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EHS software market attracts PE interest

Private equity investor interest is building in the environment, health and safety (EHS) software market with more than 50 transactions in the past two years, a new report from independent research and advisory firm Verdantix shows.

According to the report, the market for EHS software is expected to grow from $1.6 billion in 2022 to around $2.7 billion by 2027. Verdantix highlights training and e-learning specialists as likely acquisition targets, alongside supply chain and contractor management specialists.

Key differentiators for firms in the sector include the use of artificial intelligence (AI) and automation, with ESG and sustainability seen as major areas for expansion and development in what is a largely mature EHS software market. The past 24 months have already seen a raft of ESG-aligned product releases, acquisitions and partnerships.
 
The report, Green Quadrant: EHS Software 2023, benchmarks 23 of the most prominent EHS platform vendors. Companies performing well in the sector include Cority, which is private equity backed and is expanding its ESG and sustainability functionality, and Enablon, which focuses on offering EHS and operational risk solutions for large enterprises in asset-intensive and high-risk industries. Other notable firms include DevonWay, which combines EHS with enterprise asset management and has deep expertise in the energy and nuclear industry. Alcumus, which was acquired by Apax Partners for more than $800 million in March 20222, with deep expertise in contractor management.

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