On-premises Carbon Management System Market Size - By Component, By Industry, Analysis, Share & Growth Forecast, 2025 - 2034

On-premises Carbon Management System Market Size

The global on-premises carbon management system market was valued at USD 5.6 billion in 2024. The market is expected to grow from USD 6.3 billion in 2025 to USD 14.1 billion by 2034, at a CAGR of 9.4%, according to Global Market Insights Inc.
 

• The on-premises carbon management system market is undergoing a significant transformation, driven by increasing regulatory scrutiny, corporate sustainability commitments, and the need for secure, localized data control. Organizations across sectors are prioritizing carbon tracking as part of their broader ESG strategies, with frameworks including the Science Based Targets initiative (SBTi), GHG Protocol, and ISO 14064 shaping compliance requirements.
   
• The European Union’s “Fit for 55” legislative package, which aims to reduce greenhouse gas emissions by at least 55% by 2030 and achieve climate neutrality by 2050, is significantly influencing the adoption of on-premises carbon management systems. A key development within this framework is the integration of the EU Emissions Trading System (EU ETS) into the Fit for 55 initiative as of January 2024.
   
• Technological innovation is playing a pivotal role in industry evolution. The integration of artificial intelligence, IoT, and machine learning is enabling real-time monitoring and predictive analytics, allowing companies to proactively manage their carbon footprints. Edge computing and smart sensors are particularly impactful in energy-intensive industries, facilitating site-specific emissions tracking and operational insights.
   
• These advancements are not only improving accuracy but also enhancing the scalability and responsiveness of carbon management systems. For instance, in January 2024, German industrial equipment manufacturer GEA Group received validation from the Science Based Targets initiative (SBTi) for its net-zero emissions goal by 2040. To support this commitment, the company developed a detailed climate transition plan outlining specific measures, timelines, and investment strategies.
   
• Industry-specific adoption trends further highlight the market’s momentum. In the energy and utilities sector, digital transformation and decarbonization efforts are driving widespread implementation of on-premises solutions. Manufacturing companies, often dealing with complex operations and proprietary data, are opting for in-house systems to ensure data sovereignty and security.
   
• For instance, in September 2024, the U.S. DOE announced an investment of USD 38 million for technology R&D to decarbonize buildings. It included 25 projects across 17 states to research and develop high-impact building technologies and practices aimed at reducing peak demand on the electric grid, enhancing resilience, and lowering energy costs.
   
• Environmental, Social, and Governance (ESG) reporting has become a critical component of corporate strategy, driven by investor expectations and regulatory requirements. CMS platforms are evolving to integrate comprehensive ESG reporting tools that track a company's carbon emissions, energy usage, and sustainability initiatives. These platforms assist businesses in staying compliant with global regulations including the EU's Corporate Sustainability Reporting Directive (CSRD) and other regional frameworks.
   

On-premises Carbon Management System Market Trends

• Increasing growth of green finance initiatives and carbon offsetting mechanisms is driving investment in carbon reduction projects requiring on-premises setup. Companies are leveraging these financial instruments to fund sustainability initiatives and offset their carbon emissions, aligning financial performance with environmental responsibility.
   
• Organizations are increasingly conducting lifecycle assessments to evaluate the carbon footprint of their products from production to disposal. This approach provides valuable insights into emissions associated with manufacturing, transportation, use, and end-of-life disposal, enabling companies to make informed decisions and improve sustainability across the value chain.
   
• Public-private partnerships coupled with government-backed initiatives, including investments across carbon reduction programs, are further bolstering the market dynamics. For illustration, in July 2025, the UK government announced to allocate USD 38.9 million to establish a cluster project, a carbon capture and storage (CCS) initiative that will tackle industrial CO2 emissions and store them underground.
   
• Businesses are exploring regenerative practices that not only reduce carbon emissions but also contribute to ecosystem restoration and biodiversity conservation. This holistic approach to sustainability aligns with broader environmental goals and enhances corporate reputation among stakeholders.
   
• Governments are offering tax incentives in emissions reductions and compliance solutions to small and medium enterprises, which aid in fostering innovation in lower entry barriers, thereby accelerating market growth. For instance, in February 2025, the government of Australia announced a commitment of over USD 13.7 billion in tax incentives for onshore clean technology manufacturing, critical minerals processing, and green hydrogen production between 2027 and 2040.
   
