According to a new report by Allied Market Research (AMR), the global waste to energy industry garnered $17.27 billion in 2017 and is estimated to reach $27.70 billion by 2025, registering a CAGR of 6.1% from 2018 to 2025.
The rise in demand for renewable energy sources and increase in electricity consumption worldwide has driven the growth of the market. However, high initial and maintenance costs hinder the growth of the industry. According to AMR, rapid urbanization and increase in investments by governments from developing economies such as India and China would create new opportunities for the market players in future.
The thermal technology segment contributed to more than 90% of the total market share in 2017, owing to the rise in demand for energy generation from various types of wastes and development of new equipment. This segment is expected to retain its lion's share by 2025. However, the biological technology segment would register the highest CAGR of 6.5% from 2018 to 2025, owing to an increase in demand for anaerobic digestion plants for the treatment of various types of wastes obtained from different sources.
Europe accounted for more than one-third of the total market share in 2017, owing to the growing demand to replace waste treatment methods along with augmenting requirement for energy. This region should remain dominant, in terms of revenue, throughout the forecast period. However, Asia-Pacific should register the highest CAGR of 6.3% from 2018 to 2025, owing to stringent regulations regarding the conservation of environment along with an increase in inflow of investments for energy generation.
The key market players analyzed in the research include Waste Management Inc., C&G Environmental Protection Holdings, Suez Environment S.A., Babcock & Wilcox Enterprises, Inc., Constructions industrielles de la Méditerranée (CNIM), Covanta Energy Corporation, China Everbright International Limited, Foster Wheeler A.G., Abu Dhabi National Energy Company PJSC, and Veolia Environment. They have implemented various strategies, such as expansion, collaborations, joint ventures, mergers & acquisitions, partnerships, and others, to gain a lead position in the industry.
