Carbon Management System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Carbon Management System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Carbon Management System Market is expected to grow at a CAGR of 13.31% over the forecast period (2022 to 2027).

Key Highlights

• The primary driving force for the market is the implementation of various carbon emission policies in response to the demand for rapid decarbonization. The Carbon Research Management Initiative (CaMRI) is the latest program at the Center on Global Energy Policy (CGEP) that focuses on carbon management to accelerate decarbonization and reduce climate change.
• Many institutions and organizations are multiplying their conservation efforts and gradually adopting measures that provide in-depth knowledge of greenhouse gases' dynamics and impacts. In this context, the carbon footprint is one of the most widely recognized indicators on a global scale.
• Moreover, enterprises in the market are expanding their capabilities and market reach via partnerships and alliances in carbon management to maintain sustainability. For instance, in February 2021, BASF and Siemens Energy agreed to cooperate in carbon management. By combining BASF's technological expertise and Siemens Energy's product and services portfolio, BASF aims to extend its leading role in lowering CO2 emissions in chemical production.
• The COVID-19 pandemic and lockdown restrictions across the region are expected to halt the world's emissions growth. The software solutions that optimize society's energy consumption, cut costs, and reduce carbon footprint could witness increased adoption as they help achieve carbon-neutral status before the deadline.
• The market's growth is hampered by a lack of training, development, and standards. Customers are frequently purchasing products that are new to the market as a result of technological advancements and price decreases. This results in a large amount of electronic waste, which is hazardous to the environment. For instance, many manufacturers in South America sell electronic goods, as the awareness is low. This adds to carbon emissions. Developing nations such as India lack sufficient carbon emission standards.

Key Market TrendsEnergy Sector Accounts for the Largest Market Share

• Energy efficiency is increasingly becoming the primary focus of private enterprises and government authorities across the globe. The increasing economic activities have led to high energy consumption rates and pushed global electricity grids to their limits.
• Energy consumption is expected to increase over the coming years; according to the United States Energy Information Administration, worldwide energy consumption is anticipated to grow by around 50% during 2018-2050, with the Asian region being the major consumer of energy over the years.
• According to EMBER, China is the largest contributor to CO2 emissions from electricity generation in 2021, with 4,646.87 million metric tons. This was roughly three times the amount of carbon dioxide produced by the United States. While China's emissions from the power sector are far higher than those of the United States, the country's per capita emissions from electricity generation are lower.
• Additionally, major economies have already formed regulations to enhance their energy efficiency, and other countries have followed suit. For example, the Energy Efficiency Directive established measures to help the EU reach a 20% energy efficiency target by 2020, amended in 2018 with an energy efficiency target for 2030 of at least 32.5%. Such developments in the regions are forcing businesses to adopt energy efficiency solutions.
• According to the Department of Energy data, buildings account for 40% of US energy and waste 30% of the energy they consume. Altogether, that is a massive amount of the annual energy used and destroyed. Excess carbon is produced in the North American region, reaching over USD 100 billion in operational costs per year.
• Vendors are increasingly focusing on expanding their presence in the sector. For example, , Schneider Electric announced its EcoStruxure Microgrid Solution for Small and Medium Buildings in Canada. The all-in-one solution provides easy integration of distributed energy resources (DERs) across facilities, including commercial and industrial buildings, healthcare facilities, and educational institutions, providing organizations with greater energy resiliency, reduced energy costs, and a lower carbon footprint in January 2021.

North America Accounts For Largest Market Share

• The carbon management system market in the region remains a significant market as commercial, residential, and industrial consumers continue to drive adoption to realize energy savings. The US is currently ranked as the second-largest consumer of electricity after China.
• Further, the Carbon management program launch in North America is a decisive step in establishing Airport Carbon Accreditation as the global standard for carbon management at airports. The launch ceremony also saw Seattle-Tacoma International Airport become the first airport in North America to achieve certification within the program.
• Government initiatives to decrease energy emissions from several old and public buildings are also boosting the market demand. For instance, the US General Services Administration contracted with IBM Corporation to install efficient and smart building technologies in 50 of the state and federal government’s highest energy-consuming buildings.
• Further adding to the scenario, a potentially zero-energy district is currently being developed at the National Western Center, a multi-use campus currently under construction in Denver, Colorado, to house the annual National Western Stock Show and other public events focused on food and agriculture. Electricity used to operate the lighting, heat pumps, and other equipment will come from on-site photovoltaics and wind- and solar-generated electricity imported from off-site.

Competitive Landscape

The Carbon Management System Market is inclining towards fragmentation with the increase in the number of players offering software for monitoring and management. This increase in number is proliferating due to the rise in the adoption of cloud services. Whereas the companies providing services in consultation show steady growth and follow a similar trend in the forecast period.

• March 2022 - Normative, a Swedish start-up backed by Google, has launched a free version of its carbon emissions tracker. It was created to help relatively small companies get a baseline understanding of their emission. Normative's Business Carbon Calculator helps small and medium-sized businesses monitor their carbon emissions and locate emission hotspots based on data like the size of their facilities and how much they spend on heating, electricity, and gas. Normative also offers paid products for larger businesses.
• November 2021 - SGS China announced its collaboration with Microsoft to launch S-Carbon, the world's first-ever dual-standard intelligent cloud carbon management platform, based on Microsoft Azure at the 4th China International Import Expo (CIIE). As a world-renowned company specializing in carbon inventory and audit, SGS developed S-Carbon by leveraging Microsoft Azure, its data storage, and data analysis technology, adopting international ISO 14064-1 standard and Chinese national standards to track carbon emissions performance quantitatively. By effectively classifying and managing the enterprise's carbon targets, the platform helps enterprises across various industries enhance their international competitiveness, green financing opportunities, and brand influence in the context of carbon neutrality goals.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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