Global Carbon Accounting Software Market to Expand at 25.73% CAGR During 2026-2032 Amid Rising ESG Mandates, Says MarkNtel Advisors

NEW DELHI, Feb. 16, 2026 /PRNewswire/ -- According to the recent market research report published by MarkNtel Advisors, the Global Carbon Accounting Software Market is estimated to grow at a CAGR of around 25.73% during 2026–2032. North America leads the global market with nearly 45% of the total share, driven by stringent climate disclosure regulations, early enterprise ESG adoption, and strong penetration of digital sustainability solutions across large organizations.

Global Carbon Accounting Software Market Key Takeaways

• The Global Carbon Accounting Software Market was valued at USD 19.34 billion in 2025 and is projected to reach USD 96.06 billion by 2032, expanding at a CAGR of 25.73% during 2026–2032, reflecting accelerated enterprise ESG integration and regulatory-driven demand.
• Carbon accounting software is increasingly adopted as a core compliance and governance tool to manage Scope 1, Scope 2, and Scope 3 emissions.
• Expanding global regulatory frameworks, including sustainability disclosure mandates in the European Union, climate regulations in California, and the IFRS Sustainability Disclosure Standards, are acting as primary structural catalysts for market growth.
• Large enterprises accounted for approximately 82% of the market share in 2025, driven by complex operational footprints, extensive Scope 3 reporting requirements, and heightened regulatory scrutiny.
• By end-use industry, the energy & utilities sector captured nearly 32% of total market revenue in 2025, supported by mandatory emissions disclosures, carbon pricing mechanisms, and aggressive decarbonization targets.

Prominent Growth Drivers Accelerating Carbon Accounting Software Market Outlook

• Rising ESG Disclosure Mandates: Governments and regulatory bodies worldwide are enforcing climate-related financial disclosures, compelling organizations to adopt standardized, auditable carbon accounting platforms.
• Enterprise Net-Zero Commitments: Corporations across industries are committing to science-based targets and net-zero timelines, increasing demand for robust emissions measurement and tracking tools.
• Supply Chain Emissions Transparency: Growing emphasis on Scope 3 emissions reporting is driving adoption among enterprises with complex, global supply chains.
• Digital Integration with Enterprise Systems: Integration of carbon accounting software with ERP, finance, and risk management systems enhances data accuracy and enterprise-wide governance.

Key Challenges to Global Market Expansion

• High Implementation Complexity: Integration with legacy enterprise systems and multi-source data environments can delay deployment and increase implementation costs.
• Data Standardization Issues: Variations in emissions calculation methodologies and reporting standards across regions pose challenges for global enterprises.

Strategic Role of AI in Scaling Carbon Accounting and Climate Intelligence

Artificial Intelligence (AI) is playing a transformative role in enhancing the functionality, accuracy, and scalability of carbon accounting software solutions. As organizations grapple with increasingly complex emissions reporting requirements, AI-driven tools enable automated data collection, classification, and validation across diverse operational systems and supply chains. By leveraging machine learning algorithms, carbon accounting platforms can detect anomalies, reduce manual data entry errors, and significantly improve the reliability of Scope 1, Scope 2, and particularly Scope 3 emissions calculations.

• For instance, in November 2025, Simple launched a breakthrough AI platform that reads invoices, delivery notes, and quotes to automatically calculate real-time CO₂e emissions and generate precise Scope 3 data without manual input, demonstrating how automation directly addresses data complexity and accelerates reporting timelines.

Beyond automation, AI enhances predictive analytics capabilities, allowing enterprises to model decarbonization scenarios, assess climate-related transition risks, and optimize emissions reduction strategies. Natural language processing (NLP) tools are increasingly integrated to streamline regulatory reporting and generate audit-ready sustainability disclosures aligned with evolving global frameworks. As regulatory mandates intensify and ESG transparency becomes a strategic priority, AI-powered carbon accounting solutions are evolving from compliance-oriented systems into comprehensive climate intelligence platforms that enable data-driven sustainability decision-making and long-term enterprise value creation.

Latest Regulatory Actions and Strategic Moves Accelerating Market Growth

The Global Carbon Accounting Software Market is rapidly transitioning from voluntary sustainability reporting toward mandatory, compliance-driven adoption. Regulatory frameworks such as California's SB 253 and SB 261 are compelling enterprises to formalize emissions tracking and climate-risk disclosures. Beginning in 2026, companies generating over USD 1 billion in revenue must report Scope 1 and Scope 2 emissions, followed by Scope 3 disclosures in 2027, while firms exceeding USD 500 million must publish climate-risk reports. This shift is accelerating the replacement of manual spreadsheets with structured, software-based platforms. Concurrently, strategic investments, such as Persefoni's USD 23 million Series C funding in April 2025, and industry validation, including Context Labs' recognition in Gartner's 2025 Market Guide, reflect strengthening market maturity and enterprise confidence.

Market Analysis by Enterprise Size, End-Use Industry & Region

By End-Use Industry, the energy & utilities sector captured nearly 32% of total market revenue in 2025, emerging as the leading industry vertical. The sector's emissions-intensive operations, participation in carbon pricing mechanisms, and mandatory reporting obligations are driving sustained demand for advanced carbon accounting solutions. Utilities are leveraging these platforms to monitor emissions performance, align with decarbonization roadmaps, and ensure regulatory compliance.

By Enterprise Size, large enterprises accounted for approximately 82% of the Global Carbon Accounting Software Market in 2025, maintaining a dominant position due to extensive regulatory exposure, multinational operational footprints, and complex Scope 1, 2, and 3 reporting requirements. Large corporations increasingly deploy centralized, enterprise-grade carbon management platforms to consolidate emissions data across subsidiaries, supply chains, and international operations. The dominance of this segment is particularly pronounced in North America, where publicly listed companies face stringent disclosure mandates and heightened investor scrutiny.

By Region, North America led the global market with a 45% share in 2025, supported by advanced ESG maturity, evolving climate disclosure regulations, and early adoption of sustainability-focused enterprise software. Strong institutional pressure and regulatory enforcement across the U.S. and Canada continue to reinforce regional market leadership.

Major Companies in the Global Carbon Accounting Software Market

Prominent companies driving innovation and market expansion include:

• SAP SE,
• IBM Corporation,
• Microsoft Corporation,
• Salesforce,
• Wolters Kluwer,
• Accenture,
• Sphera,
• Intelex Technologies,
• Simble Solutions,
• Diligent Corporation,
• Accuvio,
• Persefoni AI,
• Greenly,
• Net0,
• SINAI Technologies, and others.

Global Carbon Accounting Software Market Scope:

• By Software Type: Emission Management Software, Carbon Offsetting Software, Energy Management Software
• By Deployment: Cloud-Based, On-Premise
• By End Use Industry: Energy & Utilities, IT & Telecom, Healthcare, Retail, Food & Beverages, Chemicals, Others
• Enterprise Size: Large Enterprises, SMEs
• By Region: North America, Europe, Asia-Pacific, Middle East & Africa, South America

About Markntel Advisors

MarkNtel Advisors is a globally recognized industry research firm delivering comprehensive market intelligence across emerging and established markets. Our syndicated reports provide in-depth insights into market dynamics, technology trends, regulatory developments, and competitive landscapes shaping global industries. Leveraging robust research methodologies and validated data sources, we empower enterprises, investors, and policymakers to make informed strategic decisions and capture long-term growth opportunities.

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