London – June 14, 2021. The safety management software market will reach $1.7 billion in 2026 according to a new study from independent research firm Verdantix. The forecasted compound annual growth rate of 12.1% will be driven by software vendors increasingly targeting a wider portion of the potential market by catering to small and medium-sized enterprises as well as growing stakeholder expectations and the impact of environmental, social and governance (ESG) factors raising safety management standards beyond simply meeting compliance. Vendors positioned to benefit from this growth include safety management software firms such as Alcumus, Benchmark ESG, Cority, Dakota Software, Ideagen, Intelex, IsoMetrix, KPA, SAI Global, and Wesustain.
“The COVID-19 crisis has highlighted the business case for robust safety management software. The adaptability and utility of software in managing COVID-19 safety risks, whether for current employees or for contractors, has fuelled market growth.” commented Verdantix Analyst, Chris Sayers. “Beyond COVID-19, changing market dynamics resulting from vendors targeting the small and medium-sized enterprises (SMEs) segment will open up the market.”
The Verdantix report, Market Size And Forecast: Safety Management Software 2021-2026 executives at safety management software vendors, EHS service providers, and investors focused on the safety management software market understand the current state and size of the market, as well as the trends and drivers that will shape it into 2026. Intense competition is leading to a comparatively low CAGR of 11.7% for the North American market. Whereas China, India and Pakistan, and Southeast Asia will grow at faster rates of of 16.7%, 16.1% and 15.6%, respectively. Industries that pose very high EHS risks – oil and gas, chemicals manufacturing, and mining and metals – will be the largest spenders on safety management software in 2026, accounting for 47% of the global market, at $0.790 billion. Medium risk industries – consumer goods, logistics, industrial equipment manufacturing and water utilities – will comprise the second highest spend, at $478 million in 2026, with a CAGR of 12.6%, and low risk industries will see $89 million of spend in 2026.
“Fierce competition and North America-focused solutions will force competitive pricing, limiting growth.” continued Sayers. “High predicted growth rates in emerging markets are due to the combined effort of positive economic outlooks; low penetration rates of safety management software, yielding low-hanging fruits for software providers; and increasingly stringent safety regulations driving demand.”