The EHS software industry is a rapidly growing market and has been this way over the past number of years, growing at roughly 11 – 15% annually. As 2017 begins ramping up, we wanted to take a look at what’s been pushing this growth in 2016. Here are the top three trends that were pushing EHS industry growth in 2016, and will continue to push this growth into 2017:
- The need for integration of EHS systems
More and more companies are realizing their need for fully integrated EHS systems and are moving away from spreadsheets and databases in favour of complete systems that give them a holistic view of EHS in their organization. Many of today’s companies are global organizations, and it’s not acceptable to take better care of American employees than those employees at global sites. This has been, and will continue to drive standardization and a requirement for corporate EHS teams to have visibility over key metrics globally.
- Increased investment in EHS software companies
Investors have noticed the steady growth of the EHS software industry and haven’t been shy about making investments. They see the potential and they want a piece of the pie. This has led to an influx of investors to a number of EHS software companies, and we think this should yield some interesting results over the coming year.
- The ever-changing landscape of EHS software
EHS in itself is a department in many companies that is growing and has been going through a great period of change. The EHS software industry is no different. There has been a constant evolution among EHS software providers and their offerings in 2016. Things like user experience, business intelligence, analytics and mobile are at the forefront of the changes in the EHS technology space. These new functionalities have effected growth within the industry, and they show no signs of slowing down in 2017.
What’s to come?
Companies have realized their need for a purpose-built, fully integrated EHS solution, investors have recognized the great potential in the marketplace, and the leading EHS software providers are currently making their own investments into new functionality. So what do we have to look forward to in 2017? Given the rapid growth in the marketplace, we’re looking forward to some distancing between EHS software providers. The majority of EHS software providers today offer minimal competitive advantage over one another. In 2017 we expect to see more and more investors come into play, and with this, you’ll see the distance grow between the market leaders and laggards.
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