Environmental Health and Safety Software Market Size [2031]

Report Description

Environmental Health and Safety Software Market Outlook 2031

The global environmental health and safety software market size was USD 1.6 Billion in 2022 and is likely to reach USD 4.65 Billion by 2031, expanding at a CAGR of 12.6% during 2023–2031. The market is fueled by rising environmental awareness and stringent government regulations for enhancing corporate sustainability.

Growing focus on effectively tracking and managing environmental and safety-related data, for improving organizational sustainability that is driving the market. Environmental health and safety (EHS) software acceptance is growing steadily across different industries, as it supports companies in recording and analyzing data related to workplace safety, health, waste management, and sustainability. With advancements in technology and rising digitization, the EHS market is likely to provide significant opportunities for the major players during the forecast period.

• According to the study published by the International Data Corporation (IDC) on August 28, 2023, global expenditure on purpose-built sustainability services is likely to reach USD 65 billion in 2027. These services are defined to be ones that support an organization to drive sustainability-related results for their users. These purpose-based ESG services include, but are not limited to, the development & implementation of ESG strategy, green IT implementation services, sustainable operations consulting, circularity consulting, ESG reporting services, and managed sustainability performance services.

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The research report finds that the COVID-19 pandemic propelled the environmental health and safety software market. The EHS software emerged to be a significant aid for organizations to effectively track, inspect, train, and monitor important safety needs of their employees.

The guidelines released by various governments encouraged employers to adopt digital solutions and gadgets to precisely track risk assessments and safety protocols enactment across the operations.

In several companies, the EHS software provided a centralized solution for the management teams to implement preventive measures against COVID-19 risks. The adoption of EHS solutions spurred since the pandemic and is witnessing sustained growth, as companies are taking proactive steps to improve workers' safety and sustainability.

Impact of Artificial Intelligence (AI) on the Environmental Health and Safety Software Market

AI is likely to play a significant role in the evolution of EHS software thereby, increasing growth prospects for players in the market. This technology has been making a buzz across different industries in the recent years, owing to its ability to quickly analyze vast data sets, and provide suggestions, predictions, and action. A large number of industries are adopting automation technologies for carrying out error-free and real-time operations,

AI-powered EHS solutions are expected to witness significant demand from the key end-user verticals. AI-driven EHS software can help companies control emissions, predict trends, and implement preventive measures to mitigate the risks. Major players in the market are onboarding this technology trend by developing and launching AI-based EHS solutions.

• In August 2022, Detect Technologies, a major industrial AI solution provider, announced a worldwide agreement with Vedanta, for the deployment of T-Pulse, an internationally deployed AI-based safety software for the workplace. This EHS partnership is in line with Vedanta’s commitment to GOAL ZERO. T-Pulse, since its deployment, has significantly raised the visibility of workplace risks, which led to the early identification of over 4,000 critical non-compliances related to HSE.

Environmental Health and Safety Software Market Dynamics

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Key Trends

Growing development and launch of EHS mobile applications are key trends in the market. The mobile EHS software is expected to provide employees and employers with improved flexibility and convenience.

These solutions are likely to enhance reporting safety incidents and reduce the time required for communications and decision-making. The mobile-based EHS is expected to increase instantly reporting of incidents from frontline workers thereby, improving productivity and safety, without additional investment in deploying other resources.

• In August 2022, Petrobras (Petróleo Brasileiro S.A.), a Brazil-based oil & gas firm, launched a safety app for effectively preventing workplace incidents. During the first week of its pilot launch, the app helped identify over 90 incidents, with the help of employees recording safety observations.

Major Drivers

Rising initiatives by various governments toward improving workplace safety and environmental measures is one of the major drivers of the market. EHS software supports companies to efficiently identify and mitigate risk factors at the workplace.

The US has several occupational safety policies in place to protect the workforce from any mishaps. Likewise, governments in different nations, have established watchdog organizations for strict implementation of safety and sustainability initiatives. International organizations such as the United Nations (UN), the World Health Organization (WHO), and others are encouraging various national governments to enforce sustainability and safety policies.

• Almost all employees are covered under the Occupational Safety and Health Administration (OSHA) Act in the US. The OSHA, the Department of Justice (DOJ), the Environmental Protection Agency (EPA), and other agencies ensure companies are effectively following workers' safety and environmental standards set by the government.

Increasing focus by organizations on effective data collection and management is another key driver of the market. The availability of new-generation environmental monitoring systems, sensors, and other inspection devices is enabling companies to collect and store data 24/7 in EHS software.

This gives a significant hold over the operations, enabling companies to predict risks and take steps to avert them in time. Such measures allow organizations to save future costs, which can occur in case of mishaps or mismanagement of corporate social responsibility.

Existing Restraints

High budget allocation required for the EHS software is likely to hinder the market. The cost required for the purchase and installation of software varies based on feature requirements, the country the software company operating in, and customization needs from clients.

