Waste To Energy Market Report
Waste to Energy Market by Technology (Thermal, Biochemical, and Others) and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028
Global Waste to Energy Market Analysis
The global waste to energy market accounted for $49,300.0 million in 2020 and is predicted to grow with a CAGR of 4.7% by generating a revenue of $70,700.0 million by 2028.
Waste to energy market is gaining huge popularity as it involves producing energy from waste and reducing the dependence on fossil fuel for energy generation.
However, the waste to energy incineration process is expensive as the cost of building incineration plants is high. In addition, these waste incineration plants can take a toll on the health of people located near these plants and can cause respiratory problems, reproductive abnormalities, high risk of cancer, and other health issues.
According to regional analysis, the Europe waste to energy market accounted for $20,513.7 million in 2020 and is predicted to grow with a CAGR of 4.3% in the projected timeframe.
Waste to Energy Overview
Waste to energy is a process of generating energy from waste and reducing the dependence on fossil fuel such as coal for energy generation. Waste to energy is a sustainable method to reduce the emission of harmful greenhouse gases such as methane and carbon dioxide, prevent waste from entering the landfill, and curb the emission of methane gas from landfill. These plants burn the garbage or trash with the help of a boiler to produce steam which is used to generate electricity. Waste to energy process helps in reducing air pollution by removing pollutants from gas combustion and preventing them from entering the smokestack.
Impact Analysis of COVID-19 on the Global Waste to Energy Market
The COVID-19 pandemic has led to severe uncertainties due to lockdown imposed across various countries. The waste to energy market has experienced a negative impact due to accumulation of large amount of toxic medical waste such as gloves, PPE kits, sanitizer bottles, and others raising the fear of contracting the virus. Restrictions on commercial activities, mobility, and closure of manufacturing & production units have negatively affected the waste management due to improper waste collection and disposal. The fear of contracting COVID-19 virus among waste pickers has led to improper segregation and waste management. Moreover, the delays in availability of raw materials or goods due to import-export and travel restrictions required for setting up the waste to energy plants have led to supply chain disruptions. Social distancing measures have led to shortage of labors. In addition, panic buying of goods and rapid increase in single use products have increased plastic pollution and affected the sustainable development plans. All these factors have negatively impacted the growth of the waste to energy market during the pandemic.
Various government initiatives and subsidies to promote the development of waste to energy projects are helping the society to recover from this chaotic situation. For instance, as stated on March 04, 2020, in the Economic Times, a popular news platform, the Indian government has granted Rs 478 crore towards the development of waste to energy projects. The waste to energy conversion technologies such as gasification, pyrolysis, combustion, bio methanation, or any new technology will be eligible to receiving this grant. The plant should have the capacity of at least 5 MW to receive the grant and there will be no maximum limit on capacity of WTE projects. In addition, the biomass gasifier projects of any capacity are eligible for receiving grants under this scheme.
Production of Heat and Power from Waste to Drive the Market Growth
Waste to energy is an efficient and sustainable method of waste treatment that produces heat which can generate electricity. These waste to energy plants can reduce the waste by almost 95% to 96% and prevent the waste from entering the landfill. These plants offer various benefits and destroy contaminant medical waste and other toxic garbage. Waste to energy technology offers various advantages such as production of heat & power, efficient waste management, decreasing the amount of waste, preventing the production of methane gas & harmful greenhouse gases, better control over noise and odor while decomposition process, minimal pollution, no contamination of groundwater, effective in metal recycling, and others. All these benefits are estimated to drive the demand for waste to energy market during the forecast period.
To know more about global waste to energy market drivers, get in touch with our analysts here.
High Installation Cost of Waste to Energy Plants to Restrain Market Growth
The set-up of waste to energy plants specifically the incineration plant is costly as it includes the cost of building necessary infrastructure, operating cost, waste management and segregation cost, and other expenses. In addition, trained personnel and devoted staff are required to handle the incinerator plants as they require regular maintenance which is estimated to hamper the market growth during the forecast period.
Waste to Energy has Potential to Replace Coal which is Estimated to Generate Enormous Opportunities
Deriving energy from waste to energy plants by combustion of municipal solid waste is an efficient and cheap alternative to coal power plants. The use of coal for generating electricity emits harmful gases such as sulfur dioxide, nitrogen oxides, hydrogen chloride including trace elements such as lead, mercury, cadmium which are toxic. On an average waste to energy plants can burn up to 300 million tons of garbage annually which is used for power generation. This reduces the load on coal plants and other fossil fuels which are non-renewable sources of energy. In addition, these plants prevent the emission of hazardous compounds namely dioxin as they trap dioxin which is estimated to generate excellent growth opportunities during the forecast period.
