Global ESG Software Market
Description
Global ESG Software Market Size was valued at USD 900 Million in 2023 poised to grow between USD 1,050 Million in 2024 to USD 3,670 Million by 2032, growing at a CAGR of 16.9% in the forecast period (2025-2032).
The market for ESG (Environmental, Social, and Governance) software is experiencing significant growth, driven by heightened regulatory requirements, increased consumer demand for sustainable practices, and investor pressure for socially responsible investments. Companies utilize ESG software to effectively manage and report on sustainability initiatives, such as supply chain risk monitoring, carbon emissions tracking, and diversity and inclusion disclosures. The landscape features a mix of established enterprise software firms and innovative startups, with key players like Sustainalytics, MSCI, SASB, and GRI leading the charge. As businesses increasingly prioritize sustainability, the demand for ESG software is expected to rise. However, the competition is intensifying, with both new entrants and established companies enhancing their offerings with advanced features and capabilities.
Top-down and bottom-up approaches were used to estimate and validate the size of the ESG Software market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the Market Size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
ESG Software Market Segments Analysis
The Global ESG Software Market is segmented based on Type, Deployment Mode, Organization Size, End Use Industry and Region. Based on Type, the market is segmented into Environmental Management Software, Social Management Software, Governance Management Software and Others. Based on Deployment Mode, the market is segmented into On premise and Cloud. Based on Organization Size, the market is segmented into Small & Medium Enterprises (SMEs) and Large Enterprises. Based on End Use Industry, the market is segmented into IT & Telecom, Government, Healthcare, Manufacturing, BFSI, Retail, Energy & Utilities and Others. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Central & South America and the Middle East & Africa.
Driver of the ESG Software Market
The growth of the ESG Software market is primarily driven by the increasing demand for ethical and sustainable investment opportunities. As more investors prioritize businesses committed to sustainable practices, the need for tools that evaluate and analyze a company’s ESG performance has surged. ESG software equips investors with the necessary frameworks to assess a company's social responsibility, environmental impact, and governance standards, allowing them to identify potential risks and opportunities related to ESG issues. By providing transparency and accountability, ESG software helps investors align their investments with their values and objectives and facilitates informed decision-making regarding a company's long-term financial viability. Consequently, the escalating focus on sustainable and responsible investment is amplifying the demand for ESG software solutions.
Restraints in the ESG Software Market
The growth of the global ESG software market is hindered by significant obstacles, primarily the substantial financial investment required to transition existing infrastructures to Environment, Health, and Safety (EHS) systems. This necessitates a considerable allocation of resources, which can restrict market expansion. Moreover, integrating ESG software with businesses' Enterprise Resource Planning (ERP) systems presents another substantial challenge. Since ESG criteria are integral to various operational activities across different industries and regions, achieving the advantages of EHS standards relies on successful integration with ERP systems. However, this integration is complicated due to potential incompatibilities within a company's existing IT infrastructure, creating additional barriers to adoption.
Market Trends of the ESG Software Market
The ESG software market is witnessing a significant trend towards the demand for enhanced data integrity and analytics capabilities, driven by companies increasingly prioritizing sustainable practices and transparency. As organizations strive to strengthen their ESG initiatives and inform decision-making processes, they are seeking more comprehensive and reliable ESG data solutions. In response, software providers are innovating by developing advanced methodologies for data collection, analysis, and reporting, often incorporating integration with external ESG data sources. This evolution not only aids firms in meeting regulatory requirements but also fosters trust with stakeholders, ultimately positioning ESG software as a pivotal tool in an organization's sustainability journey.
The market for ESG (Environmental, Social, and Governance) software is experiencing significant growth, driven by heightened regulatory requirements, increased consumer demand for sustainable practices, and investor pressure for socially responsible investments. Companies utilize ESG software to effectively manage and report on sustainability initiatives, such as supply chain risk monitoring, carbon emissions tracking, and diversity and inclusion disclosures. The landscape features a mix of established enterprise software firms and innovative startups, with key players like Sustainalytics, MSCI, SASB, and GRI leading the charge. As businesses increasingly prioritize sustainability, the demand for ESG software is expected to rise. However, the competition is intensifying, with both new entrants and established companies enhancing their offerings with advanced features and capabilities.
