Waste to Energy Market

Waste to Energy Market is projected to exhibit a Compound Annual Growth Rate (CAGR) of 6.5% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 41.3 billion and is projected to reach USD 82.6 billion by the completion of 2034.

Product Overview

Waste to Energy is a sustainable process that transforms waste materials into usable energy forms like electricity, heat, or fuel. This process produces useful energy resources and efficiently reduces the amount of waste dumped in landfills. Solid waste, such as municipal or industrial waste, is burned in incinerators to generate heat. This heat is then utilized to power turbines for electricity generation or for direct heating applications. Alternatively, biodegradable waste can further undergo anaerobic digestion to produce biogas, which is a renewable energy source. Waste to energy process makes a major contribution to sustainable waste management by reducing greenhouse gas emissions, which lowers the dependence on fossil fuels and provide a renewable energy source. However, strict management is needed to address concerns about air pollution and maintain environmental sustainability. Therefore, Waste to Energy is a significant component in the search for sustainable energy solutions and waste management methods.

Market Highlights

Waste to Energy Market is anticipated to grow at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2034

Waste to Energy Market is expected to reach USD 82.6 billion during the forecast period, owing to the increasing environmental awareness and the need for sustainable waste management strategies. The growth of waste to energy market is attributed to factors such as urbanization, rise in population, and strict governmental norms which are aimed at reducing landfill waste and greenhouse gas emissions. Moreover, innovations in technology like better incineration and anaerobic digestion techniques, further pushes for the global adoption of waste to energy procedures. Besides, high investments in renewable energy infrastructure and several initiatives to promote clean energy sources help in improving the momentum of market.  Consequently, with a growing focus on sustainable development objectives, the future outlook for the waste to energy market is promising due to several opportunities for expansion and innovation.

Source: Fatpos Global

Waste to Energy Market Segmentation

Thermal segment will maintain its dominance as it effectively converts waste into energy

Waste to Energy Market is divided on the basis of Technology into Biological and Thermal. The thermal segment is projected to lead the waste to energy market as thermal methods, such as incineration and gasification, has an established track records for efficiently converting waste into energy. They demonstrate high energy recovery rates in processing several waste types, including municipal solid waste and industrial residues. The process of incineration involves burning waste at high temperatures to produce heat, which is subsequently converted into electricity or utilized for heating purposes. Moreover, gasification transforms waste into synthetic gas, which is further usable for electricity generation or as a chemical feedstock. These technologies have undergone improvements over decades, which ensures dependability and scalability. Furthermore, innovations in emission control technologies help in addressing environmental concerns and promote the appeal of thermal solutions for waste management and renewable energy production.

Municipal Solid Waste segment is projected to lead for being the largest waste category

Waste to Energy Market is further segmented on the basis of Waste Type into Municipal Solid Waste and Industrial Waste. The municipal waste segment is expected to maintain its dominance in the waste to energy market as municipal solid waste stands as the largest waste type category, which includes waste from households and commercial establishments. This waste type is characterized by its diverse composition of organic matter, paper, plastics, metals, and non-hazardous materials. The persistent global issue of rising waste generation highlights the need for sustainable waste management solutions, which further amplify the demand for municipal solid waste conversion into energy. Furthermore, using municipal solid waste in waste to energy solves the issue of landfill overflow and facilitates the production of renewable energy in the form of electricity or heat. Therefore, owing to its scalability and compliance with environmental needs, the municipal waste segment will continue to dominate the waste to energy market.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Rising Environmental Awareness Will Drive the Growth of Waste to Energy Market

Increasing global concerns regarding environmental sustainability act as a major factor for the expansion of the waste to energy market. Several governments, businesses, and communities are looking into alternative waste management techniques in response to the negative effects of landfilling, such as groundwater contamination, air pollution, and greenhouse gas emissions. Therefore, waste to energy technologies present a possible solution to these issues by efficiently transforming waste into valuable energy resources while lowering environmental impact. It is expected that the demand for these solutions would increase as stakeholders focus more on sustainable practices. Furthermore, educational efforts focused on waste reduction and renewable energy play an important role in creating a supportive legislative and social environment for waste to energy programs, which effectively contributes to the growth of market.

