Carbon Footprint Management Market: Overview
The market size for carbon footprint management was USD 9142.5 million in 2021, and it is projected to grow at a CAGR of 6.1 percent during the forecast period. Growing demand for energy consumption by industries and the drive for more sustainable energy solutions fuel the global carbon footprint management market growth. Moreover, a rise in government initiatives and policies for low carbon policies is positively impacting the growth of the carbon footprint management market. However, higher installation and maintenance costs of carbon footprint management can restrict the carbon footprint management solutions market during the forecast period. On the contrary, the increasing adoption of trends of advanced technologies, such as artificial intelligence, IoT, and big data, across industries to decrease carbon emissions is anticipated to offer remunerative opportunities for expansion of the carbon footprint management market during the forecast period. Based on industry vertical, the market is divided into manufacturing, transportation and logistics, energy and utilities, residential and commercial buildings, and IT and telecom.
Companies are increasingly adopting carbon footprint management software across several verticals due to the requirement to comply with carbon emissions. This has expanded the demand for carbon footprint management software around industries. The growing government initiatives globally are anticipated to boost the market's growth. For instance, in June 2020, SAP upgraded and introduced a carbon emission accounting system to calculate the carbon footprint, increasing its software market share in the carbon footprint management market. Furthermore, growing climatic concerns encourage companies to educate their employees about the critical scenario. For instance, in August 2021, Deloitte announced the rollout of a new program associated with climate learning for all its 330,000 people globally. The program will assist employees in learning the impacts of climate change by making responsible changes at individual levels. Such initiatives are anticipated to assist market popularity among the different spheres of society.
The increased demand for energy consumption by industries and demand for sustainable energy solutions have fueled the global carbon footprint management market. However, carbon footprint solutions' high installation and maintenance costs restrain the market. On the contrary, increasing the trend of advanced technologies, including artificial intelligence, IoT, and big data, to reduce carbon emissions would unlock new opportunities in the future.
Carbon Footprint Management Market: COVID-19 Impact
With COVID-19 cases on the rise globally, various businesses and organizations in the manufacturing and fabrication industries were forced to limit or halt their operations during COVID-19-related lockdowns. In addition, with the limited availability of staff and on-site workers, organizations faced difficulties continuing full-scale productivity during the forecast period. Because of these constraints, the carbon footprint management industry's applications were limited, and the market endured a slowdown during the COVID-19 pandemic. However, the increase in consumer awareness of personal carbon footprint management has resulted in a steady growth trend in various industrial and residential applications, permitting its growth in relatively less explored business verticals. This has allowed many key players in the industry to introduce specialized products to cater to a newer customer base. For instance, in August 2020, Carbon Footprint Ltd. introduced its Carbon Calculator. Carbon Calculator is a carbon footprint calculator for households and individuals. Such instances are promising great opportunities for the growth of the carbon footprint management market during the forecast period.
Carbon Footprint Management Market: Drivers
Adoption of Advanced Technologies, Such as AI and IoT, to Drive Market Growth
The carbon footprint management market is growing owing to technological improvements such as integrating linked devices with the Internet of Things (IoT), artificial intelligence (AI), and big data solutions. Companies may automatically use AI-powered data engineering to track emissions throughout their carbon footprint. They can collect data from operations, corporate travel, IT equipment, and every facet of the value chain, such as materials and component suppliers, transporters, and even their goods' downstream customers. Data from new sources, such as satellites, can be utilized by AI.
Increase in Demand for Energy Consumption by Industries to Drive Market Growth
The energy demand of the industrial sector is on the rise. As per an article published by the US Energy Information Administration, the commercial sector of the US was responsible for consuming more than 36% of its total energy consumption for 2020, out of which the manufacturing sector businesses used more than 77% of the energy. Similarly, Statistics Canada in 2020 reported that the energy consumption of the manufacturing sector has grown by over 6% since 2009. Such trends showcase growth in energy requirements by the global industrial sector as energy production still depends on coal. According to the US Energy Information Administration, the total energy production of the US in 2020-2021 comprised 22% of coal-powered energy sources. Such factors permit governments and industries to employ carbon footprint management solutions.
