Environment Health and Safety Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2032

Market Scenario 

Global environment health and safety market was valued at US$ 7.3 billion in 2023 and is projected to hit the market valuation of US$ 15.9 billion by 2032 at a CAGR of 9.1% during the forecast period 2024–2032.

The market is expected to grow a lot over the next few years. This is likely to be driven by stringent regulations, an increased focus on sustainability, and acknowledgement of the financial benefits that come with proactive EHS management. The European Union’s REACH regulations led to lots of money being invested in EHS solutions for chemical hazards management. Alongside this, many companies are adopting strategies that reduce their environmental impact as a response to climate change concerns from the public. This growth presents great opportunities and highlights the general importance of EHS for businesses everywhere. Consulting, training, auditing related to EHS are still important especially for companies looking for guidance on navigating rules, implementing new systems or building internal expertise. 

Because of all this, EHS software solutions are becoming essential tools for managing risks and performance while also cutting down bureaucracy and gaining real-time insights into compliance in the global environment health and safety market. With cloud-based technology advancing so fast it's making things more accessible and powerful for businesses regardless of size. Recent studies have shown that using advanced software has cut incident rates by 55% compared to those without it. Manufacturing, construction energy and chemicals are sectors with high adoption rates due to how dangerous their work can be if not careful. These industries see the direct link between effective EHS management and preventing accidents as well as maintaining operations. 

Though North America holds most of the market share because they were early adopters in tech use during business processes along with having rigid regulation frameworks; Other regions across the world aren’t far behind anymore driven by similar concerns about safety and environmental health. China has implemented strict regulations recently which has driven major growths in its domestic Environment health sector.

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Market Dynamics 

Driver: Consumers and Investors Drive Surge in Environment health and safety market

The rising tide of sustainability demands is causing a surge in the EHS market. With consumers no longer settling for quality products and services it’s well past time businesses shift their focus to ethical and responsible practices. Investors are pointing out environmental footprints, demanding transparency and that businesses take full responsibility for any harm caused by them. This new norm of expectation puts EHS at center stage when it comes to corporate success.

In 2022, we surveyed consumers on their likelihood to purchase from a company with a strong record of environmental and social responsibility; 79% said they would be more likely to do so. Global investors are also taking note –– in a recent report by Morgan Stanley it was found that 88% now factor in ESG data when making investments. In order to stay competitive and attract investment, companies must implement demonstrably sustainable strategies. A robust EHS framework will help them measure environmental impact, identify room for improvement, manage waste and emissions, and meet evolving sustainability regulations.

Outdoor apparel brand Patagonia in the environment health and safety market has developed its core identity around sustainability –– its repair programs, use of recycled materials, fair labor practices — everything about the company has garnered an extremely loyal customer base who views them as one of the most environmentally conscious brands. Unilever has set ambitious goals: net-zero emissions across its operations by 2039 and a deforestation-free supply chain by 2023. Apple is also leading the way among tech giants as it works toward achieving carbon neutrality by 2030; Microsoft plans on becoming carbon negative by 2030 with a goal to remove all historical emissions made by the company since its founding in 1975 by the year 2050.

Trend: EHS Goes Digital–Unlocking Real-time Insights and Safer Workplaces

The Environment health and safety market is undergoing a profound digital transformation. Gone are the days of cumbersome spreadsheets, paper checklists, and siloed EHS data. Cloud-based software, mobile applications, and the increasing use of sensors and wearables are redefining how companies collect, manage, and act upon EHS information. According to a 2023 report by Verdantix, 72% of EHS decision-makers plan to increase their investment in EHS software over the next two years. This shift towards digital EHS tools promises greater efficiency, improved decision-making, and enhanced risk mitigation.

EHS software platforms are centralizing data, streamlining processes, and providing real-time insights in the global environment health and safety market. Companies can track incidents, manage inspections, automate compliance reporting, and analyze trends with unprecedented ease. Mobile apps are empowering frontline workers to report hazards, conduct audits, and access safety information directly in the field. Wearables and IoT sensors are providing continuous monitoring of worker exposure to noise, chemicals, or ergonomic risks. For example, companies like Caterpillar and Shell are using smart helmets and wearable sensors to track worker fatigue, prevent collisions with heavy machinery, and monitor exposure to hazardous substances.

