Global EHS Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Component;
Solution and Services.By Deployment Mode;
Cloud and On-Premises.By Vertical;
Energy and Utilities, Chemicals and Materials, Healthcare, Construction and Engineering, Chemicals and Material, Food and Beverages, Government and Defense and Others.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2021 - 2031).Introduction
Global EHS Market (USD Million), 2021 - 2031
In the year 2024, the Global EHS Market was valued at USD 8,561.66 million. The size of this market is expected to increase to USD 16,108.99 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 9.5%.
The global Environmental, Health, and Safety (EHS) market is witnessing robust growth as organizations increasingly recognize the importance of maintaining high standards in these areas. EHS encompasses practices and protocols aimed at ensuring the well-being of both employees and the environment within which businesses operate. With mounting regulatory pressures and growing awareness of sustainability issues, companies across various sectors are investing significantly in EHS solutions and services.
One of the primary drivers of the EHS market's expansion is the escalating focus on compliance with stringent environmental regulations. Governments worldwide are imposing stricter laws to curb pollution, reduce carbon emissions, and promote sustainable practices. As a result, businesses are compelled to adopt EHS technologies to monitor, report, and adhere to these regulations effectively. This heightened regulatory environment has spurred the demand for EHS software, which offers features like environmental management, occupational health monitoring, and incident management.
The increasing emphasis on workplace safety and occupational health is fueling the adoption of EHS solutions. Companies are recognizing the direct correlation between employee well-being and productivity, leading them to invest in tools and systems that mitigate workplace hazards and promote a culture of safety. EHS software equipped with features such as risk assessment, safety training management, and emergency response planning are becoming indispensable for organizations striving to create safe work environments.
The growing awareness of corporate social responsibility (CSR) and sustainability among consumers and stakeholders is driving businesses to integrate EHS considerations into their operations. Companies are realizing that demonstrating a commitment to EHS not only enhances their reputation but also contributes to long-term profitability and resilience. Consequently, there's a rising demand for EHS solutions that facilitate sustainability reporting, energy management, and supply chain transparency, enabling organizations to align their business objectives with environmental and social goals.
Global EHS Market Recent Developments
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In February 2024, VelocityEHS announced the acquisition of Contractor Compliance, a Canadian company specializing in enterprise safety and risk management software. This acquisition enhances the VelocityEHS Accelerate Platform by adding advanced capabilities for third-party contractor and vendor compliance.
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In August 2023, UL Solutions revealed its acquisition of CERE, a privately-owned third-party testing, simulation, and certification firm based in Madrid.
Segment Analysis
The global Environmental, Health, and Safety (EHS) market has witnessed significant growth in recent years, driven by a growing emphasis on regulatory compliance, sustainability initiatives, and the need to mitigate risks associated with workplace accidents and environmental hazards.
One key driver behind the expansion of the EHS market is the increasing stringency of regulations across various industries and regions. Governments worldwide are imposing stricter environmental and occupational health regulations to ensure the safety of workers and the surrounding communities. This has compelled organizations to invest in EHS solutions and services to maintain compliance and avoid penalties.
The growing awareness of environmental issues and the need for sustainable business practices have propelled the adoption of EHS solutions. Companies are increasingly recognizing the importance of incorporating environmental and social responsibility into their operations to enhance their corporate image, attract investors, and meet the expectations of stakeholders.
The rise in workplace accidents and incidents has underscored the importance of robust EHS management systems. Businesses are investing in advanced technologies such as IoT sensors, predictive analytics, and cloud-based platforms to proactively identify and mitigate risks, thereby improving worker safety and operational efficiency.
The EHS market is also benefiting from the integration of digitalization and automation technologies. Advancements in artificial intelligence, machine learning, and data analytics are enabling organizations to streamline EHS processes, gain actionable insights from vast amounts of data, and drive continuous improvement in their environmental and safety performance.
Global EHS Segment Analysis
In this report, the Global EHS Market has been segmented by Component, Deployment Mode, Vertical and Geography.
Global EHS Market, Segmentation by Component
The Global EHS Market has been segmented by Component into Solution and Services.
The Solutions segment encompasses a wide range of software applications and platforms designed to monitor, manage, and optimize various aspects of environmental, health, and safety performance within an organization. These solutions often include modules for risk assessment, incident management, compliance tracking, audit management, and environmental management, among others. With the advent of advanced technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and Big Data analytics, EHS solutions are becoming more sophisticated, enabling organizations to proactively identify risks, streamline compliance processes, and improve overall operational efficiency.
The Services segment comprises consultancy, training, implementation, and support services offered by EHS solution providers and consulting firms. These services play a vital role in helping organizations navigate complex regulatory requirements, develop and implement EHS strategies, train employees on safety protocols, and optimize the use of EHS software solutions. Additionally, EHS service providers often offer ongoing support and maintenance services to ensure the effective utilization of EHS technologies and address evolving business needs.
Global EHS Market, Segmentation by Deployment Mode
The Global EHS Market has been segmented by Deployment Mode into Cloud and On-Premises.
Cloud-based EHS solutions have gained immense popularity due to their flexibility, scalability, and cost-effectiveness. Organizations opt for cloud deployment to leverage the benefits of remote access, allowing stakeholders to access critical EHS data from anywhere, at any time. This accessibility facilitates real-time collaboration and decision-making, enabling companies to respond promptly to emerging risks and compliance requirements. Moreover, cloud-based solutions typically involve lower upfront costs and eliminate the need for extensive IT infrastructure, making them particularly attractive for small and medium-sized enterprises (SMEs) looking to streamline their EHS processes without significant capital investment.
On-premises EHS solutions continue to be preferred by certain industries and enterprises with specific security or regulatory concerns. Organizations operating in highly regulated sectors, such as healthcare, pharmaceuticals, and defense, often prioritize on-premises deployments to maintain full control over their data and ensure compliance with industry standards and regulations. Additionally, some companies may opt for on-premises solutions due to legacy systems or infrastructure limitations that make cloud adoption challenging or impractical.
The choice between cloud-based and on-premises deployment ultimately depends on various factors, including organizational size, industry regulations, data security requirements, and IT infrastructure capabilities. While cloud deployment offers greater agility and cost savings, on-premises solutions provide greater control and customization options. As the EHS landscape continues to evolve, businesses are likely to adopt hybrid deployment models that combine the advantages of both cloud and on-premises solutions to meet their unique needs effectively.
Global EHS Market, Segmentation by Vertical
The Global EHS Market has been segmented by Vertical into Energy and Utilities, Chemicals and Materials, Healthcare, Construction and Engineering, Chemicals and Material, Food and Beverages, Government and Defense and Others.
One of the key verticals within this market is Energy and Utilities, which includes oil and gas, renewable energy, and utilities companies. These organizations face significant EHS concerns due to the inherent risks associated with their operations, such as worker safety, environmental impact, and regulatory compliance. As a result, they invest heavily in EHS solutions to manage these risks effectively and ensure sustainable operations.
Another important vertical is Chemicals and Materials, which encompasses chemical manufacturing, pharmaceuticals, and other industries involved in the production and handling of chemicals and materials. These companies must adhere to stringent safety and environmental regulations to protect workers, communities, and the environment from potential hazards. EHS solutions play a crucial role in helping them monitor and mitigate risks associated with hazardous materials, chemical processes, and waste management.
The Healthcare sector is also a significant vertical in the Global EHS market, comprising hospitals, clinics, pharmaceutical companies, and medical device manufacturers. These organizations face unique EHS challenges related to patient safety, infection control, hazardous waste management, and regulatory compliance. EHS solutions tailored to the healthcare industry help them maintain high standards of safety and quality of care while minimizing risks to patients, staff, and the environment.
Construction and Engineering is another vertical that relies heavily on EHS solutions to ensure the safety of workers and the surrounding community during construction projects. These projects often involve hazardous activities such as excavation, heavy machinery operation, and working at height, making effective risk management essential. EHS software helps construction and engineering companies identify, assess, and mitigate potential hazards, ensuring compliance with safety regulations and preventing accidents.
Global EHS Market, Segmentation by Geography
In this report, the Global EHS Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global EHS Market Share (%), by Geographical Region, 2024
North America stands out as a mature market for EHS solutions, characterized by stringent regulatory frameworks and a strong emphasis on sustainability initiatives. With established economies and a heightened awareness of environmental and occupational health concerns, companies in this region often invest significantly in cutting-edge technologies and compliance measures to mitigate risks and enhance operational efficiency. Moreover, the presence of influential regulatory bodies, such as the Environmental Protection Agency (EPA) in the United States and equivalent agencies in Canada, further drives the adoption of EHS solutions.
The European region showcases a similar commitment to environmental stewardship and workplace safety, albeit with its own distinct regulatory landscape shaped by organizations like the European Union (EU). Stringent directives and standards, such as REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) and the European Green Deal, propel the demand for innovative EHS solutions across industries ranging from manufacturing to healthcare. Additionally, cultural attitudes towards sustainability and corporate responsibility contribute to the robust market growth observed in this region.
Moving towards the Asia Pacific, we encounter a dynamic and rapidly evolving landscape for EHS practices. This region, home to some of the world's fastest-growing economies, grapples with the dual challenge of industrial expansion and environmental conservation. As a result, governments across Asia Pacific are increasingly enacting stringent regulations to address pollution, workplace safety, and public health concerns. Simultaneously, burgeoning industries, particularly in sectors like manufacturing and construction, drive the demand for EHS technologies and services to ensure compliance and safeguard workforce well-being.
The Middle East and Africa region presents its own set of opportunities and challenges within the EHS market. While resource-rich nations in the Middle East exhibit a growing awareness of sustainability issues and are investing in renewable energy and environmental conservation efforts, the region also faces unique challenges related to industrial safety and occupational health, particularly in sectors like oil and gas. In Africa, diverse regulatory frameworks and socio-economic factors influence the adoption of EHS solutions, with opportunities emerging alongside infrastructural development and a burgeoning focus on sustainable practices.
Latin America, with its rich biodiversity and burgeoning industrial sectors, represents a compelling market for EHS solutions. Governments in this region are increasingly prioritizing environmental protection and workplace safety, leading to a growing demand for technologies and services that facilitate compliance and risk mitigation. From mining operations in Chile to agribusiness in Brazil, companies across Latin America are recognizing the importance of integrating robust EHS practices into their operations to ensure long-term sustainability and resilience.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global EHS Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers
- Regulatory compliance demands
- Increasing environmental awareness
- Technological advancements in monitoring
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Corporate sustainability initiatives: The global Environmental, Health, and Safety (EHS) market has witnessed significant growth in recent years, fueled by increasing regulatory pressures, growing awareness of environmental issues, and the need for organizations to mitigate risks and ensure workplace safety. Companies across various industries are investing in EHS solutions to streamline their compliance efforts, improve operational efficiency, and enhance their overall sustainability performance. This market encompasses a wide range of software solutions, consulting services, and technological innovations designed to help organizations manage their environmental impact, occupational health, and safety risks effectively.
Corporate sustainability initiatives have become increasingly integral to the strategic objectives of businesses worldwide. In response to societal demands for greater environmental responsibility and transparency, companies are adopting sustainability goals to minimize their ecological footprint, reduce resource consumption, and promote social welfare. These initiatives extend beyond mere compliance with regulations, reflecting a proactive commitment to long-term environmental stewardship and ethical business practices. From implementing renewable energy projects to reducing waste and promoting circular economy principles, corporations are embracing sustainability as a cornerstone of their corporate identity and value proposition.
The integration of EHS considerations into corporate sustainability strategies is becoming more prevalent, as organizations recognize the interconnectedness of environmental, health, and safety issues with broader sustainability goals. By aligning EHS initiatives with sustainability objectives, companies can drive operational excellence, foster innovation, and enhance stakeholder trust. This integrated approach enables businesses to effectively manage risks, seize opportunities for competitive advantage, and contribute positively to environmental and social well-being. As the global business landscape continues to evolve, the synergy between EHS and corporate sustainability will play an increasingly pivotal role in shaping the future of responsible business practices.
Restraints
- High implementation costs
- Lack of skilled workforce
- Resistance to change
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Complex regulatory landscape: The global Environmental, Health, and Safety (EHS) market is experiencing significant growth driven by an increasingly complex regulatory landscape. With the rise in environmental consciousness and the tightening of regulations worldwide, organizations across various sectors are compelled to prioritize EHS compliance to mitigate risks and uphold sustainability standards. This surge in regulatory requirements spans from emissions control and waste management to occupational safety protocols, necessitating comprehensive EHS solutions that can adapt to evolving standards while ensuring operational efficiency.
