Global Emissions Management Software Market Size, Forecast, and Trend Highlights Over 2025-2037
Emissions Management Software Market size was valued at USD 19 billion in 2024 and is projected to reach USD 125 billion by the end of 2037, rising at a CAGR of 16% during the forecast period, i.e., 2025-2037. In 2025, the industry size of emissions management software is assessed at USD 22 billion.
The market is mainly driven by increasing regulatory pressure and environmental compliance across the globe. Governments are no longer relying solely on voluntary reporting or broad climate targets; they are implementing specific, enforceable rules that require companies to monitor, report, and actively reduce their greenhouse gas (GHG) emissions. These legal frameworks are not just limited to high-emitting sectors of energy or manufacturing but also serve construction, transportation, logistics, agriculture, and financial services.
Emissions management software plays an important role in helping companies navigate these complex regulatory environments. These platforms provide real-time tracking of Scope 1, 2, and Scope 3 emissions, i.e., indirect emissions from supply chains, automated reporting aligned with global standards such as the Greenhouse Gas Protocol, and data analytics for identifying areas of improvement. This helps organizations avoid regulatory penalties, improve efficiency in operations, and maintain compliance with frequently changing laws. For instance, the European Union Fit for 55 package, introduced in 2021, aims to reduce net greenhouse gas pollution by at least 55% by 2030. This has encouraged the adoption of these emissions tracking tools among EU companies to meet the rising compliance needs.
Emissions Management Software Sector: Growth Drivers and Challenges
Growth Drivers
- Rising corporate sustainability initiatives: More companies are integrating sustainability initiatives into their business models, fueled by stakeholder expectations, investor pressure, and brand reputation. Emissions management software allows transparent tracking and reporting of carbon footprints, necessary for achieving corporate Environmental, Social, and Governance (ESG) goals. For instance, in 2024, Microsoft committed itself to becoming a carbon-negative company by 2030 by making use of modern emissions management systems to track emissions production in its operations globally. This showcases a broader scope where about 90% of the world’s largest companies have sustainability targets, encouraging software adoption for emissions tracking.
- Technological advancements in IoT and cloud computing: Integration of IoT sensors and cloud-based analytics in emissions management software allows real-time data collection, processing, and actionable insights. This technology boost enhances accuracy, scalability, and user accessibility, making emissions monitoring more efficient and cost-effective. Siemens recently launched an IoT-enabled emissions monitoring platform that uses cloud AI analytics to provide predictive insights for industrial clients. According to a 2023 IDC report, cloud-based emissions software solutions are expected to grow at a CAGR of 15% through 2027 due to these technological advancements.
- Growing awareness and demand for carbon neutrality: Increasing public awareness about climate change and user preferences for green products are helping organizations to actively manage and reduce their carbon emissions. This cultural shift is encouraging demand for end-to-end emissions tracking solutions that support carbon neutrality and net-zero commitments. For instance, top e-commerce platform Amazon has introduced a set of sustainability initiatives across its global operations, including reducing waste, shifting to renewable energy, revamping packaging and logistics, and deploying a new fleet of electric delivery vehicles.
Major Technological Innovations in the Emissions Management Software Market
The global EMS market is evolving rapidly with the integration of advanced technologies. Key trends include the use of AI and ML for predictive analytics, blockchain for secure emissions tracking, and satellite monitoring for real-time data. These innovations are improving accuracy and efficiency across industries. These trends are driving both innovation and sustainability across sectors. The table below highlights the current technology trends and their impact on various industries.
|
Technology Trend |
Industry |
Impact / Adoption |
Example |
|
AI & ML |
Manufacturing |
52% methane emission reduction by Equinor |
Equinor, North Sea operations |
|
Blockchain for Emissions |
Finance |
Improves transparency in carbon credit transactions |
Toucan blockchain platform |
|
Satellite Monitoring |
Energy |
Identifies emissions under-reporting |
Climate Trace data on the oil & gas sectors |
|
Cloud-Based EMS |
Cross-Industry |
Enables real-time data access and scalability |
Cloud EMS adoption across industries |
|
IoT Integration |
Manufacturing |
Supports continuous, real-time emissions monitoring |
IoT devices in EMS for anomaly detection |
AI and ML in the Emissions Management Software Market
AI and ML are driving major changes in the global EMS market by improving product development and operational efficiency. Companies are using AI to automate emissions tracking, run predictive maintenance, and speed up innovation while cutting costs and time-to-market. Technologies like AI-driven simulations and digital twins help test performance without physical trials, reducing development cycles. Given below are a few examples of the same.
|
Company |
AI & ML Integration |
Measured Outcome |
|
Equinor |
AI + satellite for emissions monitoring |
52% methane reduction (2020–2023) |
|
Siemens |
AI-driven simulations in EMS development |
31% faster product development |
|
Shell |
AI for supply chain and emissions optimization |
13% lower logistics/operational costs |
|
GE |
Predictive maintenance via AI in EMS |
22% less unplanned downtime |
|
IBM |
AI-enabled EMS customization for compliance |
27% faster customer onboarding |
Challenges
- High upfront costs and lack of standardized global rules: The high implementation cost for small and medium enterprises is one of the most important challenges of the emissions management software market. Advanced emissions software often requires high investment in infrastructure, integration with existing systems, and employee training. For many SMEs, these upfront costs can be a barrier, limiting widespread adoption and slowing overall market expansion despite increasing regulatory pressure. Another key challenge is the lack of standardized global regulations, which creates complexity for companies working across different regions. This inconsistency makes it difficult to design unified software solutions that guarantee compliance with varying reporting frameworks and emission thresholds.
