Carbon Management Software Market is to grow at a 22.39% CAGR, with the United States leading the market through 2032

Carbon Management Software Market will reach USD 85.25 Bn by 2032. The Carbon Management Software Market is driven by the adoption of circular economy models and cost efficiency and operational benefits.

Carbon Management Software Market to Hit USD 85.25 bn by 2032   

The Carbon Management Software Market was USD 16.93 Bn in 2024 and is expected to expand at a CAGR of 12.04 % from 2024 to 2032, reaching USD 85.25 Bn by 2032. In 2024, CMS startup Watershed raised its valuation to $1.8 billion after obtaining $100 million in Series C investment. To promote creativity, the organization prioritizes face-to-face cooperation and has drawn in over 500 clients, including 60 Fortune 500 companies. The CMS market is expected to reach $5.5 billion, driven by the need for more Environmental, Social, and Governance (ESG) transparency as well as required Scope 3 emission reporting, according to ABI Research. Stricter laws are being implemented by governments all over the world to reduce carbon emissions and fight climate change. CMS solutions are in high demand as a result of policies like the Paris Agreement and regional carbon reduction objectives that require businesses to monitor, manage, and lower their carbon footprint. Businesses are utilizing CMS to highlight their efforts to cut emissions, improve their brand image, and attract eco-aware stakeholders and customers. Companies are under more pressure to adequately assess and manage their emissions as a result of ongoing media coverage of climate change and growing environmental organization involvement. Industries like manufacturing, energy, transportation, and agriculture are major contributors to carbon emissions. The CMS market in North America, especially the United States, is anticipated to grow at a CAGR of 12.04%, from $ 16.93 Bn in 2024 to $  85.25 Bn by 2032.

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Carbon Management Software Market Segmentation

By Software: Direct CO2 (Scope 1) segment’s revenue is projected to reach $1.2 billion by 2025. This segment is usually smaller since full carbon reporting is increasingly relying on tracking indirect emissions (Scope 2 and Scope 3). Direct CO2-focused software is anticipated to account for around 20 to 25% of the whole market. Indirect CO2 (Scope 2 & Scope 3) software that monitors both direct and indirect CO2 emissions is projected to account for 75-80% of the overall CMS market by 2032. This segment is growing rapidly as additional laws, such as the SEC’s climate risk disclosure guidelines and the Corporate Sustainability Reporting Directive (CSRD), require businesses to monitor and disclose all emissions. 

Carbon Management Software Market Regional Analysis

United States: The CMS Market in the US generated $587.3 million in 2024 with a CAGR of 13.2% from 2024 to 2032 and is expected to reach $1,227.2 million by 2032. The US CMS market is expected to surpass $9 billion by 2034, indicating robust growth prospects. Watershed is a dominating player in the US, in 2024 by obtaining $100 million in Series C investment, Watershed strengthened its standing as a top CMS supplier, particularly for big businesses.

Germany: The German market for carbon management software generated approximately USD 1.53 billion in 2024 with a CAGR of 20.2 % and is expected to reach USD 4.55 billion by 2032. A major key player Plan A, a Berlin-based provider of carbon management and ESG reporting software reported increasing its income by 600% year over year and growing its clientele to more than 1,500 in 2023. In September 2023, Plan A secured $27 million in investment to assist its growth, with intentions to double its workforce to 240 workers and improve the capabilities of its platform.

China: The Chinese CMS market generated approximately USD 1.94 billion in 2024 with a CAGR of 22.9% from 2024 to 2032 and is expected to reach USD 6.61 billion by 2032. SAP a significant player in China, reported €34.18 billion in total sales, making a 10% rise over the previous year. SAP’s cloud revenue increased by 27% in the fourth quarter of 2024, which helped to boost cloud revenue overall. By March 2025, SAP had surpassed Novo Nordisk to become the most valuable corporation in Europe with a market valuation of €313 billion.

Carbon Management Software Market Competitive Landscape

Microsoft: In 2023, Microsoft declared its intention to acquire Activision Blizzard, a well-known video game developer for $68.7 billion in cash. In 2022, Microsoft announced its plans to acquire Nuance Communications for approximately $16 billion.

Schneider Electric: In October 2024, Schneider Electric acquired a 75% stake in Motivair Corp., a U.S.-based specialist in liquid cooling for high-performance computing. In November 2023, Schneider Electric finalized the acquisition of EcoAct.

IBM: In 2025, Infrastructure automation pioneer HashiCorp was acquired by IBM for $6.4 billion. In 2024, IBM acquired WebMethods and StreamSets, among other data integration tools, from Software AG for $2.3 billion.

Enablon (Wolters Kluwer): Global information services provider Wolters Kluwer declared its plan to acquire Enablon for approximately €250 million. Enablon provides a complete platform for managing environmental, health, and safety compliance to more than 1,000 businesses and one million customers in 160 countries.  

Recent Developments:

• The Green Ledger software from the firm, which was created to help companies create verifiable sustainability reports by the 2028 European Corporate Sustainability Reporting Directive (CSRD),
• Australia’s FarmLab helps farmers cut emissions and create carbon credits by measuring and managing soil carbon using satellite imaging and artificial intelligence (AI).
• Watershed, a startup focused on emissions data tracking, obtained a $100 million Series C investment round in 2024, increasing the company’s worth to $1.8 billion.

Conclusion

• Businesses are investing in cutting-edge CMS solutions to ensure compliance as international requirements like the European Corporate Sustainability Reporting Directive (CSRD) and obligatory Scope 3 emissions reporting gain traction.
• Advances in artificial intelligence, machine learning, and satellite data are improving the precision and effectiveness of carbon emissions monitoring, providing businesses with the resources they require to make wise decisions.

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