Carbon Management Market to Grow 700% in 7 Years
The global market for carbon management grew 84 percent from 2009 to 2010, and will grow at a rapid compound annual growth rate (CAGR) of almost 35 percent through 2017, according to a report by cleantech analysts Pike Research.
That means that the market is now set to expand by over 700 percent from 2010 to 2017, to $5.7 billion.
The $5.7 billion figure is a 30 percent upgrade to Pike’s previous forecast, from Q1 2010, which projected a $4.4 billion industry by 2017. In the most recent report, “Carbon Management Software and Services”, Pike forecasts that the market will reach $1.3 billion in 2011, from $705 million last year.
The strongest forces driving this growth will be the need for energy efficiency, regulatory compliance requirements, supply chain mandates, and an ability to maintain or enhance brand equity to respond to pressures from shareholders and consumers, Pike says.
It notes that the carbon management market has evolved to take a much broader focus on energy management, and in many cases, on corporate sustainability. This is particularly true in North America, Pike says.
As the young market matures, revenue from carbon management services will increasingly outweigh that from software purchases. Services will grow from 55 percent of the total market in 2010 to 67 percent by 2017, Pike predicts. And while most services revenue today comes from consulting and implementation, Pike projects that spending on outsourcing services will begin to equal or exceed these sectors by 2016.
“Growth in the carbon management market is occurring amidst a turbulent industry landscape in which software vendors and service providers are vigorously jockeying for competitive position,” senior analyst Marianne Hedin says.
“Pure-play carbon management companies are redefining themselves as ‘energy management’ providers, and meanwhile large consulting firms and IT services companies, as well as energy service companies and building controls vendors, are expanding their offerings in the space,” Hedin adds.
Stay Up-to-Date On Environmental Management, Energy & Sustainability News with EL's Free Daily Newsletter
Energy Manager News
- A Clean Energy Future in Sight
- Bridgewater, MA, Gets $231,000 Efficiency Grant
- Biomass Group Studies Role in Clean Power Plan
- Rockleigh Borough Installing LEDs, Low Energy AC
- PHG to Build Big Gasification Plant for Sevier Solid Waste
- Energy Profile of Commercial Buildings Changing
- Smart Meter Market Surging
- Modular Data Centers Cut Construction Costs