SUSTAINABILITY AND ENERGY MANAGEMENT SOFTWARE MARKET ANALYSIS

Market Challenges And Opportunities

Market Dynamics- Drivers

1. Increasing investments EH&S and sustainability software is expected to drive growth of the global sustainability & energy management software market during the forecast period

Major organizations in various sectors such as oil & gas exploration and production are focused on strategizing, in order to create value through sustainability. These organizations seek to improve returns on capital day by reducing operating costs via improved natural-resource management, in order to achieve this goal. Moreover, key organizations in the market are regularly revising their business portfolios, in order to determine the potential impact of trends to leverage new growth opportunities. For instance, in March 2016, ArcelorMittal, a multinational steel manufacturing corporation, incorporated sustainability in its organizational design through a department for scientific analyses of the life cycles of steel products.

2. Constant increase in regulatory obligations and industry guidelines are expected to propel the global sustainability & energy management software market growth over the forecast period

Major resource-focused industries use a large amount of water, raw materials, energy, and water resources. This, in turn, leads to a large number of emissions, solid waste, and effluents. Generally, these industries are subjected to various regulatory policies and norms. Furthermore, enterprises are focused on adopting sustainability management solutions in order to comply with strict regulatory policies. Therefore, these factors are expected to propel the global sustainability & energy management software market growth in the near future.

Market Dynamics- Restraints

1. Lack of data, standards, and common practices within and across companies is expected to restrain growth of the global sustainability & energy management software market during the forecast period

There is a lack of reliable data, standards, and common practices within and across companies, which results in missed opportunities. Only major enterprises are practicing green initiatives such as lighting replacements, enhanced procurement strategies, and taking advantage of tax benefits for renewable energy generation. However, SMEs from emerging economies are yet to implement green initiatives, which in turn, is expected to restrain growth of the global sustainability & energy management software market during the forecast period.

2. Non-compliance to government regulations is expected to hamper the global sustainability & energy management software market growth over the forecast period

Stringent government measures regarding environment protection often impose market access restrictions on for enterprises, which in turn affect competitiveness. The effect of such measures is comparatively more pronounced in emerging economies mainly due to lack of infrastructure and monitoring facilities, limited technology choices, inadequate access to environment-friendly raw materials, lack of reliable data, and large number of small-scale exporters. For instance, in developed economies such as the U.S., Canada, and countries in Europe, SMEs in the leather sector have vanished due to strict environmental legislation. However, in emerging economies, majority of the tanning industry comprises SMEs processing raw to semi-finished leather.

Market Opportunities

1. Growing adoption of cloud computing can present lucrative growth opportunities

Many sectors have started adopting cloud computing for various applications. However, its benefits still remain undervalued in the sustainability and energy management space. Cloud-based technology provides various benefits of updating and upgrading software in real-time, thereby allowing users to utilize data more efficiently. It can be adopted in enterprises to gain significant benefits such as robustness, scalability, reduced complexity, low cost, and granular level of visibility of sustainable information. Moreover, these solutions can help companies improve their performance, achieve greater return on investment, and generate more efficient reports.

2. Providing end-to-end customer experience can offer major business opportunities

SMEs are demanding software solutions that are sophisticated, convenient, and provide value-for-money. Thus, delivering different choices in options can create immense potential revenue opportunities for sustainability & energy management software vendors. Providing an end-to-end customer experience that complies with industry standards can offer major business opportunities for market players in the near future.