The global market for carbon accounting software is on track to more than triple in value by 2028, according to new research published this week, as businesses across every sector race to comply with expanding emissions reporting requirements.
A report from sustainability advisory firm Verdantix projects that spending on carbon management platforms will rise from an estimated £1.8 billion in 2025 to just over £5.6 billion within three years. The forecast reflects a wave of new disclosure mandates taking effect in the European Union, the United Kingdom, and several US states.
“Carbon accounting has moved from a niche compliance exercise to a boardroom priority,” said Dr Helen Crossley, director of environmental strategy at consultancy EcoChain Partners. “The companies that treat this as a data problem rather than a PR exercise are the ones building genuine competitive advantage.”
The EU’s Corporate Sustainability Reporting Directive, which began phasing in during 2024, now applies to approximately 50,000 companies operating within the bloc. Similar frameworks are under development in Australia, Japan, and Canada, creating a near-global patchwork of requirements that multinational firms must navigate.
Software providers have responded by embedding artificial intelligence tools that can parse utility bills, logistics data, and supplier invoices to estimate Scope 3 emissions, the indirect emissions that occur across a company’s value chain. These have traditionally been the most difficult category to measure accurately.
Mid-sized enterprises represent the fastest-growing customer segment, according to the Verdantix analysis. Many of these firms lack in-house sustainability teams and are turning to software to bridge the gap as larger corporate customers demand emissions data from their suppliers.
James Pelham, chief technology officer at London-based carbon platform NetZero IQ, observed that “the sophistication gap between enterprise tools and what SMEs can access is closing fast. Eighty per cent of the functionality is now available at twenty per cent of the cost.”
Industry observers caution that the sheer number of platforms on the market, estimated at more than 200 globally, could lead to consolidation over the next two years as customers gravitate toward providers with established audit trails and third-party verification capabilities.