Global Carbon Management System Market - Segmented by Application (Energy, Greenhouse Gas Management, Air Quality Management, Sustainability), Type (Software, Services), End Users (Government, BFSI, IT and Telecom, Industrial, Healthcare), and Region - Growth, Trends, and Forecast (2018 - 2023)
The global carbon management system market was valued at USD 8.69 billion in 2017 and is projected to reach a value of USD 17.25 billion by the end of 2023, at a CAGR of 12.11% over the forecast period (2018-2023). The scope of the report is limited to products offered by major players, including providers of software solutions and services. The study also emphasizes the major trends and end users in the market as well as the major drivers for the growth of the market. Factors, such as increasing environmental concerns, growing focus on reducing carbon footprints, strengthening government regulations, etc., are expected to drive the market in the forecast period.
The growing emphasis on reducing carbon footprints and the growing need for eco-friendly services are pushing the growth of carbon management systems. The companies around the world have started to improve the efficiencies of their operations. The need to reduce wastage, efficiently utilize resources, and reduce carbon footprints warrants the deployment of innovative and sustainable solutions. Reducing carbon footprints and controlling energy consumption have become crucial factors in recent years.
Rising Concern of Global Warming and Shift Towards Green Initiatives Fuelling the Market Growth
Extensive research conducted during the past two decades has provided conclusive evidence that the emission of greenhouse gases is the main cause of global warming. The drastic rise in the levels of CO2 for the past 30 years can be attributed mainly to the burning of fossil fuels. Currently, more than 60% of the energy demand is met by burning fossil fuels, like coal, oil, and gas. The demand for energy is relatively high compared to the adoption of alternative sources of energy. This is driving the demand for burning fossil fuels to sustain the growing energy demand. This trend is expected to continue in the forecast period.
As of now, the world consumes approximately 95 million barrels per day (b/d) of oil, compared to 86 million b/d of oil in 2008, which is a growth at a rate of 11% even with the fluctuating economies experienced since the 1930s. Oil is the world’s primary fuel, as it contributes to approximately 33% of all energy, therefore, it is a factor that chiefly enables globalization. However, 85% of the total global population is still waiting for their chance to consume oil. The dominance of oil is also expected to continue in the future due to the growth of vehicle market, which has just begun its expansion in the developing countries of Asia-Pacific. The estimated number of cars across the globe is 1.2 billion, out of which 98% rely on oil.
Greenhouse Gas Management is the Fastest Growing Application
Greenhouse gas (GHG) management software are being used by businesses and governments to manage, quantify, and understand greenhouse gas emissions. These software enable building effective and credible programs to counter the impacts of climate change on a global scale and are primarily designed to mitigate GHG emissions and may not necessarily consider other social and environmental impacts. The rising global warming due to the increasing GHG emissions is the major driver for this software worldwide. The standards of the GHG management can be further segmented into GHG assessment, reduction, offsetting, and communications. The work that is expected to be observed in the GHG management market in the future includes environmental foot-printing, environmental hot spotting, and adapting to climate change.
Middle East & Africa Expected to have High Market
All the major countries in the MENA region have allocated substantial outlays for the development of solar or wind-based renewable energy projects. The GCC countries figure prominently among the highest emitters of carbon dioxide in the world. Increasing the share of renewable energy is being seen as a solution towards reducing CO2 emissions and maintaining the fragile environmental balance in this region.
Energy consumption in the MENA region has grown rapidly over the last few decades, partly due to the high economic growth and the marked increase of urbanization. Regional consumption of electricity is estimated to grow at an annual rate of 8% over the forecast period. Therefore, regional governments and public organizations have initiated several proactive steps over the last few years in order to increase the renewable energy infrastructure and cut down on the greenhouse gas emissions. In 2015, more than 30 solar projects were initiated in the MENA region, marking a ten-fold increase in the energy capacity from 2013. The United Arab Emirates, Qatar, Saudi Arabia, and other GCC countries have set ambitious targets for themselves to aid the development of solar and wind energy plants in their respective regions.
Key developments in the market