Historically, sanitation Security software hasn’t been a huge market — at least compared to the rest of the software-as-a-service space — and it hasn’t been the most intriguing category of startups either. But that’s changing, according to a new survey released by research firm Verdantix.
EHS software acts as a data management system for capturing and analyzing information related to occupational health and safety, waste management and sustainability. For example, companies use EHS software to track emissions and investigate workplace accidents, as well as conduct health and safety training and grant access to confined spaces.
Verdantix’s Green Quadrant: EHS Software 2023 survey shows that the EHS software market has seen more than 50 deals in the past two years and predicts that it will grow from $1.6 billion in 2022 to around $2.7 billion in 2027. Verdantix forecasts that it will buck the trend. Also, the global recession due to differentiating factors such as the use of artificial intelligence and automation.
“The market landscape for EHS software has undergone a paradigm shift over the past two years, as EHS vendors have expanded their offerings to meet the strong demand for robust environmental management solutions created by the ESG megatrend,” Verdantix Industries analyst Chris Sayers said in a statement. “As EHS functions seek to interlink with other business operations, vendors are turning to emerging technologies as points of differentiation and redefining the functional possibilities of EHS software.”
Since ETF Partners invested around €10 million (~$11 million) in EHS provider Enablon in 2011, private equity firms and strategic investors such as Wolters Kluwer and Fortive have spent more than $4 billion getting into EHS, according to a Verdantix report. software market. The absence of the world’s largest enterprise software vendors — including IBM, Microsoft, Oracle, Salesforce and SAP — leaves a lot of oxygen for midsize companies to thrive.