• Rapid expanding advanced carbon accounting capabilities coupled with rising adoption of AI-powered predictive analytics across various industry verticals to mitigate & calculate the emissions is bolstering the industry growth. The growing precision in carbon accounting is essential as businesses prepare for regulatory disclosures and ESG reporting obligations, making accurate carbon data the foundation for sustainability action, which in turn aids the industries to keep a check on reducing emissions.
   
• The North America on-premises carbon management system market is driven by stringent environmental regulations and increasing corporate commitments toward net-zero emissions. The U.S. and Canada have introduced robust policies, including the Inflation Reduction Act (IRA), that incentivize carbon capture and storage (CCS) projects, carbon accounting, and emissions trading systems.
   
• The Asia Pacific region is witnessing rapid growth in carbon management driven by industrialization, urbanization, and increasing climate commitments from major economies, including China, Japan, South Korea, and India. The rise of smart city initiatives in various countries is encouraging carbon management integration in residential and commercial buildings, optimizing energy use and emissions tracking with IoT-enabled solutions.
   

On-premises Carbon Management System Market Analysis

• Based on components, the market is segmented into solutions and services. The solution segment dominated with 59% market share in 2024 and will grow at a CAGR of 9% through 2034. The demand for carbon management solutions is accelerating with complex emissions profiles, including manufacturing, energy, and transportation. Enterprise-level platforms offering real-time emissions tracking, predictive analytics, and ESG reporting capabilities are gaining traction.
   
• The integration with ERP, IoT, and AI-driven tools is becoming standard, enabling end-to-end visibility across the value chain is driving the adoption of various solutions, in turn adding to the sector growth. In addition, the rapid construction of new organizations prioritizes decarbonization strategies, and the solution segment is experiencing robust growth.
   
• Services segment will showcase a 9.5% CAGR through 2034, owing to the consulting and advisory services that are in high demand as enterprises seek strategic guidance on net-zero roadmaps, regulatory compliance, and carbon footprint reduction. This trend is driven by increasing complexity in carbon accounting standards, ESG disclosures, and the integration of sustainability metrics into core business operations.
   
• Implementation and integration services that are gaining traction with organizations deploying CMS solutions across enterprise systems, including ERP, SCM, and energy management platforms. These service providers offer customized deployment, integration with IoT and AI tools, and cloud-based CMS platforms to support real-time emissions tracking and analytics.
   
• The customized services are expanding rapidly as companies in SMEs and mid-market players opt to outsource the monitoring, reporting, and optimization of carbon emissions. This approach ensures cost-effective access to specialized expertise and up-to-date compliance support without investing in large internal sustainability teams.
   
• For instance, in February 2025, the government of India, through its union budget 2025-26, increased the MSME investment by 2.5 times, setting the limit at over USD 280,000 for micro, USD 2.8 million for small, and USD 14 million for medium enterprises. This investment limit will expand the business in SMEs, in turn leading to sectoral growth.
   

• Based on industry, the on-premises carbon management system market is segmented into energy & utilities, manufacturing, residential & commercial building, transportation and logistics, IT & telecom, and others. Energy and utilities showcased a 22.5% market share in 2024. The rise of voluntary carbon markets and increasing scrutiny from ESG-focused investors are accelerating the maturity of on-premises CMS solutions in the energy and utilities industry.
   
• For instance, in March 2025, the government of India approved 8 crediting methodologies for generating voluntary carbon credits, including renewable energy., green hydrogen production, industrial energy efficiency, mangrove afforestation and reforestation. This will aid the CMS providers to develop platforms that support decentralized emissions reporting and align with energy-as-a-service business models.
   
• The manufacturing industry will grow at 8.5% CAGR till 2034. Carbon management in manufacturing is rapidly digitalized, with companies integrating CMS platforms into existing Enterprise Resource Planning (ERP) and Industrial Internet of Things (IoT) frameworks. The advanced platforms enable automated data collection from factory-floor equipment, real-time emissions tracking, and AI-driven insights for process optimization.
   
• For instance, in March 2025, as per the Canada government, over 9 manufacturers have expanded their capabilities to produce and/or adopt environmentally friendly technologies for a sustainable future. This in turn will drive innovation, supporting the transition to a greener economy, and reducing our environmental footprint.
   
