region is now included in Intercontinental Exchange, Inc.'s ESG Company Data. The business currently provides information on 16,000 businesses from 105 different nations. This expansion includes over 1.4 million corporate equities and fixed-income securities with high-quality, detailed data matched to them.
- In December 2022, to enable substantial ESG risk assessment across more asset classes and regions, Morningstar Sustainalytics, a leading global source of ESG research, ratings, and data, has announced an expansion of its ESG Risk Ratings coverage. The company's coverage universe now comprises more than 16,300 analyst-based ESG Risk Ratings for public stock, fixed-income, and privately held companies, representing a nearly 30% increase in comprehensive issuer ratings.
- In May 2022, a partnership between PwC and Sphera was established to quicken the scaling up of the top ESG management platform. This partnership aims to quickly increase the Sphera customer base, increase the use of the Sphera platform's suite of capabilities, and build a stronger ESG digital ecosystem for its users by leveraging Sphera's track record of successful ESG platform customer deployments and PwC's proven technology and strategy consulting capabilities.
Global ESG Software Key Market Trends
- In order to guide their ESG initiatives and decision-making, companies are looking for more thorough and reliable ESG data and analytics. In response, ESG software suppliers are creating fresh methods for gathering, analyzing, and reporting ESG data, including integrating with external sources of ESG data.
- In order to provide a more comprehensive perspective of ESG performance and enhance data accuracy and consistency, ESG software suppliers are increasingly connecting their solutions with other business systems, such as ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management).
Global ESG Software Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global ESG software market analysis, due to rise in demand for ethical and sustainable investments, economic reductions, improved risk management, as well as company reputation management are the major factors driving market growth.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 0.70 billion |
| Market size value in 2031 | USD 2.64 billion |
| Growth Rate | 15.90% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global ESG Software Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global ESG Software Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global ESG Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global ESG Software Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global ESG Software Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global ESG Software Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global ESG Software Market Report Snapshots
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