Pike Research has released a report into carbon management in the manufacturing sector. If you’re a regular reader you’ll know that monitoring and managing carbon emissions is a hot topic in green IT, even more so in manufacturing. Pike quotes figures that global manufacturing accounted for around 40% of total CO2 emissions in 2007.
The report points out that there is a lot of pressure on manufacturers to measure, monitor and report on their carbon output. Legislation is one reason, but so is pressure from customers, particularly retail companies. Band image is also at stake, more so as carbon footprint labelling schemes are increasingly adopted.
More details and the full report are available from here – but the bottom line is that Pike Research projects demand for carbon management software and services spending in the manufacturing sector will reach $124m in 2010 and $742m in 2017. The compound annual growth rate (CAGR) from 2009 to 2017 is estimated at over 33%.
Western Europe represents the best market opportunity in the short term, but from 2011 North America will become the most promising market, with a CAGR of almost 35%.
Pike Research specifically looks at the clean technology sector. But for me, the fact that Carbon Emissions Management Software is now being quoted as a fast growing sector by IT analysts who have otherwise ignored all things Green IT (as market hype) suggests it has reached a breakthrough!
As the report rightly points out out, there is still some confusion about standards and a great deal of uncertainty about legislation which is likely to persist for some time yet. But that’s the sort of market where IT tends to grow rapidly as companies buy in and subsequently upgrade solutions as the market develops.
The real uncertainty is about which suppliers will be the winners and which the losers. The market is fragmented and is likely to stay that way for a while, but (rapid) consolidation can’t be more than a year or two away, particularly as the enterprise software suppliers throw their weight around.