Companies like Intel are leveraging cloud-based EHS platforms to consolidate data from multiple global manufacturing sites, enabling them to benchmark performance and identify best practices. The result of this digital transformation is enhanced visibility into EHS risks, enabling companies to make data-driven decisions that improve safety, environmental performance, and operational efficiency.

Restrain: EHS Data Fragmentation Undermines Safety and Efficiency

The challenge of data fragmentation and integration is a significant hurdle within the Environment health and safety market. Companies often struggle with a multitude of disconnected systems and incompatible data formats. Think of scattered spreadsheets for incident tracking, separate databases for chemical management, and standalone systems for audits. This lack of integration hinders the ability to gain comprehensive EHS insights, effectively manage risks, and drive continuous improvement. A 2022 Astute Analytica’s study found that only 25% of businesses have a centralized EHS data platform in place. This fragmentation can have far-reaching consequences. For instance, an oil and gas company may track safety incidents in one system, environmental performance metrics in another, and regulatory compliance in a third. Without an integrated view, it becomes difficult to identify patterns or correlations between safety incidents, environmental spills, and potential regulatory violations. This leads to missed opportunities for proactive risk mitigation and hampers data-driven decision-making.

The manufacturing sector in the global environment health and safety market also grapples with data fragmentation. Production data, equipment maintenance logs, and worker safety records may reside in separate systems, making it challenging to fully understand how production processes impact safety or where potential hazards lie within the supply chain. The inability to access and analyze consolidated EHS data can result in delayed responses to incidents, increased regulatory fines, and missed opportunities to improve overall performance. This underscores the importance of investing in EHS software solutions that promote data integration and enable a holistic view of risks across the organization.

Segmental Analysis 

By Component

The global environment health and safety market landscape is undeniably shaped by software solutions. In 2023, the software segment generated an undeniable 58.9% revenue share. This high number proves that companies recognize how technology can streamline EHS processes, enhance risk management, and promote continuous improvement. This is not a fleeting trend either; experts forecast the software segment to experience a rapid CAGR of 9.3% in the coming years.

So why are businesses so eager to invest in such systems? Well for starters, paper-based systems are both inefficient and error-prone: two qualities no company wants or needs. These manual systems also lack centralization which makes automation challenging and compliance tracking difficult. The increasing sophistication of solutions due to AI and machine learning integration has transformed data analysis into something entirely different from its original state. This new approach enables predictive risk management – a proactive measure which many organizations want to take rather than being caught reacting to a crisis.

By Deployment 

The global Environment health and safety market is changing very quickly due to cloud-based deployment. This segment claimed more than 60% of the market’s revenue in 2023, and it is predicted that it will keep its dominance. It will grow at an astonishing CAGR of 9.3% through 2032 thanks to the inherent advantages cloud-based EHS solutions have over traditional on-premise deployments.  

Today, many organizations are attracted to the scalability and flexibility of the cloud. EHS software can be easily rolled out across multiple sites and adapted without needing a lot of investments on IT infrastructure. Additionally, cloud-based solutions usually have lower upfront costs and subscription-pricing models which make them more accessible for businesses that don’t have much money. The accessibility of the cloud is another factor contributing to adoption. Employees can access real-time EHS data, report incidents, and participate in training from anywhere as long as they have an internet connection. Because of this, there has been a more collaborative and engaged approach to EHS that has flourished specifically within organizations with distributed workforces.

By Application

Within the diverse applications of environment health and safety market, environmental management held a dominant position in 2023, capturing over 44.1% of global market revenue. This could be attributed to the growing importance of sustainable practices for businesses worldwide. With regulatory pressures and climate change on their backs, companies are turning to EHS solutions to help them manage their environmental footprint. Specialized software modules allow organizations to track emissions data across multiple sites, optimize resource consumption, implement waste management programs and remain compliant with complex regulations. Investors and stakeholders are looking for a commitment to sustainability in companies they support and are more likely to go with those that demonstrate long-term environmental health. 