Top-down and bottom-up approaches were used to estimate and validate the size of the ESG Software market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the Market Size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
ESG Software Market Segments Analysis
The Global ESG Software Market is segmented based on Type, Deployment Mode, Organization Size, End Use Industry and Region. Based on Type, the market is segmented into Environmental Management Software, Social Management Software, Governance Management Software and Others. Based on Deployment Mode, the market is segmented into On premise and Cloud. Based on Organization Size, the market is segmented into Small & Medium Enterprises (SMEs) and Large Enterprises. Based on End Use Industry, the market is segmented into IT & Telecom, Government, Healthcare, Manufacturing, BFSI, Retail, Energy & Utilities and Others. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Central & South America and the Middle East & Africa.
Driver of the ESG Software Market
The growth of the ESG Software market is primarily driven by the increasing demand for ethical and sustainable investment opportunities. As more investors prioritize businesses committed to sustainable practices, the need for tools that evaluate and analyze a company’s ESG performance has surged. ESG software equips investors with the necessary frameworks to assess a company's social responsibility, environmental impact, and governance standards, allowing them to identify potential risks and opportunities related to ESG issues. By providing transparency and accountability, ESG software helps investors align their investments with their values and objectives and facilitates informed decision-making regarding a company's long-term financial viability. Consequently, the escalating focus on sustainable and responsible investment is amplifying the demand for ESG software solutions.
Restraints in the ESG Software Market
The growth of the global ESG software market is hindered by significant obstacles, primarily the substantial financial investment required to transition existing infrastructures to Environment, Health, and Safety (EHS) systems. This necessitates a considerable allocation of resources, which can restrict market expansion. Moreover, integrating ESG software with businesses' Enterprise Resource Planning (ERP) systems presents another substantial challenge. Since ESG criteria are integral to various operational activities across different industries and regions, achieving the advantages of EHS standards relies on successful integration with ERP systems. However, this integration is complicated due to potential incompatibilities within a company's existing IT infrastructure, creating additional barriers to adoption.
Market Trends of the ESG Software Market
The ESG software market is witnessing a significant trend towards the demand for enhanced data integrity and analytics capabilities, driven by companies increasingly prioritizing sustainable practices and transparency. As organizations strive to strengthen their ESG initiatives and inform decision-making processes, they are seeking more comprehensive and reliable ESG data solutions. In response, software providers are innovating by developing advanced methodologies for data collection, analysis, and reporting, often incorporating integration with external ESG data sources. This evolution not only aids firms in meeting regulatory requirements but also fosters trust with stakeholders, ultimately positioning ESG software as a pivotal tool in an organization's sustainability journey.
