Carbon Accounting Software Market Report Scope & Overview:

The Carbon Accounting Software Market was valued at USD 24.32 billion in 2025 and will reach USD 191.21 billion by 2035, growing at a CAGR of 22.9% by 2035.

The carbon accounting software market has observed rapid growth and demand with the growing focus of corporations on sustainability and regulatory compliance from strict worldwide emissions regulations, corporate social responsibility (CSR) programs, and investor requirement for clear environmental reporting. For example, in a 2022 study where we surveyed close to 80% of respondents commented that compliance with environmental regulations such as Paris Agreement was driving the adoption of carbon accounting software. Software that does carbon accounting makes it easy to track and report greenhouse gas emissions and work to minimize them by calculating their carbon footprint across their operations and supply chain.

Carbon Accounting Software Market Size and Forecast:

• Market Size in 2025E: USD 24.32 Billion

• Market Size by 2035: USD 191.21 Billion

• CAGR: 22.9% from 2026 to 2035

• Base Year: 2025

• Forecast Period: 2026–2035

• Historical Data: 2022–2024

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The U.S. Carbon Accounting Software market size was estimated at USD 8.10 billion in 2025 and is projected to reach USD 63.40 billion by 2035, growing at a CAGR of approximately 23.1% during the forecast period. Market growth is attributable to increasing regulatory and other mandates to carbon disclosure, growing corporate commitment towards Net-Zero Carbon Emissions and rising adoption of ESG reporting frameworks. Rising enterprise demand in the energy, manufacturing, finance and technology sectors coupled with AI-driven emissions tracking and cloud-based sustainability platforms are also driving market adoption with offerings delivering real-time, accurate and scalable carbon management solutions.

Carbon Accounting Software Market Highlights:

• Increasing regulatory pressure, particularly in the EU, U.S., and China, is driving adoption of carbon accounting software.

• Investor expectations for sustainability and ESG criteria are encouraging businesses to implement carbon tracking solutions.

• Rising consumer demand for eco-friendly products is pushing companies to showcase environmental responsibility using carbon accounting tools.

• Technological advancements, including AI and machine learning, enhance software capabilities with real-time insights and predictive analytics.

• Inconsistent global regulations and reporting frameworks pose challenges, increasing complexity and cost for multinational companies.

• Growing alignment between consumer preferences and corporate sustainability goals is expected to further boost market growth.

Key growth drivers include mounting regulatory pressure, especially in regions like the European Union, which is toughening its carbon emissions rules. The EU’s Corporate Sustainability Reporting Directive (CSRD) will, for example, require companies to disclose more detailed emissions data, providing even greater impetus to the uptake of such software. Also, the U.S. and China are ramping up stricter climate policies which is promoting a global need for carbon tracking solutions to support that climate policy.

In addition, investors’ demands on sustainability are increasing. Environmental, Social and Governance (ESG) standards are ever more important to evaluating a company’s commitment to long term value. This incentivizes companies to implement carbon accounting software to prove they are ecologically responsible, which will attract investments.

Companies, including Salesforce and Microsoft, have already rolled out carbon management platforms which permit their customers to monitor emissions in real-time and increase transparency. There are also ongoing technological advances that are increasingly allowing us to include factors like Carbon Accounting, AI and machine learning as part of the software. It is also apparent that AI has the potential to automate tracking and reporting, provide access to real-time information and predictive analysis for better decision-making and management of emissions reduction.

Carbon Accounting Software Market Drivers:

• Rising consumer preference for eco-friendly brands drives businesses to adopt carbon reporting to highlight sustainability efforts.

Increasing consumer thirst for environmentally friendly goods, and the pressure this puts on business, are also actively pushing firms towards carbon accounting software. With an increasing number of consumers considering sustainability when purchasing, firms are facing pressure to show their environmental commitment. That's encouraged companies to incorporate carbon tracking and reporting tools as a way to showcase how they're working on reducing greenhouse gas emissions and lowering their carbon profile. Carbon accounting software allows an organisation to quantify emissions from operations and supply chains which means they can have transparency for sustainability claims. By investing in these types of solutions, a company is better able to demonstrate its commitment to "green" strategies and bolster its image among environmentally-mindful patrons.

In the near future, this trend is anticipated to bring about substantial growth in the carbon accounting software market. As consumer consciousness of climate change rises, so will demand for brands that prioritize sustainability, leading more companies to embrace carbon-tracking tools. Consumer demand for sustainability hitting its tipping point with corporate priorities will lead continued evolution in carbon accounting technology.

