Energy & Utility Carbon Management System Market Size - By Component, By Deployment, Analysis, Share, & Growth Forecast, 2025 - 2034

Energy & Utility Carbon Management System Market Size

The global energy & utility carbon management system market size was valued at USD 2.9 billion in 2024 and is estimated to reach the value of USD 7.6 billion by 2034, growing at a CAGR of 10.7% from 2025 to 2034. The implementation of strict carbon caps and compliance regulations has driven energy companies to adopt carbon management systems for emissions tracking and reporting. For instance, in 2024, the U.S. Environmental Protection Agency introduced Clean Power Plan 2.0, which requires a 50% reduction in emissions from the power sector by 2030.
 

Rising grid conversion into decentralized systems with renewable-based models, precise carbon accounting becomes essential to drive demand for specialized systems. For instance, in 2024, the European Union's new renewable energy directive demands carbon accounting on an hourly basis for hybrid systems. Providers, including Orsted, implement integrated management software for the dynamic emissions tracking of mixed energy-source systems.
 

Corporate sustainability goals have increased demand for precision reporting and monitoring tools that can accurately measure and report on carbon emissions in real-time. Major energy players aim for net-zero targets by utilizing advanced technology to monitor and reduce emissions across their operations. For instance, Shell’s 2024 commitment to achieve 100% renewable operations by 2035 requires third party-validated data through platforms that include Persefoni and Salesforce to track emissions from various sources.
 

With technological advancement, systems are made more accessible and less expensive so companies can monitor and reduce their carbon footprints. AI and blockchain advancements have allowed for decreased costs and improved scaling, with the result that carbon management is now affordable for smaller utilities. For instance, Australia’s 2024 National Blockchain Roadmap allocated USD 30 million to experiment with decentralized carbon ledgers in regional grids.
 

The tariffs enacted by President Trump in April 2025 are poised to significantly impact the overall carbon management system market. By imposing a 10% tariff on all imported goods with higher rates for specific countries, the cost of importing essential components including sensors, data acquisition hardware, and specialized software is expected to rise. This increase in costs may lead to higher prices for carbon management systems, potentially slowing their adoption as utilities and energy companies face budget constraints.
 

Furthermore, these tariffs could disrupt global supply chains, causing delays in project timelines and hindering the deployment of carbon management solutions. Companies may need to seek alternative suppliers or consider domestic manufacturing, which could involve additional time and investment. Additionally, the tariffs may strain international trade relations, leading to retaliatory measures that could further affect the energy sector.
 

Energy & Utility Carbon Management System Market Trends

The rising integration of renewable energy sources, including solar and wind, creates more demand for accurate carbon monitoring and management. Utilities need to track and manage diverse energy inputs while keeping up with evolving environmental standards. For instance, the EU’s REPowerEU Plan aims to accelerate renewable energy deployment and reduce 45% of energy from renewables by 2030. In addition, NextEra Energy invested over USD 55 billion in wind and solar projects in 2023 that require advanced carbon tracking to meet sustainability goals.
 

The adoption of AI, IoT, machine learning, and cloud analytics is transforming carbon management systems, allowing companies to accurately measure and reduce their carbon footprint in real-time. For instance, Shell’s AI-powered carbon tracking system has been established in partnership with Amazon Web Services (AWS) which uses IoT sensors and machine learning algorithms to monitor and analyze greenhouse gas emissions in real-time across its global oil and gas operations, enhancing accuracy and compliance with sustainability targets.
 

With governments worldwide imposing stricter emission regulations and a growing number of companies committing to net-zero targets. The market is fueled by the need for comprehensive and transparent carbon management solutions to meet both compliance requirements and sustainability goals. For instance, Microsoft’s ambitious 2030 carbon-negative pledge relies on advanced carbon accounting solutions, including Sustain Life’s AI-driven platform, which enables real-time tracking, granular emissions analysis, and automated reporting across its global operations.
 

Energy & Utility Carbon Management System Market Analysis

• The global market for energy & utility carbon management system was valued at USD 2.6 billion, USD 2.7 billion and USD 2.9 billion in 2022, 2023 and 2024 respectively. Based on components, the market is segmented into solutions & services, where solutions segment will grow at a CAGR of over 10% through 2034. 
   
