Energy & Utility Carbon Management System Market Size - By Component (Solutions, Services), Deployment (Cloud, On-premises), & Forecast, 2024 - 2032

Energy & Utility Carbon Management System Market Size - By Component (Solutions, Services), Deployment (Cloud, On-premises), & Forecast, 2024 - 2032

Energy & Utility Carbon Management System Market size is poised to expand at over 9.7% CAGR from 2024 to 2032, driven by the global energy transition towards cleaner and more sustainable sources.

Several countries and industries are striving to reduce carbon emissions and combat climate change, further propelling the demand for effective carbon management solutions. Energy utilities are also transitioning towards renewable energy sources, such as wind, solar, and hydroelectric power, further necessitating robust carbon management systems to track and mitigate emissions. Additionally, the influx of regulatory incentives and government mandates to decarbonize the energy sector will spur investments in carbon management technologies to support the transition to a low-carbon economy.

The rising collaborations between energy and utility companies as well as technology providers are fostering innovations and accelerating the development and adoption of carbon management solutions, further boosting the market growth. For instance, in November 2023, SoCalGas announced that, after nearly two years of development, Avnos Inc.'s innovative carbon removal technology, Hybrid Direct Air Capture, is brought online in CA, with a pilot project demonstrating the use of technology in removing carbon dioxide from air while generating water using only electricity.

The energy and utility carbon management system industry is segmented into component, deployment, and region.

Based on component, the market size from the solutions segment is projected to witness high demand from 2024-2032 owing to the increasing environmental concerns and regulatory pressure to reduce emissions and meet sustainability goals. Advanced features like real-time monitoring and predictive analytics are empowering companies to make informed decisions for a greener future. Furthermore, the growing demand for sustainable energy practices is contributing to the higher adoption of carbon management solutions.

In terms of deployment, the on-premises energy & utility carbon management system market will record robust expansion between 2024 and 2032 attributed to the growing preference across major energy and utility companies for carbon management due to data security concerns and regulatory compliance requirements. On-premises systems offer greater control over data management and customization options tailored to specific organizational needs. They also provide a robust infrastructure for data processing, storage, and analysis within the premises of the company for ensuring data confidentiality and integrity.

Given the regional landscape, the Asia Pacific energy & utility carbon management system industry is slated to depict robust growth through 2032. With increasing environmental regulations and sustainability initiatives, several energy and utility companies in the region are prioritizing carbon management to mitigate emissions and achieve climate goals.

Furthermore, rapid industrialization and urbanization are surging the demand for efficient energy use and emission reduction solutions in the region. The rising government support for renewable energy and carbon reduction measures are providing potential growth opportunities to the industry players. For instance, in September 2023, Honeywell collaborated with SK E&S, to implement Honeywell carbon capture technology for allowing the latter firm to accelerate the energy transition in Korea and other regions of Southeast Asia.