ESG Reporting Software Market to Surpass $2 Billion by 2030, Growing at 17.5% CAGR

NEW YORK - Jan. 31, 2025 - PRLog -- he global ESG reporting software market is experiencing significant growth, with revenues valued at $798.1 million in 2024 and projected to reach $2,098.9 million by 2030, reflecting a compound annual growth rate (CAGR) of 17.5%. This surge is driven by increasing industrialization and urbanization, a rising number of startups seeking investment, and a growing emphasis on corporate responsibility and sustainability.

ESG reporting software enables businesses to measure and report on environmental, social, and governance performance, a practice that has become essential as investors prioritize sustainable investments. Additionally, evolving regulations, such as the European Union's mandate for stock exchange-listed companies to disclose ESG data starting in 2023, are compelling organizations to adopt comprehensive ESG reporting solutions.

Key Insights

Component Segmentation

The solutions segment dominated the market, accounting for approximately 70% of the revenue in 2022. This trend is expected to continue, driven by the increasing need for efficient ESG reporting across various industries.

Deployment Models

On-premises solutions held a larger market share in 2022, attributed to concerns over data security and compliance. However, cloud-based solutions are anticipated to experience higher growth rates due to their scalability, cost-effectiveness, and ease of deployment.

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Organizational Adoption

Large enterprises currently lead in ESG reporting software adoption, driven by complex regulatory requirements and the need for detailed sustainability disclosures. Small and medium-sized enterprises (SMEs) are expected to exhibit faster growth in adoption rates, recognizing the competitive advantages and investment opportunities associated with robust ESG practices.

Regional Insights

North America accounted for around 40% of the market revenue in 2022, benefiting from the presence of major industry players and a high adoption rate of advanced technologies. The Asia-Pacific region is expected to experience the fastest growth, driven by rapid digitalization, urbanization, and increasing investments in sustainable business practices.

Competitive Landscape

The market is fragmented, with key players including Wolters Kluwer N.V., Nasdaq Inc., PricewaterhouseCoopers LLP, Workiva Inc., Refinitiv Limited, Diligent Corporation, Sphera Solutions Inc., Cority Software Inc., and Intelex Technologies Inc. These companies are focusing on product innovation and strategic partnerships to enhance their market presence.

Emerging Opportunities

The increasing volume of corporate data and the need for efficient data management solutions present significant opportunities for ESG reporting software providers. Additionally, the growing emphasis on sustainability across various industries is expected to drive further demand for these solutions.