Carbon and Energy Software Spending to Hit $207M in 2011

Carbon and Energy Software Spending to Hit $207M in 2011

Industries such as oil and gas, telecommunications and utilities are poised to push spending on carbon and energy software to $207 million this year.

The market could top $558 million by 2014, according to U.K.-based research firm Verdantix. In a new report out this week, the company predicted the carbon and energy software market would grow by a compound annual growth rate of 51 percent between 2010 and 2014.

"In 2011 the U.S. market for carbon and energy management software will expand to meet the needs of early majority buyers," said Verdantix Analyst Peter Charville-Mort in a statement. "From 2012 we will see a second wave of more cautious buyers entering the market. They will build on the successes of sustainability visionaries like Becker Underwood and $10 billion revenue firms like Chevron and DuPont. Firms which recently appointed chief sustainability officers will lead the second wave of demand for carbon and energy software."

Seven sectors are leading the charge for energy and carbon software, Verdantix said, including oil and gas, telecommunications, utilities, technology, retail, banks, and industrial engineering. Verdantix predicts the carbon and energy software industry will see its largest growth spurt between 2011 and 2012 before experiencing a decline to growth levels that could still be considered quite high.

Overall, the increase in spending on carbon and energy software will benefit many of the major players, such as CA Technologies, Enviance and Hara. Verdantix expects there to be a consolidation in software vendors between 2011 and 2012 as underfunded companies head for bankruptcy and others get gobbled up by their competitors. Verdantix predicts the current field of 28 leading vendors to slim down to about 10 by 2012.

"Compound annual growth above 50 percent is good news for the market but by 2012 software firms without sufficient venture capital backing and those that failed to secure services partnerships will fall by the wayside," Verdantix Director David Metcalfe said in a statement.

Deloitte has partnered with the likes of CA Technologies, Hara, IHS, SAP and Tririga to help customers deploy carbon and energy software, a trend that will continue as deployments grow in scale and complexity. Other software vendors are partnering with consulting firms that can help customers take action with the information gathered, such as CH2M Hill and WSP Environment and Energy.

Other software firms are finding opportunities in outsourcing services, Verdantix said, pointing to the recent announcement that CA Technologies and Capgemini would partner for a managed sustainability service based on CA Technologies ecoSoftware platform.

Image courtesy of Enviance.

Want to move beyond spreadsheets to manage carbon data but are confused by the large number of vendors? Groom Energy and have teamed up for the 2011 Enterprise Energy and Carbon Accounting Buyers Guide to give you a clear understanding and analysis of this rapidly expanding market based on meetings, demos, and analysis with 32 software vendors.