Photo via globalnerdy via Creative Commons
Carbon reporting is on the rise, and along with it is the rise of software to help with accounting. Grooms Energy Research predicts that over the next two years, we can expect to see a seven-fold increase in market size, and a five-fold increase in the number of companies in the market over the next year, making carbon reporting software one of the next big booms in clean tech. Business Green reports on Groom Energy Research's findings that "the number of companies offering carbon software solutions grew from 40 to 60 over the course of the year, with software giants Microsoft and Computer Associates amongst those to launch carbon reporting software applications for the first time."
The research from Groom Energy predicts that more and more firms will begin adopting carbon accounting software, so that while we'll see some consolidation among Enterprise Carbon Accounting firms, the overall market is going to boom.
Over $46 million was invested in start-ups in this sector during 2009, and the company states that because of an increased pressure on companies to have a greener public image, the money that can be saved by being energy efficient and sustainable, and mandates from buyers (such as the Walmart Sustainability Assessment program), ECA software purchases will increase 600% over the next year.
Pike Research also chimes in, reporting that the carbon management software and services market exceeded $380 million in 2009 and is expected to achieve a 40% compounded annual growth rate through 2017.
Groom Energy Research has been right in the past:
"In light of the economic climate, sales growth for ECA software shows the importance of this emerging category," said Paul Baier, report author and vice president of consulting services for Groom Energy. "From politicians like Al Gore and Condoleezza Rice getting involved with startups, to Microsoft, CA, and SAP, entering the market, our prediction that 2009 would be the year of enterprise carbon accounting came to fruition."
The global carbon market grew to an impressive $136 billion last year and with the carbon cap and trade system all the buzz right now, it's no wonder that companies are quickly looking for systems to help them perform carbon accounting.
More on Footprint Accounting
Silicon Valley to Copenhagen: It's OK to Fail, if You Do it Right
Accountants Already Getting Savvy on Water Footprint Reporting
HP Steps Up IT Industry Transparency, Releases Supply Chain Emissions Data