Report on the Global Life Cycle Assessment (LCA) Market and its Alignment with Sustainable Development Goals (SDGs)

Executive Summary

The global Life Cycle Assessment (LCA) market is on a significant growth trajectory, projected to reach USD 2,558.45 million by 2033, with a compound annual growth rate (CAGR) of 14.35% from 2023 to 2033. The market’s expansion is fundamentally linked to the global push towards sustainability, with LCA methodologies serving as a critical tool for organizations to measure, manage, and report on their environmental performance. This report details the market’s dynamics, segmentation, and key drivers, with a significant focus on its role in advancing the United Nations’ Sustainable Development Goals (SDGs).

LCA’s Contribution to Sustainable Development Goals (SDGs)

Life Cycle Assessment provides the analytical foundation for businesses and policymakers to make data-driven decisions that support several key SDGs. By evaluating the environmental impact of products and services from raw material extraction to end-of-life, LCA directly enables progress on the following goals:

• SDG 12 (Responsible Consumption and Production): LCA is the core methodology for achieving sustainable production patterns. It allows companies to identify resource inefficiencies, reduce waste generation, and design products for a circular economy, directly aligning with SDG 12 targets.
• SDG 13 (Climate Action): By quantifying greenhouse gas emissions and carbon footprints across a product’s lifecycle, LCA provides the essential data needed for climate action strategies, helping organizations contribute to net-zero targets.
• SDG 9 (Industry, Innovation, and Infrastructure): The adoption of LCA tools promotes innovation in sustainable industrial processes and resilient infrastructure. It encourages the development of cleaner technologies and more efficient manufacturing practices.
• SDG 11 (Sustainable Cities and Communities): In the construction and urban planning sectors, LCA is used to assess the environmental impact of buildings and infrastructure projects, fostering the development of sustainable, low-carbon cities.
• SDG 7 (Affordable and Clean Energy): LCA helps evaluate the environmental trade-offs of various energy systems, supporting the transition to cleaner and more sustainable energy sources by providing a holistic view of their impact.

Key Market Drivers

The growth of the LCA market is propelled by several factors that are intrinsically linked to global sustainability imperatives.

1. Heightened Environmental Awareness: Growing public and corporate concern over climate change and resource depletion is a primary driver, pushing organizations to adopt LCA to substantiate their sustainability claims and support SDG 13.
2. Stringent Regulatory Frameworks: Government mandates such as the EU Green Deal and compliance with ISO 14040/44 standards compel businesses to conduct environmental assessments, making LCA essential for legal and regulatory adherence.
3. Corporate Sustainability and ESG Commitments: The integration of Environmental, Social, and Governance (ESG) criteria into corporate strategy requires transparent and verifiable impact reporting, for which LCA is a foundational tool.
4. Technological Advancements in LCA Tools: Innovations like AI-powered analytics and cloud-based platforms are making LCA more accessible, accurate, and scalable, facilitating broader adoption across industries in line with SDG 9.
5. Consumer Demand for Sustainable Products: Market pressure from environmentally conscious consumers is compelling companies to use LCA to validate green product claims and drive responsible consumption patterns (SDG 12).
6. Rise of the Circular Economy: The global shift towards circular economy models, which prioritize resource efficiency and waste reduction, inherently relies on the lifecycle thinking and analytical power of LCA.

Market Segmentation Analysis

Analysis by Assessment Type

The cradle-to-grave segment held the largest market share in 2023. This comprehensive approach evaluates a product’s entire lifecycle, from raw material extraction to final disposal. Its dominance is attributed to its ability to provide a complete environmental profile, enabling companies to identify hotspots and implement targeted improvements that support SDG 12 by minimizing waste and resource use throughout the value chain.

Analysis by End-User Industry

The construction sector was the market leader in 2023. The integration of LCA with Building Information Modeling (BIM) and digital twin technologies is revolutionizing sustainable building design. This synergy allows stakeholders to perform real-time environmental impact assessments, directly contributing to the development of sustainable infrastructure and cities as outlined in SDG 11.

Regional Market Analysis

North America is projected to hold the largest share of the LCA market. This leadership is driven by a strong focus on regulatory compliance, particularly concerning data security and privacy laws (e.g., HIPAA, GDPR). The region’s advanced industrial, healthcare, and financial sectors are increasingly adopting LCA to meet stringent environmental reporting standards and corporate sustainability goals, thereby advancing regional progress on multiple SDGs.

Key Challenges

Despite strong growth, the market faces several challenges that may hinder widespread adoption:

• High Implementation Costs: The initial investment for advanced LCA software and consultancy can be a barrier, particularly for small and medium-sized enterprises (SMEs).
• Complexity and Data Intensity: Comprehensive LCA studies are resource-intensive, requiring extensive data collection that can be complex and time-consuming.
• Lack of Standardization: Variations in methodologies and data sources can lead to inconsistencies, making it difficult to compare results across different assessments.
• Data Availability and Quality: The accuracy of an LCA is highly dependent on the availability of high-quality, region-specific data, which can often be incomplete or outdated.
• Shortage of Skilled Professionals: A limited talent pool with expertise in both environmental science and LCA software restricts the ability of organizations to implement these assessments effectively.

