Press Release

Due to Rising Use of Open Source Data, ESG Reporting Software Market to Register CAGR of 18% By 2030

The Global ESG Reporting Software Market size was valued at around USD 0.95 billion in 2024 and is projected to reach USD 2.6 billion by 2030. Along with this, the market is estimated to grow at a CAGR of 18% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. Various factors are attributed to the market's growth. The ESG reporting software market is expected to grow rapidly with the integration of new solutions by investors into their investment decisions to get real-time information about the ESG performance of the companies. The demand for innovative software solutions that can help investors report, measure, and track ESG metrics is hence increasing. Also, government agencies worldwide are likely to present strict regulations that involve sustainability reporting in the corporate world. This is likely to lead to increased use of ESG reporting software by companies to minimize their compliance burden and submit reports on time.

Moreover, the fact that the ESG reporting software facilitates the demonstration of an organization's sustainability goals and enhances brand reputation will have a driving effect on demand. Modern consumers change their purchases based on the sustainability of a company's goals constantly, which is expected to facilitate demand. Furthermore, the pressure being generated by the supply chain in speeding up the shift towards sustainable operations is expected to fuel the ESG performance management software market. Hence, companies are looking towards the adoption of software solutions that could be able to provide the feature of management and tracking for the suppliers.

However, some challenges can diminish the market growth. The most significant challenge is the integration complexity of ESG data from a variety of sources such as supply chain databases, sustainability reports, and financial systems. This can lead to issues with standardization & data accuracy across industries and regulatory frameworks. Also, ESG Reporting lacks universal standards, which makes it more challenging for organizations to comply consistently and transparently across regions. Implementing such advanced ESG reporting solutions incurs significant costs to companies, especially for small and medium enterprises that have less financial capability. The risk of greenwashing is also an element that has eroded trust in ESG disclosures, further states the research report, “Global ESG Reporting Software Market Analysis, 2025.”

Global ESG Reporting Software Market Segmentation Analysis

BFSI Sector Emerges as a Primary End-User of ESG Reporting Software

Based on end users, the market is further bifurcated into BFSI, Government, Public Sector & Non-Profit organizations, Manufacturing, Food & Beverages, Retail & Consumer Goods, Energy & Utilities, and Others. Out of them, the BFSI sector leads the global market. It holds approx. 27% market share. The BFSI sector has to face the particular ESG hazards that are associated with financial, reputational, and regulatory risks related to climate change. The use of ESG reporting software may help financial institutions better detect, quantify, and manage these risks, thus preserving both shareholder value and their capacity to maintain financial stability. ESG factors are progressively becoming an integral part of the investment decision-making processes by high-net-worth individuals and asset managers in the BFSI sector. To determine their dependency on ESG risks and opportunities correctly, they demand transparent and trustworthy ESG data from financial companies. The requirement of investors for ESG accountability and transparency will likely be met by BFSI firms using ESG reporting tools.

North America Leads the ESG Reporting Software Industry

North America leads the Global ESG Reporting Software Market. It holds approximately 45% share of the total market value. It is supported by high-end technological infrastructure and strict regulatory standards. The U.S. and Canada are the key markets since they have been very active in ESG regulations and are increasingly taking care of corporate sustainability. Top companies in the region like; Enablon and Sphera are leading the way in innovation with advanced solutions for ESG reporting. Increasing adoption across multiple industries and established financial and regulatory institutions have driven the market growth in North America. Additionally, a strong venture capital ecosystem in North America has been fueling ESG tech startups, bringing competition and innovation to the space.

Competitive Landscape

With strategic initiatives such as mergers, collaborations, and acquisitions, the leading market companies, including Datamaran, EcoVadis, NAVEX Global, Inc., OneTrust, LLC, Refinitiv, SAS Institute Inc., Sustainalytics, TruValue Labs, Verisk 3E, Wolters Kluwer N.V., Nasdaq, Inc., IBM, Pricewaterhouse Coopers LLP (PwC), Diligent, Workiva, Inc., and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report                                  

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the globe?
4. How has the industry been evolving in terms of geography & solution adoption?
5. How has the competition been shaping up across various regions?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?