The EHS industry is currently in the middle of a quickly changing time. Driven by technological advances and a focus on sustainability, EHS is rapidly shedding its traditional image of rulebooks and checklists, not to mention binders and spreadsheets.
According to recent data gathered by Verdantix, the EHS software market is projected to reach $2 billion globally in 2024, with North America poised to capture a significant 50% share.
This dominance reflects a growing recognition of the value proposition that EHS technology offers: Empowering businesses to move beyond mere compliance and proactively manage safety, health, and environmental risks. Saving lives, cutting cost and making the workplace a better place to be.
But Verdantix’s insights paint a broader picture, looking beyond just market size. This article looks into the exciting future of EHS, exploring how cutting-edge technologies, a culture of employee engagement, and a commitment to environmental responsibility will converge to create a safer, healthier, and more sustainable work environment for everyone.
The growth that the EHS industry is currently in is being fueled by a surge in innovative solutions. As Chris Sayers, Verdantix Senior Analyst, predicts, “In the thriving EHS software landscape, North America is poised to command 50% of the $2 billion global market in 2024.” This dominance reflects a strong focus on compliance and a growing recognition of the value proposition that EHS software offers. But the story doesn’t end there.
Here’s what we can expect beyond 2024:
Beyond these specific predictions, several emerging technologies promise to further transform the EHS landscape:
The future of EHS is not a singular path, but rather an intersection of two powerful forces:
• Cutting-edge technology
• Highly engaged workforce
That’s because technology, while powerful, is only one piece of the puzzle. A truly effective EHS program hinges on the active participation of an engaged workforce. As Rain Chiang, Analyst at Verdantix, emphasizes, “Safety needs to be seen as an integral part of the broader organizational culture, not just a compliance burden.”
Here’s how EHS can foster a culture of engagement:
Technology is a powerful tool for engagement. For example, AI-powered chatbots can answer employee safety questions 24/7, while virtual reality (VR) training simulations can create immersive and realistic learning experiences. However, true engagement goes beyond digital tools. It requires a cultural shift where safety is seen as a shared value, a responsibility everyone takes ownership of.
When cutting-edge technology is combined with a culture of employee engagement, the results are transformative.
Imagine a workplace where AI proactively identifies hazards, employees readily report safety concerns, and data-driven insights guide continuous improvement efforts. This is the future of EHS – a high-tech environment fueled by a workforce that is actively engaged in creating a safer, healthier, and more sustainable world.
As firms strive to modernize EHS operations, a key challenge lies in overcoming outdated systems, according to Nathan Goldstein, Senior Analyst. He highlights, “Proactive management of solution ecosystems and robust digital roadmaps are crucial to preemptively mitigating problems, with 55% of EHS decision-makers surveyed by Verdantix looking to have a unified global software solution.”
Over the next two years, a successful EHS digitization strategy will likely focus on:
The focus on environmental sustainability is shaping EHS service budgets. As April Choy, Analyst, explains, “As corporate sustainability takes centre stage, firms are prioritizing spending on carbon emissions and environmental impact. In a recent Verdantix survey, 64% of EHS leaders reported an increase in budget for sustainability management services, underscoring the pivotal role of service firm expertise in driving impactful initiatives.”
We can expect this trend to continue in the next 12 months. EHS budgets will likely see an increase in allocations for:
In this evolving landscape, third-party EHS services play a crucial role in supporting EHS activities. As EHS professionals navigate increasingly multifaceted roles, Tom Brown, Senior Analyst, points out, “relying on third-party services becomes vital to address expertise gaps. Among the EHS leaders surveyed by Verdantix, 61% emphasize the ‘very important’ role of third-party services in supporting IH/OH obligations, underlining the ongoing reliance on external expertise for specialized tasks.”
Third-party service providers offer a wide range of benefits, including:
The future of EHS is innovative technology, a culture of employee engagement, and a growing focus on environmental responsibility.
By leveraging these advancements, organizations can create a work environment that is not only safe and healthy, but also sustainable and productive.
Here’s how this future might unfold:
This confluence of trends will usher in a new era of EHS excellence. It’s a future where technology empowers, employees are engaged, and environmental responsibility becomes a core value.
The result: a safer, healthier, and more sustainable world for all.