New Delhi, Feb. 6, 2025 (GLOBE NEWSWIRE) — A recent study by Astute Analytica highlights the impressive growth of the global environment health and safety (EHS) market. Valued at $7.3 billion in 2023, it is expected to soar to $15.9 billion by 2032, with a compound annual growth rate (CAGR) of 9.1% during 2024 to 2032.
The EHS market has shown strong demand in face of recent economic challenges. Companies continue to thrive as government spending, especially from initiatives like the Inflation Reduction Act in the U.S., fuels growth in energy and sustainability.
In March, the U.S. Department of Energy revealed plans to invest up to $6 billion in 33 projects aimed at decarbonizing energy-heavy industries. This move not only helps reduce environmental risks but also boosts the competitiveness of U.S. manufacturing.
As infrastructure and manufacturing investments grow, many businesses are placing greater importance on regulatory compliance and sustainability. In regions such as the U.S., Canada, the U.K., and Australia, strict regulations govern wastewater treatment and industrial waste management.
For instance, Canada’s National Pollutant Release Inventory (NPRI) requires detailed reporting, while the U.S. has the Toxics Release Inventory (TRI), and Australia follows with its National Pollutant Inventory (NPI). These regulations drive companies to adopt EHS solutions that minimize their environmental impact.
Germany is also significant in the EHS landscape, with its essential industries like chemical and automotive manufacturing. The country’s push for clean energy investments, alongside a renewed focus on oil and gas, presents more opportunities for EHS firms.
These changes not only create potential for revenue growth but may also lead to strategic mergers and acquisitions as companies strive to enhance their market capabilities. The ongoing demands for compliance and sustainability will shape the future of the EHS sector.
Digital Transformation Boosting Growth
The EHS market is in the midst of a digital transformation. Increasing adoption of cloud-based software, mobile apps, and smart sensors is changing traditional practices. In 2023, over 60% of the market revenue came from cloud-based solutions, a trend expected to continue with a projected CAGR of 9.3% through 2032.
A report by Verdantix in 2023 noted that 72% of EHS decision-makers plan to boost spending on EHS software in the next two years. This shows a clear shift toward digital tools aimed at improving efficiency, decision-making, and risk management.
Modern EHS software platforms centralize data collection and allow for real-time insights. Companies can easily track incidents, manage inspections, and automate compliance reporting. Mobile applications empower workers on-site to report hazards and access safety information right from their locations.
Additionally, wearables and Internet of Things (IoT) sensors are enhancing workplace safety by constantly monitoring risks like noise and chemical exposure. Companies like Caterpillar and Shell are leading the way with smart helmets and sensors designed to minimize workplace accidents and health hazards.
Importance of Environmental Management
In 2023, environmental management emerged as a crucial sector, contributing to 44.1% of the EHS market revenue. More businesses are prioritizing sustainability as concerns about climate change grow. This change is not just a passing trend; it marks a shift in how companies engage with their environments.
As regulatory pressures mount and public awareness increases, companies must adopt effective EHS solutions to manage their environmental footprints. Stricter environmental policies worldwide force organizations to adapt quickly.
Moreover, investors and stakeholders are now placing higher value on sustainability. Companies showing a commitment to environmental health are more likely to attract support and funding, reshaping investment strategies in various sectors.
Key Players in the Market
- AECOM Corp
- CH2M HILL, Inc.
- Cority Software Inc.
- Dakota Software Inc.
- DNV GL
- Enablon Corp.
- ENVIANCE
- ETQ, LLC
- Gensuite LLC
- Golder Associates
- HIS
- Intelex Technologies Inc.
- Isometrix
- ProcessMAP
- Quentic GmbH
- SAI Global Pty Limited
- SAP SE
- SGS SA
- Sphera
- Tetra Tech, Inc.
- UL LLC
- Velocity EHS Holdings Inc.
- Other Prominent Players
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