Table of Contents
197 Pages
- 1. Introduction
- 1.1. Objectives of the Study
- 1.2. Scope of the Report
- 1.3. Definitions
- 2. Research Methodology
- 2.1. Information Procurement
- 2.2. Secondary & Primary Data Methods
- 2.3. Market Size Estimation
- 2.4. Market Assumptions & Limitations
- 3. Executive Summary
- 3.1. Global Market Outlook
- 3.2. Segmental Opportunity Analysis
- 4. Market Dynamics & Outlook
- 4.1. Market Overview
- 4.2. Market Size
- 4.3. Global Supply & Demand Trend Analysis
- 4.4. Market Dynamics
- 4.4.1. Driver & Opportunities
- 4.4.2. Restraints & Challenges
- 4.5. Porters Analysis & Impact
- 4.5.1. Competitive rivalry
- 4.5.2. Threat of substitute
- 4.5.3. Bargaining power of buyers
- 4.5.4. Threat of new entrants
- 4.5.5. Bargaining power of suppliers
- 5. Key Market Insights
- 5.1. Key Success Factors
- 5.2. Degree of Competition
- 5.3. Top Investment Pockets
- 5.4. Market Attractiveness Index
- 5.5. Regulatory Analysis
- 5.6. Technology Analysis
- 5.7. Market Ecosystem
- 5.8. Value Chain Analysis
- 5.9. PESTEL Analysis
- 5.10. Pricing Analysis
- 5.11. Case-Study Analysis
- 5.12. Macro-Economic Indicators
- 6. Global ESG Software Market Size By Type (2019-2032)
- 6.1. Environmental Management Software
- 6.2. Social Management Software
- 6.3. Governance Management Software
- 6.4. Others
- 7. Global ESG Software Market Size By Deployment Mode (2019-2032)
- 7.1. On premise
- 7.2. Cloud
- 8. Global ESG Software Market Size By Organization Size (2019-2032)
- 8.1. Small & Medium Enterprises (SMEs)
- 8.2. Large Enterprises
- 9. Global ESG Software Market Size By End Use Industry (2019-2032)
- 9.1. IT & Telecom
- 9.2. Government
- 9.3. Healthcare
- 9.4. Manufacturing
- 9.5. BFSI
- 9.6. Retail
- 9.7. Energy & Utilities
- 9.8. Others
- 10. Global ESG Software Market Size By Region (2019-2032)
- 10.1. North America, (By Type, By Deployment Mode, By Organization size, By End Use Industry)
- 10.1.1. U.S.
- 10.1.2. Canada
- 10.2. Europe, (By Type, By Deployment Mode, By Organization size, By End Use Industry)
- 10.2.1. U.K.
- 10.2.2. Germany
- 10.2.3. Spain
- 10.2.4. France
- 10.2.5. Italy
- 10.2.6. Rest of Europe
- 10.3. Asia-Pacific, (By Type, By Deployment Mode, By Organization size, By End Use Industry)
- 10.3.1. China
- 10.3.2. India
- 10.3.3. Japan
- 10.3.4. South Korea
- 10.3.5. Rest of Asia Pacific
- 10.4. Latin America, (By Type, By Deployment Mode, By Organization size, By End Use Industry)
- 10.4.1. Brazil
- 10.4.2. Mexico
- 10.4.3. Rest of Latin America
- 10.5. Middle East & Africa, (By Type, By Deployment Mode, By Organization size, By End Use Industry)
- 10.5.1. GCC Countries
- 10.5.2. South Africa
- 10.5.3. Rest of Middle East & Africa
- 11. Competitive Dashboard
- 11.1. Top 5 Player Comparison
- 11.2. Market Positioning of Key Players, 2024
- 11.3. Strategies Adopted by Key Market Players
- 11.4. Recent Developments in the Market
- 11.5. Company Market Share Analysis, 2024
- 12. Company Profiles
- 12.1. SAS Institute Inc.
- 12.1.1. Company Overview
- 12.1.2. Product Portfolio
- 12.1.3. Financial Overview
- 12.1.4. Recent Developments
- *Similar information will be provided for top 20 players.
- 12.1. Tenaris
- 12.2. Datamaran, Ltd.
- 12.3. Ecovadis SAS
- 12.4. NAVEX Global, Inc.
- 12.5. OneTrust, LLC
- 12.6. Coolset Inc.
- 12.7. TruValue Labs
- 12.8. Diligent Corporation
- 12.9. Workiva
- 12.10. Persefoni AI
- 12.11. Refinitiv
- 12.12. Sustainalytics
- 12.13. Verisk 3E
- 12.14. Wolters Kluwer N.V.
- 12.15. NASDAQ
- 12.16. Greenstone
- 12.17. IBM
- 12.18. ERM Group Inc.
- 12.19. Vigeo Eiris
- 12.20. ISS ESG
- 13. Conclusion and Recommendations
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