Study: Spending to improve managing worker health and exposure to surge
Independent research firm Verdantix has released data from a new study that found the global market for industrial hygiene and occupational health software (IH/OH) will surge over the next five years as workplaces aim to better manage worker health and exposure.
The firm’s research said that spending on industrial hygiene and IH/OH software will grow from $253 million in 2020 to $403 million in 2025 at an annual growth rate of 10%, driven by emerging regional adoption of environmental health and safety (EHS) software and increased demand for IH/OH software from vendors such as Cority, DNV GL, Enablon, Enterprise Health, Gensuite, Intelex, ProcessMap, UL, and Velocity EHS.
“Due to the quick spread and disruptive nature, the COVID-19 outbreak will be a long-term positive factor for the demand of IH/OH software,” Verdantix Senior Analyst Bill Pennington said. “Firms are recognizing the value of innovative software to protect workers from exposure as well as reliably manage worker health and illnesses. Many of the larger EHS vendors are capitalizing on this growing demand by acquiring specialist IH/OH firms to boost their offering.”
Verdantix’s report found that high-risk industries, such as oil and gas, chemicals and mining, will account for nearly half (47%) of total spending in 2020 at $121 million. North America will contribute over half (51%) of overall global spending on IH/OH software at $129 million in 2020, almost double the second-highest regional spending of Europe with 26% ($68 million). Asia-Pacific (APAC), the Gulf States, and Africa will grow faster than other regions, at a compound-annual-growth-rate of 10%, while total market growth will vary between 6 and 12% between 2020 and 2025.
Even as the current pandemic subsides, growth of the IH/OH software market will be driven by companies that look to future-proof their organization for outbreaks down the road.
“Our analysis indicates that while the global economy faces expected recessions due to COVID-19, IH/OH software will see growth due to forward-looking firms strategically planning for better preparedness for future outbreaks,” Pennington added. “Vendors looking to grow their market share should look to the emerging markets of APAC, the Gulf States and Africa, as increased focus is on worker health and safety, coupled with the existing low penetration rate of IH/OH software, allows for a large market of first-time adopters.”