One of the primary challenges stemming from this complexity is the need for companies to navigate a labyrinth of regulations across different jurisdictions. Multinational corporations, in particular, face the daunting task of adhering to diverse regulatory frameworks, each with its own set of requirements and enforcement mechanisms. This complexity not only increases the compliance burden but also amplifies the risks of non-compliance, including legal penalties, reputational damage, and operational disruptions. Consequently, there is a growing demand for integrated EHS software platforms that can streamline compliance efforts by providing centralized monitoring, reporting, and analytics capabilities.
The rapid pace of regulatory change further complicates the EHS landscape, necessitating agile solutions that can promptly adapt to new mandates and standards. Legislative updates, emerging environmental risks, and shifts in societal expectations demand proactive measures from organizations to stay ahead of compliance obligations and uphold their commitment to sustainability. As a result, the EHS market is witnessing a surge in innovation, with vendors investing in advanced technologies such as artificial intelligence, predictive analytics, and IoT sensors to deliver real-time insights and predictive capabilities. By leveraging these innovations, businesses can not only achieve compliance but also drive operational excellence and foster a culture of continuous improvement in environmental and workplace safety practices.
Opportunities
- Growth in emerging markets
- Adoption of cloud-based solutions
- Integration of IoT and AI
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Demand for predictive analytics: The global Environmental, Health, and Safety (EHS) market has seen a significant surge in demand for predictive analytics solutions in recent years. This trend is primarily driven by the growing recognition among organizations of the importance of proactively managing risks and ensuring compliance with stringent regulatory requirements. Predictive analytics offer businesses the ability to anticipate and mitigate potential hazards before they escalate into major incidents, thereby safeguarding both human lives and the environment while also minimizing operational disruptions and financial losses.
One key factor fueling the demand for predictive analytics in the EHS sector is the increasing complexity of industrial operations and the corresponding rise in data volume. With the proliferation of Internet of Things (IoT) devices, sensors, and other connected technologies, companies now have access to vast amounts of real-time data pertaining to various aspects of their operations, from air quality and water usage to employee health and safety metrics. Predictive analytics enable organizations to harness this data effectively, identify patterns and trends, and generate actionable insights that can drive proactive decision-making and risk management strategies.
Heightened public awareness and scrutiny regarding environmental and workplace safety issues have put additional pressure on businesses to demonstrate their commitment to sustainability and corporate social responsibility. In this context, the adoption of predictive analytics solutions not only helps companies improve their EHS performance but also enhances their reputation and competitive positioning in the market. As a result, we can expect the demand for predictive analytics in the global EHS market to continue its upward trajectory as organizations seek to stay ahead of regulatory requirements, mitigate risks, and uphold their commitments to safety and sustainability.
Competitive Landscape Analysis
Key players in Global EHS Market include:
- IBM Corporation
- SAP SE
- Enablon
- Intelex Technologies
- EtQ LLC
- Sphera Solutions
- VelocityEHS
- Gensuite LLC
- Cority
- UL LLC
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Component
- Market Snapshot, By Deployment Mode
- Market Snapshot, By Vertical
- Market Snapshot, By Region
- Global EHS Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Regulatory compliance demands
- Increasing environmental awareness
- Technological advancements in monitoring
- Corporate sustainability initiatives
- Restraints
- High implementation costs
- Lack of skilled workforce
- Resistance to change
- Complex regulatory landscape
- Opportunities
- Growth in emerging markets
- Adoption of cloud-based solutions
- Integration of IoT and AI
- Demand for predictive analytics
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global EHS Market, By Component, 2021 - 2031 (USD Million)
- Solution
- Services
- Global EHS Market, By Deployment Mode, 2021 - 2031 (USD Million)
- Cloud
- On-Premises
- Global EHS Market, By Vertical, 2021 - 2031 (USD Million)
- Energy and Utilities
- Chemicals and Materials
- Healthcare
- Construction and Engineering
- Chemicals and Material
- Food and Beverages
- Government and Defense
- Others
- Global EHS Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global EHS Market, By Component, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- IBM Corporation
- SAP SE
- Enablon
- Intelex Technologies
- EtQ LLC
- Sphera Solutions
- VelocityEHS
- Gensuite LLC
- Cority
- UL LLC
- Company Profiles
- Analyst Views
- Future Outlook of the Market