Carbon Management System Market Size - By Component (Solutions, Services), Deployment (Cloud, On-premises), Industry (Energy & Utilities, Manufacturing, Residential & Commercial Building, Transportation & Logistics, IT & Telecom), & Forecast, 2024 - 2032

Carbon Management System Market Size

Carbon Management System Market was valued at USD 12.4 billion in 2023 and is set to grow at a CAGR of 9.2% between 2024 and 2032. Driven by the growing awareness of climate change, the need to reduce carbon footprints, and the transition to a low-carbon economy. For instance, as per the U.S. government, the country represents a massive investment opportunity for carbon mitigation projects of up to USD 100 billion by 2030 and USD 600 billion by 2050.
 

Growing focus on ESG reporting coupled with increasing inclination towards carbon pricing & carbon market standards across the globe owing to increasing emission concerns will create a favorable industry scenario. Environmental, Social, and Governance (ESG) reporting became a top priority for businesses, as a result, carbon management systems are becoming an essential for tracking and reporting environmental performance and emissions data for ESG disclosures.
 

Carbon management systems has started integrating technologies like Artificial Intelligence (AI) and the Internet of Things (IoT) to enhance data collection, analysis, and reporting capabilities. AI-driven analytics provided valuable insights for emissions reduction strategies. Moreover, a wide array of companies and organizations has set ambitious sustainability goals and committed to achieving net-zero emissions. Carbon management systems were pivotal in helping them track progress, assess risks, and identify opportunities for emissions reduction.
 

COVID- 19 Impact

The COVID-19 pandemic disrupted the global carbon management market in multiple ways including lockdowns, travel restrictions, and economic slowdowns led to decreased industrial and transportation activities, resulting in temporary reductions in carbon emissions. However, the pandemic also highlighted the importance of resilience and sustainability, leading to increased awareness of the need for robust carbon management. As a result, some organizations accelerated their efforts to reduce carbon footprints and enhance sustainability strategies, including the adoption of carbon management systems.
 

Carbon Management System Market Trends

Carbon offsetting integration, regulatory compliance coupled with supply chain emission management plays the critical driving factors for the market growth. Multitude of organizations integrated carbon offsetting programs into their carbon management strategies, and carbon management systems offered features to facilitate the tracking and management of offsets. In addition, businesses increasingly focused on managing emissions within their supply chains which resulted the carbon management systems to expand to include tools for monitoring and mitigating emissions associated with the entire value chain.
 

Evolving regulations and carbon reporting requirements prompted organizations to invest in carbon management systems to ensure compliance and avoid penalties. Scope 3 emissions, which encompass indirect emissions from the value chain, became a focal point of the market, where carbon management systems provided tools for measuring and addressing these emissions. Furthermore, increased public awareness of climate change and consumer pressure for eco-friendly products and services influenced companies to adopt robust carbon management systems, thereby fueling the market growth.
 

Carbon Management System Market Analysis

Based on component, the services carbon management system estimated to attain gains at nearly 8.5% up to 2032. Carbon management systems & services are becoming tailored to specific industries, such as energy, manufacturing, and transportation, became more common to address sector-specific challenges. In addition, with the collection of sensitive emissions and energy data, data security and privacy measures became paramount in carbon management systems through services that are being offered within the carbon management system market landscape.
 

• Carbon management services providers increasingly offered strategic sustainability consulting. They are working with organizations to develop comprehensive sustainability strategies that encompass carbon reduction, ESG reporting, and climate risk assessment.
   
• The demand for accurate and transparent carbon disclosure and reporting grew. Carbon management services providers offered assistance in aligning with global reporting standards like the Carbon Disclosure Project (CDP) and Sustainability Accounting Standards Board (SASB).
   
• Carbon management services evolved to keep pace with changing carbon regulations and policies. Service providers are assisting organizations navigate complex regulatory landscapes and comply with new requirements.
   
