Isramart: U.S. government carbon management market

Isramart news:
The United States government is one of the largest consumers of energy and is expected to spend almost $29 billion on energy in 2010, as it occupies nearly 500,000 buildings, operates more than 600,000 vehicles, employs over 1.8 million civilians, and purchases more than $500 billion in goods and services each year.

Following President Obama’s Executive Order 13514 and the mandatory reporting rule by the U.S. Department of Energy, the federal government also has very aggressive goals for reducing greenhouse gas (GHG) emissions.

According to a new report from Pike Research, these initiatives will create significant growth opportunities for carbon management software and services, and the cleantech market intelligence firm forecasts that the carbon management market in the U.S. federal government sector will increase from $36 million in 2010 to $294 million by 2017, representing a 46% compound annual growth rate (CAGR).

‘Energy efficiency and GHG emissions reduction are top priorities for the Obama Administration,’ says industry analyst Marianne Hedin. ‘These initiatives will fuel strong demand by federal agencies for carbon management tools and services, creating significant opportunities for software vendors and service providers.’

Hedin adds that government agencies will favor carbon management software in 2010, but in 2011 and beyond, services will capture an increasing portion of the market, with the services/software split reaching 60/40 by 2017.

Pike Research’s analysis indicates that the competitive landscape in this sector is a mixed picture. Niche players such as Enviance are competing with the country’s largest technology and services companies including Accenture, CSC, Hewlett-Packard, IBM, Northrop Grumman, and SAIC. Hedin says that the most important competitive assets in this market are strong relationships that companies have built and nurtured over time with federal agencies.

Excerpt from the Executive Summary
Carbon management is an early and emerging market, especially in the United States, so it is relatively small. Until fairly recently, it has also been a rather insignificant market for software and services vendors in the U.S. federal government. However, this will soon change as an increasing number of federal agencies will request external assistance fromvendors to help them meet the GHG emission reduction directives of President Obama’s Executive Order (EO) 13514 and the mandatory reporting rule by the Department of Energy (DOE). Momentum for carbon management can be expected to pick up significantly this year, followed by strong growth in subsequent years. Pike Research forecasts that spending for carbon management software and services will reach about $36 million in 2010 and grow by a 46% CAGR through 2017 to reach almost $300 million.

Pike Research’s study, ‘Carbon Management in the U.S. Federal Government Sector’, examines carbon management spending by federal agencies for external software solutions and services. The report analyzes trends, forecasts market size and growth prospects from 2008 through 2017, and assesses the competitive landscape including an analysis of major software and service vendors in this rapidly evolving market. An Executive Summary of the report is available for free download on the firm’s website.

Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Clean Transportation, Clean Industry, Corporate Sustainability, and Building Efficiency sectors.