ESG Reporting Software Market To Generate Revenue Worth $2,098.9 Million by 2030

The global ESG reporting software market is projected to generate $2,098.9 million by 2030, advancing at a CAGR of 13.6% during 2022–2030. This can be ascribed to the growing digitalization; the mounting needs to collect and organize ESG data that assists businesses in meeting numerous disclosure requirements; and the increasing government initiatives across the globe governing ESG investments.

SMEs Category To Show Faster Growth

Based on organization size, the SMEs category is expected to register faster growth, advancing at a CAGR of 15%, during the forecast period. In SMEs, the requirement for improved efficiencies, lower costs, and high employee productivity is gaining traction, which creates the demand for ESG reporting software.

Based on deployment type, the market is bifurcated into on-premises and cloud. Of these, the cloud category will register higher growth in the coming years. This can be due to several advantages offered by cloud platforms, such as ease of operation, pay-as-you-use, and higher scalability. Moreover, such solutions offer efficiencies for organizations and put key metrics at the administration’s fingertips. On the other hand, the on-premises category held a higher revenue share in 2022, and it is further expected to maintain its position in the coming years.

Based on vertical, the market is categorized into BFSI, IT and ITeS, government and public, manufacturing, retail and consumer goods, healthcare and life sciences, energy and utilities, and others. Among these, the healthcare and life sciences category contributed significant revenue to the market in 2022, and it is also expected to maintain its position during the forecast period. This is due to the growing healthcare infrastructure particularly in emerging nations, the surging need for a sustainable environment in healthcare settings, and the rising funding activities by several government and private organizations.

Moreover, the manufacturing category will witness significant growth in the coming years. This growth can be attributed to the growing manufacturing industry, the surging concern for creating a green environment, and the rising need of investors to observe the financial performance and operations of companies in which they are planning to invest.

Geographically, North America accounted as the major revenue contributor to the market in 2022, and it is expected to maintain its dominance during the forecast period as well. This is due to the high rate of acceptance of advanced technologies across all industrial verticals, the presence of a large number of IT and ITeS organizations and industry players, and rapid industrialization in the region.

Whereas, the APAC market will witness the highest growth rate in the coming years. This can be due to the growing digitalization, the rising per capita income, the increasing number of investment or funding activities for new startups, the surging government efforts related to ecological balance and sustainability of businesses, and the growing end-use industries.

Moreover, Japan, China, South Korea, and India are the prime revenue contributors to the regional market, owing to the increasing funding activities and the growing banking and retail and consumer goods sectors in these countries. Additionally, in today’s scenario, China is known as a manufacturing hub and is gaining investment for the same by international titans.

Major players operating in the ESG reporting software market are Wolters Kluwer N.V., Nasdaq Inc., PricewaterhouseCoopers LLP, Workiva Inc., Refinitiv Limited, Diligent Corporation, Sphera Solutions Inc., Cority Software Inc., and Intelex Technologies Inc.