Environmental health and safety software is now a flagship

Historically, environmental health and safety software has not been a massive market - at least compared to others in the software-as-a-service segment - and this is not is certainly not the most exciting category of startups. But that's changing, according to a new survey published by research firm Verdantix.

EHS software acts as a data management system to capture and analyze information related to occupational health and safety, waste management and sustainability. Companies use EHS software to track emissions and investigate workplace incidents, for example, as well as to provide health and safety training and authorize access to confined spaces.

The Verdantix Green Quadrant: EHS Software 2023 survey shows that the EHS software market has seen more than 50 transactions over the past two years and forecasts it will grow from $1.6 billion in 2022 to around $2.7 billion by 2027. Verdantix predicts "We will further thwart the global economic downturn through differentiators such as the use of AI and automation.

“Over the past two years, the EHS software market landscape has undergone a paradigm shift, as EHS vendors have expanded their product offerings to meet the voracious appetite for robust environmental management solutions. sparked by the ESG megatrend," Verdantix industry analyst Chris Sayers said in a statement. "As EHS functions seek to interconnect with other business operations, suppliers are looking to emerging technologies as a point of differentiation and redefining the functional possibilities of EHS software."

According to the Verdantix report, since ETF Partners invested approximately €10 million (approximately $11 million) in EHS provider Enablon in 2011, private equity firms and strategic investors such as Wolters Kluwer and Fortive have spent over $4 billion investing in EHS. software market. The absence of the world's largest enterprise software vendors, including IBM, Microsoft, Oracle, Salesforce and SAP, has left plenty of oxygen in the market for midsize businesses to grow.