ESG Rating Services Market Size (2024)

The ESG Rating Services Market is poised for significant growth, driven by increasing demand for transparency and accountability from stakeholders such as investors and regulators. The market's expansion is fueled by the rising importance of sustainability and responsible investment, prompting companies to integrate ESG considerations into their strategies. Regulatory mandates for ESG reporting, such as those under the European Union's Sustainable Finance Disclosure Regulation, are further propelling market growth. Additionally, advancements in technology, including Artificial Intelligence and Big Data analytics, are enhancing the efficiency and credibility of ESG data analysis, contributing to the market's positive outlook.

Market Size of ESG Rating Services Industry

Share

Study Period	2020-2029
Market Size (2024)	USD 10.37 Billion
Market Size (2029)	USD 15.42 Billion
CAGR (2024 - 2029)	8.25 %
Fastest Growing Market	Asia Pacific
Largest Market	North America
Major Players *Disclaimer: Major Players sorted in no particular order

ESG Rating Services Market Analysis

The ESG Rating Services Market size is estimated at USD 10.37 billion in 2024, and is expected to reach USD 15.42 billion by 2029, growing at a CAGR of 8.25% during the forecast period (2024-2029).

ESG rating has become increasingly important as stakeholders, including investors, customers, employees, and regulators, demand better company transparency and accountability. The outlook of the ESG rating services market is highly promising. The growing awareness and importance of sustainability, responsible investment, and corporate governance practices are driving the demand for ESG reporting. Companies are realizing the need to integrate ESG considerations into their business strategies to mitigate risks, improve operational efficiency, and enhance stakeholder trust. As a result, the demand for ESG reporting services is expected to witness significant growth.

The industry is also growing since regulatory authorities are mandating ESG reporting to increase. Financial institutions are required to publish information about their sustainability policies and ESG risks under the Sustainable Finance Disclosure Regulation (SFDR) of the European Union. Such regulations are likely to impact the market’s expansion positively. Technological breakthroughs like Artificial Intelligence and Big Data analytics are also making it easier to gather and analyze ESG data, which improves the effectiveness and legitimacy of ESG reporting. It is anticipated that corporations may use ESG rating services more frequently due to these technical developments.

ESG Rating Services Industry Segmentation

ESG rating services is a market that focuses on providing companies with tools and services to measure, report, and disclose their environmental, social, and governance (ESG) performance. The ESG rating services market is segmented by type, application, and geography. By type, the market is segmented into addressing ESG expectations, preparing ESG reports, assuring ESG data, communicating ESG strategy, and other types. By application, the market is segmented into financial industry, consumer and retail, industrial manufacturing, energy and natural resources, real estate, and other applications. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East and Africa. The report offers market size and forecasts for ESG rating services market in value (USD) for all the above segments.

ESG Rating Services Market Size Summary

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ESG Rating Services Market Size - Table of Contents

1. 1. MARKET DYNAMICS AND INSIGHTS

   See Also

   Bloomberg - Are you a robot?What are ESG Scores and how important are they? | Definition from TechTargetDon’t Count ESG Out: Alive and Well in 2024 | Thompson Hine LLPESG & Sustainability Advisory Market Overview 2023-2033

   1. 1.1 Market Overview

   2. 1.2 Market Drivers

      1. 1.2.1 Increasing Demand for Ethical and Sustainable Investments

      2. 1.2.2 Steady Growth in Corporate Data Volumes

   3. 1.3 Market Restraints

      1. 1.3.1 Lack of Standardized Frameworks

      2. 1.3.2 Self-Reported Data by Organizations

   4. 1.4 Market Opportunities

      1. 1.4.1 Adoption of Advanced Technologies such as AI

      2. 1.4.2 Increasing Government Initiatives to Promote ESG Investments

   5. 1.5 Value Chain Analysis

   6. 1.6 Industry Attractiveness: Porter's Five Forces Analysis

      1. 1.6.1 Threat of New Entrants

      2. 1.6.2 Bargaining Power of Buyers

      3. 1.6.3 Bargaining Power of Suppliers

      4. 1.6.4 Threat of Substitutes

      5. 1.6.5 Intensity of Competitive Rivalry

   7. 1.7 Insights into Technological Advancements in the Industry

   8. 1.8 Insights into Various Regulatory Trends Shaping the Market

   9. 1.9 Impact of COVID-19 on the Market

2. 2. MARKET SEGMENTATION

   1. 2.1 By Type

      1. 2.1.1 Addressing ESG Expectations

      2. 2.1.2 Preparing ESG Reports

      3. 2.1.3 Assuring ESG Data

      4. 2.1.4 Communicating ESG Strategy

      5. 2.1.5 Other Types

   2. 2.2 By Application

      1. 2.2.1 Financial Industry

      2. 2.2.2 Consumer and Retail

      3. 2.2.3 Industrial Manufacturing

      4. 2.2.4 Energy and Natural Resources

      5. 2.2.5 Real Estate

      6. 2.2.6 Other Applications

   3. 2.3 By Geography

      1. 2.3.1 North America

         1. 2.3.1.1 United States

         2. 2.3.1.2 Canada

         3. 2.3.1.3 Mexico

            See Also

            Seven Key Trends in ESG for 2023—and What to Expect in 2024

         4. 2.3.1.4 Rest of North America

      2. 2.3.2 Europe

         1. 2.3.2.1 United Kingdom

         2. 2.3.2.2 Germany

         3. 2.3.2.3 France

         4. 2.3.2.4 Russia

         5. 2.3.2.5 Italy

         6. 2.3.2.6 Spain

         7. 2.3.2.7 Rest of Europe

      3. 2.3.3 Asia-Pacific

         1. 2.3.3.1 India

         2. 2.3.3.2 China

         3. 2.3.3.3 Japan

         4. 2.3.3.4 Australia

         5. 2.3.3.5 Rest of Asia-Pacific

      4. 2.3.4 South America

         1. 2.3.4.1 Brazil

         2. 2.3.4.2 Argentina

         3. 2.3.4.3 Rest of South America

      5. 2.3.5 Middle East and Africa

         1. 2.3.5.1 United Arab Emirates

         2. 2.3.5.2 South Africa

         3. 2.3.5.3 Rest of Middle East and Africa

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