Carbon Footprint Management Market: Restraints
Lack of Willingness to Adopt Carbon Emission Systems to Hamper Market Growth
The key challenge the carbon footprint management market faces is the lack of willingness to embrace carbon emission systems that prevent high carbon and greenhouse gas emissions from industries. The governments are not putting sufficient caps on industries to control carbon emissions. Other than that, the new technologies integrating with the internet of things, artificial intelligence, and machine learning is also reducing the use of carbon management systems, such as carbon footprint management software. Another reason that hampers the global carbon footprint management market is the unavailability of a basic sustainable structure on which can be built the ecosystem.
Carbon Footprint Management Market: Segment Overview
Growth in Demand for Cloud Deployment to Dominate Market
The demand for cloud deployment is growing because of factors such as low capital expenses on onsite hardware, easy scalability, security, connectivity, and safety. For instance, in October 2021, Google Cloud introduced a new feature for its utilizers to provide a custom carbon footprint report. This new feature aims at supporting customers in attaining their climate goals. Furthermore, cloud servers are a greener alternative than on-premises. According to a report by NRDC, a large-scale cloud supplier has a server utilization rate of 65% compared to on-premises, which is only 15%. This indicates lesser utilization of running machines leading to a reduction in power requirement. Thus, the cloud is an energy-efficient and greener alternative, which is a positive aspect of the global carbon footprint management market growth during the forecast period.
Increased Adoption of Carbon Footprint Management Systems in Transportation Drive Market Growth
The transportation segment is expected to drive the market during the forecast period because of the carbon emissions from millions of automobiles. The transportation industry is one of the major contributors to carbon emissions. In several countries, the personal automobile sector is the single largest polluter. Electric vehicle investments have grown because of increasing government regulations and the desire to reduce carbon emissions. The market for carbon footprint management is likely to rise because of this. Furthermore, transportation management systems that combine planning and execution provide a variety of alternatives for lowering the environmental effect.
Carbon Footprint Management Market: Regional Landscape
North America to Dominate Market due to Increase in Government Initiatives for Low Carbon Policies
North American region is anticipated to hold a prominent share in the global carbon footprint market as governments in the US are seriously considering the consequences of rapid industrialization and the unstable production of carbon, as these unmoderated carbon emissions cause serious health and environmental issues damage. Several countries in this region have already implemented a similar carbon tax, such as an energy tax (based on the carbon emission during the production of the energy). As per an article published by the American environmental nonprofit organization, Center for Climate and Energy Solutions, in 2021, 35 carbon tax programs have already been implemented across the region. Moreover, various countries in this region are implementing serious tax laws and regulations on their businesses and industrial areas to check their carbon footprint. Moreover, national governments and international organizations have agreed to limit the global temperature increase to two degrees Celsius. As per the Carbon Dioxide Information Analysis Center (CDIAC), around 91% of current fossil fuels and CO2 emissions are from the US. The emissions from North America have reduced from 46.4% in 1950 to 20.5% in 2008. Per capita, the regional excretion of North America has been consistently high and above those of any other region.
However, Asia-Pacific is anticipated to witness significant growth during the forecast period due to its rapid economic transformation and the increase in awareness regarding the growing carbon emissions in the region, which is anticipated to fuel the growth of carbon footprint management solutions in the region during the forecast period. Furthermore, another reason behind the high growth of the carbon footprint management market in this region is the integration of new-gen technology that permits end users to track the GHG and carbon emissions remotely.
Global Carbon Footprint Management Market: Competitive Landscape
In August 2021, Deloitte introduced the rollout of a new program related to climate learning for all its 330,000 people globally. The program will assist employees in learning the impacts of climate change by making responsible changes at individual levels. Such initiatives are anticipated to promote market popularity among the different spheres of society. Furthermore, in April 2021, Schneider Electric introduced a Zero Carbon Project, under which the company will partner with its 1,000 suppliers that account for 70% of its carbon emissions. Schneider Electric will supply tools and resources under this program to all participants to set and achieve carbon reduction targets. This aims at decreasing carbon footprints at supply-chain levels.
Few of the players in the carbon footprint management market include IBM Corporation, Wolters Kluwer NV, SAP SE, Dakota Software Corporation, Salesforce.com, Inc., ProcessMAP Corporation, IsoMetrix, Sphera, Natural Capital Partners, VelocityEHS, Aurecon, Carbon Trust, Greenstone+ Limited, Cority, Engie SA, Schneider Electric SE, Accruent and others.
Global Carbon Footprint Management Market is Segmented as Below:
By Deployment Mode
Key Elements Included In The Study: Global Carbon Footprint Management Market
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