Competitive Landscape

Leading Market Participants

• TUV Rheinland
• One Click LCA
• Dassault Systèmes
• Makersite
• Sphera
• Ecochain Technologies
• Tata Consultancy Services (TCS)
• SimaPro
• RINA S.p.A.
• Anthesis Group Ltd.
• iPoint-systems gmbh
• And others

Recent Developments

In a strategic move to enhance capabilities for sustainable urban design, One Click LCA acquired ENVI-met in September 2024. This acquisition combines One Click LCA’s environmental impact assessment platform with ENVI-met’s microclimate simulation software, creating a powerful integrated solution for designing climate-adaptive cities and advancing the objectives of SDG 11.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on the Life Cycle Assessment (LCA) market directly or indirectly addresses several Sustainable Development Goals (SDGs) by focusing on tools and methodologies designed to measure and reduce environmental impacts across various industries. The relevant SDGs are:

• SDG 9: Industry, Innovation, and Infrastructure
• SDG 11: Sustainable Cities and Communities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s discussion of LCA applications, drivers, and market trends, the following specific SDG targets can be identified:

1. SDG 9: Industry, Innovation, and Infrastructure
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies. The article highlights that LCA tools are being adopted across sectors like “manufacturing, automotive, construction, consumer goods, and energy” to make “data-driven, sustainable decisions.” It also points to “Technological Advancements in LCA Tools” such as “AI-powered analytics, cloud-based platforms, and real-time data modeling” as key drivers, which aligns with the adoption of clean and sound technologies.
2. SDG 11: Sustainable Cities and Communities
   • Target 11.6: Reduce the adverse per capita environmental impact of cities. The article identifies the construction segment as the market leader for LCA, noting that “the growing integration of digital twin technologies and Building Information Modeling (BIM) is accelerating the adoption of LCA in the construction industry.” This allows stakeholders to “conduct real-time environmental assessments during planning and design,” directly contributing to more sustainable urban development.
3. SDG 12: Responsible Consumption and Production
   • Target 12.2: Achieve the sustainable management and efficient use of natural resources. The article states that LCA evaluates “resource consumption” and that “Circular Economy Initiatives” which “emphasize resource efficiency and lifecycle thinking” are a key market driver.
   • Target 12.4: Achieve the environmentally sound management of chemicals and all wastes throughout their life cycle. The core function of LCA, as described, is “evaluating the environmental impact of products, services, and processes throughout their entire life span-from raw material extraction to final disposal,” which includes measuring “emissions” and “waste.”
   • Target 12.5: Substantially reduce waste generation. The article’s emphasis on “cradle to grave” analysis and “circular economy models” directly supports the goal of reducing waste throughout a product’s life cycle.
   • Target 12.6: Encourage companies to adopt sustainable practices and integrate sustainability information into their reporting cycle. A key market driver identified is “Corporate Sustainability and ESG Goals,” where the “increasing corporate commitment to sustainability, net-zero targets, and ESG…is driving the integration of LCA into business strategies for transparent impact reporting.”
4. SDG 13: Climate Action
   • Target 13.3: Improve education, awareness-raising and human and institutional capacity on climate change mitigation and impact reduction. The article states that the LCA market is “fueled by the global emphasis on sustainability, carbon footprint reduction,” and that “Rising Environmental Awareness” is a primary driver. The entire purpose of LCA tools is to build institutional capacity to measure and mitigate climate-related impacts.
5. SDG 17: Partnerships for the Goals
   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships. The article provides a specific example of such a partnership in the “Recent Development” section, where “One Click LCA, announced the purchase of ENVI-met… The strategic purchase creates a powerful solution for decarbonization and climate-adaptive urban design.” This illustrates a private-sector partnership aimed at achieving sustainability goals.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article mentions or implies several indicators that can be used to measure progress towards the identified targets:

1. For Target 9.4:
   • Indicator: The rate of adoption of LCA software and services across industrial sectors. The article provides a direct market indicator, projecting the global LCA market to “reach USD 2,558.45 million by 2033, expanding at a robust CAGR of 14.35%.” This growth serves as a proxy for the rate at which industries are adopting these sustainable technologies.
2. For Target 11.6:
   • Indicator: The integration of LCA tools into construction and urban planning platforms. The article implies this indicator by stating that “many BIM platforms now incorporating LCA tools,” which allows for “real-time environmental assessments.”
3. For Targets 12.2, 12.4, and 12.5:
   • Indicator: The measurement of resource consumption, emissions, and waste generation. The article defines LCA as a method for “measuring factors such as emissions, resource consumption, and waste,” making these the core metrics used by the tools to assess environmental performance.
4. For Target 12.6:
   • Indicator: The number of companies incorporating LCA into their corporate sustainability and ESG reporting. The article implies this is a measurable trend by citing “Corporate Sustainability and ESG Goals” and the need for “transparent impact reporting” as a key market driver.
5. For Target 13.3:
   • Indicator: The level of market demand for LCA tools. The article’s entire premise is that the market is “witnessing strong growth as organizations worldwide adopt sustainable practices and strive to reduce their environmental impact,” reflecting increased awareness and capacity for climate action.
6. For Target 17.17:
   • Indicator: The number of strategic partnerships, collaborations, and acquisitions within the sustainability solutions sector. The article provides a concrete example with the acquisition of ENVI-met by One Click LCA, which can be tracked as an indicator of partnership activity.

4. Summary of SDGs, Targets, and Indicators

Source: openpr.com