To know more about global waste to energy market opportunities, get in touch with our analysts here.
Waste to Energy Market
Source: Research Dive Analysis
The thermal sub-type is anticipated to have a dominant market share and generate a revenue of $48,366.9 million by 2028, growing from $$34,219.5 million in 2020. The growth of thermal technology is majorly attributed to the thermal energy generated from incineration of waste that is used to drive steam turbines for generating electricity. For instance, Japan is a leading country that has most modern types of thermal treatment plants capable of processing 39 million tons of waste every year. Hence, this is a prevalent and reliable technology.
Waste to Energy Market
Source: Research Dive Analysis
The Market for Waste to Energy in Europe to be the Most Dominant
The Europe waste to energy market accounted $20,513.7 million in 2020 and is projected to grow with a CAGR of 4.3%. This growth is majorly attributed to an increase in government initiatives to promote waste to energy projects and reduce the emission of toxic gases. There are many waste to energy plants in Europe. For instance, the incinerator plant built in Naples, Italy in 2013 can handle 650,000 tons of waste each year. In addition, Sweden and Denmark have various waste to energy plants like Vartan, Aros, and Herning that generate more than 100 kW of electricity. Moreover, UK has gasification-based waste to energy plant located in Manchester that can treat municipal solid waste, commercial waste, and industrial waste, having an annual capacity of 78,000 tons.
The Market for Waste to Energy in Asia-Pacific to be the Fastest Growing
The Asia-Pacific waste to energy market accounted for $17,462.1 million in 2020 and is projected to register a revenue of $25,982.3 million by 2028, growing at a CAGR of 5.2%. The rapid increase in population and migration of people towards cities are resulting in large amount of waste that is being generated on daily basis. In addition, the COVID-19 pandemic has severely affected countries like India and China, that has led to panic buying of goods, increase in single use products, and accumulation of large amount of medical waste leading to plastic pollution. Hence, Shenzhen, one of the biggest megacities in China, has installed the largest waste to energy plant that can process up to 5,000 tons of waste on daily basis. In addition, China has more than 300 waste to energy plants in operation that efficiently manage the waste and generate energy. Similarly, in India, Veolia, the waste management & energy services company, handles more than 90 waste to energy facilities that treat municipal solid waste and generate electricity.
Competitive Scenario in the Global Waste to Energy Market
Collaboration and business expansion are common strategies followed by major market players.
Source: Research Dive Analysis
Some of the leading waste to energy market players are Abu Dhabi National Energy Company Pjsc (TAQA), Babcock & Wilcox Enterprises, Inc., China Everbright International Limited, John Wood Group Plc, C&G Ltd., Suez, Waste Management, Inc., Veolia, Covanta Holding Corporation, and CNIM among others.
Porter’s Five Forces Analysis for the Global Waste to Energy Market:
- Bargaining Power of Suppliers: The companies operating in waste to energy market buy various raw materials and goods from suppliers. The suppliers can use their bargaining potential to gain high profits.
Thus, the bargaining power of suppliers is high.
- Bargaining Power of Buyers: In this market, the concentration of buyers is high.
Thus, buyer’s bargaining power will be moderate.
- Threat of New Entrants: New entrants entering this market have to adhere to various government regulation, as well as high setup cost is involved in setting up waste to energy treatment plants along with high exit barriers.
Thus, the threat of the new entrants is low.
- Threat of Substitutes: At present there is no alternative to waste to energy plants as it is the efficient & sustainable method for managing waste and producing energy.
Thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: The companies operating in this market are focusing on increasing their waste handling and energy generation capacity. Also, they are adopting business expansion to handle the waste.
Therefore, competitive rivalry in the market is moderate.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, LAMEA
Segmentation by Technology
Key Companies Profiled
Q1. What is the size of the global waste to energy market?
A. The size of the global waste to energy market was over $49,300.0 million in 2020 and is projected to reach 70,700.0 million by 2028.
Q2. Which are the major companies in the waste to energy market?
A. John Wood Group Plc and CNIM are some of the key players in the global waste to energy market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What will be the growth rate of the Asia-Pacific waste to energy market?
