Carbon Management System Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Carbon Management System Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Carbon Management System Market size is estimated at USD 12.82 billion in 2023, and is expected to reach USD 22.68 billion by 2028, growing at a CAGR of 12.09% during the forecast period (2023-2028).

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.

Carbon Management System Market Trends

Oil and Gas Sector to Witness the Growth

• Digital technologies could be beneficial for Scope 1 and 2 emissions as oil firms set more challenging targets for emissions reduction. Tracking harmful methane emissions from oil wells and pipelines is crucial, and machine learning is helpful for refining energy use more efficiently. Drones, sensors, satellite, and camera data are also vital.
• Entrepreneurial firms are developing methods to monitor pollutants. GHGSat, a Canadian start-up, is launching nanosatellites with specialized cameras that can record information on methane emissions site-by-site. It can be costly to use cameras and satellites. Project Canary is a business that sells wireless, solar-powered sensors that may be positioned at well-sites to collect data on methane emissions.
• A business' carbon footprint can be calculated, tracked, reported on, and managed using the complete IsoMetrix Carbon Footprint Management package. IsoMetrix provides a transparent and flexible solution that supports the wide range of techniques needed to provide analytics. The solution comes with a full history of updated emission factors, the ability to utilize other units, and a visual representation of organizational performance. Additionally, the oil and gas sector focuses on lagging rather than leading indicators.
• Due to growing investor demand to reduce greenhouse gas emissions, more digital companies are releasing software that oil and gas producers may use to assess their carbon emissions.
• CarbonChain offer commodities companies a platform to track the carbon emissions embedded in their supply chains using digital twins of materials and equipment used in heavy industry. Persefoni provides businesses with carbon reporting software based on established guidelines like the Greenhouse Gas Protocol accounting method.

North America Accounts For Largest Market Share

• Consumers still drive carbon management system adoption in the region in the commercial, residential, and industrial sectors who want to save energy. Regarding power consumption, the US is currently placed second to China.
• Launching the Carbon Management Programme in North America represents a significant step toward making Airport Carbon Accreditation the global standard for airport carbon management. At the ceremony for the initiative's launch, Seattle-Tacoma International Airport received certification for the first time in North America.
• The market demand is also increasing due to government measures to reduce energy emissions from several outdated public buildings. For instance, the 50 most energy-intensive buildings owned by the state and federal governments will have efficient and smart building technology installed thanks to a contract signed by the US General Services Administration with IBM Corporation.
• The National Western Centre, a multi-use campus currently under construction in Denver, Colorado, is home to the annual National Western Stock Show and other public events centered on food and agriculture and is currently developing a potentially zero-energy district that will add to the scenario.

Carbon Management System Industry Overview

The Carbon Management System Market is inclining towards fragmentation as more players emerge who provide software for management and monitoring. This surge in numbers is being caused by greater uptake of cloud services. While businesses that offer consultation services grow steadily and exhibit a similar pattern during the forecasted period.

In February 2023, Schneider Electric SE announced that it had been onboarded as the official partner for ELECRAM, the largest gathering of the nation's power sector ecosystem and the flagship exhibition of the Indian Electrical and Electronics Manufacturers Association (IEEMA). In order to make ELECRAMA a carbon-neutral event, Schneider Electric will keep collaborating with IEEMA to measure the event's carbon impact, develop a carbon reduction and offset strategy, and put the plan into action. Additionally, the company will create various intriguing installations and creatives for the occasion to highlight sustainability in an entirely electric world.

In June 2022, Alibaba Cloud announced the launch of Energy Expert on a global scale. This sustainability platform was created to help users measure, analyze, and control the carbon emissions generated by their products and company operations. Additionally, the software-as-a-service options give clients useful information and suggestions for conserving energy to speed up their sustainability journeys.

Additional Benefits:

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