Global ESG reporting software Market Size (2025-2030)
As per our research report, the ESG reporting software Market size is estimated to be growing at a CAGR of 13.86% from 2025 to 2030.
Environmental, social, and governance (ESG) metrics tracking and public disclosure have become crucial practices for businesses looking to show their dedication to sustainable operations and long-term value creation for all stakeholders. But gathering, evaluating, and disseminating reliable, consistent ESG data from various systems across international operations is a complex task. As a result, there is a growing need for specialized ESG reporting software solutions that provide a single platform for automating and streamlining sustainability performance management. The tools that allow businesses to systematically assess, track, manage, and report on their governance practices, social impact, environmental footprint, and other non-financial drivers of company value are referred to as the global ESG reporting software market.
The regulatory push by governments across the world to require sustainability disclosures from large firms is one of the main factors driving the market for ESG reporting software to develop at a rapid rate. In order to force openness from companies, authorities are accelerating the sustainability reporting regulatory process as the real effects of climate change become more apparent and there is growing global agreement on reducing long-term environmental hazards. ESG disclosures are now required by binding regulations, with severe consequences for noncompliance, rather than being optional. This urgent regulatory push is expected to greatly increase the global addressable market for ESG software providers.
One major element driving the ESG reporting software industry's explosive growth is the growing global trend toward sustainable investing strategies that take environmental, social, and governance (ESG) considerations into account when allocating money. Institutional investors like BlackRock, State Street, Goldman Sachs, and Vanguard, which manage trillions of dollars' worth of assets, have made it clear that they intend to incorporate more significant ESG factors into investment analysis in order to draw real connections with risk-adjusted returns as the world struggles with the effects of climate change. By using their voting power to aggressively engage portfolio firms on increasing sustainability pledges, these financial behemoths are also ratcheting up shareholder activism initiatives.
The global start of the historic COVID-19 pandemic and the ensuing humanitarian disaster have had a big impact on how the ESG reporting software market has developed. Demand for specific technology industries was lower during difficult economic times, but on the other hand, the need for sustainability has increased the use of platforms that allow businesses to track and report on their governance, social, and environmental performance. The major dimension in which software adoption has accelerated amidst the pandemic is that enterprises are seeking to measure, assess, and reduce risks related to complex global disruptions like health emergencies and climate change, which are viewed as interlinked events.
Small and medium companies, which usually include both huge private enterprises and publicly traded multinationals, constitute a sizable untapped client sector beyond current high-value accounts. More than 90% of businesses worldwide are SMEs. Even though historically smaller businesses have often fallen behind on sustainability pledges, increased customer and community expectations about ethical operations, along with worsening climate events, are driving change. The majority of SMEs, however, lack the organizational and technological expertise necessary for thorough internal ESG data collection.
KEY MARKET INSIGHTS:
- Based on market segmentation by Component, the largest segment is the Solution category. This dominance results from businesses' rising need to comply with legal requirements for ESG disclosures and successfully convey their sustainability goals. The fastest-growing segment is services. In order to guarantee that clients can successfully use ESG software to satisfy their unique needs, services such as training, support, modification, and installation are essential. This improves the total value proposition of software solutions.
- Based on market segmentation by Deployment Type, the largest market share is held by on-premises deployment. For their ESG management tools, this was first favored by larger enterprises because it allowed for control within corporate boundaries and adaptation to individual client architecture. Additionally, it made the process of integrating reporting and analytics with the on-site IT systems easier. On the other hand, the fastest-growing segment is cloud-based. For SMEs with small internal IT teams, cloud solutions provide a simpler starting point by offering pre-configured templates for external sustainability disclosures that don't require a lot of bespoke development. Additionally, cloud architectures enable software companies to reconfigure more quickly as rules change, reducing the need for clients to undertake extensive in-house re-engineering.
- Based on market segmentation by Organization Size, the largest segment is made up of large enterprises. The roots of the ESG software sector, which catered to businesses under intense financial, regulatory, and social demand to measure and report on environmental performance, notably carbon emissions, are reflected in the market domination of tools for these organizations. Publicly traded companies are also the primary focus of important sustainability reporting standards, and developing specialized emissions monitoring systems frequently necessitates substantial financial resources that are largely available to major corporations. The sector with the quickest rate of growth is SMEs (small and medium-sized enterprises). With increased investments and governments expanding transparency laws beyond publicly listed businesses, this industry has substantial growth opportunities. This generates a significant need for ESG software solutions that are simple for small and medium-sized enterprises to implement.
- Based on market segmentation by End Use, the largest end-user segment is the banking, financial services, and insurance (BFSI) industry. The need for financial institutions to conduct their business more sustainably in light of their effects on the economy, society, and environment is what is driving this. This entails following ESG regulations, which set strict guidelines for corporate leadership, risk management, and stakeholder rights. They also require that companies be mindful of their environmental impact and their interactions with suppliers, customers, and employees. The end-user industry with the quickest rate of growth is healthcare. This is because the healthcare industry is undergoing a major digital transition with the goal of enhancing patient care, operational effectiveness, and regulatory compliance. The need for ESG reporting software is fueled by the growing use of electronic health records (EHRs), telemedicine platforms, and other technology by healthcare providers.
- Based on market segmentation by Region, North America holds the largest market share. This is attributed to the early adoption of ESG principles, a strong investor focus on sustainability, and a mature technology landscape. The region's robust cybersecurity infrastructure and strong regulatory environment also contribute to its leadership in the global IAM market. Meanwhile, the Asia-Pacific (APAC) region is the fastest-growing. This region boasts significant growth potential, fueled by rising awareness, government initiatives promoting sustainable practices, and the increasing number of sustainability-focused businesses across countries like China and India.
- Companies playing a leading role in the Global ESG reporting software Market profiled in this report are – Wolters Kluwer, Workiva, Nasdaq, Sphera, Diligent, City, Greenstone, Isometrix.
By Component
- Solution
- Services
By Deployment Type
- On-Premises
- Cloud-Based
By Organization Size
- Large Enterprises
- SMEs (Small and Medium-sized Enterprises)
By End Use:
- Retail & Consumer Goods
- BFSI
- IT & Telecommunications
- Healthcare
- Manufacturing
- Others
By Region
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
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