The life cycle assessment (LCA) software market is projected to grow at a CAGR of 17.22% over the forecast period, increasing from US$565.551 million in 2025 to US$1,025.750 million by 2030.
Life cycle assessment, or LCA, is a process that helps in evaluating the effects of a product on the environment throughout its entire life cycle. The software solution helps assess the environmental impact of any product and provides an efficient and sustainable product design.
The rising global construction sector output is expected to boost the demand for LCA software during the forecasted timeline. The LCA software provides an efficient infrastructural design of the buildings, which further helps in reducing the environmental impact of the infrastructure. It also helps in selecting the lowest-impact sites for the buildings. The construction sector output witnessed massive growth in the major economies. For instance, the Office of National Statistics of the UK stated that the new-work construction output in the nation increased by 4.2% in 2023, reaching GBP 139,029 million.
In food and beverage products, the life cycle assessment software helps ensure a more sustainable and environmentally friendly procurement process of raw materials. LCA software also helps in reducing the production waste of food and beverage products.
The global food and beverage products demand witnessed significant growth, especially in the growing economies of nations like India, Malaysia, Vietnam, and Singapore. The US Census Bureau, in its annual report, stated that the retail sales of food services in the USA witnessed significant growth. The agency stated that in September of 2024, the retail total sales of food and beverage stores were recorded at US$81,116 million, which surged to US$85,682 million in November 2024
Cloud-based LCA software allows access wherever there is an Internet connection, eradicating the need for local hardware or software installations. This system is helpful for remote teams looking to grow their LCA capabilities without any heavy initial investments. Cloud providers offer flexible subscription models under which businesses pay only for the resources consumed.
LCA software launched in the cloud deployment form is expected to have a great scope in driving segment development by increasing demand for solution accessibility and usability, especially to SMEs. This would spur growth in the overall market. Furthermore, any new entrants into the market would make the competition more intense, thus compressing price levels, increasing innovations, and enhancing customer services and support.
In September 2023, Tata Consultancy Services (TCS) launched TCS Product Life Cycle Profiler, a novel LCA tool that helps companies quantify the environmental footprint of their products and develop more data-led sustainability strategies. This dynamic and scalable approach calculates the environmental impacts across product lines, enhancing the sustainability strategies of businesses as well as affecting the purchase choices of environmentally conscious buyers. The LCA tool is necessary for organizations to decarbonize their supply chains, lower their carbon footprint, and create circular business models.
Building on the above trend toward this scaling ability and integration with existing business systems, such a development model of products in cloud deployment is predicted to continue assisting providers in establishing offerings for organizations across the board.
The benefits of cloud-based LCA software would address the industry's challenges and regulations, and could develop into fostering more industries' interest in adopting this solution. Further, the launch of this tool would upsurge the competition and lead to increased growth, with rapid adoption of LCA on a global scale.
The construction sector utilizes LCA software for diverse purposes and is blooming with the world getting more concerned about the issue of sustainability and making construction companies assess the environment-impacted life cycle of their projects right from the material extraction stage through to construction, operation, and direct demolition or disposal
Sustainability is becoming significant for governments worldwide, and they are implementing diverse regulations and initiatives for construction companies to adopt sustainable practices in their overall project management. LCA software provides many benefits to a construction company by complying with these regulations and avoiding penalties.
The construction and design of new energy-efficient green buildings create a demand for them commercially, leading to a rise in the necessity of LCA software in the coming years. According to IBEF November 2024 data, India ranked third in the US Green Building Council Leadership in Energy and Environmental Design (LEED) certification for 2023, recognizing the nation's efforts in developing greener construction projects. India has a significant focus on sustainability, with 248 projects approved covering more than 7.23 million gross square meters (GSM).
Demand growth in the construction sector for LCA software would be considerable due to the launch of new products into the market. This scenario will have a positive impact on the demand for LCA software, contributing to achieving sustainability and stimulating innovation. One Click LCA developed the CalGreen Tool, which is an LCA software tool to ensure that the construction and renovation projects taking place in California meet the new built environment regulations. The tool was introduced at the Summer Sustainability Summit 2024 and is part of the aspect of the California Code of Regulations, which mandates Embodied Carbon Emission Control as a part of a regulation.
The regulation came into force on July 1, 2024, and requires developers to reuse structures, reduce embodied carbon, and deliver EPDs on materials used. The tool makes it easier for developers and builders to prepare for new sustainability benchmarks and measures for non-residential buildings and schools in California. The evolution of high-level LCA software makes it easy for construction companies to use, especially those with cloud-based systems, leading to overall market growth in the coming years.
By geography, the Lifecycle assessment software market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as the ASEAN countries.
North America is expected to have a significant market share of the Lifecycle assessment software market. The United States is one of the global economies that is experiencing an upward trajectory in its industrial production. The country is also investing in new technological innovations and applying industrial standards that optimize the overall energy distribution in its operations. Hence, the growing concern of carbon emissions has accelerated the transition towards sustainable practices, and efforts are being made to enhance their level of adoption in commercial & industrial operations.
Life cycle assessment (LCA) software has established a framework that has enabled corporations in the USA to monitor their sustainable goals and take environmental accountability. The governing authorities are also prioritizing bolstering carbon neutrality. The “Federal Sustainable Plan” launched by the Biden Administration aimed to achieve net-zero carbon emissions by 205,0, which also included powering buildings with carbon-free electricity.
Likewise, the economy is further aiming to enhance green building development with major states implementing necessary rules. Such as the “California Green Building Standard Code” aims to establish an eco-friendly framework of non-residential structures, thereby achieving California’s goals of minimizing greenhouse gas emission levels.
The market leaders for the lifecycle assessment software market are PRé Sustainability B.V., iPoint-systems GmbH, One Click LCA Ltd., EarthShift Global, GreenDelta, Circular Ecology, Athena Sustainable Materials Institute, Solid Forest, Sphera, Altermaker, Minviro Ltd, P6 Technologies, SCS Global Services, Intertek Group plc, and SolidWorks Sustainability. The key players in the market implement growth strategies such as product launches, mergers, acquisitions, etc., to gain a competitive advantage over their competitors. For Instance,
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Life Cycle Assessment (LCA) Software Market Size in 2025 | US$565.551 million |
| Life Cycle Assessment (LCA) Software Market Size in 2030 | US$1,025.750 million |
| Growth Rate | CAGR of 17.22% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Million |
| Segmentation |
|
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Life Cycle Assessment (LCA) Software Market | |
| Customization Scope | Free report customization with purchase |
The Lifecycle Assessment Software Market is analyzed into the following segments: