Global Waste To Energy Market - 2024-2031

Overview

Global Waste to Energy Market reached US$ 38.5 billion in 2023 and is expected to reach US$ 68.7 billion by 2031, growing with a CAGR of 7.5% during the forecast period 2024-2031.

Waste to energy plays a vital role in helping public authorities by establishing a circular waste management system while ensuring reliable, local, affordable and partially renewable energy. Waste to energy plants effectively process non-recyclable waste, utilizing it as a valuable resource to generate heat for 17 million individuals and electricity for 20 million citizens across Europe. Approximately 10% of the heat supplied to district heating and cooling networks in Europe is derived from waste to energy.

U.S. Department of Energy's Bioenergy Technologies Office and the National Renewable Energy Laboratory have taken steps to support and improve waste-to-energy initiatives globally. The collaboration between BETO and NREL has resulted in the launch of the organic Waste-to-Energy Technical Assistance program.

In 2023, North America is expected to be the second-fastest growing region, holding about 25% of the global waste to energy market. In U.S., commercial waste comprises a significant portion of municipal solid waste, making it a crucial focus for waste management efforts. Businesses are subject to federal, state and local regulations regarding waste management and non-compliance can result in substantial fines and reputational damage. To meet these requirements and avoid such consequences, businesses are increasingly turning to WTE conversion technologies.

Dynamics

Rising Focus on Sustainable Waste Management and Electricity Generation

The increased demand for waste-to-energy is driven by several factors, one of the most important is that waste-to-energy plants provide a solution for managing municipal solid waste by burning it as fuel to generate electricity. It addresses the challenge of waste disposal and reduces the volume of waste by about 87%. MSW contains energy-rich materials like paper, plastics, yard waste and wood products, which can be efficiently utilized as a fuel source. Approximately 85% of MSW in U.S. can be burned to generate electricity.

Different combustion technologies exist, including mass burn facilities, modular systems and refuse-derived fuel systems. Mass burn facilities are the most common type in U.S. and burn MSW on a sloping, moving grate. Modular systems are smaller and portable, while refuse-derived fuel systems shred and separate MSW to produce a combustible mixture.

Government Incentives and Subsidies

Government incentives and subsidies are driving growth in the waste to energy market in various regions. China has set a target for 50% of its waste disposal to be handled through waste to energy by 2031 and is generously subsidizing projects. UK has seen rapid growth in waste to energy projects supported by high tipping fees and feed-in tariffs. Countries with land constraints, such as Netherlands, Denmark, Japan and Singapore, have higher rates of incineration due to landfill taxation.

Waste to energy projects are costly to set up and the installed capacity is expected to increase significantly by 2050. Incineration is currently the most favorable option for large-scale waste management, but the report acknowledges that changes in consumer preferences, waste composition and environmental policies could impact the industry.

Environmental Impact of Waste-to-Energy Management

The majority of the carbon present in the waste that undergoes waste-to-energy incineration is released into the atmosphere as carbon dioxide which is a prevalent greenhouse gas with significant implications for climate change. In the case of waste fuel made from biomass sources such as paper, paperboard, cotton, wood and food waste, the carbon dioxide emitted during combustion originates from the carbon that was initially absorbed from the atmosphere.

Materials like plastics, oil-based products and other substances that are also incinerated in waste-to-energy processes contribute to greenhouse gas emissions in a manner similar to any other fossil fuel. The combustion of these materials results in the release of harmful greenhouse gases that have detrimental effects on the environment.

Segment Analysis

The global waste to energy market is segmented based on technology, waste and region.

Rising Demand for Thermal Incineration Drives the Segment Growth

Driver assistance is expected to be the fastest growing segment with 1/3rd of the market during the forecast period 2024-2031. It is estimated that plants that combine thermal power cogeneration and electricity generation can achieve 80% efficiency. Based on the International Renewable Energy Agency, globally bioenergy capacity will reach 148.9 GW in 2022, up 5.3% from the previous year.

Incineration is now the most widely used waste-to-energy technique for processing municipal solid waste. However, waste-to-energy systems, notably incineration, emit pollutants and pose serious health hazards. To minimize particulate and gas-phase emissions, incineration facilities have deployed a variety of process units for cleaning the flue gas stream, resulting in a considerable improvement in environmental sustainability.