On top of that, it’s projected that the Occupational Health & Safety (OH&S) segment will grow at its fastest CAGR of 9.5% during the forecast period. It’s clear that there is a focus on worker safety and well-being as EHS solutions help simplify hazard identification, streamline incident reporting processes and provide real-time data to make informed decisions regarding safety. Businesses see investments into reliable OH&S frameworks translate into improved employee morale, better productivity and a reputation as a responsible employer which can lead to competitive advantages in the long-run.

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Regional Analysis 

North America has been leading the way in the environment health and safety market for some time now, with over 33% of global revenue coming from the region. The region’s dominance is down to a number of factors. Stringent environmental and workplace safety regulations have driven a strong demand for compliance management solutions across North America. Innovations in technology have resulted in the development of sophisticated EHS software platforms which are typically found within North America. Furthermore, greater focuses on corporate social responsibility and sustainability initiatives mean that businesses are more likely to proactively invest in their EHS frameworks. 

The Asia Pacific market is set to accelerate growth of the Environment health and safety sector more than any other region, expected to keep growing at a CAGR of 10.5% over the next few years. Rapid industrialization across APAC countries like China and India increase the need for robust EHS solutions to manage risks associated with complex operations and growing workforces. Governments within Asia Pacific have started implementing stricter environmental and occupational safety regulations too, similar to those observed in developed economies; this also drives up demand for EHS solutions. 

Europe currently holds a significant share of the Environment health and safety market due to its long-standing commitment towards environmental protection and worker well-being. The European Union’s (EU) comprehensive environmental regulations enforce a strong need for compliance solutions such as those offered by Sphera – this isn’t just true for Europe either — companies worldwide are placing an emphasis on reducing their environmental footprint which contributes towards steady growth in EHS markets globally. 

Latin America and Middle East represent smaller but rapidly growing segments of the Environment health and safety market. As industries such as energy production mining take off across these regions, so does awareness surround effective EHS management. As these regions continue developing economically and infrastructurally, investment into EHS solutions is expected rise accordingly — mirroring trends already seen in other developing regions like Asia Pacific earlier on.

Top Players in Global Environment Health and Safety Market

• AECOM Corp
• CH2M HILL, Inc.
• Cority Software Inc.
• Dakota Software Inc.
• DNV GL
• Enablon Corp.
• ENVIANCE
• ETQ, LLC
• Gensuite LLC
• Golder Associates
• HIS
• Intelex Technologies Inc.
• Isometrix
• ProcessMAP
• Quentic GmbH
• SAI Global Pty Limited
• SAP SE
• SGS SA
• Sphera
• Tetra Tech, Inc.
• UL LLC
• Velocity EHS Holdings Inc.
• Other Prominent Players

Market Segmentation Overview:

By Component

• Software
  • Risk & Quality Assessment
  • Data Analytics
  • Cost Management
  • Environmental Compliance
  • Energy & Carbon Management
• Services 
  • Consulting
  • Project Management
  • Analytics
  • Training
  • Auditing (Testing, Inspection & Certification)

By Deployment

• On-Premises
• Cloud
• By Enterprise Size
• SMEs
• Large Enterprises

By Application

• Environmental
  • Air Management
  • Water Management
  • Chemical Management
  • Waste Management
  • Soil Management
  • Hazardous Material Management
  • Others
• Occupational Health & Safety
• Community Health & Safety
• Construction & Decommissioning
• Others

By Industry

• Manufacturing
• Agriculture
• Transportation
• Construction
• Energy & Mining
• Retail
• Healthcare
• Chemical & Pharmaceuticals
• Oil & Gas
• Food & Beverage Processing
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Belgium
  • Spain
  • Poland
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
    • Thailand
    • Rest of ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Turkey
  • Saudi Arabia
  • Jordan
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America