1 Global Life Cycle Assessment Software Market Insight Analysis
In 2024, the global Life Cycle Assessment Software Market is $397.76 million. The CAGR from 2024 to 2033 is forecasted to be 11.92%.
Life Cycle Assessment is a methodological framework (defined in the DIN ISO 14040/44) to assess environmental impacts associated with all the stages of a product’s life from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling.
Most of the life cycle assessment software is based on the exploitation of databases specific to eco-design and the circular economy. There are general and specialized databases.
In general, a life cycle analysis tool allows user to make the right decisions regarding the manufacture and recycling of a product by taking into account its entire life cycle. In concrete terms, the software allows the entire product to be broken down into flows. The software allows you to break down the entire life cycle of a product, from its components to the energy required to manufacture the product.
Figure Global Life Cycle Assessment Software Market Size (M USD) and CAGR (2024-2033)
2 Life Cycle Assessment Software Market Growth Drivers and Restraints
With the popularization of the concept of sustainable development, the downstream market pays more and more attention to the carbon footprint of products. Life cycle assessment (LCA) can comprehensively evaluate greenhouse gas emissions, water consumption and energy consumption during the life cycle of products, and provide companies with quantitative environmental impact data.
Many countries and regions have introduced relevant laws and regulations or market mechanisms to require products to be labeled with carbon footprint information, which has prompted companies to use life cycle assessment software for relevant analysis to meet regulatory requirements and enhance the environmental value of products. From the perspective of the company’s own interests, discovering opportunities to reduce energy consumption, material consumption and emissions through LCA can effectively reduce costs and achieve a win-win situation of economic and environmental benefits, thereby stimulating the demand for life cycle assessment software.
Nowadays, when consumers buy environmentally friendly or sustainable products, they have doubts about the authenticity and accuracy of product advertisements. In order to win consumer trust, manufacturers, brands and retailers need to use life cycle assessment to quantify the environmental impact of products, provide strong evidence for the environmental characteristics of products, and enhance their differentiated competitive advantages in the consumer goods market. This has led companies to actively use life cycle assessment software for product analysis, driving market growth.
LCA is an important tool for companies to achieve sustainable development. It can help companies comprehensively analyze the environmental impact potential of products or services throughout their life cycle and assist companies to better understand the impact of the supply chain on carbon footprint. Enterprises can optimize product design, select environmentally friendly materials, improve production processes, increase product recycling rates based on LCA results, achieve green design and environmental management goals, and thus enhance the social image and competitiveness of enterprises. Therefore, the pursuit of sustainable development by enterprises has driven the continuous expansion of the life cycle assessment software market.
LCA research relies on various assumptions and scenarios, and uses simplified models to evaluate the real world, which makes the reliability of research results questionable. Data quality is crucial to LCA research. If the data quality is poor or insufficient, no valid conclusions can be drawn. In addition, LCA usually provides a variety of environmental impact results involving multiple products, which can easily cause confusion and cause trouble for decision makers. ISO-related documents also clearly point out that LCA cannot accurately predict actual impacts, which to a certain extent affects the trust of enterprises in LCA and limits the market promotion of life cycle assessment software.
First, there is a financial barrier. In order for new enterprises to enter the market and form economies of scale, they need to invest a lot of money in R&D and marketing, and face the risk of R&D failure, which puts them under great financial pressure. Second, there is a technical barrier. Life cycle assessment software products need to integrate a variety of cross-industry technologies, and the process of technology accumulation is long and the technical threshold is high.
The third is the talent barrier. The design, development and implementation of software require professionals who are familiar with both software development and LCA market business. It is difficult for new companies to form excellent R&D and professional service teams in a short period of time. The fourth is the brand barrier. Customers have certain requirements for the brand awareness of software suppliers. New companies are at a disadvantage in market competition due to the lack of successful cases and brand influence. In addition, customers are less willing to change service providers. These factors restrict new companies from entering the market and affect the full competition and further development of the market.
3 Technological Innovations in the Life Cycle Assessment Software Market
At present, life cycle assessment software suppliers develop analysis software for professionals and non-professionals according to customer needs, and provide customized services. Some manufacturers also provide simplified LCA, mid-term LCA and full LCA services, as well as consulting and training. For example, Ecodex software was developed by Empauer in cooperation with Nestlé, specifically for assessing the environmental impact of products and packaging, providing non-experts with convenient operation tools to help companies improve the sustainability of their products.
