According to a market research report prepared by Verdantix, the global market for Environmental, Health & Safety Software is expected to grow from $1.35 billion in 2020 to $2.2 billion in 2025. Verdantix forecasts that the 10% compound annual growth rate (CAGR) over the next five years will be driven by private equity and consumer demand for innovation. North America will contribute over half (51%) of overall global spend on EHS software at $691 million in 2020.
The report states that there are twelve vendors that lead the EHS software market as follows: Enablon, Intelex, Cority, Velocity EHS, Sphera, UL, Gensuite, SAI Global, ETQ, Enviance, IsoMetrix and Quentic. Verdantix assessed the capabilities of the 23 most prominent vendors in the market on their ability to meet customer demands to manage risks and improve business performance across EHS impact areas.
“Industry-leading firms are looking to the EHS function to guide digital transformation within their operations, and this benchmark illustrates how digital solutions in the market differ in terms of capabilities and momentum,” commented Yaowen Jean Ma, Senior Analyst, Verdantix. “As a result, we are seeing a surge in mergers, acquisitions and investments in the EHS software market, as vendors look to create advantage in this market, which is set to be worth $1.9bn in 2024.”
The Verdantix 2019 Green Quadrant EHS Software is the only independent benchmark of EHS software vendors available. The study findings are based on a 383-point questionnaire, live product demonstrations and a survey of 411 customers.
Leading vendors are demonstrating various competitive advantages within specific modular categories, such as, ETQ for quality and document management, Enviance for air emissions management, IsoMetrix and SAI Global for contractor safety management, Sphera and VelocityEHS for chemicals compliance management, and UL for GHG emissions and sustainability management.
The need to align Operational Risk and EHS functions is a key success factor for new entrants from an Operational Risk management software background, such as INX Software, TenForce and VisiumKMS.
“The EHS software market is entering a new phase of growth where cloud-hosted deployment, configurability and vendors offering mobile applications are becoming the new normal,” added Yaowen. “Vendors will face increasing pressure to rapidly expand market share and strengthen profitability, which will lead to an increase in vendors investment in technology integrations that expand their capabilities beyond their core competencies.”
Verdantix Senior Analyst Bill Pennington provided insight on the drivers for the growth in EHS software sales: “With EHS functions increasingly focusing on innovation, such as the continued shift from on-premise to SaaS deployment and an increased presence of dedicated IoT safety platforms, this is driving the appetite for spending on EHS technologies.”
