The global waste-to-energy (WTE) market is expected to reach $37.6 billion by 2020, according to an abstract of a report released by Radiant Insights from Grand View Research. Radiant Insights is a market research and consulting company offering syndicated research studies, customized reports and consulting services.
The report shows a strong shift in trend towards energy security around the world coupled with decreasing landfill area is expected to remain a key driving factor for the global WTE market. Government support in the form of tax benefits and government subsidies also are expected to have positive influence on the market growth over the next six years.
Here are some other important takeaways from the recent report:
- Threats from other established renewable energy sources particularly solar, wind and hydro are expected to remain a key challenge for market participants. In addition, high upfront cost associated with establishment of WTE plants is also expected to hamper the market growth.
- Thermal WTE technologies emerged as the leading WTE technology and accounted for 88.2 percent of total market revenue in 2013. Operational ease and simple process associated with thermal technologies have been major factors driving its market. Flue gases emitted through these technologies have been a major issue for the market growth. Technological advancements such as flue gas desulfurization are expected to counter such challenges and propel growth for thermal WTE technologies.
- Biological technologies are expected to witness the highest growth rate over the forecast period. The segment is expected to grow at an estimated CAGR of 9.7 percent from 2014 to 2020. Biological methods are considered to be environmental friendly compared to thermal technologies which is expected to help them penetrate the market.
- Global WTE market was valued at $25.3 billion in 2013 and is expected to reach $37.6 billion, growing at a compound annual growth rate of 5.9 percent from 2014 to 2020.
- Europe was the largest regional market and accounted for 47.6 percent of total market revenue in 2013. Increasing industrial waste coupled with EU Waste Legislation have been major factors driving the regional market. The regional market is characterized by increasing WTE technology adoption by countries such as Germany, Austria and Netherlands.
- Asia Pacific is expected to register the highest growth rate over the forecast period owing to increasing WTE technology penetration in Japan. The region is expected to grow at an estimated CAGR of 7.5 percent from 2014 to 2020. Increasing industrial waste in China and India on account of growing industrialization rates coupled with government initiatives to promote sustainable energy generation is expected to drive the regional market. Low cost technology development in China and India is expected to pose challenge to established companies.
- Major companies in the market strive to improvise technological processes in order to reduce installation costs. Some of the major market participants in the global WTE market include C&G Environmental Protection Holdings Ltd., Foster Wheeler A.G., Veolia Environment, Suez Environment S.A., Waste Management Inc., KEPPEL SEGHERS and Babcock & Wilcox Co.