NEW YORK--(BUSINESS WIRE)--In 2017, firms will spend $924m on software, content and services to ensure their products comply with environmental and safety regulations. The market will grow by 7% per annum to reach a value of $1.2bn in 2021. These are the findings of the third annual assessment of the global product stewardship solutions market by independent research firm Verdantix.
“Every firm, large or small, that manufactures, distributes or uses chemicals in their products must comply with an ever-changing mosaic of product safety regulations” commented Yaowen Ma, Verdantix Industry Analyst. “As consumer health and safety issues continue to garner political support and more regulations tackle substances of concern, the most successful vendors will grow by twenty per cent per year to 2021.”
The Verdantix report, “Product Stewardship: Global Market Size and Forecast 2017-2021”, is based on revenue data from thirty vendors and a global survey of 301 EH&S managers. Key findings of the report:
- GHS, the EU Biocidal Products Directive, the Food Safety Modernization Act, TSCA reform, and WHMIS in Canada will drive product stewardship spending
- North America accounts for 45%, Europe 37% and the rest of the world 19% of product stewardship corporate spend
- Product life cycle assessment (LCA) and circular economy concepts will result in $92m of non-compliance spend
- Software will receive $465m of product stewardship budgets in 2017, compared to $300m for services and $108m for content
- Top five vendors account for 38% of the market and the top 10 vendors 50%
- Customers should take note of product stewardship innovations from 3E Company, Anthesis, Dakota Software, Enablon, Enhesa, Gensuite, Pure Strategies, Sitehawk, thinkstep and UL
“Product compliance is a healthy market segment in the EHStech category” stated David Metcalfe, Verdantix CEO. “We expect the structure of the market to morph over time as there is increased convergence between product stewardship content-centric solutions and workflow-centric EH&S enterprise apps. Vendors like SAP, Sphera, UL and VelocityEHS already own both content and workflow assets. We expect to see more integrated chemicals management offerings in the future.”
For more information, apply for a place at the Verdantix webinar on April 6th “Product Stewardship – Market Forecast, Acquisitions And Convergence To 2021”.