Verdantix Forecasts The Global EHS Software Market Will Reach $1.7 Billion By 2022, Despite A Slow Down In Short-Term Growth
New York – December 1, 2017. The worldwide market for environment, health and safety (EHS) software will grow from $1.1 billion in 2017 to $1.7 billion in 2022. This is according to a new market size and forecast model from independent research firm Verdantix which includes revenue data from more than 235 software vendors. The forecast is based on interviews with 382 EHS directors in 31 countries around the world and takes into account spending on EHS software by firms with revenues of more than $250 million.
“Our granular market forecast finds that intense competition over the next two years as well as a migration to cloud subscription contracts will reduce growth in spending to mid-single digits” commented Verdantix Industry Analyst, Trevor Bronson. “Only when the larger vendors have traversed the cloud deployment revenue dip will market growth return to double figures. Vendors who have cracked cloud economics will grow at more than twenty per cent per annum throughout the forecast period.”
Key findings of the Verdantix report, “EHS Software Market Size & Forecast 2017-2022”, include:
- 2017 spending in North America will be $572 million (52% of the market) and in Europe spending will be $279 million (26%)
- Very high risk industries comprising oil and gas, chemicals and mining will spend $504 million (46% of total) in 2017
- Spending will increase at a 9.3% CAGR due to a positive economic backdrop, better products and prioritization of technology spend by EHS directors
- Growth in 2018 and 2019 will be limited to 6% and 7% due to competitive price pressure and the switch from upfront license fees to cloud subscription fees
- Double-digit growth from 2020 onwards will result in a 9.3% CAGR and total spend of $1.7 billion in 2022
- Spend by developing economies will grow from $152 million in 2017 to $257 million in 2022 at a 11.1% CAGR
“Private equity and corporate investment in the EHS software market has exceeded $1 billion in the last two years” commented Verdantix CEO, David Metcalfe. “Whilst that will grow the market in the medium-term, it is depressing growth in the short-term. Not all vendors will be able to survive the new market dynamics.”
To learn more about the EHS software market opportunity register to attend the complimentary Verdantix webinar ‘The Future Of The EHS Software Market: Forecast And Key Trends 2018-2022’ taking place on December 14th.
Paige A. Rigas
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