Transparency Market Research (TMR) recently issued a report the forecasts the global compound annual growth rate (CAGR) of the Waste-to-Energy (WTE) to be 6.1% and the market to be worth $32 billion by 2026.
The TMR report, entitled Waste to Energy Market (Waste Type – Municipal Solid Waste (MSW), Agricultural Waste; Technology – Thermochemical (Incineration, Others), Biochemical (Anaerobic Digestion, Others); Application – Electricity, Heat) – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 – 2026, states that Europe was the largest market for WTE in 2017 with $7.5 billion (U.S.) in revenue.
The report discusses the drivers for WTE which includes the rising demand for energy coupled with deteriorating sources of coal and natural gas globally. The report further states the WTE is considered to generated lower greenhouse gases than landfilling, which has given it a boost as a waste management option.
The report states that there is a growing adoption of the waste to energy systems globally with European countries leading the way. The European market is predicted to retain its dominance in the overall market in the coming years.
The report notes that biogas production in the Europe is higher among others regions around the globe. Additionally, the governments of the European countries are focusing on encouraging the adoption of alternate technologies. Thus, they are implementing a few regulations on the use of fuel during certain energy generation. These factors are augmenting penetration of the technologies and in turn, are propelling growth of the global waste to energy market.
In Asia, the report states the rising importance of sustainable energy, rapid urbanization, and increasing consumption of energy are pushing growth of the waste to energy market in that region.
The report cautions that the market for WTE is likely to face challenges due to high initial cost required for technologies and surge in investments. Additionally, the low-profit-margin for initial few years is likely to restrain growth of the global WTE market. However, growing government subsidies on the energy generation through unconventional ways or from waste is likely to reduce negative effects on the market due to high initial investment. Lack of supporting policies across few developing or underdeveloped countries is posing as a challenge to the growth in the coming years.
Nonetheless, several projects implemented by governments and governmental bodies for converting WTE is likely to offer the most lucrative opportunities for growth over the forecast period.
The report notes that key players that are holding a substantial share in the global WTE market include Suez Environment S.A., Waste Management, Inc., Covanta, C& G Environmental Protection Holdings, and China Everbright International Limited.
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