Historically, EHS software hasn’t been the biggest market in SaaS – and admittedly not the most exciting startup field. But according to a new survey by Verdantix, that’s changing.
EHS software helps companies capture, analyze and manage data related to occupational health & safety, waste management and sustainability. It can be used to track emissions, investigate workplace incidents, deliver health & safety training or grant access to restricted areas.
Verdantix’s Green Quadrant: EHS Software 2023 survey reveals that the EHS software market has seen more than 50 transactions in the past two years and is predicted to grow from $1.6 billion in 2022 to around $2.7 billion by 2027, despite global economic downturns. Differentiators such as AI and automation are expected to further drive growth of this market sector.
The EHS software market has shifted significantly in the last two years, as providers have responded to ESG-driven demand for robust environmental management solutions. To meet these needs, providers are introducing emerging technologies and redefining the functional capabilities of their products – connecting EHS functions with other business operations. According to Verdantix industry analyst Chris Sayers: “This is a total paradigm shift.”
Since 2011, ETF Partners’ €10 million ($11 million) investment in EHS vendor Enablon has sparked a surge of interest from private equity firms and strategic investors such as Wolters Kluwer and Fortive. Their combined spending on the EHS software market totals $4 billion. The lack of major enterprise software vendors like IBM, Microsoft, Oracle, Salesforce and SAP provides plenty of room for mid-sized companies to thrive.