• Solutions are software platforms that monitor and reduce carbon emissions through advanced carbon accounting and reporting features. For instance, Siemens’ gPROMS Carbon Capture helps Ørsted track emissions from offshore wind farms and optimize carbon capture processes to minimize environmental impact, aligning with the EU’s REPowerEU targets to cut fossil fuel reliance.
   
• Services provide consulting and technical support to implement carbon management tools and strategies effectively, ensuring that organizations can maximize the benefits of these solutions. For instance, Accenture partnered with Duke Energy in 2022, deploying AI-driven audits to map and analyzing Scope 3 emissions.
   
• In citation, SAP’s Sustainability Cloud paired with Deloitte’s advisory services helped Enel cut emissions by 80% in its renewable projects since 2022. This synergy drives market growth as companies prioritize compliance and efficiency in the energy transition.
   

• Energy & utility carbon management service through cloud have a market revenue share of over 51%. Based on deployment, the market is segmented cloud & on-premises, where cloud deployment industry will grow at a CAGR of over 11% through 2034. 
   
• Cloud-based solutions operate carbon management tools remotely, allowing companies to track emissions and optimize energy usage in real-time. This not only helps organizations meet regulatory requirements but also enhances their overall sustainability performance.
   
• They reduce infrastructure costs and support rapid compliance with evolving environmental regulations. For instance, Siemens Energy uses AWS cloud platforms to monitor emissions across wind farms and optimize energy production, cutting reporting costs by 20% while meeting the EU's CSRD standards.
   
• The on-premises systems will grow at a CAGR of over 10% through 2034, as they are installed locally to provide real-time data collection and analysis, ensuring that companies can make informed decisions quickly based on accurate information. This flexibility allows for seamless integration with existing infrastructure and enables companies to adapt to changing environmental regulations with minimal disruption.
   
• Rising hybrid models (cloud + on-premises) provide flexibility and security, allowing companies to take advantage of the scalability and cost-effectiveness of cloud solutions while maintaining control over sensitive data. For instance, NextEra Energy uses cloud tools for solar projects and on-premises systems for legacy grids, achieving 15% faster decarbonization since 2023.
   

• The U.S. energy & utility carbon management system market in 2022, 2023 and 2024 was valued at USD 740 million, USD 770 million and USD 810 million respectively. Strict environmental rules and company green goals are boosting the carbon management market. For instance, Portland General Electric in Oregon uses Salesforce's Net Zero Cloud software to track emissions, cutting reporting time by 40%.
   
• Europe energy & utility carbon management system market will grow at a CAGR of 9.6% from 2025 to 2034 owing to strict environmental laws that are making carbon management systems popular among energy companies. For instance, Spanish energy company Iberdrola uses Schneider Electric's EcoStruxure software, which cut their carbon reporting costs by 35% while also helping them meet EU regulations on emissions. German energy company Uniper now uses SAP Sustainability tools to track clean hydrogen fuel production, reducing their carbon footprint by 25%.
   
• Asia-Pacific's swift transition to clean energy is creating a big demand for carbon tracking and reporting solutions that has resulted with over 21% of market share in 2024. Companies in the region are increasingly investing in technology to help them comply with regulations and reduce their environmental impact. For instance, Japanese power company Tokyo Electric Power uses Mitsubishi's digital systems, allowing them to accurately monitor and report their carbon emissions in real-time, making emissions data 30% more accurate.
   
• The Middle East and Africa energy & utility carbon management system market was valued at USD 222 million in 2024. Solar power growth needs, better carbon tracking and reporting solutions to ensure sustainability goals are met is augmenting regional market. As global pressure for environmental accountability increases, companies worldwide are recognizing the importance of accurate carbon tracking to demonstrate their commitment to reducing emissions.
   
• Latin America's clean energy boom is growing the carbon management market rapidly and is estimated to reach USD 549 million in 2034, with companies seeking innovative solutions to accurately measure and report their emissions data. For instance, Brazilian hydropower company Eletrobras uses Microsoft Cloud for Sustainability, streamlining their emissions reporting process and providing real-time data for decision-making and emissions reporting 35% easier.
   

Energy & Utility Carbon Management System Market Share

The top 5 companies are IBM, Engie, Schneider Electric, SAP, and Enablon, that collectively account for approximately 35% of the market share. These industry leaders offer comprehensive solutions that help organizations monitor, report, and reduce their carbon emissions, thereby facilitating compliance with environmental regulations and supporting sustainability initiatives.?
 

