The EHS Digital Service Market Set To Skyrocket To $ 3.7 Billion Following Executive Push To Strengthen EHS Technology Infrastructure

The EHS Digital Service Market Set To Skyrocket To $ 3.7 Billion Following Executive Push To Strengthen EHS Technology Infrastructure

The EHS digital service market has traversed a period of lean spending throughout the COVID induced recession, that saw revenues reach $2.4 billion in 2020. It appears though, that the market has made it out of the other side, with the Verdantix Market Size And Forecast showing a spend increase to over $2.7 billion at the close of 2021. Although budgets are still tempered by the lingering economic ramifications of global lockdowns, the pandemic has driven firms to increase spending in order to accelerate digital strategies. This digitization push is seen as a necessity by C-level executives to build business resilience, promote efficiency and support a more hybrid working style. Over the next five years, digital EHS services providers will prove vital partners to corporates undergoing technology evolution, facilitating implementation, integration and analytical services in addition to providing industry expertise and customer support. As a result, the EHS digital services market will grow at a CAGR of 8%, reaching $3.7 billion in revenues by 2026.

To build our market size and forecast model, Verdantix analysed numerous factors including aggregate vendor revenues, macroeconomic factors of the pandemic in addition to industry insights derived from Green Quadrant interviews from top consultancies and our Global Services Survey of 301 EHS decision-makers. We also factored in market drivers, such as the increasing EHS digitization efforts within medium risk industry buyer groups and the rising appetite environmental technology amidst tightening scrutiny of ESG metrics. Amongst the digital services lines of EHS consultancies, software implementation has the highest corporate spend, with $1.9 billion in revenues accrued in the market throughout 2021. Implementation projects typically build complex EHS software infrastructures at an enterprise level, with many services firms having longstanding partnerships with leading EHS software vendors such as Cority, Enablon, Intelex and Sphera. Whilst software projects will remain as the highest areas of spend, corporate appetite to develop diverse connected IoT ecosystems will see EHS technology implementations and technology integrations grow at the highest CAGR of 11% and 9%, respectively.

The next five years will see a growth in digital EHS services spend across multiple industries and geographies. Although the industry spend is still dominated by the very high-risk industries, such as oil and gas, mining and metals, and chemicals, who are typically early adopters of EHS technology, the highest growth will be seen in high and medium risk industries which are typically at the embryonic stages of their digital maturity. A similar trend is seen in geographical distribution; with emerging EHS markets, such as APAC, LATAM and the Middle East offering enticing green space opportunities for services firms to grow into.

To understand more about the dynamics of digital EHS services market, please access the Verdantix report Market Size and Forecast: Digital EHS Services (2021-2026), or register for the accompanying webinar.