A. Asia Pacific waste to energy market is anticipated to grow at 5.20% CAGR during the forecast period.
Q5. What are the strategies opted by the leading players in this market?
A. Collaboration and business expansion are the two key strategies opted by the operating companies in this market.
Q6. Which companies are investing more on R&D practices?
A. Abu Dhabi National Energy Company Pjsc (TAQA) and Babcock & Wilcox Enterprises, Inc. are the companies investing more on R&D activities for developing new products and technologies.
1.2.Real time insights and validation
1.4.Assumptions and forecast parameters
3.1.Market segmentation & definitions
3.2.1.Top investment pockets
3.2.2.Top winning strategies
3.3.Porter’s five forces analysis
3.3.1.Bargaining power of consumers
3.3.2.Bargaining power of suppliers
3.3.3.Threat of new entrants
3.3.4.Threat of substitutes
3.3.5.Competitive rivalry in the market
3.5.End Use landscape
3.8.Market value chain analysis
4.Waste to Energy Market, by Technology
4.1.1.Market size and forecast, by region, 2020-2028
4.1.2.Comparative market share analysis, 2020 & 2028
4.2.1.Market size and forecast, by region, 2020-2028
4.2.2.Comparative market share analysis, 2020 & 2028
4.3.1.Market size and forecast, by region, 2020-2028
4.3.2.Comparative market share analysis, 2020 & 2028
5.Waste to Energy Market, by Region
5.1.1.Market size and forecast, by Technology, 2020-2028
5.1.2.Market size and forecast, by country, 2020-2028
5.1.3.Comparative market share analysis, 2020 & 2028
188.8.131.52.Market size and forecast, by Technology, 2020-2028
184.108.40.206.Comparative market share analysis, 2020 & 2028
220.127.116.11.Market size and forecast, by Technology, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by Technology, 2020-2028
126.96.36.199.Comparative market share analysis, 2020 & 2028
5.2.1.Market size and forecast, by Technology, 2020-2028
5.2.2.Market size and forecast, by country, 2020-2028
5.2.3.Comparative market share analysis, 2020 & 2028
188.8.131.52.Market size and forecast, by Technology, 2020-2028
184.108.40.206.Comparative market share analysis, 2020 & 2028
220.127.116.11.Market size and forecast, by Technology, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by Technology, 2020-2028
126.96.36.199.Comparative market share analysis, 2020 & 2028
188.8.131.52.Market size and forecast, by Technology, 2020-2028
184.108.40.206.Comparative market share analysis, 2020 & 2028
220.127.116.11.Market size and forecast, by Technology, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
5.2.9.Rest of Europe
22.214.171.124.Market size and forecast, by Technology, 2020-2028
126.96.36.199.Comparative market share analysis, 2020 & 2028
5.3.1.Market size and forecast, by Technology, 2020-2028
5.3.2.Market size and forecast, by country, 2020-2028
5.3.3.Comparative market share analysis, 2020 & 2028
188.8.131.52.Market size and forecast, by Technology, 2020-2028
184.108.40.206.Comparative market share analysis, 2020 & 2028
220.127.116.11.Market size and forecast, by Technology, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by Technology, 2020-2028
126.96.36.199.Comparative market share analysis, 2020 & 2028
188.8.131.52.Market size and forecast, by Technology, 2020-2028
184.108.40.206.Comparative market share analysis, 2020 & 2028
220.127.116.11.Market size and forecast, by Technology, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
5.3.9.Rest of Asia-Pacific
22.214.171.124.Market size and forecast, by Technology, 2020-2028
126.96.36.199.Comparative market share analysis, 2020 & 2028
5.4.1.Market size and forecast, by Technology, 2020-2028
5.4.2.Market size and forecast, by country, 2020-2028
5.4.3.Comparative market share analysis, 2020 & 2028
188.8.131.52.Market size and forecast, by Technology, 2020-2028
184.108.40.206.Comparative market share analysis, 2020 & 2028
220.127.116.11.Market size and forecast, by Technology, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by Technology, 2020-2028
126.96.36.199.Comparative market share analysis, 2020 & 2028
6.1.Abu Dhabi National Energy Company Pjsc (TAQA)
6.1.4.Recent strategic moves & developments
6.2.Babcock & Wilcox Enterprises, Inc.
