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.

Market Synopsis

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.

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.

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.