Verdantix Says The Global Environment, Health & Safety Software Market Will Hit $2 Billion In 2024
New York, February 5, 2019. The global market for environment, health and safety (EHS) software will grow from $1.2bn in 2019 to $2bn in 2024 according to a new report from independent research firm Verdantix. The compound annual growth rate of 9.2% is good news for financial investors who have funded EHS software vendors like Cority, ETQ, Intelex, Quentic, SAI Global, SHE Software, Sphera and VelocityEHS.
“Our global survey of 411 EHS decision-makers uncovered significant appetite to invest in EHS software in 2019 and beyond” stated Isabel Velasco, Verdantix Industry Analyst. “Through a maturing buying community, PE investment and new compliance drivers in China, the EHS market has a lot of upside. Globally this market is only 35% penetrated. There is at least a $5 billion total addressable market opportunity.”
The Verdantix report, “EHS Software Market Size And Forecast 2019-2024” is based on an analysis of revenues of 300 vendors and provides a break-down of spend across 25 industries and 11 geographic regions. Key findings of the report:
Tighter EHS regulations in Asia and expansion of EHS software value propositions into process safety and operational risk will boost the growth rate above 10% from 2023 onwards.
From 2019 to 2021, price competition and the final phase of the switch from upfront licence fees to subscription contracts will keep growth below 10%.
In 2024 the North American market will be worth $1bn and European firms will spend $474m.
China and South East Asia will have the highest CAGR of 12% from 2019 to 2024 assuming GDP growth of at least 5% and continued enforcement of new EHS regulations.
Food and beverage has the highest CAGR at 11.5%, followed by pharmaceuticals at 10.9%; ports and airports at 10.8%; and maritime at 10.6%.
“Since 2015 investors have pumped $1bn into EHS software vendors” continued Velasco. “The four year holding period is coming to an end so we anticipate 2019 and 2020 will see a round of buy outs by bigger funds. That could finally trigger supply-side consolidation, higher prices and more rapid growth for the surviving vendors.”
To learn more apply to attend the Verdantix webinar “Maximizing Growth In The EHS Software Market” on 21 March 2019.