Environmental Management Systems (EMS) Market Size, Share, Growth, and Industry Analysis, By Type (Cloud Deployment & Local Deployment), By Application (Oil & Gas, Water & Waste Water Treatment, Power and Energy, Telecom and IT & Others), and Regional Forecast to 2033

ENVIRONMENTAL MANAGEMENT SYSTEMS (EMS) MARKET OVERVIEW

The global Environmental Management Systems (EMS) Market, valued at approximately USD 0.12 billion in 2024, is projected to grow steadily to USD 0.13 billion in 2025 and is expected to reach USD 0.67 billion by 2033, maintaining a CAGR of about 7.1% over the forecast period.

An EMS, which can also be known as an Environmental Administrative System, is a system that is developed for the purpose of effective management of environmental concerns within an organization. It is a set of procedures and activities through which an organisation evaluates and manages the effects that it has on the environment within which it operates, e.g., the use of energy and generation of waste products and emissions. An EMS offers an organisation an opportunity to upgrade its overall environmental performance, address environmental laws, and increase its credibility. They also know the objectives of environmental management, how to measure them, and how to refine their effort on a regular basis.

COVID-19 IMPACT

"Environmental Management Systems (EMS) Industry Had a Positive Effect due to Restrictions Imposed by the Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

A survey shows that the COVID-19 pandemic created some environmental benefits as a side effect. Evaluations have shown that the closure of activities globally and the reduction in industrial activity due to the coronavirus pandemic contributed to a decline in air pollution and emissions of greenhouse gases. Moreover, due to the restrictions imposed by the pandemic, such as remote work and virtual meetings, the level of transportation emissions was lowered considerably, and the number of carbon footprints detected also decreased. These positive effects were temporary, and such a situation pointed to the possibility of sustainable practices and the presence of practical long-term solutions regarding the natural environment.

LATEST TREND

"Customer Awareness to Propel the Market Growth"

The EMS market is growing at a very fast pace owing to the growing compliance requirements, growing customer awareness, and globalisation initiatives. Some of the trends that are influencing this market are the continued use of technology, such as artificial intelligence and the Internet of Things, for real-time monitoring and analysis of data available, the shift to more flexible cloud solutions that allow remote access to information, and the incorporation of principles of circular economy within solutions being offered. Moreover, the need to manage sustainable supply chains and reduce carbon footprints to improve on EMS solutions has led to campaigns across the industries.

ENVIRONMENTAL MANAGEMENT SYSTEMS (EMS) MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Cloud Deployment & Local Deployment

• Cloud Deployment: One major advantage of cloud-based EMS solutions is that they allow an organisation access to environmental data and tools from any location. It is easy to expand cloud deployment to meet the changing needs of organisations since resources can be easily added or removed depending on the demand in the market. This essentially means that the organisation can avoid expensive investments in hardware and software, as well as avoid maintenance expenses on the required resources.

• Local Deployment: Local deployments are more flexible and secure because organisations get exclusive ownership and control of environmental data. Local deployments mean that through the use of EMS functionalities, continuity is achieved despite limited or poor connection to the internet. This means local EMS solutions can be customised according to the organisation’s need and demand and therefore do not have to rely on the third-party cloud.

BY APPLICATION

Based on application, the global market can be categorized into Oil & Gas, Water & Waste Water Treatment, Power and Energy, Telecom and IT & Others

• Oil & Gas: It is apparent that the oil and gas industry is under increased environmental legal requirements, hence the need for strong EMS. Since most industries may rely on natural resources to develop their products, there should be objective resource management and a minimum level of waste production.

• Water & Wastewater Treatment: Increasing desertification and escalating water demand for available high-quality water promote the necessity of water-efficient practices. The industry regulation on wastewater treatment and disposal is very strict.

• Power and Energy: The power and energy sector are currently under pressure to lower the carbon footprints per unit of energy and electricity produced as well as embrace sustainable energy practices. EMS assists in the detection and incorporation of cost-chopping energy usage measures with the social gain.

• Telecom and IT: IT is a key producer of electronic waste, which must be correctly disposed of and recycled. The energy spectra are high due to the energy-intensive nature of data centre and telecom infrastructure.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTORS

"Stringent Environmental Regulations and Standards to Expand the Market"

A factor in the Environmental Management Systems (EMS) market growth is the Stringent Environmental Regulations and Standards. Global governments continue to set higher environmental standards to cope with climate change, pollution, and general exhaustion of resources. Many of these regulations mandate the use of formal EMS in order to show compliance among organizations. To appreciate the indispensability of EMS, industries like oil & gas, manufacturing, and healthcare do possess standards/certifications for the environment, such as ISO 14001.

"Growing Corporate Social Responsibility (CSR) and Sustainability Initiatives to Advance the Market"

Gaping demand is in environmental conservation to ensure sustainability; with this, many companies are adopting sustainable practices as consumers move towards environmentally sound services. Thus, organisational stakeholders are getting significant economic value from sustainability and applying pressure on organisations to increase their levels of sustainability. Corporate environmental image can improve the brand image, increase patronage, and increase employee motivation.

