Governments worldwide are imposing stricter environmental and safety regulations, compelling businesses to invest in EHS solutions. Notable policies include the U.S. Inflation Reduction Act and Canada’s NPRI. The U.S. Department of Energy’s $6 billion investment in decarbonization projects further underscores the push for sustainability and compliance.
Industries such as construction, manufacturing, and energy are under pressure to meet emission targets and improve workplace safety. In Germany, clean energy investments and a resurgence in the oil and gas sectors are driving demand for EHS solutions.
Cloud-based EHS solutions dominated the market in 2023, accounting for over 60% of total revenue, with an anticipated CAGR of 9.3% through 2032. Businesses are integrating AI-driven analytics, IoT-based monitoring, and mobile applications to enhance compliance tracking and risk management.
A 2023 Verdantix report found that 72% of EHS decision-makers plan to increase investments in software solutions over the next two years, emphasizing the shift toward digital tools that streamline reporting and improve operational efficiency.
According to the report, leading players innovating in this space include:
These companies are leveraging AI, cloud computing, and IoT to offer advanced risk assessment, environmental compliance, and safety solutions.
The EHS market’s future hinges on digital transformation, regulatory enforcement, and industry-wide sustainability goals. As businesses focus on compliance, risk mitigation, and workforce safety, investment in EHS technologies will continue to rise. With strong momentum, the industry is expected to see widespread adoption across sectors such as oil & gas, pharmaceuticals, and food processing, ensuring continued growth through 2032.
