According to a report from Pike Research, the global market for carbon management grew from $384m in 2009 to $705m in 2010 and is expected to reach $1.3bn in 2011. Growth will continue at a compound annual growth rate (CAGR) of almost 35% through to 2017, resulting in an industry worth $5.7bn.
The Cleantech market intelligence firm has upped its forecasts published early last year which projected that the market in 2017 would be worth a more modest $4.4bn. A major driver for this increased growth is the efforts that companies are making to reduce and manage their energy consumption. As a result, carbon management is becoming synonymous with energy management. Senior Analyst Marianne Hedin said “Pure-play carbon management companies are redefining themselves as ‘energy management’ providers, and meanwhile large consulting firms and IT services companies, as well as energy service companies and building controls vendors, are expanding their offerings in the space.” Other market drivers are regulatory compliance, supply chain mandates and an ability to maintain or enhance brand equity to respond to the environmental pressures from shareholders and consumers.
Pike expects that revenue from services will increase their lead over software purchases as the market matures - services will grow from 55% of the total market in 2010 to 67% by 2017. While consulting and implementation services represent the lion’s share of services spending today, spending for outsourcing services will be on par with or exceed the other types of services by 2016.
The findings confirm a Groom Energy Solutions study earlier this year that also found dramatic growth in the market. Groom predicted a 300% growth in the Enterprise Energy and Carbon Accounting (EECA) software market in 2011, after an even higher growth in 2010, and also pointed out the shift in products to include tracking of energy consumption along with carbon management
It’s certainly a booming software and services market and no longer reliant on legislation (or the threat of it) but becoming an integral requirement of doing business. It’s certainly the fastest growing green IT sector at the moment.