Groom Energy Solutions has released a study that predicts a 300% growth in the Enterprise Energy and Carbon Accounting (EECA) software market in 2011.
Groom’s EECA report concludes that despite the economic slowdown and stalled climate legislation, the market grew by 400% globally in 2010. More than 200 corporations purchased EECA software in 2010 and more are reporting carbon disclosure as part of quarterly results. While the largest markets are the US and Europe, Asian and South American companies are steadily becoming part of the sales mix.
The report - ‘The 2011 Enterprise Energy and Carbon Accounting (EECA) Software Market — A Buyers Guide’ also names the 10 EECA market leaders; Advantage IQ, Enablon, EnerNOC, Enviance, Hara, IHS, Johnson Controls, PE International, SAP, and Summit Energy. The assessment is based on number of customer deployments, technology features, energy management capabilities, market vision and financial stability.
Other research findings were that:
• Many energy /utility bill management vendors now offer strong carbon modules.
• Responding to environmental data requests from stakeholders is the main purchasing driver.
• Supply chain initiatives continue to drive sustainability efforts.
• The overall market is approaching maturity and acquisitions and venture capital investment dropped significantly from 2009 to 2010.
Based on Groom’s findings, this does seem to be a maturing market. It’s no longer reliant on legislation (or the threat of legislation) but increasingly an integral requirement of doing business. At the same time, M&A is down, although I can’t help thinking that some consolidation is still to come.
But it does seem to be expanding beyond just carbon counting. Groom points out that there was a shift in product requirements to include tracking of energy consumption along with carbon management. In fact it’s likely that software will grow to cover a number of environmental issues and resources. For example, the Carbon Disclosure Project recently reported that the number of institutional investors signing this year’s annual request for water information has risen over 150% from 137 in 2010 to 354 in 2011. Assessing water use looks like being next on the agenda.