RESTRAINING FACTOR

"Huge Initial Investment to Pose Potential Impediments on this Market"

A huge initial investment for the implementation of EMS constrains the Environmental Management Systems (EMS) Market share to a great extent; for example, large-scale industries are reluctant to book the EMS due to the high initial cost involved. A successful and comprehensive EMS takes a lot of resources, which are expenses such as training of personnel to ensure they understand the program, cost of software to be used in the program, acquisition of hardware to support the program, and costs of maintaining and updating the programs. This is particularly so because smaller organisations, particularly the SMEs, may struggle to secure needed resources, especially in times of downturns. manage their environmental performance from anywhere. Cloud deployments can easily scale to accommodate the growing needs of organisations, allowing for flexible resource allocation and cost optimization. By leveraging cloud infrastructure, organisations can reduce upfront hardware and software costs, as well as ongoing maintenance expenses.

OPPORTUNITY

"Greater Circular Economy to Create Opportunity in this Market"

The primary opportunity specifically related to the EMS market is linked to the push towards a greater circular economy. This paper aims to show how EMS can help organisations reduce waste and ensure a measurable number of resources circulates in the economy. Typically, EMS can channel information about material flow, integrate key operational processes for increasing the efficiency of flow, and pursue waste minimisation as well as recycling, which can enable businesses to decrease unfavourable environmental effects and generate new revenues.

CHALLENGE

"Periodical Change according to New Norms to Pose Potential Challenge for this Market"

The regulatory environment is not straightforward or simple. Since governments across the globe are expanding the current set of norms and modifying the previous ones, an EMS needs to be changed periodically to meet the requirements. This is especially a daunting task for organisations that transverse different geographical regions of the world and thus must conform to a number of environmental laws. Moreover, climate change and sustainable development issues bring novel and developing legal restraints, including carbon pricing and climate reporting. These regulations often require organisations to implement formal EMS to demonstrate compliance. Industries like oil and gas, manufacturing, and healthcare have specific environmental standards and certifications (e.g., ISO 14001) that necessitate robust EMS.

ENVIRONMENTAL MANAGEMENT SYSTEMS (EMS) MARKET REGIONAL INSIGHTS

• NORTH AMERICA

The EMS market is primarily led by North America. There are high environmental standards, an orientation towards corporate responsibility, and a well-developed market for environmental products in the region. The locations such as oil and gas, manufacturing, and technology sectors require enhanced EMS solutions and thus contribute towards the demand. Furthermore, EMS adopted by companies in the region promotes the use of innovation and technological developments to produce more efficient tools and platforms. Since the United States Environmental Management Systems (EMS) Market is one of the premier economies, the EPA, its policies, especially those regarding the environment, inspire organisations to embrace EMS.

• EUROPE

Europe is one of the leading regions with regard to EMS and has very definite and stiff environmental standards, combined with a respect for sustainability and comprehensible and definite institutional structures. This paper presents an overview of the adoption of Environmental Management Systems (EMS) across industries under the view of the EU’s directives and standards, including the EU Emissions Trading System (EU ETS). The fact that this region has shifted its attention toward the principles of circular economy and sustainable development goals will continue to boost the need for efficient EMS solutions.

• ASIA

Asia is a fairly emerging market for EMS due to the industrialisation and urbanisation taking place and growing awareness of the environment. Places such as China, India, and Japan today are enjoying relatively high growth rates and are therefore industrialising, thus enhancing environmental issues. These challenges are causing the governments of the region to put in place stringent environmental measures that in turn create a market for EMS.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Environmental Regulations"

Manufacturing industries, oil and gas industries, as well as technology industries have a major impact on this market. These industries operate within environments laden with high levels of environmental regulation, hence the need for proper EMS solutions. Furthermore, these industries have enhanced awareness of the need for sustainability and corporate social responsibility; they have implemented EMS to lower the effects they have on the environment while the improved reputation they have gotten earns them more points with their customers. Hence, it becomes possible to minimise cost and liability risks through a more efficient EMS through innovation in some of these related advanced technologies by these players in industries. market for environmental technologies. The presence of major industries like oil and gas, manufacturing, and technology drives the demand for robust EMS solutions. Additionally, the region's emphasis on innovation and technological advancements fosters the development of advanced EMS tools and platforms. As a leading economic power, the U.S. has stringent environmental regulations, particularly from the Environmental Protection Agency (EPA), which drive the adoption of EMS.

LIST OF TOP ENVIRONMENTAL MANAGEMENT SYSTEMS (EMS) COMPANIES

• IBM (U.S.)
• Fujitsu (Japan)
• TDK (Japan)
• Ricoh Group (Japan)
• TUV SUD (Germany)

KEY INDUSTRY DEVELOPMENTS

2023: 2023 have been called out as the period where IBM declared that the firm will reduce its absolute greenhouse gas emissions to zero by 2030. As a component of this bold strategy, the company has strongly committed to the improvement of its EMS as follows. EMS formulations of IBM are intended to lower energy use, make rational use of resources, and decrease waste production at its global locations. It involves a series of processes and practices that enable an organisation to identify, assess, and control its environmental aspects, such as energy consumption, waste generation, and pollution. By implementing an EMS, organisations can improve their environmental performance, comply with environmental regulations, and enhance their reputation. It helps them set clear environmental objectives, monitor their progress, and continuously improve their practices.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

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