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Waste to Energy Market Poised for Growth: Turning Waste into Renewable Power

06-10-2025 07:01 PM CET | Energy & Environment

Press release from: Allied Analytics LLP

waste to energy

waste to energy

According to a new report published by Allied Market Research, titled, "Waste to Energy Market," The waste to energy market size was valued at $35.6 billion in 2022, and is estimated to reach $56.0 billion by 2032, growing at a CAGR of 4.7% from 2023 to 2032.

The global waste-to-energy (WtE) market is emerging as a crucial solution to two pressing environmental challenges: growing waste generation and increasing energy demand. With rapid urbanization and population growth producing over 2 billion tons of municipal solid waste annually, WtE technologies offer a sustainable approach by converting non-recyclable waste into electricity, heat, and fuels through processes like incineration, gasification, and anaerobic digestion. This market is gaining momentum as governments seek to reduce landfill dependence, lower greenhouse gas emissions, and create circular economies while generating renewable energy. The transition toward sustainable waste management and the global push for cleaner energy sources are driving significant investments in WtE infrastructure worldwide.

Technological advancements and supportive regulatory frameworks are accelerating the adoption of waste-to-energy solutions across both developed and developing nations. Countries with limited landfill space, particularly in Europe and Asia-Pacific, are leading WtE deployment, while emerging economies view it as a key strategy for improving waste management and energy security. The market benefits from rising carbon pricing mechanisms, renewable energy incentives, and innovations in emission control systems that enhance efficiency and environmental performance. However, challenges such as high capital costs, public concerns over emissions, and competition from recycling programs must be addressed to fully realize WtE's potential in the global energy transition.

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1. Rising Waste Generation and Landfill Diversion Policies
The global waste-to-energy (WtE) market is experiencing strong growth due to escalating municipal solid waste (MSW) volumes, driven by urbanization, population growth, and changing consumption patterns. Governments worldwide are implementing strict landfill diversion policies and waste management regulations to reduce methane emissions from decomposing organic waste. Countries with limited landfill space, such as Japan and Sweden, are increasingly adopting WtE solutions to minimize environmental impact while recovering energy from non-recyclable waste.

2. Renewable Energy Demand and Carbon Neutrality Goals
The push for clean energy transition and net-zero commitments is accelerating WtE adoption as a sustainable alternative to fossil fuels. WtE plants generate baseload renewable electricity and heat, supporting grid stability while reducing reliance on coal and natural gas. Incentives such as feed-in tariffs, renewable energy certificates (RECs), and carbon pricing enhance the economic viability of WtE projects, particularly in Europe and North America. The technology also contributes to circular economy models by extracting value from waste streams.

3. Technological Advancements and Efficiency Improvements
Innovations in gasification, plasma arc, and advanced thermal treatment are improving WtE plant efficiency and reducing emissions. Modern facilities incorporate AI-driven sorting, flue gas cleaning systems, and energy recovery optimizations, making them more environmentally compliant and cost-effective. Additionally, waste-derived biofuels and hydrogen production are emerging as lucrative opportunities, expanding WtE applications beyond traditional electricity generation.

4. Government Incentives and Public-Private Partnerships
Supportive policies, including tax benefits, subsidies, and green bonds, are driving investments in WtE infrastructure. Developing nations in Asia-Pacific and the Middle East are partnering with private firms to build large-scale WtE plants, addressing both waste crises and energy deficits. The growing trend of waste-to-hydrogen and waste-to-chemicals projects further diversifies revenue streams, ensuring long-term market growth.

These drivers position the WtE market for sustained expansion, aligning with global sustainability goals while offering a practical waste management and energy generation solution.

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The waste to energy market is segmented on the basis of technology and region. By technology, the market is divided into thermal, biochemical, and others. On the basis of region, the market is classified into North America, Europe, Asia-Pacific, and LAMEA.

Asia Pacific Emerges as Key Growth Hub for Waste-to-Energy Market
The Asia Pacific region is experiencing unprecedented urban expansion and industrial development, driving substantial increases in both municipal solid waste and industrial/agricultural residues. This exponential growth in waste volumes, combined with the region's escalating energy demands from urbanization and population growth, creates a perfect environment for waste-to-energy solutions to flourish. Governments across developing APAC nations are increasingly viewing WtE technologies as a dual-purpose solution - addressing critical waste management challenges while contributing to energy security goals.

Key players in the waste to energy market forecast across Babcock & Wilcox Enterprises, Inc., China Everbright Environment Group Limited, Covanta Holding Corporation, Hitachi Zosen Inova AG, Keppel Infrastructure Group, MVV Energie AG, Suez, Veolia, Viridor Limited, and Wheelabrator Technologies Inc.

This dynamic market also includes innovative firms like Advanced Plasma Power and BioHiTech Global developing next-generation conversion technologies, while environmental service providers such as Ramboll Group and GFL Environmental support project implementation. The convergence of these established players and emerging innovators positions the APAC WtE market for significant expansion in the coming years.

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Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

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