ESG Reporting Software Market by Offering (Software and Services), Deployment Type (On-premises and Cloud), Organization Size (Large Enterprises and SMEs), Vertical (BFSI and Government, Public Sector, and Non-profit), & Region - Global Forecast to 2029

ESG Reporting Software Market by Offering (Software and Services), Deployment Type (On-premises and Cloud), Organization Size (Large Enterprises and SMEs), Vertical (BFSI and Government, Public Sector, and Non-profit), & Region - Global Forecast to 2029

The ESG reporting software market is expected to grow from USD 0.9 billion in 2024 to USD 2.1 billion by 2029, at a CAGR of 17.0% during the forecast period. The ESG reporting software market has gradually gained traction across various sectors, including BFSI, government, public sector & non-profit, manufacturing, retail, energy, and technology, by integrating comprehensive sustainability metrics, advanced data analytics, and real-time reporting capabilities. These software solutions offer end-to-end ESG management, including data collection, performance tracking, compliance reporting, and stakeholder engagement. Organizations are increasingly adopting ESG reporting software to enhance operational efficiency, meet regulatory requirements, and improve sustainability initiatives. The solutions segment primarily includes data integration, analytics, and reporting platforms supported by APIs, SDKs, and other connected technologies.

""As per the offering, services will grow at the highest CAGR during the forecast period. ""

Services are indispensable in ESG reporting offerings, as they give organizations assistance, know-how, and advice to manage their sustainability projects and meet the reporting requirements.

On the one hand, services assist organizations in dealing with the complexities of ESG reporting through consulting, training, and advisory services; this includes support with the establishment of sustainability goals, creation of ESG strategies, and implementation of reporting standards such as the Global Reporting Initiative (GRI), Carbon Disclosure Project (CDP), and Sustainability Accounting Standards Board (SASB). Service providers also assist organizations in identifying relevant ESG metrics, collecting and analyzing the data, and preparing ESG reports customized to the organization's needs and stakeholder expectations. Furthermore, services could include stakeholder engagement, materiality assessments, and benchmarking that helps organizations understand their performance compared to the industry peers and best practices.

Additionally, services involve software implementation, customization, and support to ensure that organizations can adequately utilize ESG reporting software to control their sustainability data and reporting processes; this consists of software installation, configuration, and integration with existing systems, user training, and continuous technical support. Service providers collaborate closely with organizations to fine-tune the ESG reporting software to their specific needs, ensuring they get the best out of their investment while meeting their sustainability targets. The services complement ESG reporting software as they provide organizations with the knowledge, tools, and support they need to go through the complexities of sustainability reporting and show their dedication to environmental, social, and governance responsibility.

""As per verticals, the retail & consumer goods segment will grow at the highest CAGR during the forecast period. ""

Within retail & consumer goods, the ESG reporting software is vital to help firms manage and report their sustainability activities. ESG reporting software helps retail & consumer goods companies collect, analyze, and report non-financial ESG data, including environmental impact, social initiatives, and governance practices; this involves monitoring energy consumption, waste generation, supply chain practices, labor standards, and diversity initiatives. In addition, ESG reporting software assists retail & consumer goods companies promote transparency and build trust toward consumers, investors, and other stakeholders. By providing a complete set of instruments to handle sustainability monitoring and reporting, ESG reporting software makes it possible for companies to highlight their devotion to sustainability and corporate social responsibility; this can result in brand loyalty, good reputation, and competitive advantage in the marketplace, as consumers shift to the products and brands that correspond with their sustainable and responsible behavior values.

Based on region, the European region will hold the second-largest market size during the forecast period.

The European market has very diverse business needs. Its achievements in science and technology have been significant. Moreover, R&D is an integral part of the European economy. Robust economic infrastructure and high internet penetration make Europe one of the top markets for cloud-based services. The major countries in the region's analysis are the UK, Italy, and Germany. The established internet and robust economic infrastructure with business demand for ESG solutions make Europe one of the top three markets and the second largest in the ESG reporting software market. The major countries considered in this report for analysis are the UK, Germany, Italy, and others. The UK and Germany have the highest potential for the ESG reporting software market among all other countries. Business demands in the European market are diverse and reasonably similar to those in North America. Enterprises in this region have strong technical expertise and bigger IT budgets. Major players, such as Microsoft, Oracle, IBM, and OVH, have established cloud partnerships with European vendors to cater to customers' growing demands and increase the customer base. The region is an early adopter of advanced technology due to the solid technical expertise and better IT budget of enterprises. Factors such as data security and data sovereignty compel enterprises in this region to adopt ESG reporting software solutions.

The breakup of the profiles of the primary participants is below:

By Company: Tier I: 40%, Tier II: 30%, and Tier III: 30%

By Designation: C-Level Executives: 25%, Director Level: 45%, and Others: 30%

By Region: North America: 40%, Europe: 25%, Asia Pacific: 20%, Rest of World: 15%

Note: Tier 1 companies have more than USD 10 billion, tier 2 companies' revenue ranges between USD 1 and 10 billion, and tier 3 companies' revenue ranges between USD 500 million and 1 billion. Other designations include sales managers, marketing managers, and product managers.

Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis

Some of the significant vendors offering ESG reporting software solutions across the globe include.

Wolters Kluwer (Netherlands), Nasdaq(US), PWC(UK), Workiva(US), LSEG(UK), Greenstone(UK), Diligent(US), Sphera(US), Cority(Canada), and Intelex(Canada)

Research coverage:

The market study covers the ESG reporting software market across segments. It aims to estimate the market size and the growth potential of this market across different market segments, such as offering, deployment type, organization size, vertical, and region. It includes an in-depth competitive analysis of the key players in the market, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.

Reasons to buy this report:

The report will help the market leaders/new entrants with information on the closest approximations of the revenue numbers for the overall ESG reporting software market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

Analysis of key drivers (ESG reporting software facilitates proactive risk management strategies by allowing companies to set thresholds, benchmarks, and targets related to ESG performance metrics), opportunities (ESG reporting software could be integrated with various enterprise systems, such as ERP, CRM, and HCM platforms, to consolidate data and streamline reporting processes), and challenges (the rise in the broadened scope of corporate board responsibilities also requires sincere focus and timeline commitment from board members to meet their legal duties).

Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the ESG reporting software market.

Market Development: Comprehensive information about lucrative markets – the report analyses the ESG reporting software market across varied regions.

Market Diversification: Exhaustive information about new products and services, untapped geographies, recent developments, and investments in the ESG reporting software market.

Competitive Assessment: In-depth assessment of market shares, growth strategies, and business processes offered in the ESG reporting software market of leading players like Wolters Kluwer (Netherlands), Nasdaq(US), PWC(UK), Workiva(US), LSEG(UK), among others in the ESG reporting software market.