Software continues to integrate various databases to improve the comprehensiveness and accuracy of data. Like GreenDelta’s openLCA software, its supporting openLCA Nexus website is the world’s largest LCA and sustainability data repository, integrating multiple well-known databases. At the same time, software functions are also continuously expanding. For example, One Click LCA software can not only perform life cycle assessment and cost calculation in the field of construction and infrastructure projects, but also help design low-carbon and more circular projects and achieve green building certification.
With the development of information technology, life cycle assessment software is accelerating its integration with cloud computing, the Internet of Things, mobile Internet and other technologies. The cloud computing-based software service model allows users to easily access and use software through the Internet. For example, SimaPro software has launched cloud-based modules SimaPro Collect and SimaPro Share, which facilitate users to collect, analyze and share data. In addition, software technology is deeply coupled with network development. The network has become the mainstream platform for software development, deployment, operation and service, which has promoted the network development of software and also put forward higher requirements for network security.
Head companies such as imaPro and Sphera Solutions occupy a large share in the market and have a high market concentration. With the development of the industry, head companies have more advantages in the process of mergers and acquisitions and restructuring with their advantages in brand, technology, customer resources, etc., and can further consolidate their market position. This may lead to changes in the market competition pattern, small and medium-sized enterprises face greater competitive pressure, and market resources are gradually concentrated on head companies.
4 Global Life Cycle Assessment Software Market Size by Type
Cloud-based LCA software is projected to dominate the market in 2024. This segment is expected to generate a revenue of approximately 306.04 million USD, holding a significant market share of around 76.94%. The growth of cloud-based solutions is driven by several key factors. Firstly, cloud-based LCA software offers unparalleled flexibility and scalability, allowing users to access data and perform assessments remotely. This is particularly advantageous for companies with distributed operations or those looking to reduce IT infrastructure costs.
Secondly, continuous updates and maintenance provided by cloud service providers ensure that users always have access to the latest features and improvements. The scalability of cloud solutions also allows businesses to easily adjust their usage based on demand, making it a more flexible option compared to on-premises solutions.
On-premises LCA software, while less dominant, still holds a significant position in the market. In 2024, it is projected to generate a revenue of approximately 91.72 million USD, holding a market share of around 23.06%. The preference for on-premises solutions is driven by enterprises that prioritize data security and control. Some organizations, particularly in highly regulated industries, prefer to keep their data and software installations within their own premises to ensure compliance with industry standards and to maintain a high level of data privacy. This segment is expected to continue serving specific customer segments that have stringent data security requirements.
Table Global Life Cycle Assessment Software Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Cloud Based | 306.04 | 76.94% |
On-premises | 91.72 | 23.06% |
5 Global Life Cycle Assessment Software Market Size by Application
In 2024, the global LCA software market’s application segments presented a diverse revenue and share distribution. The market was mainly divided into applications in large enterprises and small – and medium – sized enterprises (SMEs).
Large enterprises were the major consumers of LCA software. Their market revenue reached approximately $264.63 million in 2024, accounting for around 66.53% of the total market revenue. These enterprises, with complex supply chains and a high volume of production, rely on LCA software to assess the environmental impact of their products and processes comprehensively. For example, multinational manufacturing corporations use LCA software to analyze the entire life cycle of their products, from raw material extraction to disposal. This helps them meet stringent environmental regulations, enhance their brand image, and identify cost – saving opportunities through improved resource efficiency.
SMEs, on the other hand, had a market revenue of about $133.13 million in 2024, representing around 33.47% of the total market share. Although their revenue contribution was lower than that of large enterprises, SMEs are increasingly recognizing the value of LCA software. As consumers become more environmentally conscious, SMEs are using LCA software to improve the sustainability of their products, gain a competitive edge in the market, and meet the growing demand for green products. For instance, a small – scale furniture manufacturer can use LCA software to evaluate the environmental impact of different wood sources and manufacturing processes, enabling them to make more sustainable choices and appeal to eco – friendly customers.
Table Global Life Cycle Assessment Software Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Large Enterprises | 264.63 | 66.53% |
SMEs | 133.13 | 33.47% |
6 Global Life Cycle Assessment Software Market Size by Region
North America is home to many large enterprises and innovative startups that prioritize sustainability. In 2024, North America is expected to hold a significant market share, with a revenue of around 101.63 million USD. The growth in this region is also supported by the increasing adoption of cloud-based solutions, which offer flexibility and cost-effectiveness for businesses.
Europe is another dominant region in the LCA Software market, with a revenue of approximately 216.86 million USD in 2024. The region has been at the forefront of environmental regulations and sustainability initiatives, which has driven the adoption of LCA software among businesses. European companies are increasingly using LCA tools to assess the environmental impact of their products and operations, aiming to achieve compliance with local and international standards. The market share of Europe is expected to remain strong, supported by continuous technological advancements and a growing focus on circular economy practices.
