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Global environment health and safety market generated revenue of US$ 6,770.03 million in 2022 and is anticipated to reach the valuation of over US$ 14,700.0 million by 2031 at a CAGR of more than 9% over the course of forecast period, 2023–2031.
The market for global EHS (Environmental Health and Safety) operations has been expanding steadily over the past decade, driven by a range of economic factors that directly and indirectly impact the financial performance of environmental health and safety companies. The increasing demand for EHS solutions across various industries, including manufacturing, construction, and healthcare, is a key driver of market growth.
Unemployment, inflation, interest rates, and business profitability are some of the major economic factors that impact the EHS market. For instance, high unemployment rates may lead to lower public spending on environmental health and safety, while low inflation rates can stimulate spending on EHS solutions by reducing the cost of borrowing in the global environment health and safety market. Moreover, the purchasing power of consumers and businesses can be significantly impacted by these economic conditions, affecting their ability to invest in EHS solutions. For example, during periods of economic growth, businesses may have more resources to invest in EHS initiatives, leading to a boost in market expansion.
In addition, the increased investment in safer and greener environments can have a positive impact on the economy as a whole. For instance, according to the United Nations, every dollar spent on clean energy can generate up to three times as many jobs as traditional fossil fuel-based energy.
Key Dynamics of Environment Health Safety Market
Expansion of the Software-as-a-Service Deployment Model
Software as a service (SaaS) is a cloud-based deployment model that is changing how businesses use and deploy software, including environmental health and safety (EHS) software. In this model, the software is owned, distributed, and remotely managed by one or more providers. Many businesses are opting for SaaS as their software solution, leading to environment health and safety market expansion and raising the bar for EHS software.
SaaS offers significant cost advantages for organizations. Since the service is on-demand and cloud-based, there is no need to spend money on hardware, installation, or maintenance. Additionally, businesses do not need IT infrastructure or staff to manage servers and applications, as the hosting is done in the cloud. This makes it easy for anyone with an internet connection to access the software. The simplicity of use makes it an attractive model for businesses to adopt and enhances environmental and safety monitoring.
SaaS solutions are one of the fastest-growing segments in the IT industry across global environment health and safety market. Despite the negative impact of the pandemic on businesses globally, cloud growth has continued to boom. The sales of EHS software that use a SaaS deployment model are expected to rise as the demand for cloud-based solutions increases.
Restraint: High Cost of EHS Solutions
One of the biggest restraints to the growth of EHS software is the high cost of these solutions. For example, managing carbon footprints, air and water pollution monitoring, and air quality monitoring require the use of cutting-edge technologies like IoT sensors, AI, and analytics, which can be expensive to maintain. This makes it challenging for businesses in low-income countries to adopt EHS solutions.
Additionally, misconceptions about the pricing and usability of these products have led some managers to refrain from adopting these solutions and instead concentrate on internal EHS management. This, in turn, has led to a constraint on the growth of the global environment health and safety market. Even in developed regions like North America and Europe, it can be challenging to switch from in-house EHS management to EHS software solutions due to the steep initial cost.
The environment health and safety market is segmented into software and services. The software segment held the highest market share in 2022 and is anticipated to grow with the fastest CAGR throughout the forecast period of 2023-2031. This is because EHS software solutions ensure legal compliance, reduce operational risks, and report air emissions from utility or energy system operations. The sustainability tracking offered by these solutions also takes care of specific KPIs and business metrics. EHS software solutions include an executive dashboard that aids in the management of onsite incidents, energy and utility use, and environmental performance.
The environmental health and safety (EHS) market is segmented into Environmental, Occupational Health & Safety, Community Health & Safety, Construction & Decommissioning, and Others. The Environmental segment is further divided into air management, water management, chemical management, waste management, soil management, hazardous material management, and others.
The environmental segment of the global environment health and safety market held the major share in 2022 due to the general public becoming more aware of several EHS regulations, which will likely influence how businesses are run in the future. These elements and trends have greatly influenced how the environmental health and safety (EHS) market has developed and grown. The expanding accessibility to EHS labs is a key component of this dynamic. Additionally, businesses are prepared to stake their reputations on EHS management and are partnering with lab management services to improve the environment.
The Occupational Health & Safety segment is projected to grow at the fastest CAGR throughout the forecast period of 2023-2031. This is due to its strong demand in industrial sectors to ensure better safety at workplaces. The Community Health & Safety segment is expected to grow in the environment health and safety market due to increasing public awareness and regulations around community safety. The Construction & Decommissioning segment is projected to grow due to the rise in infrastructure development and decommissioning activities. The Others segment includes industries such as pharmaceuticals, food & beverage, and automotive, among others, and is expected to grow due to increasing regulatory compliance requirements.
North America dominated the global environment health and safety market in 2022. However, the Asia Pacific is poised to be the fastest-growing region in the EHS market, fueled by increasing urbanization, industrialization, and population growth. With the rise in industrialization, there has been a growing awareness of environmental and occupational health and safety, leading to a surge in demand for EHS solutions. In addition, governments in the Asia Pacific region are implementing stringent regulations and policies to ensure environmental and occupational health and safety.
China, being one of the largest industrialized countries, is focusing on implementing EHS regulations to address the increasing environmental concerns. The government's initiatives to implement EHS regulations and compliance have resulted in the rise of EHS solutions and services in China. The government has also launched the China Environment and Health Initiative program to research the relationship between health, environment, and development in China.
Japan, Australia, and India are also implementing EHS solutions and services in the environment health and safety market to ensure the safety and well-being of their employees. In Japan, the government has implemented regulations such as the Industrial Safety and Health Act to ensure occupational health and safety. Australia's Safe Work Australia is responsible for developing national policy and strategies for the prevention of workplace injury and disease. On the other hand, India has also launched several initiatives to ensure workplace safety, including the launch of the National Policy on Safety, Health and Environment at Workplaces. The policy aims to ensure safe and healthy working conditions for every worker in India.
List of Key Companies Profiled:
Segmental Overview of the Global Environment Health and Safety Market
The Global Environment Health Safety Market was valued at US$ 6,770.03 Mn in 2022.
The market is estimated to register a CAGR of 9.1% during the forecast period 2023-2031.
Increase in government initiatives to introduce safety and environmental regulations and proliferation of the software-as-a-service deployment model are the factors driving the market.
High cost of EHS solutions making them unaffordable to low-income countries is acting as a restraint for market growth.
The various segmentations considered to analyse market growth are based on components, deployment, application, enterprise size, by industry and region.
Surging adoption of emerging technologies, such as AI, big data, and IoT are expected to provide an opportunity for market growth.
Software segment held the highest segmental share in 2022, based on component.
Environmental held the highest segmental share in 2022.
Chemical & Pharmaceuticals is the highest industry segment of 2022.
Large enterprises are the highest Enterprise Size segment of the Environment Health Safety Market.
North America dominates the Global Environment Health Safety Market in 2022.
The key players in the Environment Health Safety Market are 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, Process MAP, Quentic GmbH, SAI Global Pty Limited, SAP SE, SGS SA, Sphera, Tetra Tech, Inc, UL LLC, Velocity EHS Holdings Inc. among others.