Spending on carbon energy management software by large firms in the US is expected to grow from $108million in 2010 to $558 million in 2014.
According to a new report from analyst firm Verdantix, during that period of time the market will experience a 51 percent compound annual growth rate(CAGR) due to improved economic conditions, 19 percent growth in sustainable business spending, systems integrator partnerships and higher price points.
“In 2011 the US market for carbon and energy management software will expand to meet the needs of early majority buyers” said Verdantix Analyst Peter Charville-Mort.
“From 2012 we will see a second wave of more cautious buyers entering the market. They will build on the successes of sustainability visionaries like Becker Underwood and $10 billion revenue firms like Chevron and DuPont.”
“Firms which recently appointed Chief Sustainability Officers will lead the second wave of demand for carbon and energy software.”
It is also noted in Verdantix's report that oil and gas, telecoms and utilities sectors top the spending list in 2011 with $32 million, $27 million and $19 million of software spend respectively.
Furthermore it is expected that US energy and facilities managers will invest $97 million to fund carbon and energy software purchases in 2011, while sustainability leaders will find $87 million and EH&S directors $22 million.
According to the report sustainability leaders will increase spending at a CAGR of 57 percent between 2010 and 2014 whereas EH&S directors will spend at an increased annual rate of 21 percent over the same period.
“Systems integrators such as Capgemini and multi-disciplinary engineering firms like CH2M HILL will drive growth in spending on energy and carbon software over the next 3 years” said David Metcalfe, Verdantix Director.
“Compound annual growth above 50% is good news for the market but by 2012 software firms without sufficient venture capital backing and those that failed to secure services partnerships will fall by the wayside. Energy and carbon software is following the same customer adoption trajectory as prior enterprise software markets such as CRM and ERP.”