Stringent Waste Management Regulations Will Promote Market Expansion

Strict waste management regulations enforced by governments across the world are playing a pivotal role in driving the expansion of the waste to energy market. These regulations are designed to reduce environmental and public health hazards associated with improper waste disposal methods like landfilling and open dumping. These rules provide restrictions on how garbage is disposed of, which encourage waste to be diverted from landfills and the use of eco-friendly waste management technology. Additionally, compliance with these regulations forces industries and waste management firms to invest in waste to energy infrastructure to fulfill required waste diversion targets. Furthermore, supportive regulations provide financial incentives to encourage the deployment of waste to energy projects, thereby creating a conducive environment for market expansion.

Restraints

High Initial Investment Costs Could Restrict the Market Growth

Waste to energy market encounters a major limitation in the form of initial investment costs, despite its benefits. The establishment of waste to energy facilities require significant upfront capital for equipment purchase, infrastructure construction, and operational expenses. The complex nature of waste to energy projects, often require advanced technologies and strict regulatory adherence, which increases the financial burden. High capital requirements present challenges for potential investors in regions with limited financial resources or uncertain market conditions. Therefore, effectively addressing the hurdle of high initial costs requires innovative financing mechanisms and supportive government incentives.

Recent Developments

• In June 2023, NexTier Oilfield Solutions and Patterson-UTI Energy, Inc. announced a definitive merger agreement, combining through an all-stock merger of equals transaction. The resulting entity will emerge as a premier drilling and completions services provider, boasting operations in the most active major U.S. basins.
• In January 2023, ProFrac Holding Corp. completed the acquisition of REV Energy Holdings, LLC, a privately owned pressure pumping service provider operating in the Eagle Ford and Rockies regions. The acquisition, valued at $140 million, expands ProFrac's footprint in both South Texas and the Rockies.
• Additionally, in January 2022, ProFrac acquired Producers Services Holdings LLC, a pressure pumping services firm serving Appalachia and the Mid-Continent, for approximately $35 million in total transaction value.
• In December 2022, ProPetro Holding Corp. secured an agreement with a leading independent Permian operator to utilize ProPetro's inaugural electric-powered hydraulic fracturing fleet ("e-fleet"). The agreement entails ProPetro's provision of committed services for three years following the delivery of the e-fleet.

Waste to Energy Market

Key Players:

• Covanta
• Veolia
• Suez
• Waste Management Inc.
• Hitachi Zosen Corporation
• Babcock & Wilcox Enterprises, Inc.
• Keppel Seghers
• Wheelabrator Technologies Inc.
• Mitsubishi Heavy Industries Environmental & Chemical Engineering Co., Ltd.
• China Everbright International Limited
• Novo Energy LLC
• Martin GmbH
• Eco Green Energy
• CNIM
• KEPPEL DHCS PTE LTD
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Waste to Energy Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. Europe is expected to lead the waste to energy market due to its strict environmental regulations and well-established infrastructure. European countries like Germany, Sweden, and Denmark have made strict laws, which promote renewable energy sources and compel industries to invest in waste to energy technologies. European companies have decades of experience in developing and implementing waste to energy technologies, which gives them the knowledge required to be market leaders. Furthermore, the dedication to sustainability and strong waste to energy industry across the European region strengthen its dominance.

Source: Fatpos Global

Impact of Covid-19 on Waste to Energy Market

COVID-19 pandemic had a complex influence on the waste-to-energy industry. Initially, lockdowns and other limitations affected waste collection systems, which caused changes in waste volume and composition. Low commercial and industrial activity resulted in lower waste creation, which impacted the availability of feedstock for waste to energy facilities. Additionally, project delays and supply chain disruptions impacted the construction and commissioning of waste to energy plants. However, the pandemic also highlighted the importance of resilient waste management infrastructure, which prompted governments to focus on investments in sustainable waste treatment solutions. Furthermore, as economies began to recover, the waste to energy market rebounded and the necessity to address waste management challenges further increased.

Waste to Energy Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Waste to Energy Market Scope and Segments:

Frequently Asked Questions (FAQ):