Carbon Accounting Software Market Restraints:

• Inconsistent global regulations and reporting frameworks make it difficult for companies to adopt a uniform carbon accounting approach.

Lack of unified international legal and reporting framework creates a barrier for firms considering to adopt the carbon accounting software. Emissions reporting standards differ from country to country, posing challenges for organizations that work in multiple geographic markets. For instance, the European Union has a more stringent regulation around carbon disclosure under schemes such as the CSRD, but elsewhere regulations may be less well-defined or supervened by other frameworks entirely.

This lack of consistent information is a barrier to corporations in exercising comparable carbon accounting. This results in a complex and expensive process for the implementation of carbon management software as they must tailor their reporting processes to accommodate varying environmental laws. It also adds confusion over which metrics to value most and how to report emissions consistently. By contrast, companies may defer implementing carbon accounting solutions until global standards converge further, hampering the market’s growth opportunity as a whole in the near term.

Carbon Accounting Software Market Segment Analysis

By Deployment

In 2025, the cloud segment dominated the market, capturing over 73.5% of global revenue. Cloud-based carbon accounting tools give businesses the ability to access these types of capabilities from anywhere, making it possible to monitor and manage emissions in real time across different locations. This is particularly beneficial for companies with decentralized staff or remote teams. Cloud tools also reduce the requirement of hefty initial IT investments, therefore, proving to be a favourable option for small and medium enterprises.

The on-premises segment is expected to register the highest CAGR during the forecast period 2026-2035. Companies with high data-security requirements, such as those in finance, healthcare and government, frequently need local software to maintain full control over their sensitive carbon emissions data. These solutions can also be more custom-fit, allowing enterprise companies to customize them to their own use cases and connect with other IT systems. With growing regulatory requirements and the need for accurate carbon accounting, businesses are turning to secure on-premise solutions as they strive for compliance and data protection of proprietary information, leading to strong growth in this category over the forecast window.

By Enterprise Size

The large enterprises segment dominated the market and represented over 53.2% of market revenue in 2025. Many large companies have multiple businesses and locations across regions, they need a more sophisticated methodology to track how much carbon they are emitting and where at a global level. Strong commitment to environmental compliances & ESG standards forces substantial investment in next-gen carbon accounting software. These solutions provide detailed insights, reporting options to suit the company´s needs as well as an integration with the broader enterprise systems, allowing big companies to better control their sustainability efforts and keep stakeholders in good shape.

The small and medium enterprises (SMEs) segment is projected to experience significant growth at a CAGR during the forecast period 2026-2035. With environmental legislation getting stricter, SMEs are starting to adopt carbon accounting tools to be compliant and reduce their sustainability profiles. The proliferation of readily available, web-based applications that are inexpensive and simple to use has made it easier for programs to deploy these toolkits without significant initial investments. In addition, increasing requests for transparency of environmental performance from consumers and partners is driving the demand for ofs etting among SMEs in order to remain competitive.

By End-Use

In 2025, the energy and utilities segment generated the largest revenue share in the carbon accounting software market. Energy and utilities businesses are among the largest contributors of greenhouse gases, so they are subject to stringent government regulations and reporting requirements. These companies feel a significant amount of pressure to reduce their carbon footprint and do “the right thing”. Carbon accounting software provides these companies with the right tools for tracking greenhouse gas emissions across all of their activities, optimizing energy usage and adhering to environmental regulations.

The transportation & logistics segment is expected to register the highest CAGR during the forecast period 2026-2035. Amid tighter environmental regulations and carbon reduction commitments by governments throughout the world, companies involved in this sector are being compelled to utilise sophisticated carbon accounting software solutions for better control over their emissions across the entire company. Moreover, green logistics projects are also in the process of growth and increasing consumer needs for environmentally friendly supply chain raises industry towards sustainability.

Carbon Accounting Software Market Regional Analysis:

North America Carbon Accounting Software Market Trends:

In 2025, North America dominated the market and represented a revenue share of 39.3%. Both the United States and Canada governments have implemented strict greenhouse gas emission reporting obligations, and as a result many organizations in a range of sectors are using carbon accounting software. Moreover, with the growing focus on ESG among North American businesses, there is even more demand for innovative solutions to track and report carbon emissions. The substantial market penetration in the area is further supported by a number of large industrial onsumers and high technology uptake.

