Environmental Health and Safety Market Size, Share Global Analysis Report, 2022–2028

Industry Insights

[203+ Pages Report] According to Facts and Factors, the global environmental health and safety market was worth around USD 6125.2 million in 2021 and is estimated to grow to about USD 11333.3 million by 2028, with a compound annual growth rate (CAGR) of approximately 10.8% over the forecast period. The report analyzes the environmental health and safety market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the environmental health and safety market.

Market Overview

Companies primarily use environmental health and safety (EHS) systems to maintain employee safety and well-being at work, as well as to monitor environmental balance. Quality and risk assessment, data analytics, cost management, environmental compliance, and energy and carbon management are some of the software solutions included in EHS. The key driver driving the use of EHS resources across the industry is the increasingly stringent legislation on health, safety, and the environment, rules, standards, and processes enacted across countries manufacturing chemicals. In addition, companies that are committed to environmentally friendly and resource-efficient manufacturing activities engage quickly in the adoption of adequate EHS resources, which is boosting the growth of the market.

Increasing public awareness of environmental issues has resulted in improved environmental protection rules and regulations, which is expected to boost worldwide market growth over the forecast period. Regional federal authorities and governing bodies are proactively implementing environmental health and safety regulations across a wide range of industry verticals, thus propelling the growth of the market. Moreover, increasing employee safety and workplace awareness is likely to drive global market growth during the forecast period.

COVID-19 Impact:

COVID-19 has both positive and negative market consequences because, as a result of the lockdown, carbon emissions have decreased globally. The reduction in emissions caused by COVID-19 is a short-term benefit; however, as industries and corporations attempt to recuperate some of their financial losses at the beginning of the year, it will actually lead to a considerably greater level of carbon emissions. COVID-19 has had a negative impact on recycling initiatives all around the world. Countries, notably the United States, have suspended or decreased their recycling programs in order to focus on the collection of extra domestic waste or because services have been disrupted by the virus.

After the COVID-19 outbreak, and as industries gradually return to normalcy, this shift in workplace health and safety is expected to increase due to mandatory requirements of social distancing as well as continuous personal care through sanitization to eliminate even the smallest possibility of COVID-19 spread. COVID-19 has also had an impact on some companies' revenues, and if the lockdown is lifted, they will shift their focus to operations in order to recover their losses.

Growth Drivers

• Increased government initiatives to ensure that certain workplace safety and environmental norms and requirements are followed.

Government agencies such as the Occupational Safety and Health Administration (OSHA), the Environmental Protection Agency (EPA), the Department of Justice (DOJ), and state agencies require enterprises to adhere to specified labor safety and environmental policies and standards. Regulatory agencies put economic pressure on businesses to streamline their business processes and make them more environmentally friendly. Furthermore, increased scrutiny and severe rules have compelled management teams to implement EHS software solutions in order to reduce the number of workplace mishaps.

Businesses must adhere to significant industry regulations such as the Environmental Compliance Certificate (ECC), the Occupational Safety and Health Administration (OSHA), and the Food and Drug Administration (FDA) (FDA). As a result, organizations across all industries must follow these government standards and severe rules in order to improve the safety of the environment and their employees. Furthermore, regulatory compliances push businesses to adhere to industry standards and mandates for all company processes.

Restraints

• The high cost of EHS software solutions

Businesses in low-income nations are slow to embrace EHS software solutions. High software implementation and installation costs are projected to stymie market expansion. It is difficult for low-income countries to purchase solutions from other countries and have them installed in their organizations. These systems' installation and subscription prices have gotten exorbitantly high. Air quality monitoring, carbon footprint management, and air and water pollution monitoring are just a few examples of applications where implementing cutting-edge technologies like AI, IoT sensors, and analytics necessitates hefty maintenance costs.

As a result, verticals in a variety of industries are unable to afford the high initial cost of an EHS software solution and are forced to rely on traditional EHS management. Even established regions, such as North America and Europe, are struggling to replace outdated infrastructure or in-house EHS administration with EHS software solutions. Furthermore, misunderstandings regarding the cost and use of these products have caused managers to delay using these solutions in favour of focusing on in-house EHS management. As a result, the EHS market's growth is expected to be hampered by managerial inexperience, higher cost, and in-house reliance.

Opportunities

• Technological advancements are assisting numerous businesses in achieving worker engagement and implementing environmental, health, safety, and quality programs.

As the number of connected devices grows, so are the opportunity to employ such devices effectively to assist control EHS. Connected innovation has the capacity to strengthen EHS management processes, and by using IoT for EHS, organizations may be able to reap the benefits of creative avenues to reduce worker injury and adverse environmental consequences. The key difficulty for EHS business software suppliers is to develop a system that increases compliance while also decreasing manual labour and expenses.

When the firm uses EHS mobile apps, it can add and complete tasks and activities while on the go, and the information is directly synced with the database when it is online, with the help of artificial intelligence. By enhancing and automating the data collection process, big data ensures data quality. As a result, advanced technology usage is projected to provide opportunities for EHS software vendors in the near future.

Challenges

• Poor regulatory frameworks in developing countries

The incidence of occupational diseases and injuries is particularly high in developing and undeveloped nations due to a variety of factors, including inadequate regulatory frameworks. Poor occupational safety and health management, organizational characteristics of work and employment, and economic status, among other things, impede the creation and maintenance of a safe and healthy work environment. A large portion of the populace is still unaware that EHS software solutions are available. As a result, they are reliant on traditional ways. This aspect may be preventing the market from reaching its full potential. Government legislation and guidelines have increased awareness of EHS software solutions and services among enterprises, emphasizing the significance of preserving the environment and employees.

