Europe’s Demand for Digital Sustainability Solutions on the Rise
European demand for digital sustainability solutions continues to grow despite economic challenges, according to ISG's 2024 Provider Lens™ report. The global digital sustainability market, currently valued at $21 billion, is projected to reach $34 billion by 2027, growing at 16% annually.
Key drivers include regulatory requirements, rising energy costs, and stakeholder expectations. While compliance remains a primary motivator, most European businesses genuinely seek sustainable practices that align with profitability. The market has seen new providers entering with OT and industry-specific solutions, including consultancies and engineering firms.
Notable trends include:
- AI and machine learning integration becoming fundamental in sustainability solutions
- EU's reduced reliance on Russian gas (from 45% to 18%)
- Renewable sources now account for half of EU's electricity generation
- Implementation of sustainability-integrated digital transformation programs
- Growing skills gap in sustainability expertise
La domanda europea per soluzioni di sostenibilità digitale continua a crescere nonostante le sfide economiche, secondo il rapporto Provider Lens™ 2024 di ISG. Il mercato globale della sostenibilità digitale, attualmente valutato 21 miliardi di dollari, è previsto raggiungere 34 miliardi di dollari entro il 2027, crescendo del 16% annualmente.
I principali fattori trainanti includono requisiti normativi, l'aumento dei costi energetici e le aspettative degli stakeholder. Sebbene la conformità rimanga un motivatore principale, la maggior parte delle aziende europee cerca genuinamente pratiche sostenibili che si allineino con la redditività. Il mercato ha visto l'ingresso di nuovi fornitori con soluzioni OT e specifiche per settore, comprese le consulenze e le aziende di ingegneria.
Tendenze notevoli includono:
- l'integrazione di AI e machine learning che diventa fondamentale nelle soluzioni di sostenibilità
- la riduzione della dipendenza dell'UE dal gas russo (dal 45% al 18%)
- le fonti rinnovabili ora rappresentano la metà della generazione elettrica dell'UE
- l'implementazione di programmi di trasformazione digitale integrati nella sostenibilità
- il crescente divario di competenze nell'expertise di sostenibilità
La demanda europea de soluciones de sostenibilidad digital sigue creciendo a pesar de los desafíos económicos, según el informe Provider Lens™ 2024 de ISG. El mercado global de sostenibilidad digital, actualmente valorado en 21 mil millones de dólares, se proyecta que alcanzará 34 mil millones de dólares para 2027, creciendo a un ritmo del 16% anual.
Los principales impulsores incluyen requisitos regulatorios, el aumento de los costos de energía y las expectativas de los interesados. Si bien el cumplimiento sigue siendo un motivador principal, la mayoría de las empresas europeas buscan genuinamente prácticas sostenibles que se alineen con la rentabilidad. El mercado ha visto la entrada de nuevos proveedores con soluciones OT y específicas de la industria, incluidas consultorías y empresas de ingeniería.
Tendencias notables incluyen:
- la integración de IA y aprendizaje automático que se vuelve fundamental en las soluciones de sostenibilidad
- la reducción de la dependencia de la UE del gas ruso (del 45% al 18%)
- las fuentes renovables ahora representan la mitad de la generación eléctrica de la UE
- la implementación de programas de transformación digital integrados en la sostenibilidad
- el creciente déficit de habilidades en experiencia en sostenibilidad
디지털 지속 가능성 솔루션에 대한 유럽의 수요는 경제적 도전에도 불구하고 계속 증가하고 있으며, 이는 ISG의 2024년 공급자 렌즈™ 보고서에 따르면 그렇습니다. 현재 210억 달러로 평가되는 글로벌 디지털 지속 가능성 시장은 2027년까지 340억 달러에 이를 것으로 예상되며, 연간 16% 성장할 것으로 보입니다.
주요 원동력으로는 규제 요구사항, 증가하는 에너지 비용, 이해관계자의 기대가 포함됩니다. 준수가 주요 동기 부여 요소로 남아 있지만, 대부분의 유럽 기업들은 수익성과 일치하는 지속 가능한 관행을 진정으로 추구하고 있습니다. 시장에는 OT 및 산업별 솔루션을 제공하는 새로운 공급자가 등장하고 있으며, 여기에는 컨설팅 및 엔지니어링 회사가 포함됩니다.
주목할 만한 트렌드는 다음과 같습니다:
- 지속 가능성 솔루션에서 AI 및 머신러닝 통합이 기본이 되고 있음
- EU의 러시아 가스 의존도가 감소 (45%에서 18%로)
- 재생 가능 에너지원이 이제 EU 전기 생산의 절반을 차지함
- 지속 가능성을 통합한 디지털 전환 프로그램의 구현
- 지속 가능성 전문 지식의 기술 격차 증가
La demande européenne pour des solutions de durabilité numérique continue de croître malgré les défis économiques, selon le rapport Provider Lens™ 2024 d'ISG. Le marché mondial de la durabilité numérique, actuellement évalué à 21 milliards de dollars, devrait atteindre 34 milliards de dollars d'ici 2027, avec une croissance de 16 % par an.
Les principaux moteurs incluent les exigences réglementaires, l'augmentation des coûts de l'énergie et les attentes des parties prenantes. Bien que la conformité reste un moteur principal, la plupart des entreprises européennes recherchent sincèrement des pratiques durables qui s'alignent avec la rentabilité. Le marché a vu l'entrée de nouveaux fournisseurs avec des solutions OT et spécifiques à l'industrie, y compris des cabinets de conseil et des entreprises d'ingénierie.
