LONDON--(BUSINESS WIRE)--The EHS software market will reach $2.5 billion in 2026 according to a new study from independent research firm Verdantix. The forecasted compound annual growth rate of 11.5% will be driven by the increasing digitization of EHS processes and the expansion of EHS software capabilities to include environmental, social and governance (ESG), sustainability risk management, and operational risk management (ORM), via acquisitions and private equity investment. Vendors positioned to benefit from this growth include EHS software firms such as Benchmark Digital, CGE Risk, ComplianceQuest, Enablon, Ideagen, IsoMetrix, Quentic, and Sphera.
“The past year has seen significant disruption resulting from COVID-19, which has served as a driver for accelerated technology adoption among EHS professionals,” commented Verdantix Analyst, Chris Sayers. “The accelerated digitization of EHS processes and the increasing long-term focus on operationalizing ESG and sustainability risk management will shape the EHS software market in the next five years.”
The Verdantix report, Market Size And Forecast: EHS Software 2020-2026 (Global), provides executives at EHS software vendors, EHS service providers active in EHS information management, and investors in the EHS software market with an understanding of the current state and size of the market, as well as the trends and drivers that will shape the market into 2026. North America and Europe will continue to be the main regional players in the market contributing $1.26 billion and $645 million in software spend, respectively. Industries that pose very high EHS risks – oil and gas, chemical manufacturing, and mining and metals – will remain the largest spenders on EHS software in 2026, accounting for 47% of the global market, at $1.18 billion. Medium risk industries - logistics, public transit and telecoms - will generate $0.71 billion in EHS software spend during 2026, and low risk industries - retail and entertainment venues – will see $133 million of spend in 2026.
“The five-year CAGR of 11.5% reflects the increasing demand for data management and analytical tools facilitated by EHS software,” continued Sayers. “The Internet of Things (IoT) sensors and connected worker solutions remain high up the agenda, and we expect to see continued adoption of digital solutions as firms look to strengthen their operational and ESG risk and performance management capabilities,” commented Yaowen Ma, Verdantix Principal Analyst.