Waste to Energy Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

Waste to Energy Market Emerging Trends

Integration of Waste-to-Energy with Smart and Renewable Energy Systems Is Key Trend

• The key trend is the integration of WTE plants with advanced modern technologies to improve their efficiency, boost grid flexibility, and support clean energy solutions.
• These plants often use solar and wind energy for their heating systems to provide a steady energy supply, better load management, and help in efficient energy usage, especially in urban areas.
• Technologies such as IoT and AI facilitate real-time monitoring, emission control, and maintenance requirement reduction, making these plants smarter and environment-friendly.
• India’s National Bioenergy Programme funded projects in November 2022 to generate power, biogas, and bio-CNG from urban, industrial, and agricultural waste, supporting an integrated smart energy system.
• In India, biomass gasifiers with a cumulative capacity of around 150 MW have been set up for on-grid and off-grid projects.
• Union Budget 2025–2026 has allocated INR 160 billion under the Reform-Linked Distribution Scheme to enhance the efficiency of power distribution companies.
• The European Union Affordable Energy Action Plans 2025 provide fast approvals and digital connectivity to clean sources, including WTE systems.
• As per a study, a typical WTE plant emits 379.66 kg of CO₂ per MWh of electricity produced, while the number for a conventional coal-fired power plant is 1,020.13 kg CO₂/MWh.

Energy Security and Diversification Needs Is Key Drivers

• The International Energy Agency says that the YoY demand for energy around the world rose by 2.2% in 2024, 38% of which was seen in renewables.
• The rising need for a secure and effective energy source to meet the rising urban demand is a key driving factor for the market.
• Countries that are highly dependent on fossil fuels are now searching for cleaner resources to avoid any further supply issues.
• WTE provides a secure local power supply by converting locally generated waste into various resources, such as heat, electricity, and fuel.
• According to reports, around 15% of the energy consumed by Germany’s steel industry comes from WTE plants.
• More than 50% of the heat in Copenhagen is produced at WTE plants, by burning around 400,000 tons of waste each year.
• In North America, 70% of the more than 300 renewable natural gas plants use household and city waste to generate renewable natural gas.
• According to the IEA, bioenergy was the fourth-largest electricity producer, generating 54,482,802 Terajoules in 2022.
• The Waste to Energy Programme of the Indian Government supports the setup of such projects for the generation of bioCNG, biogas, syngas, and electricity from urban, agricultural, and industrial waste/residue.

Waste to Energy Market Segmentation Analysis

Technology Analysis

The thermochemical category held the largest market share of 70% in 2024, due to its better efficiency and large-scale usage. These systems can handle a large amount of mixed waste, making them effective for urban areas. Additionally, their higher RoI and developed infrastructure make it a preferred choice.

The biochemical category will have the highest CAGR, of 9.3%, due to its low emissions, strong government support for organic matter recycling, and better energy production efficiency. These systems are widely used for processing agricultural waste and food processing in decentralized setups, especially in rural and semi-urban areas.

The technologies analyzed in this report are:

• Thermochemical (Largest Category)
  • Incineration
  • Pyrolysis
  • Gasification
  • Plasma Gasification
• Biochemical (Fastest-Growing Category) 
  • Anaerobic Digestion

Waste Type Analysis

The municipal solid waste category held the largest market share, of 50% in 2024, because of its high-volume availability from households and urban areas. As the population increases, so will the availability of MSW and the concerns surrounding its mismanagement. As per the International Finance Corporation, 2 billion tonnes of municipal waste are generated around the globe each year, and production is expected to increase by 70% by mid-century.

The agricultural waste category will have the highest CAGR, of 9.6%, due to its better separation process and various policies that support the utilization of different resources. The usage of crop residue, animal manure, and kinds of agricultural waste for creating electricity drives the market.

The waste types analyzed in this report are: 

• Municipal Solid Waste (Largest Category)
• Process Waste
• Agricultural waste (Fastest-Growing Category)
• Construction and Demolition Waste
• Medical Waste
• Others

Application Analysis

The electricity category held the largest market share, of 50% in 2024, due to the high scalability, easy integration in power grids, and large demand in urban and industrial areas. Many plants are established to create heat into steam, which then activates turbines to produce electricity. Government policies, such as feed-in tariffs, renewable energy credits, and subsidies for clean energy, increase the investments in WtE plans to produce electricity. The Indian government offers up to INR 5 crore to existing and new biogas plants utilizing this resource to produce electricity.

