GITNUX MARKETDATA REPORT 2024

Esg Software Industry Statistics

The ESG software industry is experiencing significant growth with a substantial increase in market adoption and investment.

Last Updated: June 22, 2024

Written & Summarized by: Jannik Lindner

How we write

In this post, we explore key statistics shaping the ESG software industry, revealing insights into market trends, user preferences, and the impact of external factors such as the COVID-19 pandemic. From growth projections to sector-specific adoption rates, the data paints a comprehensive picture of the evolving landscape of ESG software solutions.

Statistic 1

"ESG Software market size is expected to grow from $928 million in 2020 to $2,228 million by 2025 at a CAGR of 19.3%."

Statistic 2

"North America to hold the largest market share in the ESG software market by 2025"

Statistic 3

"ESG software services have gained significant traction due to the outbreak of the COVID-19 pandemic, with a 23% increase in software usage in 2020."

Statistic 4

"37% of professional investors plan on increasing their usage of ESG software to automate ESG research and portfolio construction."

Statistic 5

"The EMEA region(Europe, Middle-East, Africa) is expected to grow at the highest CAGR of 20.1% from 2020 to 2025 in the ESG software market."

Statistic 6

"The ESG software market includes key players such as IBM, SAP, Schneider Electric contributing to 70% of the market share."

Statistic 7

"The Asia-Pacfic ESG software market is projected to experience the fastest growth with a CAGR of 21.2% till 2025."

Statistic 8

"Professional services segment of ESG software industry to account for the highest share of the market and is projected to grow at a CAGR of 18.5%"

Statistic 9

"As of 2021, 33% of ESG software users are within the financial sector, as ESG risks are now considered financial risks."

Statistic 10

"Nearly 30% of ESG software are used by corporate end-users in 2020."

Statistic 11

"The increasing regulatory pressure for transparency in ESG operations is driving a 17% increase in the demand for ESG software."

Statistic 12

"Sustainability management is the largest segment in ESG software making up 36% of the market."

Statistic 13

"About 25% of companies use ESG software for supply chain management."

Statistic 14

"Denmark is considered a leader in ESG software implementation with a 30% adoption rate among their companies."

Statistic 15

"43% of surveyed ESG software users said that integration with existing business systems is a challenge."

Statistic 16

"ESG software users report up to a 40% reduction in time spent managing ESG metrics."

Statistic 17

"The incorporation of artificial intelligence into ESG software has increased by 35% in the past two years."

Statistic 18

"More than 40% of companies using ESG software faced challenges implementing the software into their existing systems."

Statistic 19

"Nearly 35% of ESG software provide automated reporting features."

Statistic 20

"Energy companies have adopted ESG software by a staggering rate of 56% in the past year."

In conclusion, the ESG software industry is experiencing significant growth and adoption, driven by various factors such as the COVID-19 pandemic, regulatory pressures, and the recognition of ESG risks as financial risks. Market size is projected to more than double by 2025, with North America and the EMEA region leading in market share and growth rate, respectively. Key players like IBM, SAP, and Schneider Electric dominate the market, while professional investors are increasingly turning to ESG software for research and portfolio construction automation. Despite proven benefits such as time savings and automated reporting, challenges remain in integration with existing systems for many users. The industry is evolving rapidly, with the incorporation of artificial intelligence and increasing adoption by energy companies signaling a promising future for ESG software.