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Asia-Pacific Carbon Accounting Software Market Trends:

The Asia Pacific carbon accounting software market is anticipated to experience rapid growth throughout the forecast period. Rising demand for carbon accounting software from businesses out to comply with evolving environmental codes and regulations such as those implemented in the likes of China, India and Japan is fueling growth of the market. For example, the Indian government has introduced measures to make it attractive for companies to monitor their carbon footprint. Software for carbon accounting to keep track of and manage their carbon footprint. On the other hand, regulatory requirements around carbon accounting differ between markets in Asia Pacific, posing challenges to companies that do have a regional presence.

Europe Carbon Accounting Software Market Trends:

Europe is a major adopter of carbon accounting software, propelled by strict environmental policies, including the European Union (EU)’s Corporate Sustainability Reporting Directive (CSRD) and the EU Emissions Trading System (ETS). Organizations in all sectors are facing ever more stringent greenhouse gas emissions reporting and sustainability requirements. The increasing spotlight on ESG compliance and investor-led sustainability requirements is also underpinning demand. Mature technology infrastructure and some of the global leaders in carbon accounting software providers, also helps drive the market.

Latin America Carbon Accounting Software Market Trends:

Latin America’s carbon accounting software market is anticipated to post a steady growth on the back of reduction in carbon emissions and focus on environmental sustainability in countries such as Brazil, Mexico, and Chile. Companies are turning to carbon accounting software as they race to meet new regulations and respond to ESG-focused investors. Brazil in particular is seeing growth due to government policies promoting carbon footprint transparency. However, economic fluctuation and low awareness level in SMEs reduce the market penetration to certain extent for some countries.

Middle East & Africa (MEA) Carbon Accounting Software Market Trends:

The MEA market for carbon accounting software is gaining traction slowly as UAE, Saudi Arabia and South Africa government have started with sustainability and carbon reduction initiatives in these regions. Regulatory policies to promote corporate sustainability and government-supported green initiatives are the main factors promoting the adoption of solutions. Big business and heavy industry are beginning to adopt carbon accounting to track and control emissions. But uneven regulatory compliance and disparity in technology adoption even from one part of the region to another can be a challenge to consistent implementation, or execution.

Carbon Accounting Software Market Key Players:

• Climate Vault - (Carbon Offsetting, Climate Risk Assessment)

• Carbon Tracker - (Carbon Disclosure, Climate Risk Analysis)

• Persefoni - (Carbon Accounting, Climate Risk Management)

• Climate Neutral Group - (Carbon Footprint Calculation, Carbon Offset Solutions)

• Watershed - (Carbon Accounting, Climate Risk Management)

• Climate Analytics - (Climate Risk Assessment, Climate Change Modeling)

• Climate Action Tracker - (Climate Policy Tracking, Climate Target Analysis)

• Coolset - (Carbon Footprint Calculation, Carbon Reduction Strategies)

• Normative - (Carbon Footprint Calculation, Carbon Reduction Strategies)

• Plan A - (Carbon Footprint Calculation, Carbon Reduction Strategies)

• Emitwise - (Carbon Footprint Calculation, Carbon Reduction Strategies)

• Sinai Technologies - (Carbon Accounting, Climate Risk Management)

• Vaayu - (Carbon Footprint Calculation, Carbon Reduction Strategies)

• Greenly - (Carbon Footprint Calculation, Carbon Offset Solutions)

• Sustain Life - (Carbon Footprint Calculation, Carbon Reduction Strategies)

• Pledge - (Carbon Footprint Calculation, Carbon Offset Solutions)

• Sphera - (Carbon Accounting, Sustainability Management)

• Intelex Technologies - (Carbon Accounting, Environmental Management)

• Net0 - (Carbon Footprint Calculation, Carbon Reduction Strategies)

• Evalue8 Sustainability - (Carbon Footprint Calculation, Carbon Reduction Strategies)

Carbon Accounting Software Market Competitive Landscape:

Engie was founded in 2008 and is based in France while operating as a global power producer, a natural gas company and an energy services supplier. It specializes in renewable energy, energy efficiency solutions, and decarbonization projects for industrial, commercial and residential clients all over the world to promote sustainable energy transitions.

• In May 2024, Engie, a French multinational utility company, partnered with a sustainability software provider to implement a cloud-based carbon accounting platform across its operations. This signifies a growing trend of large corporations adopting advanced carbon accounting solutions.

Schneider Electric is headquartered in France and is one of the world’s largest providers of energy management and automation technologies. The company offers integrated hardware and software solutions, coupled with a full range of engineering R&D services, which provides rapid commercialization of the products and services.

• In April 2024, Schneider Electric launched a new carbon accounting software solution specifically designed for small and medium-sized businesses (SMBs). This development indicates an expansion of the market to cater to the needs of a wider range of companies.