Large U.S. firms’ spending on carbon and energy management software will grow to $558 million in 2014, more than four times the sector’s value in 2010, according to a report by analyst firm Verdantix.
The study, US Carbon And Energy Software Market 2010-14, projects that the market will experience a 51 percent compound annual growth rate between 2010 and 2014, from a base of $108 million.
The biggest rate of increase will be this year, with a 92 percent jump in spend; followed by a 54 percent increase in 2012, 35 percent in 2013 and 30 percent in 2014.
Growth will be fuelled by improved economic conditions, higher price points and a 19 percent growth in U.S. sustainable business spending, Verdantix said.
The forecast relates to spending by 1,833 firms with revenues above $1 billion each in the U.S. market.
The oil and gas, telecoms and utilities sectors will top the spending list in 2011, representing $32 million, $27 million and $19 million of software spend respectively (see chart).
“In 2011 the US market for carbon and energy management software will expand to meet the needs of early majority buyers,” Verdantix analyst Peter Charville-Mort said. “From 2012 we will see a second wave of more cautious buyers entering the market. They will build on the successes of sustainability visionaries like Becker Underwood and $10 billion revenue firms like Chevron and DuPont.
"Firms which recently appointed chief sustainability officers will lead the second wave of demand for carbon and energy software.”
In 2011, US energy and facilities managers will invest $97 million to fund carbon and energy software purchases, sustainability leaders will invest $87 million and EH&S directors $22 million, the report said.
Sustainability leaders will increase spending at a CAGR of 57 percent between 2010 and 2014, while EH&S directors will spend at an increased annual rate of 21 percent over the same period
“Systems integrators such as Capgemini and multi-disciplinary engineering firms like CH2M HILL will drive growth in spending on energy and carbon software over the next 3 years,” said Verdantix director David Metcalfe. “Compound annual growth above 50 percent is good news for the market, but by 2012 software firms without sufficient venture capital backing and those that failed to secure services partnerships will fall by the wayside.
"Energy and carbon software is following the same customer adoption trajectory as prior enterprise software markets such as CRM and ERP," Metcalfe added.
Last November Verdantix ranked CA Technologies, CarbonSystems, Enablon, Enviance, Hara, IHS, ProcessMAP, SAP, TRIRIGA and Verisae as the top ten leaders in the carbon and energy software market, and the most likely to benefit from increased spending on sustainable business software in 2011.
Earlier this month, efficiency system provider Groom Energy Solutions predicted that the enterprise energy and cabon accounting (EECA) software market would grow 300 percent this year, on top of 400 percent growth last year.