• Carbon management services have become more customized to meet the specific needs of industries, businesses, and organizations of varying sizes and complexities.

Based on deployment, the cloud segment is slated to register 8.7% CAGR through 2032, on account of the scalability & flexibility along with real-time data feature. Cloud-based carbon management systems offers scalability and flexibility, allowing organizations to expand or contract their carbon data management and analytics capabilities as needed. Additionally, the deployment enabled real-time data collection and analysis, providing organizations with up-to-the-minute information on their carbon emissions and sustainability performance.

• The cloud allowed for remote access to carbon management systems, enabling users to monitor and manage emissions data from anywhere, which became especially important during the COVID-19 pandemic.
   
• Cloud deployment often proved more cost-efficient for organizations, as it eliminated the need for on-premises hardware and reduced maintenance costs.
   
• Many cloud-based carbon management systems integrated with Internet of Things (IoT) devices, enabling automated data collection from sensors and connected equipment.
   
• Cloud providers invested in robust data security measures to protect sensitive carbon emissions data, alleviating concerns about data breaches.
   
• Cloud-based systems leveraged Artificial Intelligence (AI) and machine learning to analyze emissions data, identify patterns, and make recommendations for emissions reduction strategies.

The North America carbon management system market is likely to showcase 9.2% growth rate from 2023 to 2032. North America witnessed a growing emphasis on carbon reduction policies and regulations at the federal, state, and local levels where, carbon management systems was critical for compliance and tracking emissions data. In addition, the rigorous transition to renewable energy sources, including wind and solar power, increased is facilitating the organizations to assess the impact of renewable energy integration on their emissions profiles.
 

• Carbon pricing mechanisms, such as cap-and-trade systems and carbon taxes, were implemented or expanded in some regions. Carbon management systems were used to monitor and manage carbon allowances and credits.
   
• Rapid economic growth in countries like China and India is driving investments in various sectors, which, in turn, increased the need for industrial gases, as a result ASUs re expanding to support this economic development.
   
• With the growing demand for liquefied natural gas (LNG), ASUs are being involved in the production of nitrogen used for cryogenic cooling during LNG processing and storage.
   
• The development of industrial infrastructure and manufacturing hubs in the Asia Pacific region was spurring investments in ASUs to provide a steady and efficient supply of industrial gases.
   

Carbon Management System Market Share

The carbon management system industry is marked by both established global players and regional companies. Competition is driving innovation and efficiency, benefiting customers in terms of better technology and competitive pricing across the end use segment.
 

Prominent players in the market comprises of:

• Schneider Electric
• IBM
• SAP
• Trinity Consultants
• Engie
• Isometrix
• Locus Technlogies
• Envirosoft
• Salesforce
• Enablon
• Intelex
• ESP
• Dakota Software
• NativeEnergy
• EnergyCap.
• Carbon Footprint Ltd.
• Enviance
• Accuvio

Carbon Management System Market News

• In May 2023, the U.S. government announced to invest USD 251 million for carbon capture and storage projects in seven states, aiming to reducing reduce planet-warming pollution from power plants and other industrial facilities. The investment was made on an effort to commercial lift off in the carbon management industry in the country.
   
• In June 2022, Alibaba Cloud introduced its global release of Energy Expert, a sustainability platform designed to assist users in quantifying, examining, and managing the carbon emissions originating from their products and corporate activities.
   

This carbon management system market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘USD Million’ from 2019 to 2032, for the following segments:

Click here to Buy Section of this Report

By Component

• Solutions
• Services

By Deployment

• Cloud
• On-premises

By Industry

• Energy & Utilities
• Manufacturing
• Residential & Commercial Building
• Transportation & Logistics
• IT & Telecom
• Others

The above information has been provided for the following regions across the regions.

• North America
  • U.S.
  • Canada 
• Europe
  • Germany
  • France
  • UK
  • Spain
  • Italy
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • South Africa
  • UAE
• Latin America
  • Brazil
  • Argentina