Emissions Management Software Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
16% |
|
Base Year Market Size (2024) |
USD 19 billion |
|
Forecast Year Market Size (2037) |
USD 125 billion |
|
Regional Scope |
|
Emissions Management Software Segmentation
Deployment Type (Cloud-Based, On-Premise)
The cloud-based segment is predicted to hold a 67% share by the end of 2037 due to its scalability, flexibility, and lower upfront costs. It allows real-time access to emissions data across multiple locations, improving decision-making and regulatory compliance. Cloud deployment supports seamless updates, integration with IoT devices, and AI-powered analytics. As remote operations and global sustainability reporting rise, demand for cloud-based solutions rises. Industries favor cloud platforms for their ability to adapt quickly to changing environmental regulations.
Data Source (Continuous Emission Monitoring Systems (CEMS), Predictive Emission Monitoring Systems (PEMS), Manual Sampling, Portable Monitors, Sensors)
The Continuous Emission Monitoring Systems (CEMS) segment is anticipated to capture a 47% share during the stipulated time frame, due to its ability to provide real-time emissions data from industrial processes. The growth can be attributed to strict environmental regulations requiring continuous compliance monitoring. CEMS allows accurate monitoring of pollutants such as SOâ‚‚, NOx, and COâ‚‚, which are necessary for automated reporting and regulatory audits. Additionally, integration with EMS software enhances measurement accuracy, operational transparency, and timely decision-making. The growing adoption of CMES in power generation, cement, and chemical industries is further fueling segment growth.
Our in-depth analysis of the global emissions management software market includes the following segments:
|
Deployment Type |
|
|
Data Source |
|
|
Application |
|
|
Industry |
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Customize this ReportEmissions Management Software Industry - Regional Synopsis
North America Market Analysis
The emissions management software market in North America is anticipated to hold a 40% share during the forecast period due to strong environmental regulations and rising pressure from investors for transparent ESG reporting. Major industries such as oil and gas, manufacturing, and transportation are adopting advanced software solutions to ensure compliance with evolving federal and state emission standards. The overall adoption in the region has been supplemented by the presence of industry-leading companies and a well-established technological infrastructure. Additionally, ESG goals have pushed businesses to hasten the adoption of analytics tools and live monitoring platforms. The convergence of these trends has ensured a sustained expansion of the North America market.
The U.S. emissions management software market is bolstered by the strict guidelines, such as the SEC's climate disclosure rule, which has mandated the release of detailed emissions reports by businesses operating in the country. Additionally, the businesses in America are increasingly focusing on digital tools to mitigate any discrepancies in reporting. The market is also impacted by the rising scrutiny by the general public and investors, creating rife trends in the adoption of software that can provide data transparency while crafting a long-term emissions reduction plan. Leading sectors with application potential are those of energy, automotive, and heavy manufacturing.
Asia Pacific Market Analysis
Asia Pacific is anticipated to exhibit the fastest growth at a CAGR of 18% during the forecast period due to increased environmental awareness and regional efforts to align with global sustainability standards. Governments are introducing stricter emissions regulations, especially in sectors like power generation, cement, and transport. The rapid digital transformation across industries is also making it easier to implement real-time emissions tracking solutions. In addition, growing investor interest in green investments is pushing companies toward improved emissions reporting.
The China emissions management software market is projected to hold a significant share during the forecast period due to the focus on climate goals and industrial decarbonization. The enforcement of national carbon trading and environmental inspections is pushing heavy industries to adopt digital emissions monitoring solutions. Additionally, the strategic shift toward digital manufacturing and environmental technologies in China has influenced the need for integrated software solutions.
Companies Dominating the Emissions Management Software Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The EMS market features both global giants like IBM, SAP, and Schneider Electric, and rising regional players from Australia, India, and Malaysia. Leading companies use AI and cloud technologies to improve emissions tracking, while regional firms focus on local regulatory needs. Although Japan companies hold smaller shares, their presence shows growing Asia Pacific interest. The market is rapidly expanding, fueled by stricter environmental rules and the worldwide move toward sustainability. Given below is a table of the top players in the market with their respective shares.
|
Company |
Country of Origin |
Estimated Market Share |
|
IBM Corporation |
USA |
13% |
|
SAP SE |
Germany |
11% |
|
Schneider Electric SE |
France |
10% |
|
ENGIE SA |
France |
9% |
|
Microsoft Corporation |
USA |
8% |
|
Salesforce, Inc. |
USA |
xx% |
|
Enablon (Wolters Kluwer) |
Netherlands |
xx% |
|
Sphera Solutions, Inc. |
USA |
xx% |
|
Intelex Technologies |
Canada |
xx% |
|
Envirosuite Limited |
Australia |
xx% |
|
Infosys Limited |
India |
xx% |
|
Wipro Limited |
India |
xx% |
|
DHI Group |
Malaysia |
xx% |
|
Hitachi Ltd. |
Japan |
xx% |
|
Mitsubishi Electric Corporation |
Japan |
1% |
Given below are the areas covered for each company in the emissions management software market:
Recent Developments
- In February 2025, IBM’s Envizi ESG Suite was adopted by Astellas Pharma to support their environmental and sustainability reporting. IBM is working with Accenture to establish the software setup, making it convenient for companies to handle and form their emissions data.
- In December 2024, SAP introduced its Green Ledger tool, which helps companies to track and manage their carbon emissions alongside their financial data. This new solution is designed to help companies meet strict sustainability rules, like those set by the European Union.
Author Credits: Abhishek Verma
- Report ID: 3226
- Published Date: Jun 02, 2025
- Report Format: PDF, PPT
