The waste to energy market is estimated to be valued at US$ 54.40 Billion in 2022 and is expected to exhibit a CAGR of 7.35% over the forecast period 2023-2028, as highlighted in a new report published by Coherent Market Insights.
Waste to energy involves the burning of municipal solid waste (MSW) to produce electricity, heat, or fuel. It provides a sustainable solution to dispose waste while generating renewable energy. There are various waste to energy technologies such as incineration, pyrolysis and gasification that are used to treat MSW and recover its calorific value. These facilities are helping reduce dependence on landfills and incineration of waste.
The waste to energy market is expected to grow at a significant rate over the forecast period, driven by increasing municipal solid waste generation across both developed and developing countries. Rapid urbanization and population growth have significantly boosted MSW generation globally. According to World Bank data, the total MSW generated worldwide was around 2.01 billion tons in 2016 and is projected to reach 3.40 billion tons by 2050. Growing waste volumes are encouraging greater adoption of waste to energy technologies to enable sustainable waste management. Additionally, favorable government policies and subsidizes to promote waste to energy projects are also propelling the market growth. Various governments are providing incentives such as tax exemptions, power purchase guarantees, exemption from environmental norms and land allocation to reduce risks for investors and make projects economically viable. Such supportive initiatives are expected to boost waste to energy plant installations worldwide during the forecast period.
The waste to energy market is dominated by thethermal sub-segment which accounts for over 70% share owing to its cost effectiveness and efficiency in disposing municipal solid waste. Thermal technology involves burning of waste in high temperature furnaces to produce steam that can power turbines and generate electricity. The process helps reduce the volume of waste while generating renewable energy.
Political: regulations around the globe push for alternative energy sources to reduce dependence on landfills and fossil fuels. Many governments offer incentives for waste to energy projects.
Economic: power generation from waste provides opportunities for cost savings and new revenue streams for local authorities. It can offset rising costs of waste management and comply with landfill diversion targets.
Social: incineration addresses the pressing issue of limited landfill space and promotes recycling efforts. However, emissions and health concerns need to be strictly managed to gain social acceptance.
Technological: advanced emissions control systems and energy recovery techniques ensure compliance with stringent norms. Automation improves plant efficiency while real-time monitoring enhances safety and sustainability.
The global Waste To Energy Market Share is expected to witness high growth, exhibiting CAGR of 7.35% over the forecast period, due to increasing policy push for environmentally-safe waste treatment worldwide. The market size is projected to reach US$ 94.2 Billion by 2028.
Europe currently leads the waste to energy market attributed to over 350 dedicated plants across the region. Stringent landfill targets and climate goals in European nations drive the demand. Asia Pacific is expected to grow at the fastest pace during the forecast period, with China and India emerging as major markets on account of growing urbanization and waste volumes.
Key players operating in the waste to energy market are Austrian Energy & Environment Group GmbH, Arrow Ecology Ltd., Babcock & Wilcox Vølund A/S, Constructions Industrielles De La Editerranée (CNIM), Covanta Energy Corporation, Essent N.V., Haase Energietechnik AG, Wood Group, Qinetiq, and Pacific Renewable Fuels Inc. Players are intensifying R&D to develop advanced gasification and pyrolysis technologies for versatile feedstock and higher energy recovery. Partnerships with waste management companies and local authorities are also on the rise.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it