Historically, environmental health and security software hasn’t been a massive market – at least compared to others in the software-as-a-service segment – and it’s admittedly not the most exciting startup category. But that’s changing, according to a new survey published by research firm Verdantix.
EHS software acts as a data management system to capture and analyze information related to occupational health and safety, waste management and sustainability. Companies use EHS software to track emissions and investigate workplace incidents, for example, as well as to provide health and safety training and authorize access to confined spaces.
Verdantix’s Green Quadrant: EHS Software 2023 survey shows the EHS software market has seen more than 50 deals in the past two years and projects it will grow from $1.6 billion in 2022 to around 2.7 billion by 2027. Global economic downturn, further, due to differentiators such as the use of AI and automation.
“Over the past two years, the EHS software market landscape has undergone a paradigm shift, as EHS vendors have expanded their product offerings to meet the voracious appetite for robust environmental management solutions driven by the megatrend. ESG,” said Chris Sayers, industry analyst at Verdantix. said in a statement. “As EHS functions seek to interconnect with other business operations, vendors are looking to emerging technologies as a point of differentiation and redefining the functional possibilities of EHS software.”
According to the Verdantix report, since ETF Partners invested around €10 million (about $11 million) in EHS provider Enablon in 2011, private equity firms and strategic investors like Wolters Kluwer and Fortive have been spending more than $4 billion to enter the EHS software market. The absence of the world’s largest enterprise software vendors, including IBM, Microsoft, Oracle, Salesforce and SAP, has left plenty of oxygen in the market for midsize businesses to grow.