Increasing Number of Startups is Powering the ESG Reporting Software Market

The ESG reporting software market will touch a total value of USD 2,098.9 million by 2030, powering at a compound annual growth rate of 13.6% by the end of this decade. This has a lot to do with the growing industrialization together with urbanization; the rising count of startups needing funding or investment; the growing need of more than a few companies to achieve higher accountability and sustainability; and the mounting trend to turn out to be green companies.

Digitalization is rising quickly due to its advantages, as well as effective resource planning, which has upsurged the acceptance of digital techs in businesses. They require to store their data in a secure and cost-effective manner, and to improve general efficiency.

For attaining efficiency, cloud-based data management solutions offer a viable choice, as it is easy to use cloud-based data through the firms and needs minimum IT infra support. Consequently, the high generation of corporate data is the major factor contributing to the growth of the industry.

The BFSI category will grow the highest rate in the years to come, forward-moving at a rate of more than 13%. Countries and companies are facing sustainability problems, as well as social eruptions, climate change, corporate governance, and health crises. Also, the acceptance of these software in the industry is because of the growing emphasis of businesses on operational and process competences, risk and compliance, and innovation of the product.

North America led the ESG reporting software market, with a share of about 40%, in 2022, and it will continue like this in the years to come as well. This is as a result of the existence of major industry titans, well-established IT corporations, and a high acceptance rate of advanced tech in the region.

Moreover, the sophisticated healthcare infra, the increase in shifting of the emphasis of BFSI companies from CSR to ESG, and government-supporting guidelines for public corporations are powering the regional industry.

APAC will grow the fastest in the future. This can be as a result of the fast digitalization related to urbanization; surge in income; high development in the IT, telecom, retail, manufacturing, and consumer goods industries; and tech progressions.

Moreover, the mounting funding and investment actions by industry goliaths to setting their production facilities, on account of more than a few benefits; and the growing need to uphold transparency with regards to financials of corporations are some other reasons accountable for the industry growth.

Growing count of startups are responsible for the increasing demand for ESG reporting software. This trend will also continue in the years to come.

SOURCE: P&S Intelligence