Concern among corporations regarding increasing CO2 emission rates is driving the growth of the global carbon footprint management market. The market, currently estimated to be at about $9.2 billion in 2020, is expected to grow at a CAGR of 7.5% to reach $13.2 billion by 2025, according to Research and Markets. North America is anticipated to lead the market.
High energy consumption for industrial applications is boosting emissions rates at a time when stringent regulations aimed at lowering carbon emissions are on the rise. C&I corporations are increasingly leveraging technologies to improve operations, reduce their carbon footprints, increase the success of their sustainability and CSR programs, and comply with regulations.
Cloud-based deployment holds the highest market share due to its greater flexibility, high control over the data, and cost-effectiveness. It provides enhanced security solutions, which can further help in mitigating the risks associated with data loss. This has led to higher adoption of cloud-based solutions for the carbon footprint management market. Large enterprises contribute the largest share of the market, as SME’s find that the initial cost of investment is unfeasible.
By vertical, the energy and utilities segment holds the highest market share during the forecast period. As per the EPA, electricity generation contributes to about 26.9% of carbon emissions, becoming the second-largest source of GHGs. Factors such as rising demand for electricity followed by a rise in CO2 emission contribute to the growth of the segment. Also, rising investments in the utility sector are creating opportunities for market growth.
While some are finding that the high initial investment needed to replace current infrastructure with low carbon-emitting infrastructure is difficult to overcome, small and medium-sized businesses are receiving some help from the US Department of Energy. The DOE announced this week up to $52.5 million for its Industrial Assessment Centers (IAC) that help smaller American manufacturers improve their efficiency, save money, and reduce their carbon footprint. The funding will be distributed through the IAC’s university-based programs which offer no-cost efficiency improvement recommendations to small- and medium-sized manufacturing facilities.