Les tendances notables incluent :
- l'intégration de l'IA et de l'apprentissage automatique devenant fondamentale dans les solutions de durabilité
- la réduction de la dépendance de l'UE au gaz russe (de 45 % à 18 %)
- les sources renouvelables représentant désormais la moitié de la production électrique de l'UE
- la mise en œuvre de programmes de transformation numérique intégrés à la durabilité
- l'écart croissant des compétences en expertise de durabilité
Die europäische Nachfrage nach digitalen Nachhaltigkeitslösungen wächst trotz wirtschaftlicher Herausforderungen weiter, so der Provider Lens™ Bericht 2024 von ISG. Der globale Markt für digitale Nachhaltigkeit, der derzeit mit 21 Milliarden Dollar bewertet wird, wird voraussichtlich 34 Milliarden Dollar bis 2027 erreichen und jährlich um 16% wachsen.
Wichtige Treiber sind regulatorische Anforderungen, steigende Energiekosten und die Erwartungen der Stakeholder. Während die Einhaltung von Vorschriften ein Hauptmotivator bleibt, suchen die meisten europäischen Unternehmen ernsthaft nach nachhaltigen Praktiken, die mit der Rentabilität in Einklang stehen. Der Markt hat neue Anbieter hervorgebracht, die OT- und branchenspezifische Lösungen anbieten, darunter Beratungsunternehmen und Ingenieurbüros.
Bemerkenswerte Trends sind:
- Die Integration von KI und maschinellem Lernen wird in Nachhaltigkeitslösungen grundlegend
- Die reduzierte Abhängigkeit der EU von russischem Gas (von 45% auf 18%)
- Erneuerbare Quellen machen jetzt die Hälfte der Stromerzeugung der EU aus
- Die Umsetzung von in Nachhaltigkeit integrierten digitalen Transformationsprogrammen
- Die wachsende Qualifikationslücke in der Nachhaltigkeitsexpertise
- None.
- None.
Although regulatory compliance continues to be the main motivator for ESG initiatives, more companies genuinely want sustainability, ISG Provider Lens™ report says
The 2024 ISG Provider Lens™ Sustainability and ESG report for
“Avoiding the risk of fines and brand damage from noncompliance with regulatory requirements is certainly a motivator for many investments in digital sustainability solutions,” said Matt Warburton, Digital Sustainability lead for ISG. “However, research shows most European businesses want to become more sustainable anyway — provided they can find a way to do it profitably.”
Last year saw a flood of new providers and solutions entering the environmental services and sustainability markets. Now, ISG has begun to see some consolidation and recalibration of provider solution portfolios to better align with market demand. The application of AI and machine learning to accelerate the development and enhance the quality of sustainability solutions is now fundamental to this space, the report notes, with new GenAI capabilities distinguishing some providers from others.
Europe’s regulatory landscape continues to lead the world in support of sustainability initiatives. These regulations are forcing companies to become more transparent and demonstrate verifiable progress reaching sustainability goals, ISG says.
Economic conditions and energy security are also paramount considerations for sustainability initiatives, the report notes. The EU’s reliance on Russian gas has dropped from 45 percent to 18 percent in three years, and half of the EU’s electricity generation now comes from renewable sources, with wind power overtaking gas to become the EU’s second-largest source of electricity generation, behind nuclear energy.
Increasingly, European companies are implementing sustainability-integrated digital transformation programs, which now incorporate social sustainability factors. In addition, energy management systems that utilize digital twins, IoT sensors and machine learning are helping optimize energy consumption by facilities.
Organizations benefitting the most from sustainability initiatives include those utilizing industrial, engineering and manufacturing processes that involve physical, resource-intensive assets such as built infrastructure, fuel-consuming vehicles and other machinery.
“New providers not typically seen in the technology markets are entering this space, mostly offering OT and industry-specific solutions,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “These new entrants, including consultancies and engineering firms, have enhanced their digital capabilities, posing a challenge to traditional IT service providers.”
The report also explores other trends, including the growing skills gap among enterprises for sustainability expertise. While service providers continue to enhance their training programs, many are delivering inconsistent client experiences, increasing the likelihood of organizations insourcing their sustainability work.
For more insights into the sustainability challenges facing
The 2024 ISG Provider Lens™ Sustainability and ESG report for
The report names Accenture, Capgemini, Cognizant, HCLTech, IBM, Infosys, TCS and Wipro as Leaders in all four quadrants. Deloitte, EY, Microsoft, NTT DATA, PwC, Schneider Electric and T-Systems are named Leaders in two quadrants each. BCG, CGI, Cority, Deutsche Telekom, EcoVadis, ERM, ESG Book, Hitachi Digital Services, Kyndryl, LTIMindtree, McKinsey & Company, SAP, T-Systems/Detecon, VelocityEHS and Wolters Kluwer are named Leaders in one quadrant each.
In addition, Tech Mahindra is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Anthesis and Sphera are named Rising Stars in one quadrant each.
In the area of customer experience, PwC is named the global ISG CX Star Performer for 2024 among sustainability and ESG providers. PwC earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
Customized versions of the report are available from BT, Kyndryl and T-Systems.
The 2024 ISG Provider Lens™ Sustainability and ESG report for
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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