At 18.6% CAGR, the North America Investor ESG Software Market is Projected to be Worth US$ 808.93 Million by 2030, says Business Market Insights

According to Business Market Insights research, the North America investor ESG software market was valued at US$ 244.69 million in 2023 and is expected to reach US$ 808.93 million by 2030, registering a CAGR of 18.6% from 2023 to 2030. Increasing government initiatives to promote ESG investment and benefits of the investor ESG software attributed to the North America investor ESG software market expansion.        

ESG investing has become popular over the last decade, with some estimations that the value of professionally managed portfolios that incorporate key elements of ESG evaluations will surpass US$ 17.5 trillion globally. Moreover, ESG-related traded investment products available to institutional and retail investors have surpassed US$ 1 trillion and rapidly increased across financial markets. Increasing government initiatives across the region are influencing ESG investing over the years, which, in turn, is promoting the adoption of ESG software.  Market-driven, voluntary responses have mostly influenced ESG factors in the US. Over the past few years, the US regulatory environment has rapidly changed due to a rush of new ESG efforts and proposals spearheaded by the Biden Administration, the SEC, and new state-level laws. In February 2021, President Biden signed an executive order directing the federal government to "drive assessment, disclosure, and mitigation of climate pollution and climate-related risks in every sector of our economy." Later, the SEC announced that it would take an all-agency approach to address climate change and other ESG risks and opportunities. Part of this approach included the Division of Enforcement forming a Climate and ESG Task Force and stepping up enforcement measures regarding risks related to climate change. The SEC published new guidelines in March 2022 to improve and harmonize investor disclosures pertaining to climate change.  To encourage consistent, comparable, and trustworthy information for investors about funds' and advisors' incorporation of ESG factors, the SEC recommended changes to rules and reporting forms in May. August saw the enactment of the Inflation Reduction Act, which allocated tax breaks and funding to hasten the energy transition. Moreover, the Climate Risk Disclosure Survey for insurance companies was revised in April by the EC of the National Association of Insurance Commissioners to conform to the Task Force on Climate-Related Financial Disclosures (TCFD) framework. The DOL released a request for information concerning climate-related financial risks in early 2021, and the Federal Insurance Office (FIO) published its analysis of climate-related concerns or gaps in the supervision and regulation of insurers in 2023. As of 2021, twelve states have passed laws requiring more diversity on boards or are about to pass legislation in this region. A few states, including California, Connecticut, Illinois, New Jersey, New York, Oregon, and Washington, have also used pension system regulation to promote sustainable investment. Conversely, a number of states have implemented new laws making it illegal to conduct business with investment funds and financial institutions that have embraced environmentally conscious investing practices. These funds and institutions have limited their exposure to the oil, gas, and coal industries, and they take environmental considerations into account when making investment decisions. These states include Florida, Kentucky, Oklahoma, Tennessee, Texas, and West Virginia. Thus, the above-mentioned government initiatives to implement sustainable investments across the countries are influencing the adoption of technologies for proper analysis, thereby propelling the growth of the investor ESG software market.

On the contrary, low awareness about ESG software hamper the North America investor ESG software market.  

Based on component, the North America investor ESG software market is bifurcated into software and services. The software segment held 86.8% share of North America investor ESG software market in 2023, amassing US$ 212.43 million. It is projected to garner US$ 710.48 million by 2030 to expand at 18.8% CAGR during 2023–2030. 

In terms of enterprise size, the North America investor ESG software market is bifurcated into SMEs and large enterprises. The large enterprises segment held 61.4% share of North America investor ESG software market in 2023, amassing US$ 150.12 million. It is projected to garner US$ 476.06 million by 2030 to expand at 17.9% CAGR during 2023–2030.

By country, the North America investor ESG software market has been categorized into the US, Canada, and Mexico. Our regional analysis states that US captured 76.8% share of North America investor ESG software market in 2023. It was assessed at US$ 187.93 million in 2023 and is likely to hit US$ 632.66 million by 2030, exhibiting a CAGR of 18.9% during the 2023-2030.      

Key players operating the North America investor ESG software market are Conservice, LLC; Greenstone+ Ltd; Refinitiv Ltd; Collibra (Own Analytics); Arabesque Group; Datamaran; Clarity AI; S&P Global Inc; among others.

• In 2023, Collibra is a Snowflake Elite-tier Partner and a participant in the organization's just-launched Data Governance Accelerated Program. This is a new initiative, which highlights a select group of best-of-breed partners which have built integrated governance solutions with Snowflake to benefit customers.
• In 2023, Clarity AI Partners with BlackRock’s eFront on ESG Analytics for Private Investors, to fulfil the rising demand for ESG data and analysis from the alternative finance industry, sustainability technology provider Clarity AI has planned to offer analytics to private equity investors.
• In 2021, S&P Global announced the opening of S&P Global Sustainable1, its new ESG and sustainability Organisation. This new centralized group, which is made up of a committed staff that offers thorough perspectives on sustainability, covering important ESG and climate themes, reflects S&P Global's integrated sustainability capabilities. S&P Global's resources and the entirety of its product line, including benchmarking, analytics, assessments, and indices, are combined into Sustainable1, giving customers a 360-degree perspective to aid in the achievement of their sustainability objectives.

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