• The transportation & logistics on-premises CMS industry stood at USD 1.1 billion in 2024. Governments and international bodies are setting stringent emissions standards and reporting requirements. Logistics companies are increasingly deploying these systems to remain compliant and avoid financial penalties as tools for strategic emissions planning and audit-readiness in ESG reporting.
   
• For reference, in August 2025, the government of Germany adopted a draft to allow & promote the large-scale buildup of carbon storage and transport infrastructure in the country. This project will enable underground storage of CO2 and enable its large-scale transport through pipelines, which in turn will augment the business outlook.
   
• The IT & telecom industry will grow at a CAGR of 9.8% till 2034. The IT & telecom sector, including data centers and telecom infrastructure providers, faces increasing scrutiny regarding carbon emissions. The rising energy consumption from cloud computing, 5G networks, and AI workloads, enterprises are adopting Carbon Management Systems (CMS) to measure, monitor, and mitigate their environmental footprint.
   

• The U.S. dominated the on-premises carbon management system market in North America with an 80% share in 2024 and generated USD 1.3 billion in revenue. The North American on-premises CMS market is undergoing rapid transformation and growth, driven by a convergence of climate policy, technological innovation, investor pressure, and corporate sustainability goals.
   
• The U.S. has started implementing the Securities and Exchange Commission’s (SEC) climate disclosure rule, which is pushing thousands of public companies, especially mid-sized and large corporations, to implement or upgrade CMS platforms that support emissions accounting, data assurance, and audit readiness, which in turn is adding to the industry growth across the country.
   
• In the U.S., electricity demand is projected to rise by 25% by 2030 and 78% by 2050 compared to 2023 levels, driven by sectors including AI, cloud computing, manufacturing, and electric vehicles. This anticipated growth underscores the urgency for industries to implement CMS to optimize energy usage and reduce emissions.
   
• For instance, in April 2025, Amazon updated carbon methodology for the AWS Customer Carbon Footprint Tool (CCFT) by three process adoptions, including easier data access, more granular carbon data, and independent-verified methodology. As a result of these changes, customers will be able to witness carbon emissions that reflect the updated methodology for their AWS usage.
   
• The Europe on-premises carbon management system market is undergoing accelerated evolution and will grow at a CAGR of 8% by 2034 on account of stringent regulatory frameworks, increased corporate accountability, and the urgent need for decarbonization. CMS platforms aid in monitoring, reporting, verifying, and reducing GHG emissions and are increasingly central to EU climate policy compliance, ESG disclosures, and green financing eligibility.
   
• The UK market has been evolving rapidly in response to legislative, corporate, and societal pressure to meet net-zero emissions targets by 2050. Growing integration of carbon management tools into broader Environmental, Social, and Governance (ESG) reporting, digital transformation efforts, and strategic decarbonization planning across both public and private sectors has also proliferated the industry growth.
   
• The Asia-Pacific on-premises carbon management system market will cross USD 4.2 billion by 2034. The region is witnessing a dynamic evolution in the Carbon Management System (CMS) landscape, propelled by a confluence of regulatory reforms, market mechanisms, technological advancements, and cross-border collaborations. Governments across the region are instituting stringent regulations to align with global climate commitments.
   
• Middle East & Africa on-premises carbon management system market will witness a CAGR of 11% till 2034. Ongoing regulatory advancements across the region, including the adoption of decarbonization mandates and climate change action plans, are fostering the industry outlook. For instance, South Africa enacted the Climate Change Act that mandates national and local governments to develop and implement climate change response strategies, emphasizing a just transition to a low-carbon economy.
   
• Ongoing regulatory advancements across key geographies have provided significant impetus to industry growth across the Latin America region. For instance, Brazil has established the Brazilian Greenhouse Gas Emissions Trading System (SBCE) through Law No. 15,042/2024, creating a cap-and-trade system that sets emission limits across various sectors, including energy, manufacturing, agriculture, and transportation.
   

