The ESG software market is anticipated to expand at a rapid pace due to increasing focus on sustainability, regulatory compliance, and stakeholder pressure are key factors driving the demand for ESG software solutions.
WESTFORD, Mass., July 30, 2025 /PRNewswire/ -- SkyQuest Technology Consulting published a report, titled, ESG Software Market - Global Opportunity Analysis and Industry Forecast, 2025-2032", valued at USD 2.62 Billion in 2024. With a projected CAGR of 12.5% from 2025 to 2032, the market is expected to reach USD 6.72 Billion by the end of 2032. The market is experiencing robust growth, driven by increasing regulatory requirements, heightened investor scrutiny, and a growing corporate focus on sustainability and ethical governance.
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ESG Software Market Dynamics:
The ESG software market is primarily driven by the increasing regulatory pressure on companies to comply with sustainability standards and disclose ESG-related data transparently. Organizations across industries are adopting ESG software to streamline data collection, reporting, and compliance processes, helping them meet evolving global regulations and investor demands for sustainable business practices.
Additionally, growing awareness among consumers and investors about corporate social responsibility is pushing companies to integrate ESG factors into their strategic decision making. A major trend shaping the market is the integration of advanced analytics and AI within ESG platforms, enabling deeper insights into sustainability performance, risk management, and scenario planning.
Recent Developments in ESG Software Market
- In January 2024, Osapiens, a German-Spanish ESG tech startup, announced its expansion into the U.S. market with plans to open a New York office and pursue acquisitions. Supported by a $120 million Series B round led by Goldman Sachs Growth Equity, the move involves strategic collaborations aimed at localizing ESG software solutions for North American regulations. Osapiens doubled its customer base and revenue in 2024, signaling rapid growth.
- In April 2024, UK-based investment firm Redwheel completed its acquisition of Ecofin, a sustainability-focused boutique managing $1.4 billion in assets. The acquisition enhances Redwheel's ESG investment capabilities, allowing the firm to offer more comprehensive sustainable investment strategies in energy transition, biodiversity, and clean technologies. Ecofin was previously part of Tortoise Capital Advisors.
- In June 2024, Wolters Kluwer N.V. launched CCH Tagetik ESG & Sustainability for Carbon Emissions, a new solution designed to assist companies in reporting and disclosing direct and indirect carbon emissions, including Scope 3 emissions. This initiative aims to help organizations comply with the Corporate Sustainability Reporting Directive (CSRD). The updated offering integrates pre-configured carbon data management capabilities based on the GHG protocol, the globally recognized standards for greenhouse gas accounting.
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Major Challenges in ESG Software Industry
The ESG software market faces several critical challenges that could hinder widespread adoption. One major issue is the lack of standardized ESG reporting frameworks, which makes it difficult for organizations to accurately measure, and benchmark their sustainability performance across industries and regions.
Companies often struggle with data fragmentation, as ESG data must be gathered from diverse sources including internal systems, supply chains, and third-party providers, leading to inconsistencies and reporting inefficiencies. Additionally, many businesses especially small and medium enterprises (SMEs) lack the technical expertise or resources to implement and maintain sophisticated ESG software solutions.
Competitive Landscape:
The ESG software market is witnessing heightened competition as established tech firms, niche software providers, and emerging startups strive to differentiate through innovation, scalability, and regulatory alignment. In a notable 2024 example, Osapiens, a fast-growing ESG software provider based in Germany and Spain, announced a strategic collaboration with global investors including Goldman Sachs Growth Equity. As part of its $120 million Series B funding round in January 2024, Osapiens expanded its international footprint by establishing a U.S. office and initiating acquisition plans.
The major players in the ESG software industry include,
- Osapiens
- Wolters Kluwer N.V.
- SAP
- Workiva
- Cority
- Sphera
- Intelex Technologies
- Enablon (Wolters Kluwer)
- Diligent
- Datamaran
- Novisto
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ESG Software Market Segmentation:
Global ESG software market is segmented into offering, deployment type, organization size, vertical and region. Based on offering, the market is segmented into software and services. Based on deployment type, the market is segmented into cloud and on-premises. Based on organization size, the market is segmented into small and medium sized enterprises and large enterprises. Based on vertical, the market is segmented into BFSI, government, public sector, and non-profit, manufacturing, food & beverages, retail & consumer goods, energy & utilities and other verticals.
- By offering, software dominates due to its ability to streamline ESG data collection, reporting, and analytics, ensuring compliance with evolving global standards.
- By deployment type, cloud dominates as it enables scalable, real-time ESG data access and seamless updates across distributed operations.
- By organization size, large enterprises dominate due to greater regulatory exposure and the need for detailed ESG reporting to meet stakeholder expectations.
- By vertical, BFSI dominates as financial institutions face increasing pressure for transparent ESG disclosures from regulators and investors.
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Regional Insights
North America leads the ESG software market due to stringent regulatory frameworks, investor activism, and corporate sustainability mandates in the U.S. and Canada. Companies are rapidly adopting ESG platforms to meet SEC disclosure requirements and stakeholder expectations.
Asia Pacific is experiencing fast growth fueled by emerging ESG regulations in countries like Japan, Australia, and South Korea. Rising awareness among corporations and regional ESG reporting mandates are driving demand for localized software solutions.
Europe is still a front-runner in ESG adoption due to strong regulatory policy such as CSRD and SFDR. Nations such as Germany, France and the United Kingdom invest in ESG Compliance Technologies.
LAMEA gradually adopting the ESG software, run by Global Investor Pressure and Stability Reporting Initiative. Progress varies from the country, with the country that becomes stronger in urbanized or resource-intensive economies such as UAE, Brazil and South Africa.
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