The Asia-Pacific region is experiencing rapid growth in the LCA Software market, driven by increasing industrialization and a growing focus on sustainable practices. In 2024, the region is projected to generate a revenue of around 63.48 million USD. Countries like China and Japan are leading the growth in this region, with significant investments in environmental technologies and sustainable development. The market share of Asia-Pacific is expected to increase in the coming years, as more companies in the region adopt LCA software to improve their environmental performance and comply with regulatory requirements.
The Middle East and Africa region is also showing promising growth in the LCA Software market. In 2024, the region is expected to have a revenue of around 9.39 million USD. The growth in this region is driven by increasing awareness of environmental issues and the need for sustainable practices in industries such as oil and gas, agriculture, and manufacturing. Governments in the region are also implementing policies to promote sustainability, which is further driving the adoption of LCA software among businesses.
Latin America is another region experiencing growth in the LCA Software market. In 2024, the region is projected to generate a revenue of around 6.40 million USD. The growth in this region is driven by increasing industrialization and a growing focus on sustainable practices. Countries like Brazil and Mexico are leading the adoption of LCA software in the region, supported by government initiatives and increasing consumer demand for environmentally friendly products.
Figure Global Life Cycle Assessment Software Market Size (M USD) by Region in 2024
7 Global Life Cycle Assessment Software Market Analysis by Major Players
7.1 SimaPro
Company Introduction and Business Overview:
SimaPro is a leading provider of Life Cycle Assessment (LCA) software, developed by PRé Sustainability since 1990. It is widely used by companies, consultancies, and universities in over 80 countries. SimaPro offers comprehensive LCA solutions, including desktop software and cloud-based modules, designed to provide science-based information and full transparency.
SimaPro empowers users to gain insights into the environmental performance of products and services, driving sustainable change. The software is used for various applications, including sustainability reporting, carbon and water footprinting, product design, generating environmental product declarations, and determining key performance indicators. SimaPro’s user-friendly interface and robust features make it a preferred choice for both experts and non-experts.
Products:
SimaPro offers a suite of tools, including the classic desktop software, SimaPro Collect, and SimaPro Share available via the online platform. It includes various databases such as ecoinvent, Agri-footprint, and Carbon Minds, enabling users to conduct detailed life cycle assessments.
Market Performance in 2022:
In 2022, SimaPro generated a revenue of 75.90 million USD with a gross margin of 53.27%.
7.2 Sphera Solutions
Company Introduction and Business Overview:
Sphera Solutions is a leading provider of Environmental, Social, and Governance (ESG) performance and risk management software, data, and consulting services. Established in 2016, Sphera focuses on Environment, Health, Safety & Sustainability (EHS&S), Operational Risk Management, and Product Stewardship.
Sphera Solutions offers comprehensive LCA software, GaBi, which is built on the world’s most robust LCA databases. GaBi provides intuitive data collection and reporting tools, enabling businesses to make informed decisions on the manufacture and life cycle of products. The software helps companies deliver more sustainable and cost-efficient products, meeting consumer expectations.
Products:
Sphera’s GaBi software includes features for modeling every element of a product or system from a life cycle perspective. It provides detailed information on costs, energy, and environmental impact, offering alternative options for manufacturing, distribution, recyclability, pollution, and sustainability.
Market Performance in 2022:
In 2022, Sphera Solutions generated a revenue of 60.32 million USD with a gross margin of 49.13%.
7.3 One Click LCA
Company Introduction and Business Overview:
One Click LCA is a leading provider of Life Cycle Assessment and Environmental Product Declaration software, specifically designed for the construction sector. Established in 2001, One Click LCA serves manufacturers, consultants, designers, contractors, and investors to decarbonize the entire construction value chain.
One Click LCA offers project-level tools that help users perform Life Cycle Assessments, Life Cycle Costing, design low-carbon projects, and achieve green building certifications. The software is compliant with multiple international standards, including ISO and EN general and construction-specific LCA standards. One Click LCA is used in over 100 countries, making it a global leader in the construction sector.
Products:
One Click LCA provides tools for buildings and infrastructure projects, allowing users to input data manually or import it via Excel templates or BIM models. It offers an extended range of infrastructure-related constructions and enables users to compare different design scenarios to see immediate carbon-saving results.
Market Performance in 2022:
In 2022, One Click LCA generated a revenue of 36.52 million USD with a gross margin of 55.03%.