As Environment, Health and Safety (EHS) has gained prominence over the years, with the pandemic pushing it top of mind at companies, the market for EHS software has grown as well.
Experts are predicting that the EHS software market will grow to a staggering $2.2 billion (approximately R33 billion) by 2025. At present, global spending on EHS software exceeds $1.3 billion (R19.5 billion).
The growth of software for EHS management is not incidental. It has been powered by a recognition that a company’s performance, its productivity and the operational risk – heightened with the advent of the pandemic – is intertwined with EHS issues.
The need to increase performance and productivity, and to manage risk has only risen, and will likely expand in the years to come. Furthermore, the need for regulatory compliance and integrated risk management is accelerating the adoption of EHS management software.
Having software to manage EHS obligations is essential. Technology investment funds are taking note of the growth of the EHS software market, and understandably seeing the potential for promising returns. The spate of investment from the likes of the Carlyle Group, amongst other high profile investment firms, into the sector is further fuelling innovation. This bodes well for customers who can expect richer features that address their needs, and for the development of EHS management software, which will only become more robust and mature.
While there is a plethora of EHS software vendors, the market for those with cloud-based offerings is particularly rosy. There will be a significant return from investments in cloud computing over the next three years, as companies reap the benefit of being able to lower their information technology costs due to the low maintenance costs associated with cloud-based software. The fate of non-cloud based EHS management platforms looks less positive.
The bottom line is that EHS management software – and particularly cloud-based ones – is slated for continued and sustained growth in the years ahead due to the fact that EHS software has become a core part of small, medium and large businesses alike.
More specifically, EHS software facilitates digital transformation so that businesses can continue operating in uncertain times, while meeting their corporate social responsibilities and increasing their profitability.