ESG Reporting Software Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

ESG Reporting Software Market Size

ESG Reporting Software Market Trends & Drivers

Growing Trend for Adopting ESG Assurance

The trend of greenwashing is observed in the market. It refers to the promotion of a product, service, or entire business to become environment-friendly. Some companies are misleading or embellished claims in their marketing proposals or sustainability reports about this. These unsubstantiated claims can be made intentionally or unintentionally. Thus, it becomes critical to differentiate between retailers that are truly adopting ESG culture and those that are seemed camouflaged as green.

Moreover, regulatory authorities are increasingly examining businesses’ sustainability claims and inspecting allegations of greenwashing. This risk of greenwashing can be avoided by adopting ESG assurance, which refers to the authentication of the data to be included in ESG-related disclosures and reports. The whole procedure can be done internally or via an external auditor.

ESG Reporting Software Market Analysis

Solutions Contribute the Most

The solutions category contributed the majority of revenue share, around 70%, in 2022, and it is expected to maintain its position during the forecast period as well. This is due to the surging need for ESG reporting across industrial verticals, the increasing need of investors to see actual financials and operational processes data while investing, and the rising focus of companies to report crucial information with less complexity.

High Generation of Corporate Data Drives the Industry

Digitalization is growing rapidly due to its advantages, including effective resource planning, which has upsurged the acceptance of digital technologies in businesses. They need to store their data in a secure and cost-efficient manner, and to enhance overall efficiency. In order to attain effectiveness, cloud-based data management solutions provide a feasible choice, as it is easy to use cloud-based data throughout the firms and requires minimum IT infrastructure support. Therefore, the high generation of corporate data is the prime factor contributing to the market growth.

BFSI Sector To Show Fastest Growth

The BFSI category will witness the highest growth rate in the coming years, advancing at a CAGR of over 13%. Countries and organizations are facing sustainability issues, including social outbreaks, corporate governance, climate change, and health crises. Moreover, the acceptance of such software in the sector is due to the increasing focus of businesses on operational and process efficiencies, risk and compliance, and product innovation.

SMEs Category To Witness Faster Growth

The SMEs category, based on organization size, will register faster growth during the forecast period. This can be attributed to the growing SME sector due to the rising number of SMEs and related investments; the surging need for enhanced overall firm efficiency; and the increasing work effectiveness of employees.

Geographical Analysis

North America accounted for the largest revenue share, around 40%, in 2022, and it is further expected to maintain its dominance during the forecast period. This is due to the presence of major industry titans, well-established IT companies, and a high adoption rate of advanced technologies in the region.

Additionally, the well-developed healthcare infrastructure, the surge in shifting of the focus of BFSI firms from CSR to ESG, and government-supporting regulations for public companies are driving the regional market.

• The U.S. contributes the majority of the revenue share to the North American market, and it is also expected to maintain its dominance in the coming years. This is due to the presence of a large number of industry players, well-established healthcare settings, and a growing trend of funding or investment activities in the country.

Whereas the APAC market will witness the fastest growth in the coming years. This can be due to the rapid digitalization associated with urbanization; upsurge in per capita income; high growth in the telecom and IT, manufacturing, retail, and consumer goods industries; and technological advancements. Additionally, the growing funding and investment activities by industry giants to setting their production facilities in the region, owing to several benefits; and the surging need to maintain transparency in terms of financials of companies are some other reasons responsible for the regional market growth.

• Japan, China, India, and South Korea are significantly contributing to the regional market revenue. This is due to the increasing investments by public and private sectors; the surging implementation of ESG-related mandates; the rising number of vendors; and the growing end-use industries in these countries.

Furthermore, Europe held a significant revenue share in 2022, and it is expected to maintain its position in the coming years as well. This is due to the significant number of players and several corporate environments, sustainability, and governance legislations.

Report Breakdown

Based on Component

• Solutions
• Services

Based on Deployment Type

• On-Premises
• Cloud

Based on Organization Size

• SMEs
• Large Enterprises

Based on Vertical

• BFSI
• IT and ITeS
• Government and Public Sector
• Manufacturing
• Retail and Consumer Goods
• Healthcare and Life Sciences
• Energy and Utilities

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa

Top ESG Reporting Software Companies