LONDON--(BUSINESS WIRE)--The US market for EHS services will grow from $15.7 billion in 2020 to $20.7 billion in 2024 according to a new study from independent research firm Verdantix. The forecasted compound annual growth rate of 5.6% will be driven by increasing public focus on climate change, investor interest in ESG ratings, and growing vendor investment in digital technologies.
“Climate change and sustainability have become a major focus not just for Wall Street, but also for EHS decision-makers,” commented Verdantix Senior Analyst Bill Pennington. “State environmental legislation, increasing public concerns about climate change and investors growing attention to environmental, social and governance (ESG) performance criteria, means that we’re seeing firms exploring EHS service vendors to help them develop sustainability strategies, implement innovative projects and digitize their operations by deploying emerging technologies.”
The Verdantix report, EHS Services: Market Size And Forecast 2020-2025 (US), provides technology executives with the information they need to assess the expanding market opportunities. Revenue projections find that site remediation and redevelopment will account for 24% of total EHS service spend during 2020, at $2.8 billion. Impact assessments will comprise 12% of total spend, at $1.9 billion, and natural resource management (10%) at $1.6 billion. Industries subject to very high EHS risks, such as oil and gas, will account for 33%, or $5.2 billion, of total spend during 2020, while industries subject to high EHS risks will account for 29% of total spend. The market will be driven by the top 10 EHS services vendors—including AECOM, Jacobs, Stantec, Wood, and WSP—who will claim 40% of the market share, or $6 billion in revenue. Between 2020 and 2025, total market growth per year will vary between 3.8% and 11%.
“Our analysis indicates that services vendors need to adopt a new wealth of knowledge in and delivery of digital technologies in order to enhance their offerings and increase service value,” continued Pennington. “These initiatives include utilizing drones for GIS mapping and inspections and digitizing internal operations to streamline project management. We’re also seeing a more consolidated EHS services market, as mergers and acquisitions continue to shape the landscape and firms look to improve their efficiencies and business value.”
Read the report here.