The digital EHS services market will reach $3.2 billion in 2025 according to a new study from independent research firm Verdantix. The forecasted compound annual growth rate of 6% will be driven by the consistent enhancement of EHS software as well as the accelerated adoption of new EHS technologies as the EHS function continues to digitize in response to COVID-19 challenges. Vendors positioned to benefit from this growth include EHS service firms such as AECOM, Arcadis, DuPont Sustainable Solutions (DSS), Jacobs, and WSP and EHS consulting or specialist firms such as Accenture, Capgemini, Deloitte, ERM, GHD Group, and Tetra Tech.
“Despite industrial impacts from global COVID-19 economic downturns, the EHS service market continues to grow due to the growing public focus on climate change and a dynamic global regulatory landscape,” commented Verdantix Senior Analyst Bill Pennington. “While traditional EHS service offerings have maintained steady growth over the last decade, the digital services segment has seen a more rapid growth.”
The Verdantix reports, Market Size And Forecast: Digital EHS Services 2020-2025 and Market Insight: Revenue Opportunities For Service Firms From Digitization, provide executives, practice managers and business strategists with a holistic view of the current state and size of the digital EHS services market, as well as the trends, drivers and revenue opportunities that will shape the market into 2025. Revenue projections find that EHS software implementations and related services will make up the majority of spend at 70% of the total market share. Other EHS technology implementation will grow at a quicker pace, with a CAGR of 9%, to reach $170 million in revenues by 2025, and the very high EHS risk industries segment will account for 54% of the total global spend. North America will maintain its position as the highest regional spend for digital EHS services by reaching $1.3 billion by 2025, making up 40% of the global market. The market will be driven by five leaders of digital EHS services — AECOM, Arcadis, ERM, Golder and Jacobs.
“Customers have made clear their demand for digitally-enabled EHS services providers to support their EHS functions digital transformation strategies,” continued Pennington. “As a result, EHS service providers continue to invest in expanding digital solutions and digitally-enhance their service lines to stay competitive amongst their peers.”