Investor ESG Software Market is expected to reach US$ 3.36 billion by 2031

Surge in Demand for Accurate ESG Data and Analytics Among Investors to Fuel Investor ESG Software Market Growth During Forecast Period 

According to our latest study, “Investor ESG Software Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Component, Services, Enterprise Size, and Geography," the market was valued at US$ 1.08 billion in 2024 and is expected to reach US$ 3.36 billion by 2031; it is estimated to record a CAGR of 17.6% from 2024 to 2031. The report includes growth prospects owing to the current investor ESG software market trends and their foreseeable impact during the forecast period.

Effective environmental, social, and governance (ESG) reporting is essential for attracting and retaining investors who prioritize sustainability and responsible business practices. Investors are increasingly requiring companies to collect, analyze, and report accurate ESG data in a timely manner to ensure transparency and accountability. Companies face challenges gathering vast amounts of ESG data from various systems (often disconnected) and synthesizing it into clear, reportable metrics. ESG data analytics plays a crucial role in this process by offering deeper insights, facilitating faster reporting, and ensuring data accuracy. Investors require reliable ESG data as they integrate ESG factors into their investment decisions. Advanced ESG analytics tools help investors evaluate the sustainability efforts of businesses, track their progress toward ESG goals, and assess the completeness and reliability of reported data. These analytics also allow internal audit teams to rigorously test the accuracy of reported metrics, ensuring compliance with regulatory requirements. For example, LSEG (London Stock Exchange Group) offers one of the most comprehensive ESG databases in the market. With data covering over 90% of global market capitalization and tracking more than 800 ESG metrics, LSEG’s platform provides investors with access to ESG data for ~16,000 public and private companies. This volume of data, combined with ESG scores and time series data for public entities and key metrics for private companies, equips investors with precise and actionable insights, allowing them to make informed decisions based on reliable and complete ESG information. As investor demand for transparent, accurate ESG data grows, the role of ESG software in supporting investment strategies becomes increasingly crucial. Thus, the surge in demand for accurate ESG data and analytics among investors fuels the investor ESG software market growth.

Investor ESG Software Market Analysis — by Geography

Source: The Insight Partners Analysis

MSCI, Workiva Inc., Morningstar Sustainalytics, London Stock Exchange Group plc, Cority, Prophix Software Inc., SAP SE, Sphera, FactSet, and Bloomberg Finance L.P. are among the key players profiled in the investor ESG software market report. Several other major players were also studied and analyzed during the market study to get a holistic view of the market and its ecosystem. 

The report includes the investor ESG software market forecast by component, service, and enterprise size. Based on component, the investor ESG software market is divided into software and services. In terms of revenue, the software segment held the largest investor ESG software market share and is expected to record the highest CAGR during the forecast period.

The scope of the investor ESG software market report focuses on North America (US, Canada, and Mexico), Europe (Spain, UK, Germany, France, Italy, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America). North America dominated the market in 2024, followed by Europe and Asia Pacific.

The Asia Pacific investor ESG software market is segmented into Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific. In terms of revenue, China held the largest investor ESG software market share in Asia Pacific. As global supply networks become more complicated, businesses in Asia Pacific are becoming more conscious of the importance of managing ESG risks, such as environmental consequences, governance challenges, and human rights violations, prevailing within their supply chains. Firms such as Tata Group (India), Samsung Electronics (South Korea), Toyota Motor Corporation (Japan), and Nestlé (Thailand/ASEAN) have incorporated ESG monitoring operations into their supply chains to maintain visibility throughout supplier chains.

Developments in ESG in Asia Pacific also indicate a growing emphasis on responsible investment among financial institutions, pension funds, and corporate and institutional investors. A study conducted by the NYU Stern Center for Sustainable Business and Rockefeller Asset Management in 2021 examined the relationship between ESG and financial success across over 1,000 separate studies. It states that while ESG disclosure is not the only factor driving financial performance, ESG integration outperforms negative screening measures, providing downside protection for the long term. The rising ESG demand among investors and the adoption of software for these processes attract global software development companies to expand their presence in untapped markets. For instance, in May 2024, Sustaira LLC partnered with ESG-MD Ventures (Singapore) to expand its operations into Asia Pacific. This strategic move strengthens Sustaira's local presence in Singapore, positioning the city as a regional Sustainability Innovation Hub. Per the agreement, ESG-MD Ventures serves as Sustaira's distributor in Asia Pacific, with a collective aim to solve global ESG challenges and grab growth opportunities. ESG-MD Ventures offers consultation, solution creation, and ESG training to help firms navigate their ESG transformation journeys. Sustaira LLC's ESG software assists firms in identifying, tracking, and mitigating these risks, offering a clearer picture for investors seeking to avoid risky investments.

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