ENGIE, a French multinational utility company, specializes in energy transition, electricity generation and distribution, natural gas, and renewable energy. The company has made significant advancements in reducing its carbon footprint by investing in renewable energy projects and energy efficiency services. ENGIE's commitment to sustainability is evident in its strategic shift towards decarbonized, decentralized, and digitized energy solutions. By 2030, ENGIE aims to invest USD 2.10 billion in renewable gas, producing 5 TWh of biomethane annually.
 

Energy & Utility Carbon Management System Market Companies

• ?IBM, headquartered in the U.S., reported a revenue of USD 62.8 billion for the fiscal year 2024. IBM, which specializes in hybrid cloud computing and artificial intelligence, provides the Envizi Emissions Management software suite. In 2024, IBM launched Maximo Emissions Management, an AI-powered solution designed to help asset-intensive industries monitor and manage emissions effectively.
   
• Schneider Electric, based in France, achieved revenues of USD 39.9 billion in 2024. The company specializes in energy management and automation solutions, one of its products, called EcoStruxure Resource Advisor, is a cloud-based platform that consolidates enterprise-wide energy and sustainability data, transforming information into actionable insights. In 2024, Schneider Electric introduced Zeigo, a software ecosystem designed to simplify and accelerate decarbonization actions for companies of all sizes.
   
• SAP, headquartered in Germany, reported a total revenue of USD 35.8 billion in 2024, reflecting a 10% increase from the previous year. The company specializes in enterprise application software, including sustainability solutions. SAP Sustainability Footprint Management helps businesses calculate and manage their carbon footprints, enabling real-time decision-making to support decarbonization efforts. In 2024, SAP was positioned as a leader in carbon accounting and management applications by the IDC MarketScape Vendor Assessment.
   
• Enablon, a subsidiary of Wolters Kluwer based in the Netherlands, contributed to the parent company's total revenue of USD 6.2 billion in 2024. Enablon specializes in environmental, health, and safety (EHS) software solutions. In 2024, Enablon was recognized as a leader in carbon management software in the Verdantix Green Quadrant report, achieving top scores in data acquisition and carbon emissions calculation.
   

Major players operating in the energy & utility carbon management system market include:

• Accuvio
• Carbon Footprint Ltd.
• Dakota Software
• Enablon
• EnergyCap.
• Engie
• Enviance
• Envirosoft
• ESP
• IBM
• Intelex
• Isometrix
• Locus Technlogies
• NativeEnergy
• New Era Cleantech
• Salesforce
• SAP
• Schneider Electric
• Trinity Consultants
   

Energy & Utility Carbon Management System Industry News

• In June 2024, a U.S. appeals court ruled that the Environmental Protection Agency's regulation requiring significant reductions in power plants' carbon emissions can proceed while challenges from over two dozen states are considered. The rule is part of President Biden's climate agenda, aiming for a 90% reduction in greenhouse gas emissions by 2032.
   
• In June 2024, the World Bank approved an additional USD 1.5 billion in financing to support India's low-carbon energy transition. This funding aims to promote the development of a vibrant market for green hydrogen, scale up renewable energy, and stimulate finance for low-carbon energy investments. The operation supports reforms to boost the production of green hydrogen and electrolyzers, critical technologies needed for green hydrogen production.
   
• In December 2024, New Era Cleantech Solutions Private Limited received a letter of award for financial incentives from India's Ministry of Coal. The incentives support the company's coal gasification and carbon capture utilization (CCU) project, marking India's first and largest commercial-scale initiative targeting net-zero emissions by capturing 100% of CO2 emissions during the gasification process. This project is part of the government's USD 1 billion Financial Incentive Scheme aimed at promoting coal/lignite gasification projects.
   
• In November 2024, the French government launched public consultations on the third national low-carbon strategy and multiannual energy program, aiming for carbon neutrality by 2050. The plans include ambitious targets for reducing emissions in transport, housing, and food sectors.
   

This global energy & utility carbon management system market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘USD Billion’ from 2021 - 2034, for the following segments:

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Market, By Component

• Solutions
• Services

Market, By Deployment

• Cloud
• On-premises

The above information has been provided for the following countries across the regions.

• North America
  • U.S.
  • Canada 
• Europe
  • Germany
  • France
  • UK
  • Spain
  • Italy
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • South Africa
  • UAE
• Latin America
  • Brazil
  • Argentina