The budgetary requirements can increase with time, as new risks get identified. As budgets are limited for small and medium enterprises, and for the ones operating in lower-to-middle-income countries, EHS software adoption can be partial thereby, restraining the market.

Emerging Opportunities

Increasing implementation of environmental preservation policies is expected to generate opportunities in the market. Lowering greenhouse gas (GHG) emissions such as carbon dioxide (CO2), from human activities, is a major objective for worldwide nations.

Thus, various governments are implementing environmental policies for industries to assess their emissions and enforces measures in place to curb them, wherever possible. Companies are taking the route of sustainability consulting services and technology adoption, to optimize the GHG emission levels.

Additionally, the growing adoption of Internet of Things (IoT) devices for EHS data tracking is expected to increase growth prospects for the key players in the market.

Scope of the Environmental Health and Safety Software Market Report

The global market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Environmental Health and Safety Software Market Segment Insights

Component Analysis

Based on component, the environmental health and safety software market is divided into software and services. The software segment is expected to expand at a significant growth rate during the projection period, due to the growing need for data management related to employee health, safety, and environmental measures.

Rise in digitization across industries is boosting the adoption of software solutions for basic to major functions in corporations. EHS software is likely to have a major impact on efficiently managing the safety and sustainability needs of an organization.

The services segment is anticipated to grow in the coming years, owing to rising efforts by organizations toward sustainability and workplace safety. The EHS services, such as incident management, compliance management, audit & inspection, and others, can be adopted to assess measures required for the implementation of EHS software.

Deployment Analysis

On the basis of deployment, the global market is bifurcated into on-premise and cloud-based.

The on-premise segment is projected to expand at a considerable CAGR during the forecast period, owing to the growing adoption of on-site safety and sustainability measures. The on-premise solutions provide companies with efficient control over data generated by various monitoring systems installed within operational areas. Concerns over data safety and connectivity are increasing the adoption of on-premise EHS solutions.

The cloud-based segment is expected to exhibit rapid growth during the forecast period, owing to the cost and flexibility benefits. Rising development of mobile EHS applications is furthering the demand for cloud-based EHS solutions. Cloud EHS is the cost-saving option for small & medium enterprises with budgetary limitations.

Application Analysis

On the basis of application, the environmental health and safety software market is segmented into industrial waste management, wastewater management, carbon management, pharmaceutical waste management, and others.

The carbon management segment is expected to register a robust growth rate during the forecast period, owing to the strict regulation by various governments worldwide on companies to track and optimize their GHG emissions. EHS software facilitates better hold over emission records, for companies to take data-driven actions to curb emissions.

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End-user Industry Analysis

Based on end-user industry, the market is divided into oil & gas, energy & utilities, chemicals & petrochemicals, food & beverages, healthcare & life sciences, mining & metals, construction & manufacturing, and others.

The energy & utilities segment is expected to expand at a significant growth rate during the projection period, owing to a growing focus on implementing workforce safety solutions. The companies operating in this sector face several risks related to workplace safety, environmental risks, and regulatory compliance. The EHS solutions allow collective hold over multiple factors, providing actionable insights on safety and sustainability needs.

The chemicals & petrochemicals segment is projected to expand at a rapid growth rate, owing to their rising production to meet the growing demand. The workplace and environmental safety requirements are significantly high in these sectors, owing to the consistent handling of hazardous materials and waste.

Companies operating in these sectors need to ensure the highest implementation of safety regulations and standards set by governmental organizations. The demand for various chemicals and petrochemicals is rising from different sectors, thus boosting their production and trade at a significant pace. These factors are likely to fuel the demand for EHS software from the chemicals & petrochemicals industry in the coming years.

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Regional Outlook

In terms of region, the global environmental health and safety software market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, owing to the rising adoption of digital solutions to manage workforce safety and environmental emissions.

The strict regulation set by the different governments is another major factor boosting the acceptance of EHS software by businesses in the region.

Digitization is increasing at a rapid pace across the US, with the growing availability of smart gadgets and software solutions. These smart industrial solutions are aiding industries in optimizing operations, eliminating errors, and improving overall productivity.

The significant presence of the EHS industry players in this region such as VelocityEHS, Dakota Software Corporation, and Intelex Technologies, which is expected to propel the regional market in the coming years.

The market in Asia Pacific is expected to witness rapid growth in the coming years, owing to rising industrialization and rapid adoption of digital solutions. Governments of the major economies, including India, China, Japan, and South Korea, are implementing sustainability measures such as environmental monitoring and sensing technologies to bring down carbon emissions.

Major corporations are working alongside government agencies to improve workplace safety, inclusion, and sustainable growth. The steady rise in the adoption of EHS solutions is expected to enhance employee security from workplace mishaps in this region.

• According to the report published in September 2023, carbon dioxide (CO2) emission is one of the major concerning factors for the various governments in Asia Pacific. In 2022, the region’s CO2 emissions reached 17.96 billion metric tons. 60% of emissions in this region were produced by China, which was 31% of the global total.

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