(Credit: Pixabay)Driven by automation and cloud technology and widely used by the energy and other sustainability sectors, the environment, health, and safety (EHS) market is expected to grow to more than $9 billion over the next five years.
The worldwide EHS market is projected to increase by a CAGR of 7% through 2027, according to a report from Research and Markets. The services segment providing support for EHS software is expected to account for the greatest growth as the market increases from $6.7 billion this year to $9.4 billion in 2027.
The renewable energy, natural gas, water, waste, and recycling sectors will especially help drive the market over the forecast period. EHS systems will help businesses in those industries with reporting emissions from the air, water, or in the form of waste, the report says.
Additionally, various risks related to electricity production, both directly from generation and indirectly from obtaining fuels, have increased the demand for EHS platforms in the energy and utility sector, according to Research and Markets.
The increase in the use of software-as-a-service (SaaS) platforms is also encouraging an increase in the market. Automation is making it easier for companies to collect data and make reports across a variety of situations and potential risks.
Automated systems using technology such as SaaS are becoming key in many industries’ sustainability transitions. Water management company Aqualia recently began using Cority’s EHS platform to help increase its risk assessments and integrate data into its ESG goals.
Many EHS executives also see their efforts relating directly to their ESG targets. A 2021 survey from research firm Verdantix found that 57% of EHS executives believe they would drive ESG efforts in their operations. Other acquisitions, such as Blackstone’s $1.4 billion deal for Sphera in 2021, have also highlighted the increasing appeal for a combination of EHS and ESG capabilities.
Cloud-based systems are also an increasing option for EHS platforms, according to Research and Markets. That is due to the low cost of implementation and not needing on-site space for the platforms to operate.
Increased governmental regulations and environmental standards are also helping to encourage EHS market growth, according to the report. Increasing risk visibility and transparency in operations is another driving factor for many businesses.
Asia-Pacific will see the highest annual growth of any region during the forecast period, the report finds. Key players in the market include Alcumus, Compliancequest, Cority, Dakota Software, EcoOnline, Enablon, Enhesa, ETQ, Gensuite, Ideagen, Intelex, Isometrix, Pro-Sapien, Processmap, Prontoforms, Quentic, Safetyculture, Safetysite, SAI Global, SAP, She Software, Sheqx, Sphera, UL, VelocityEHS, Verisk 3E, Visiumkms.