Geographical Penetration

Rising Focus on Renewable Energy in Asia-Pacific

Asia-Pacific is the dominant region in the global waste to energy market covering about 30% of the market. The region is witnessing a growing interest in waste-to-energy management, driven by the benefits of waste to energy extend beyond energy generation. By reducing the volume of waste going to landfills by up to 90%, waste to energy helps address landfill capacity issues and mitigates methane emissions from decomposing organic materials. The factors are particularly crucial in Southeast Asia, where urban populations are projected to rise significantly, placing greater demands on waste management systems.

Southeast Asian countries including Singapore, Indonesia, Thailand and Vietnam have initiated WtE projects or trials. China and Japan are major players in exporting their expertise and technology to the region. The development of waste to energy facilities requires close coordination among government stakeholders, utilities and investors to ensure stable cash flow and viable risk structures.

Competitive Landscape

The major global players in the market include Covanta Energy, China Everbright, Suez Environment (SITA), Veolia Environmental, Viridor, Keppel Seghers Belgium N.V., MVV Energie AG, China Metallurgical Group, Fluence Corporation and Waste Management Inc.

COVID-19 Impact

The COVID-19 pandemic had a profound impact on waste-to-energy infrastructure, revealing both challenges and opportunities. One of the significant challenges was the increased volume of healthcare waste, overwhelming existing waste management systems. The limited resources and technology options, along with the capacity constraints of central waste management facilities, posed difficulties in effectively managing the surge in infectious medical waste.

The pandemic also underscored the need to shift towards a circular economy approach in waste management. The increased demand for single-use plastics during the pandemic led to a surge in plastic waste, creating an ecological disaster. To address this, a shift towards sustainable production, consumption and product design is necessary. The circular economy promotes resource efficiency, zero waste goals and alternative treatment technologies, such as recycling.

Russia-Ukraine War Impact

The Russia-Ukraine war has significantly affected waste-to-energy management, particularly by causing a surge in energy prices. It leads to higher household energy costs, creating an energy crisis that directly impacts heating, cooling, lighting and mobility expenses. Also, the increased energy prices have indirectly raised the costs of other goods and services throughout global supply chains.

A study conducted on 116 countries, with a focus on developing nations, revealed that household energy costs have risen by at least 63% and potentially up to 113%. The represents a major economic shock, requiring households globally to find additional income to maintain their pre-war living standards.

AI Impact

AI is powering waste-to-energy management through the integration of AI algorithms in robotic waste-to-energy systems. The systems leverage AI to optimize waste sorting, enhance energy conversion efficiency and improve overall waste management practices.

One of the key contributions of AI is in waste sorting. Machine learning algorithms can be trained to identify and separate different types of waste based on their physical properties and spectral signatures. It enables robots to sort waste more accurately and efficiently, increasing the recovery of valuable materials and reducing the amount of waste that ends up in landfills.

By Technology

• Thermal
• Biological
• Others

By Waste

• Solid Waste
• Liquid Waste
• Gaseous Waste

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In April 2023, Egypt has secured a contract worth US$ 120 million to design, develop, own and operate the country's first solid waste-to-electricity facility. The contract was signed between the Giza governorate and a collaboration made up of Renergy Egypt and the National Authority for Military Production.
• In January 2023, Babcock & Wilcox was granted a contract by Lostock Sustainable Energy Plant to assist with the delivery of the power train for a waste-to-energy plant near Manchester, UK. Every year, the plant will generate more than 60 MW of energy for residents and businesses while also processing around 600,000 metric Tons of rubbish. The agreement is valued at US$ 65 million.
• In August 2022, under part of its ambitious combined solid waste management project, the state's urban development and housing department planned to construct a waste-to-energy plant near Ramachak Bairiya on the Patna-Gaya highway. The purpose is to make sure that all waste products get disposed of scientifically in the plant.

Why Purchase the Report?

• To visualize the global waste to energy market segmentation based on technology, waste and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of waste to energy market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global waste to energy market report would provide approximately 54 tables, 42 figures and 182 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies