Traditionally, environmental well being and security software program hasn’t been a large market — not less than in comparison with others within the software-as-a-service phase — and it’s admittedly not essentially the most enthralling startup class. However that’s altering, in response to a brand new survey launched by analysis agency Verdantix.

EHS software program acts as a knowledge administration system for capturing and analyzing data associated to occupational well being and security, waste administration and sustainability. Corporations use EHS software program to trace emissions and examine office incidents, for instance, in addition to conduct well being and security coaching and grant entry to restricted areas.

Verdantix’s Inexperienced Quadrant: EHS Software program 2023 survey exhibits that the EHS software program market had greater than 50 transactions prior to now two years and predicts that it’ll develop from $1.6 billion in 2022 to round $2.7 billion by 2027. Verdantix predicts it’ll buck the worldwide financial downturn, moreover, because of differentiators like the usage of AI and automation.

“Over the previous two years, the market panorama for EHS software program has undergone a paradigm shift, as EHS suppliers have expanded their product choices to satisfy the ravenous urge for food for sturdy environmental administration options introduced on by the ESG megatrend,” Verdantix trade analyst Chris Sayers stated in an announcement. “As EHS features search to interlink with different enterprise operations, suppliers are turning to rising applied sciences as some extent of differentiation and redefining the purposeful potentialities of EHS software program.”

Per the Verdantix report, since ETF Companions invested round €10 million (roughly $11 million) in EHS vendor Enablon in 2011, non-public fairness corporations and strategic buyers like Wolters Kluwer and Fortive have spent greater than $4 billion to purchase into the EHS software program market. The absence of the world’s largest enterprise software program distributors — together with IBM, Microsoft, Oracle, Salesforce and SAP — has left a whole lot of oxygen available in the market for midsize companies to develop.