The global carbon footprint management market size was valued at USD 9.1 billion in 2022. It is projected to reach USD 16.92 billion by 2031, growing at a CAGR of 6.4% during the forecast period (2023–2031). A carbon footprint is the number of greenhouse gases (GHG) released into the atmosphere due to a particular activity, person, or manufactured good. Carbon dioxide is the most abundant greenhouse gas (GHG) emission, and it is produced when fossil fuels are burned to produce electricity, heat buildings, clear forests, make products, or move people and goods. Rising environmental concerns and a greater focus on the topic by regulatory bodies worldwide are driving the global carbon footprint management market. Companies across industries are adopting carbon management software in response to regulations and standards such as the United States Green Deal and the European Union's new taxonomy for sustainable activities.
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Increase in Government Initiatives for Low Carbon Policies
In light of the grave health and environmental harm that unchecked carbon emissions cause, governments worldwide are giving rapid industrialization and the unbalanced production of considerable carbon thought. Several national, regional, and local governments have already instituted carbon taxes or related policies, such as energy taxes, to reduce greenhouse gas emissions (based on the carbon emission during the production of the energy. In addition, many nations are imposing stringent tax laws and regulations on their commercial and industrial sectors to reduce their carbon footprint.
Several Numbers of Adoptions of Sustainability among Leading Corporations
Market consumption activities and industrial production significantly contribute to climate change by emitting carbon dioxide into the atmosphere. Several groups advocate for and encourage eco-friendly production methods that lessen the environmental impact. Globally, associations are responsible for a sizable portion of greenhouse gas emissions, which means there is ample opportunity for growth in the carbon footprint management sector. It is becoming simpler for associations to report on the outcomes and actions of their members by adopting policies related to reducing greenhouse gases.
High Initial Investment
Market expansion is hampered by the high costs associated with upgrading to newer, more environmentally friendly infrastructure that produces fewer greenhouse gases. To combat climate change, the company has developed green-tech solutions to lessen automobiles' environmental impact through cutting-edge technologies and carbon offsets. Cloud deployment is becoming more popular because of its numerous advantages over on-premises alternatives, such as lower upfront costs, simpler management, and improved safety and scalability. The difficulty stifles small businesses' market expansion in adopting low-carbon emitting infrastructure. Lack of education about the benefits of investing in low-carbon emission infrastructure also slows the market.
The shift Towards Cloud Computing and Paperless Economy
Paper is used in large quantities due to the need for record-keeping of various kinds; consequently, the government is encouraging businesses to go paperless and reduce their reliance on paper. The advent of online banking and the proliferation of mobile payment apps have ushered in a paperless society. The growth of cloud computing and the increasing need for it also create fruitful openings for the carbon footprint management sector. Through document scanning and cloud storage, offices can streamline their document management processes with the help of modern information technology. Consequently, the market will be strengthened soon by the incorporation and adoption of going paperless via cloud computing.
The global carbon footprint management market is segmented by component, deployment, and industry.
Based on components, the global market is bifurcated into software and service.
The service segment is the highest contributor to the market and is expected to grow during the forecast period. The services segment is expected to have a significant market share because organizations are increasingly focusing on providing services to their customers to improve their customer experience. WeNow, a French startup, is one organization that has teamed up with the United Nations to reduce pollution caused by automobiles. To combat climate change, the company has developed green-tech solutions to lessen automobiles' environmental impact through cutting-edge technologies and carbon offsets. Demand in the global carbon footprint management market is expected to increase due to collaborative efforts and innovations to cut carbon emissions.
Based on deployment, the global market is bifurcated into on-premise and cloud.
The cloud segment is the highest contributor to the market and is expected to grow during the forecast period. Cloud-based services are anticipated to make a sizable impact on the global market, in no small part due to the demand for always-on availability and heightened levels of security. For greater scalability, many businesses have shown a preference for cloud-based solutions. The increasing popularity of cloud-based deployment models is expected to be a significant growth driver for the mobile and web application security market. While cloud deployment has many advantages, it lacks the customization options of an on-premises installation. Furthermore, it allows for more secure data storage and enhances data management. That's what's pushing the market forward.
Based on industry, the global market is bifurcated into IT and telecom, manufacturing, transportation, commercial buildings, and utilities.
The transportation segment is the highest contributor to the market and is expected to grow during the forecast period. Companies are concentrating on cutting carbon emissions in response to rising concerns about the environment and the pressing need to improve transportation efficiency at a reasonable cost. Specifically, Groupe Renault collaborated with Neoline, a company that builds and operates cargo sailing ships. Since 60% of the company's parts and vehicles are transported by water, this partnership will help the company develop more environmentally friendly maritime transport services powered by wind.
The global carbon footprint management market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
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North America Dominates the Global Market
North America is the most significant shareholder in the global carbon footprint management market and is expected to grow during the forecast period. Due to numerous regulations and substantial efforts by the United States government to reduce GHG emissions, North America's carbon footprint management market is expected to increase. The EPA, for example, has issued the Affordable Clean Energy (ACE) Rule, which regulates greenhouse gas (GHG) emissions from already operational fossil fuel-fired power plants. It is estimated that after accounting for costs, domestic climate benefits, and health benefits, the EPA's annual net benefit will range from USD 120 million to USD 730 million thanks to this rule. The demand for carbon footprint management is expected to increase as a result of such regulations in the future.
Asia-Pacific is expected to grow during the forecast period. On the back of rapid industrialization and urbanization, the Asia-Pacific region is seen by stakeholders as a potentially lucrative opportunity. It is expected that emerging economies will contribute financially to air quality regulatory frameworks. The launch of China's emissions trading program, the largest of its kind, was announced in July. It's important to note that China produces the most carbon dioxide of any country. The expansion of the carbon footprint management market is predicted to be spurred by rising worries about rising CO2 emissions in the region. Indian officials have set a goal of cutting carbon emissions by more than 30 percent by 2030 as part of the Paris Agreement. The need to manage one's carbon footprint is expected to grow in response to such events.
Market growth in carbon footprint management is anticipated to be particularly robust in Europe during the forecast period, thanks to the region's rapid adoption of technologically advanced solutions to reduce carbon emissions. To become carbon neutral by 2023, Coop, one of Switzerland's largest retail and wholesale companies, adopted ABB solar inverter technology to reduce energy consumption and improve energy efficiency by 20%. Carbon footprint market growth in Europe is thus anticipated to be influenced by adopting technologically advanced solutions to reduce carbon emissions over the forecast period.
During the forecast period, the market for carbon footprint management is projected to expand significantly in LAMEA. It is because many countries in the area are leaning toward more eco-friendly policies and renewable energy. Governments and regulatory bodies have issued legislative directives and mandates to reduce the world's carbon footprint. Market leaders are expected to increase their product lines. It is becoming simpler for associations to report on the outcomes and actions of their members by adopting policies related to reducing greenhouse gases.
The global carbon footprint management market’s major key players are
|Market Size||USD in 16.92 Billion By 2031|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
|Segments Covered||by Component,Deployment,Industry (IT & Telecom,Manufacturing,Transportation,Utilities,Commercial Buildings)|
|Geographies Covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Key Companies Profiled/Vendors||Ecova, Enablon, Greenstone+, IHS Markit, processMAP, Thinkstep, Verisae, Enviance, FirstCarbon Solutions, Schneider Electric SA, Natural Capital Partners, VelocityEHS, Aurecon Group, Carbon Solutions Global Ltd., Carbon Trust, and Carbon Footprint Ltd|
|Key Market Opportunities||
The shift Towards Cloud Computing and Paperless Economy