Historically, environmental health Safety software has never been a huge market, at least compared to other markets in the software as a service segment. But that’s changing, according to a new study released by research firm Verdantix.
EHS software acts as a data management system for capturing and analyzing information related to occupational health and safety, waste management, and sustainability. Companies use his EHS software to track emissions and investigate workplace accidents. For example, conduct health and safety training and allow access to restricted spaces.
Verdantix’s Green Quadrant: EHS Software 2023 study predicts that the EHS software market will grow from $1.6 billion in 2022 to nearly $2.7 billion by 2027, with more than 50 transactions in the past two years. Additionally, a global recession due to differentiating factors such as the use of AI and automation.
Verdantix Industry Analyst Chris Sayers said: said in a statement. “As EHS capabilities seek interlinkages with other business operations, providers are looking to new technologies as a point of differentiation and redefining the capabilities of their EHS software.”
Since ETF Partners invested about €10 million (about $11 million) in EHS vendor Enablon in 2011, private equity firms and strategic investors such as Wolters Kluwer and Fortive have invested in EHS, according to a Verdantix report. It has spent over $4 billion entering the software market. The absence of the world’s largest enterprise software vendors (IBM, Microsoft, Oracle, Salesforce, SAP, etc.) leaves a lot of oxygen in the market for midsize companies to grow.