Furthermore, in the EHS market, firms are expected to conform to a variety of rules; nevertheless, there are various challenges in picking these standards. These laws and regulations are established and enforced by a variety of national, state, and local government entities around the world. Determining which of these legal and other criteria apply to an organization's operations is a vital undertaking that creates an impediment to its implementation.

Segmentation Analysis

The Environmental Health and Safety Market is segregated based on Component, Deployment Mode, and Vertical.

By Component, the market is classified into Software, Services (Analytics, Project Deployment, and Implementation, Business Consulting and Advisory, Audit, Assessment and Regulatory Compliance, Certification, Training, and support). During the forecast period, the services category will increase at a faster rate. Services related to the assistance provided by EHS firms to their customers inefficiently using and maintaining EHS software. Services attempt to train and develop knowledge, provide timely software or platform upgrades, and assist customers in integrating their software or platform with other Information Technology (IT) solutions. With the growing business use of EHS software, the demand for supporting services is expected to expand.

Among Services, the analytics segment is expected to grow at the fastest rate throughout the projection period. Analytics services assist firms in gathering and analyzing data from different sources in order to increase profit margins. When data is entered into the EHS analytics system, it can be seen on a customizable dashboard, shared with other businesses, and imported into an Excel sheet to generate reports. Clients can get custom software from software vendors to fit their specific needs. The segment's expansion is mostly due to increased investments by enterprises in automated environmental, health, and safety solutions to reduce the adverse impact of their operations on the environment and to offer a safe working environment for employees.

By Vertical, the market is classified into Energy and Utilities, Chemicals and Materials, Healthcare, Construction and Engineering, Food and Beverage, Government and Defense, and Others (Telecom and IT, Automotive, and Retail). The demand for EHS in the manufacturing industry is estimated to witness tremendous growth, in terms of revenue because of its use in the strengthening of cybersecurity systems, utility systems, data centres, industrial water and wastewater treatment facilities, and solid waste landfills. The expansion of the industrial industry in the Asia Pacific, Central and South America is predicted to drive demand for environmental, health, and safety services and software.

The development of dams, manufacturing facilities, power plants, and transportation networks has a significant environmental impact. EHS services help construction businesses upgrade outmoded building systems, design energy-efficient building models, effectively maximize and integrate local microclimates, and reduce waste. The telecom business is prone to significant risk due to the existence of strong electric current in various activities such as installation, removal, and rearranging of conductors. Companies in the industry must follow OSHA regulations regulating working surfaces, support structures, and approach distances to exposed electrified overhead power lines. This factor is expected to drive demand for this application category in the coming years.

Due to its capacity to manage buildings, labs, and pharmacies, as well as safeguard workers' safety against biohazards, EHS in the healthcare business accounted for a considerable revenue share over the predicted period. These services include medical waste management, hospital risk assessment, regulatory training, and compliance and safety assessment, all of which are expected to have a beneficial impact on demand.

Report Scope

Regional Landscape

In terms of both consumption and production, the Asia-Pacific region dominates the environmental health and safety market. The environmental health and safety market is expected to see increased demand from India, China, and other Asia Pacific countries. This demand has grown due to the expansion of developed chemical industries as well as expanding construction, energy, and mining sectors.

The market has grown significantly in North America. North America is made up of well-established developing countries with infrastructures that contribute to the creation of a huge market for the EHS solution. The leading contributor countries to the North American EHS market are the United States and Canada; the reason for these countries' dominance is their well-established economies, which stimulate new technological innovation.

Europe commands a substantial market share. This could be attributed to rules enacted by the European Agency for Safety and Health at Work (EU-OSHA) and the Environment Agency (EA) encompassing health, education, consumer welfare, and environmental sustainability. These directives enable policies to be enacted that support the free flow of products and help drive corporate growth.

Recent Developments

• In 2021, Cority, a worldwide corporate EHS software vendor, has acquired WeSustain, a specialist in providing new software solutions for responsible company management and through leaders at the confluence of ecological, social, and governmental (ESG) issues, as well as digitization.
• In 2021, Sphera Launches New Solution to Make Choosing Personal Protective Equipment Easier. It is a solution based on Software-as-a-Service. The PPE Selector software from Sphera provides users with clear and precise information and instructions on the correct protective equipment.

Competitive Landscape

Some of the main competitors dominating the Environmental Health and Safety Market include -

• VelocityEHS (US)
• Enablon (France)
• Intelex (US)
• Cority (US)
• Gensuite (US)
• Sphera (US)
• SAI Global (US)
• Quentic (Germany)
• UL (US)
• Alcumus (UK)
• SHE Software (UK)
• VisiumKMS (US)
• Ideagen (UK)
• EcoOnline (Ireland)
• ETQ (US)
• Dakota Software (US)
• ProcessMap
• SafetyCulture (Australia)
• ProntoForms (Canada)
• Verisk 3E (US)
• Enhesa (US)
• SAP(Germany)
• IsoMetrix (South Africa)
• SHEQX (UK)
• Pro-Sapien (UK)
• SafeSite (US)
• ComplianceQuest (US)

The global environmental health and safety market is segmented as follows:

By Component Segment Analysis

• Software
• Services

By Deployment Mode Segment Analysis

• On-premises
• Cloud

By  Vertical Segment Analysis

• Energy and Utilities
• Chemicals and Materials
• Healthcare
• Construction and Engineering
• Food and Beverage
• Government and Defense
• Others (Telecom and IT, Automotive, and Retail)

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America