On-premises Carbon Management System Market Share

• The top 5 companies in the on-premises carbon management system industry are SAP SE, Schneider Electric, IBM, Carbon Footprint Ltd., and ENGIE, collectively contributing around 30% of the market in 2024. SAP SE offers a robust suite of on-premises carbon management solutions, including SAP Sustainability Footprint Management, SAP Green Ledger, and SAP Sustainability Control Tower, that integrate seamlessly with existing SAP systems. These tools enable businesses to monitor, manage, and reduce their carbon emissions across the value chain while maintaining full control over sensitive operational data.
   
• The competitive landscape is marked by a mix of established players and innovative startups. Companies including IBM, SAP SE, Schneider Electric, and Accuvio are offering comprehensive solutions that combine software with strategic consulting. IBM’s Environmental Intelligence Suite and Microsoft’s Sustainability Manager are notable examples of platforms that integrate carbon tracking with broader enterprise systems.
   
• The on-premises carbon management system market is largely driven by demand from the energy, manufacturing, transportation, and utility sectors. These industries rely on integrated solutions that combine software, analytics, and advisory services to meet evolving regulatory and operational needs. To enhance carbon tracking and reporting capabilities, firms continue to invest in digital technologies such as AI, real-time data analytics, and secure infrastructure, making on-premises systems a preferred choice for data-sensitive environments.
   

On-premises Carbon Management System Market Companies

Major players operating in the on-premises carbon management system industry are:

• Accuvio
• BlueSens Gas Sensor GmbH
• Carbon Footprint Ltd.
• Dakota Software
• EnergyCap
• ENGIE
• Envirosoft
• ESP
• Graforce Hydro GmbH
• Greenly
• Intelex
• IBM
• Microsoft
• Plan A
• Persefoni
• Salesforce
• SAP SE
• Schneider Electric
• Sphera
• Trinity Consultants
   
• Salesforce, headquartered in the U.S. reported an annual revenue of USD 34.8 billion in 2024. The company offers its Net Zero Cloud platform, enabling organizations to measure, manage, and report ESG performance, including real-time tracking of Scope 1, 2, and 3 emissions. By integrating ESG insights across enterprise systems, it supports streamlined compliance and data-driven sustainability decisions.
   
• SAP SE stands out in the on-premises carbon management space with integrated solutions like SAP Green Ledger, which aligns carbon accounting with financial reporting. Its tools help businesses capture and analyze emissions across all scopes while maintaining secure, enterprise-grade data control. The company reported annual revenue in 2024 was USD 39.8 billion.
   
• Schneider Electric contributes significantly to the European carbon management landscape through its expertise in energy management and automation. Its solutions are tailored for energy-intensive operations, offering real-time monitoring and optimization of carbon footprints within secure, on-premises environments. The company’s reported half yearly revenue in 2025 was USD 11.6 billion.
   

On-premises Carbon Management System Market News

• In May 2025, Schneider Electric launched its Environmental Data Program, a step toward enhancing transparency on the environmental impact of its products. Building on the foundation of its well-known Green Premium label, the initiative aims to provide detailed, product-level sustainability data to support customers in meeting regulatory requirements and advancing their own climate goals.
   
• In March 2025, Qualcomm and IBM expanded their collaboration to develop advanced generative AI solutions that enhance carbon management across edge and cloud platforms. These innovations will empower enterprises to optimize sustainability efforts, improve carbon tracking accuracy, and reduce operational costs, marking a significant step forward in leveraging AI for effective climate action.
   
• In March 2025, ENGIE North America collaborated with Ares Management’s Infrastructure Opportunities funds by adding nearly 1 gigawatt of clean energy capacity to their joint portfolio signaling a strong vote of confidence in ENGIE’s operational excellence and carbon management strategy. ENGIE will maintain operational control and a majority stake in the assets, reinforcing its leadership in delivering reliable, low-carbon energy solutions.
   
• In June 2024, Salesforce unveiled a trio of climate-focused investments aimed at accelerating a just energy transition. It has committed USD 25 million to help scale breakthrough carbon removal technologies. The company has signed its first European virtual power purchase agreement (VPPA) with Qualitas Energy, securing a 27-megawatt solar portfolio in Italy.
   

This on-premises carbon management system market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2034, for the following segments:

Market, By Component

• Solutions
• Services

Market, By Industry

• Energy and utilities
• Manufacturing
• Residential & commercial building
• Transportation & logistics
• IT & telecom
• Others

The above information has been provided for the following regions & countries:

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