This was quicker than expected. As stated in my last report on the enterprise carbon and energy management (ECEM) software market, we expected that Oracle, among some other players, will catch up on the ECEM market opportunity as it materializes. We projected a period of hypergrowth over the next three years, taking the ECEM software market from an estimated $316 million in 2011 to $903 million in 2013. You'll find our market definitions for carbon and energy management software and overview of the vendor landscape here.
Oracle announced on Friday its acquisition of Ndevr's Greenhouse Gas (GHG) Accounting Software with the intent to expand its current portfolio of sustainability solutions and offer improved capabilities to monitor, analyze, and report energy consumption and related emissions. Australia-based Ndevr was founded in 1998 as a JD Edwards partner, has been a certified Oracle partner for 10 years, and employs today approximately 80 consultants.
This acquisition marks the beginning of a stream of consolidation and shakeout activity as the ECEM software market continues to mature. The very small and specialized players will have an especially tough time keeping up with increasingly sophisticated buyers that are moving from selective to enterprisewide implementations and looking for a broader set of capabilities that go beyond pure energy and carbon tracking. However, there will be no time for rest for large players such as Oracle either, as the market will require strong commitment and investment to integrate ECEM capabilities with its sprawling portfolio of ERP and other enterprise software solutions.
The Projected Evolution Stages of Enterprise Carbon and Energy Management Software:
Who will we see next tapping into this growing market opportunity?
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