Copenhagen Climate Treaty & Climategate

Fledgling Carbon Trading and Software Sectors Poised for Explosive Growth

January 5, 2010

ClimateBiz — Copenhagen may have ended with a whimper but the drive to address climate change will rapidly fuel the fledgling carbon trading, consulting and software management sectors in the coming years.

Separate reports out this week predict gangbusters growth for sectors that have sprung up to help companies and governments reduce their carbon footprints. Just-released research predicts the carbon management and services market will swell tenfold over the next seven years, billions will pore into carbon capture and storage technologies, and the emissions trading market will triple within four years.

"Regardless of what happened in Copenhagen, the low-carbon momentum has already begun to take root around the world," Pike Research said in an excerpt of its report, "Carbon Management Software and Services: Business Drivers, Policy Issues, Enterprise Adoption Patterns, Competitive Landscape, and Market Forecasts."

The report pegged the fledgling carbon management software and services market at $384 million in 2009, with potential to grow at a 44 percent compound annual growth rate through 2017, when its value will top $4.3 billion.

"Carbon accounting is a nascent and dynamic field," Pike Research Managing Director Clint Wheelock said in a statement Tuesday. "As such, the vendor landscape is very fragmented. Young startups are competing against the many established firms in the market, as well as heavyweight software and IT services companies."

Western Europe, bound by the Kyoto Protocol and emissions reduction commitments, currently represents the largest regional market for carbon management software and services, but North America is expected to supplant the region as market leader by 2013.

Between 2009 and 2010, Pike predicts the North American carbon management and services market by more than 75 percent.

Carbon trading is a significant part of regional efforts to reduce greenhouse gas emissions, such as the European Union Emission Trading System (EU ETS) and a proposed cap-and-trade program in climate change legislation currently working its way through the U.S. Congress.

New York-based ABI Research believes the global carbon trading market to reach $305 billion in 2014, compared to $118 billion in allowances traded in 2008.

In its report released Monday, "Carbon Capture, Sequestration and Emissions Trading: The Outlook for Global Carbon Markets," ABI also predicts $14.6 billion will be invested in 73 new CCS projects between 2009 and 2014, preventing some 146 million tons of CO2 from entering the atmosphere.

Carbon Management in the U.S. Federal Government Sector to See Robust Growth

May 1, 2010

Pike Research - At no other time in its history has the United States faced a greater urgency than today to manage and reduce its energy use and CO2 emissions. The motivation to do so is stronger than ever, fueled by an array of market forces along with changing economic as well as national and international conditions.

Pike Research believes that the U.S. federal government market will offer one of the best prospects for carbon management software and service providers in the coming years. Not only is there a convergence of factors that together are exerting pressure on federal agencies to take action with respect to managing their GHG emissions, but the federal government represents a huge opportunity with its ownership of nearly 500,000 buildings, more than 600,000 vehicles and a propensity to spend hundreds of billions for goods and services -- more than $500 billion annually.

In this early and emerging market, Pike Research forecasts that the compound annual growth rate for carbon management in the U.S. federal government sector will be very robust at almost 46% between 2008 and 2017, enjoying rapid growth of 93% in 2010 and 78% in 2011.

This Pike Research report examines carbon management spending by federal agencies for external software solutions and services. It examines trends, forecasts market size and growth prospects from 2008 through 2017, and assesses the competitive landscape including an analysis of major software and service vendors in this rapidly evolving market.

Carbon Management Software and Services to Reach Nearly $300 Million in the U.S. Federal Government Sector by 2017, According to Pike Research

May 28, 2010

Business Wire - The United States government is one of the largest consumers of energy and is expected to spend almost $29 billion on energy in 2010, as it occupies nearly 500,000 buildings, operates more than 600,000 vehicles, employs over 1.8 million civilians, and purchases more than $500 billion in goods and services each year. Following President Obama’s Executive Order 13514 and the mandatory reporting rule by the U.S. Department of Energy, the federal government also has very aggressive goals for reducing greenhouse gas (GHG) emissions.

According to a new report from Pike Research, these initiatives will create significant growth opportunities for carbon management software and services, and the cleantech market intelligence firm forecasts that the carbon management market in the U.S. federal government sector will increase from $36 million in 2010 to $294 million by 2017, representing a 46% compound annual growth rate (CAGR).

“Energy efficiency and GHG emissions reduction are top priorities for the Obama Administration,” says industry analyst Marianne Hedin. “These initiatives will fuel strong demand by federal agencies for carbon management tools and services, creating significant opportunities for software vendors and service providers.”

Hedin adds that government agencies will favor carbon management software in 2010, but in 2011 and beyond, services will capture an increasing portion of the market, with the services/software split reaching 60/40 by 2017.

Pike Research’s analysis indicates that the competitive landscape in this sector is a mixed picture. Niche players such as Enviance are competing with the country’s largest technology and services companies including Accenture, CSC, Hewlett-Packard, IBM, Northrop Grumman, and SAIC. Hedin says that the most important competitive assets in this market are strong relationships that companies have built and nurtured over time with federal agencies.

Pike Research’s study, “Carbon Management in the U.S. Federal Government Sector”, examines carbon management spending by federal agencies for external software solutions and services. The report analyzes trends, forecasts market size and growth prospects from 2008 through 2017, and assesses the competitive landscape including an analysis of major software and service vendors in this rapidly evolving market. An Executive Summary of the report is available for free download on the firm’s website.

Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Clean Transportation, Clean Industry, Corporate Sustainability, and Building Efficiency sectors. For more information, visit www.pikeresearch.com or call +1.303.953.9765.