The heat category will have the higher CAGR, of 9%, due to the rising demand for district heating systems in cold regions, such as Northern Europe. WTE plants produce heat from the combustion of different kinds of waste for residential, industrial, and commercial buildings. As per studies, global investments in the district heating technology could reach USD 262 billion by 2030.

The applications analyzed in this report are: 

• Electricity (Largest Category)
• Heat (Fastest-Growing Category)
• Steam
• Biogas/Biofuel
• Industrial Processes
• Wastewater Treatment
• Transportation Fuel

Capacity Analysis

The over 200 MW category held the largest market share, of 35% in 2024, because of its ability to process a large volume of waste, deliver a varied amount of electricity, and gain operational efficiency.

The 100–200 MW category will have the highest CAGR, of 9.5%, due to the need for large-scale regional power stations that can handle a large amount of waste and generate sizable amounts of electricity. This capacity range provides a balance between flexibility and productivity to meet the increasing urban and industrial demand for electricity and heat.

The capacities analyzed in this report are: 

• Below 10 MW
• 10–50 MW
• 50–100 MW
• 100–200 MW (Fastest-Growing Category)
• Over 200 MW (Largest Category)

Waste to Energy Market Geographical Analysis

The Asia-Pacific region held the largest market share, of 45%, in 2024, and it will have the highest CAGR, of 10%, due to the rising urban population, increasing demand for energy supply, limited land availability, strong government initiatives, and investments supporting WTE solution. For instance, in March 2025, the Indonesian government announced plans to build WTE plants in 30 cities, to reduce pollution.

Essentially, the rising focus on clean energy solutions and the use of efficient power generation technologies drive the market in this region. China processes 250 million tonnes of waste every year at 1,000 WTE plants. It has also implemented the Dual Carbon Goals to control carbon emissions by 2030 and achieve net-zero emissions by 2060. This compels industries to follow advanced clean energy solutions, such as WTE, for heat and electricity generation.

The geographical breakdown of the market is as follows:

• North America
  • U.S. (Largest Category)
  • Canada (Fastest-Growing Category)
• Europe
  • Germany (Largest Category)
  • U.K. (Fastest-Growing Category)
  • France
  • Italy
  • Russia
  • Rest of Europe (Fastest-Growing Category)
• Asia-Pacific (Largest and Fastest-Growing Regional Market)
  • China (Largest Category)
  • India (Fastest-Growing Category)
  • Japan
  • South Korea
  • Australia
  • Rest of APAC
• Latin America
  • Brazil (Largest Category)
  • Mexico (Fastest-Growing Category)
  • Rest of LATAM
• Middle East and Africa
  • Saudi Arabia (Fastest-Growing Category)
  • South Africa
  • U.A.E. (Largest Category)
  • Rest of MEA

Waste to Energy Market Share

The market is moderately fragmented because it includes regional, local, and global players focusing on different waste types, energy demand, and legal frameworks. Additionally, each waste type requires a different WTE technology, such as anaerobic digestion for organic waste, making it difficult for a single company to control the market. Moreover, the equipment used at such plants is diverse, and no company offers everything.

Waste to Energy Market News

• In June 2025, the Greater Hyderabad Municipal Corporation announced that the 24-MW second phase of the Jawaharnagar WTE plant will become operational in early August.
• In June 2025, government sources announced plans to build Malaysia’s second WTE plant at a cost of MYR 660 million. The plant, to be built in Sungai Udang, Melaka, will be fully operationalized by 2029.
• In April 2025, Veolia Environnement SA, Mistral AI, and Yuanchu Technology partnered to use smart technologies for live monitoring, to improve the WTE plant performance.
• In December 2024, Veolia Environmental SA and Saudi Investment Recycling Company signed an MoU to co-develop facilities for industrial, organic, and hazardous waste treatment.
• In March 2024, Marubeni Corporation, Hitachi Zosen Inova, and JOIN signed a contract with Tadweer and EWEC to build a WTE plant in Abu Dhabi, which will handle 900,000 tonnes/year of waste and produce 80 MW of power.
• In October 2023, Veolia Environmental SA and China State Construction Engineering Corporation Ltd. signed a EUR 2-billion contract to build the Nim Wan West New Territories (WENT) Extension plant. These plants will process 90 million tonnes of non-recyclable waste every year and collect methane to produce clean electricity.