6.2.4.Recent strategic moves & developments
6.3.China Everbright International Limited
6.3.4.Recent strategic moves & developments
6.4.John Wood Group Plc
6.4.4.Recent strategic moves & developments
6.5.C&G Environmental Protection Holdings Ltd.
6.5.4.Recent strategic moves & developments
6.6.4.Recent strategic moves & developments
6.7.Waste Management Inc.
6.7.4.Recent strategic moves & developments
6.8.Covanta Holding Corporation
6.8.4.Recent strategic moves & developments
6.9.4.Recent strategic moves & developments
6.10.4.Recent strategic moves & developments
The world produces a large amount of waste each day and a majority of it goes into large designated areas known as landfills. The industries where the process of using the waste to produce energy in the form of electricity which can power large areas, is known as waste to energy industry.
Covid-19 Impact on the Global Waste to Energy Market
The coronavirus pandemic led to a consequential effect on several industries all over the world. The spread of the virus led to guidelines that stated the need for people to use safety gear to bring down the rate of transmission. These included PPE kits which are predominantly used among healthcare professionals to avoid any contact with other infected patients, gloves, empty syringes, sanitizer bottles, and face masks. But the ones used are then disposed off which has led to medical waste being collected all over the world. With industries shut and transport banned as a result of the lockdown, the waste wasn’t transferred to the waste management units. To add further, sanitization workers have since been hesitant to pick any of the litter as they fear the risk of contracting the deadly COVID-19 virus. These factors were primarily responsible for the drop in the growth rate of the global waste energy market during the analysis period. But, there have been continuous efforts to ensure the growth of the market. For example, the government of India contributed over 468 crore rupees for development of new waste to energy projects that is expected to help the market experience rapid recovery.
Key Developments in the Industry
Several industries are working on building up their presence in the market while also involving in research which is a part of the efforts. The innovative methodologies by organizations of creating better products are also used, keeping in mind satisfaction of customers or companies in terms of quality.
For instance, in December 2020, Hitachi Zosan, a pioneer in the production of waste treatment plants, gained a contract from the state government of Karnataka, India to initiate a new waste to energy project. The treatment plant, which is valued at 260 crores, is expected to process over 600 tonnes of waste which has the capacity to produce over 11.5 megawatt of power to the state. The project which is set to come up in the Bidadi area is also in collaboration with the KPCL and Bruhat Bangalore Mahanagar Palike (BBMP).
Also, in June 2021, EnMass, an expert in energy supply service, announced their plan to launch online marketplace for sale of waste materials. This medium provides several features to clients to gain control over the supply of materials such as food waste and poultry waste. The company also provides the facility to form connections between different organizations to procure different services such as warehousing, energy suppliers, processors, and more. The entire process is managed via a cloud platform which provides a secure platform for exchange of information.
Forecast Analysis of the Global Waste to Energy Market
A recently published report by Research Dive stated that the global waste to energy market is expected to gain momentum with revenue of $70,700.0 million by 2028, rising from $49,300.0 million in 2020 at a stead CAGR of 4.7% from 2021-2028.
The world has been requiring a way of making production of energy sustainable. The waste energy plants hold the capacity to cut down the level of disposed-off waste by up to 95%-96% and stops the dumping of waste into landfills as well. To add further, the plants also have a safer way of disposing all the medical waste produced without contaminating the area. These factors have been ensuring the rapid growth of the global waste to energy market.
On the contrary, the process and cost of setting up these waste to energy plants has been one of the primary cause of hindrances to the market. To add further, these industries require the presence of highly trained personnel to handle the complex processes especially with the incinerator plant. These factors are predicted to limit the growth of the market.
But, with the rising awareness among people, there has been a drastic drop in the amount of waste going into landfills. The waste is gradually being introduced into energy, where the combustion of the waste produces a large amount of energy in the form of electricity. This has also been one of the primary causes for a drop in the release of harmful gases into the atmosphere such as sulphur dioxide, hydrogen chloride and more. By using waste, the non-renewable sources of energy can also be saved for future generations. These factors are responsible for providing growth opportunities for the global waste to energy market in the analysis period.
Additionally, several key players such as Abu Dhabi National Energy Company (Pjsc), China Everbright International Limited, C&G Ltd, Veolia, CNIM, Babcock & Wilcox Enterprises, Inc, John Wood Group Plc, Suez Waste Mangement Inc, and Covanta Holding Corporation have been working on building up on various techniques and methods to work on new products, mergers, and other initiatives to help in the growth of the market.