According to the latest market research study published by P&S Intelligence, the globalESG reporting software marketis witnessing growth and is projected to reach USD 2,098.9 million by 2030, advancing at a CAGR of 13.6% during the forecast period. This growth of the industry can be credited to the increasing industrialization armed with urbanization; the increasing count of startups needing investment or funding; the rising requirement of many businesses to get advanced accountability and sustainability; and the rising trend to become eco-friendly companies.
Digitalization is rising quickly because of its benefits, and ineffective resource planning, which has quickened the adoption of digital technologies in industries. They are required to store their valuable data in a safe and cost-effective manner and to advance total effectiveness. In order to get efficiency, cloud-based data management solutions give a reasonable choice, as it is very simple to use cloud-based info throughout the companies and needs minimum IT infrastructure provision. Thus, the high production of corporate data is the key factor contributing to the industry development.
The BFSI sector is expected to experience significant growth in the upcoming years, with a projected Compound Annual Growth Rate (CAGR) surpassing 13%. Countries and businesses are grappling with sustainability challenges such as social disruptions, corporate governance issues, climate change, and health emergencies. The rising adoption of software in this industry can be attributed to businesses' heightened emphasis on improving operational and process efficiencies, managing risks and compliance, and fostering product innovation.
ESG reporting software is instrumental in enabling businesses to assess and communicate their performance in areas like environmental, social, and governance (ESG). In recent years, there has been a growing importance placed on ESG reporting, particularly due to increased investor interest in sustainable investments. Additionally, many companies are embracing such reporting practices to comply with legislation. Given the intricacies and efficiency requirements involved in ESG investigation and reporting, this software plays a crucial role for both investors and organizations.
The trend of greenwashing is experienced in the industry. It denotes the upgrade of a product, service, or whole business to become environment-friendly. Some businesses are deceptive or overstated claims in their advertising proposals or sustainability reports about this. Such unsupported claims can be made deliberately or unintentionally. Therefore, it becomes vital to differentiate between vendors that are truly accepting ESG culture and those that are looked camouflaged as green.
Top Players ESG Reporting Software Are:
In recent years, North America secured the largest share of revenue, approximately 40%, and is anticipated to sustain its leading position in the foreseeable future. This is attributed to the presence of prominent industry leaders, established IT firms, and a widespread embrace of cutting-edge technologies in the region.
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Commonly Asked Questions Regarding This Report:
1- What factors are driving the development of the ESG reporting software Industry?
Focus on sustainability, accountability, and regulations is driving ESG reporting software growth.
2- How does digitalization contribute to the adoption of ESG reporting software?
Digitalization speeds up ESG reporting software acceptance by streamlining data management.
3- Why is the BFSI sector projected to witness substantial growth in the ESG reporting software market?
BFSI's focus on efficiency, risk management, and compliance drives ESG software growth.
4- Why is North America leading in the ESG reporting software market?
North America leads in ESG software due to tech adoption and strong industry presence.
5- What was the size of the ESG reporting software market in 2022?
The ESG reporting software market size stood at USD 756.8 million in 2022.
