Carbon Accounting Software Market

According to Stratistics MRC, the Global Carbon Accounting Software Market is accounted for $23.31 billion in 2025 and is expected to reach $116.90 billion by 2032 growing at a CAGR of 25.9% during the forecast period. Carbon Accounting Software is a digital tool that helps organizations measure, track, and manage their greenhouse gas (GHG) emissions across operations. It automates data collection from various sources, calculates carbon footprints, and generates reports aligned with global standards like the GHG Protocol. This software supports regulatory compliance, sustainability reporting, and strategic planning by offering insights into emission hotspots and enabling carbon reduction initiatives for improved environmental performance and accountability.

According to industry experts, there has been a 70% rise in global green washing incidents by financial services and bank firms over the previous 12 months compared to the previous year.

Market Dynamics:

Driver: 

Rising regulatory pressure

Regulations such as carbon taxes, mandatory emissions disclosures, and climate-related financial reporting frameworks like the EU CSRD, SEC climate rules, and the GHG Protocol require organizations to accurately track and report their carbon emissions. Failure to comply can result in penalties and reputational damage, prompting businesses to adopt carbon accounting software for compliance and risk mitigation. This growing regulatory landscape is pushing companies across industries to invest in robust digital solutions for transparent, real-time emissions monitoring and reporting.

Restraint:

High initial cost

Deploying these solutions often involves considerable expenses for software licensing, system customization, integration with existing technologies, and staff training. For small and mid-sized businesses, such financial demands can be difficult to manage, especially when ESG expertise and resources are limited. The complexity and long-term investment required may also discourage companies from embracing these tools. Although cloud-based models provide more flexible pricing, the initial financial commitment continues to hinder broader adoption, particularly in industries with narrow profit margins or limited digital infrastructure.

Opportunity:

Increased adoption in SMEs

Growing environmental consciousness is motivating smaller companies to track and manage their emissions more effectively. The emergence of cost-effective, cloud-based platforms has lowered entry barriers, offering flexible and user-friendly solutions without the need for extensive infrastructure. Moreover, increasing expectations from clients, investors, and supply chain collaborators around ESG compliance are pushing SMEs toward more transparent sustainability reporting. With global regulations becoming stricter, small businesses are beginning to see carbon accounting not just as a compliance tool, but as a strategic asset for staying competitive and future-ready.

Threat:

Data privacy concerns

Accessing confidential operational, financial, and supply chain information is often essential for carbon accounting platforms, which raises concerns about data security, potential breaches, and unauthorized use. Companies may hesitate to adopt cloud-based solutions due to uncertainty around data storage locations, third-party access, and compliance with regional privacy laws such as GDPR. The lack of standardized security protocols across vendors further complicates trust and adoption. Especially for industries handling proprietary or regulated data, ensuring confidentiality and integrity becomes critical, making robust cybersecurity measures and transparent data governance essential for market growth.

Covid-19 Impact: 

The COVID-19 pandemic brought both challenges and opportunities to the carbon accounting software market. Early on, adoption slowed as businesses faced financial strain and shifted focus to immediate operational concerns. However, the crisis also sparked greater awareness of environmental issues and the importance of sustainability. As remote work and digitalization became widespread, the need for cloud-based carbon tracking tools grew. In the post-pandemic landscape, companies increasingly embraced ESG reporting, driving demand for reliable carbon accounting solutions as part of their long-term climate and resilience strategies.

The software segment is expected to be the largest during the forecast period

The software segment is expected to account for the largest market share during the forecast period, fuelled by stricter environmental regulations, heightened sustainability commitments, and the demand for accurate, real-time emissions tracking. With governments introducing carbon taxes and emission trading systems, companies are turning to digital tools to stay compliant. As businesses strive to enhance ESG outcomes and lower their carbon footprint, interest in reliable carbon accounting solutions is steadily increasing across sectors.

The cloud-based segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the cloud-based segment is predicted to witness the highest growth rate, due to its flexibility, cost-effectiveness, and easy accessibility. It removes the need for expensive hardware and complex installations, enabling quicker and more efficient adoption, particularly among small and medium-sized businesses. With automatic updates and vendor-managed support, it reduces the IT burden while ensuring alignment with changing emission standards. Additionally, it allows real-time data access across locations, enhancing collaboration among remote and distributed teams.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share, due to expanding industrial activities in countries like China, India, and Japan are leading to higher emissions, pushing organizations to better track and manage their carbon output. Stricter environmental regulations, the introduction of carbon pricing, and rising ESG disclosure requirements are encouraging compliance. Additionally, increased awareness of Scope 3 emissions and growing sustainability goals are boosting demand for flexible, cloud-based carbon tracking tools.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, due to strict environmental laws in the U.S. and Canada, such as mandatory emissions disclosures and carbon pricing policies. Increased demand for ESG transparency from investors is encouraging businesses to adopt advanced emissions tracking tools. Strong sustainability commitments across industries like energy and technology, along with well-established digital infrastructure, support the widespread use of AI-driven carbon accounting solutions.

Key players in the market

Some of the key players in Carbon Accounting Software Market include Persefoni AI Inc., Locus Technologies, Net0, SIERRA ODC Pvt. Ltd., Sphera Solutions Inc., BraveGen, Benchmark Digital Partners LLC, Simble Solutions Ltd., Brightest Inc., Wolters Kluwer NV, Carbon Analytics Ltd., Lisam Systems SA, GreenStep Solutions Inc., ENGIE SA, ESG Enterprise, Sage Group Plc, Intelex Technologies ULC, SAP SE, ProcessMAP Corp., and 3E Net Zero Group Pty Ltd.

Key Developments:

In July 2025, Locus Technologies announced the launch of its Backflow Prevention App, a fully integrated application within the Locus Water Suite. This new application empowers backflow inspectors and water utilities to respond efficiently to growing inspection volumes, increased regulatory scrutiny, and ongoing staffing constraints within a modern alternative to legacy spreadsheets and siloed data.  

In July 2025, Benchmark Gensuite announced the launch of its Sustainability and Climate Risk Management Solution, a powerful, integrated offering designed to help enterprises identify, quantify, and mitigate climate-related risks across global operations and supply chains. This advanced offering enables organizations to assess physical and transition risks using over 18 climate risk layers and more than 3 million mapped assets.

In January 2024, Sphera announces that it has acquired SupplyShift, a supply chain sustainability software company that empowers businesses to build transparent, responsible and resilient supply chains. The solution provides supply chain transparency and supplier mapping at any tier as well as data analytics, supplier scoring and traceability. SupplyShift has customers and business partners around the world.

Components Covered:
• Software
• Services

Deployment Modes Covered:
• Cloud-Based
• On-Premises
• Hybrid

Organization Sizes Covered:
• Large Enterprises
• Small & Medium Enterprises (SMEs)

Functionalities Covered:
• Emission Tracking
• Reporting & Disclosure
• Forecasting & Scenario Analysis
• Offset Management

Applications Covered:
• Manufacturing
• Energy & Utilities
• Transportation & Logistics
• Construction
• Information Technology
• Government & Public Sector
• Retail & E-commerce
• Agriculture & Forestry
• Healthcare
• Other Applications

End Users Covered:
• Corporates
• Consulting Firm
• Government Agencies
• Non-Profit & Environmental Organizations
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances