The global waste-to-energy (WtE) market is projected to grow from USD 42.7 billion in 2025 to USD 82.1 billion by 2035, registering a Compound Annual Growth Rate (CAGR) of 6.8% over the forecast period.
This growth is driven by landfill diversion policies and sustainable urban waste management strategies, which are strengthening WtE project pipelines. Thermal incineration and gasification technologies are leading installation choices globally.
In February 2025, Bruno-Frederic Baudouin, CEO of Kanadevia Inova, emphasized the environmental impact of landfills, stating, “Landfills are significant sources of CO₂ and methane emissions, with leakage rates hugely underestimated. Moving from a landfill to a WtE plant is a crucial step in our fight against greenhouse emissions, as it can offer a swift impact.”
In May 2024, Northern European energy company Gren announced plans to invest more than EUR 200 million in Latvia to build a waste-to-energy plant in Acone. The new plant will use the most modern and safest technologies and is expected to be operational in 2029.
Ilkka Niiranen, Gren CEO, highlighted the project's significance, noting that Latvia is one of the last EU member states without such a solution. The plant aims to strengthen energy independence and security, ensure the diversion of waste residues from landfills, and contribute to a cleaner environment.
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 42.7 billion |
| Industry Value (2035F) | USD 82.1 billion |
| CAGR (2025 to 2035) | 6.8% |
These developments underscore the industry's commitment to enhancing efficiency and sustainability through advanced WtE technologies. As environmental awareness continues to rise and regulatory bodies impose stricter emission standards, the demand for high-performance WtE solutions is expected to increase. Manufacturers focusing on innovative solutions that balance efficiency, cost, and sustainability will be well-positioned to capitalize on this growing market.
Waste-to-energy (WtE) development is expected to gain momentum as smart city investments and urban expansion intensify waste collection efficiency. With urban populations growing at a sustained pace, municipal solid waste (MSW) generation is projected to rise sharply, particularly in emerging economies.
Integrated smart city frameworks are incorporating intelligent waste management systems-leveraging IoT-enabled bins, automated route optimization, and real-time monitoring-to ensure timely and streamlined waste collection. These advancements are improving segregation at source and minimizing collection inefficiencies, ensuring a more reliable and higher-quality feedstock for WtE facilities.
As urban centers become denser and landfill capacities decline, WtE is being positioned as a scalable and sustainable waste disposal solution. This synergy between smart urban planning and WtE capacity expansion is poised to reinforce the sector’s long-term viability and environmental relevance.
Solid waste is projected to account for approximately 69% of the total feedstock in the global waste-to-energy market by 2025. This segment is expected to grow at a CAGR of 7.1% over the forecast period from 2025 to 2035, slightly exceeding the industry average of 6.8%. Municipal solid waste (MSW) continues to be the primary input for waste-to-energy systems due to its high availability and the growing pressure on landfills worldwide.
The composition of MSW-comprising organic matter, plastics, textiles, and paper-offers a viable calorific value for combustion-based energy recovery methods such as incineration and gasification. Governments and municipal bodies are increasingly prioritizing waste diversion strategies that incorporate energy recovery, driving investment in waste sorting and preprocessing infrastructure.
Public-private partnerships have also accelerated project development in urban areas, particularly across Asia and Europe. In addition to environmental benefits, the solid waste segment is supported by a stable collection and transportation ecosystem, making it more feasible for energy operators compared to liquid waste streams.
Electricity generation is anticipated to remain the primary application of waste-to-energy facilities, commanding an estimated 73% share of the market in 2025. The segment is projected to register a CAGR of 6.9% between 2025 and 2035, driven by growing global energy demand and rising grid decarbonization targets.
The integration of waste-to-electricity plants into national energy strategies has been supported by incentives for renewable and alternate energy sources. Thermal conversion processes such as mass burn incineration, refuse-derived fuel combustion, and advanced pyrolysis are being adopted to generate base-load power while simultaneously addressing urban waste challenges.
Developed regions are retrofitting older incineration plants with modern flue gas cleaning systems to improve emission standards and efficiency. In parallel, emerging economies are deploying distributed energy systems using compact waste-to-power modules that feed electricity directly into local grids or industrial zones. This trend is being reinforced by international funding mechanisms and carbon offset programs supporting sustainable waste management.
High Initial Investment
The setting up of Eco-friendly WTE plants involves a huge capital investment mainly for the equipment, the structure, and the compliance with strict environmental procedures, which is the main cause of the low initial cost for both public and private sectors, especially in areas with limited funding availability.
The complicacy of finding skilled workers for the operation of such advanced systems often results in the inadequacy of the project, thus making it hard for underdeveloped countries to opt for WTE. Moreover, operational and maintenance costs are also added to the financial burdens that cause many governments to focus on their urgent infrastructural necessities instead of these solutions.
Environmental Risks and Emission Control Challenges in Waste-to-Energy (WTE) Plants
Even though Waste-to-Energy (WTE) is viewed as a marvelous method of getting rid of waste material and producing energy, at times it is a process that is prone to release harmful substances into the atmosphere.
The emitted elements include dioxins, particulate matter, and heavy metals which pose considerable risks to public health and the environment, especially if not properly handled. In many cases, WTE facilities need to install sophisticated filtration and emission control equipment, which together increase the costs of operation and make it less convenient to run the plant.
To find the optimal production of energy with the least impact on the environment is a quite demanding task, thus, it is of utmost importance to employ strict monitoring and regulation to ensure that the positive effects exceed the possible harm.
Rising Demand for Renewable Energy
The global consumption of clean and sustainable energy is on the rise therefore Waste-to-Energy (WTE) technology has a bright future ahead. With the rise of the global problems associated with climate change and the still existing dependency on fossil fuels, a considerable number of nations are using WTE as an alternative energy source.
While the process of turning municipal solid waste into energy goes on at the WTE plants, they further curtail greenhouse gas emissions and thus bolster energy independence.
Thereupon, Governments and enterprises are investing in WTE as a means to achieve the goal of using renewable energy and becoming stronger in energy security. Waste-to-Energy technologies are innovative, are a sector with great potential growth, and are therefore the most attractive areas of investment.
Government Support and Regulations
National states across the world are seeing the significance of the proper waste management process as well as the use of renewable energy resources; as part of that are offering a number of incentives to actually assist the development of Waste-to-Energy (WTE) sectors.
Examples of such incentives are cash contributions, reductions of taxes, and regulations in conjunction with the promotion of investment to the private and public sectors in WTE technologies. Furthermore, the introduction of more rigid waste disposal laws has served as a stimulus for the countries, cities, and sectors to think about the adoption of WTE waste management systems for the proper disposal of waste.
This policy support creates an environment conducive for innovation and the market to grow, hence, the emergence of new projects, partnerships, and investments that will add further to the global adoption of the WTE management system.
The technological development and the fierce competition in the field push the market for the Waste to Energy (WTE) sector to continuous growth, stimulated not only by expansion in demand for waste disposal but also by the call for ecological energy sources.
This new technology along with investment in the field by the government and businesses will help ensure that the energy sector is more sustainable and less dependent on fossil fuels. The WTE market is expected to grow significantly due to the technological breakthroughs, regulatory aid, and the broadening utility of WTE across different sectors making it indispensable in the worldwide renewable energy matrix.
The Waste-to-Energy (WTE) market in the United States is experiencing stable growth, which is principally affected by sustainable management of waste and renewable energy generation.
The USA has increased investments in operational WTE technologies to meet the high energy demand reducing landfill waste at the same time. The government encourages the implementation of WTE projects through various policies and incentives to lessen the dependency on conventional waste disposal, thus lowering carbon footprints.
Additionally, the working of WTE technologies is improving at productivity levels that are making waste to energy a lot more cost-effective and harmless to nature. These are the diffuse efforts, which in addition, are impacting the expansion of the WTE market in the USA in the years to come.
| Country | CAGR (2025 to 2035) |
|---|---|
| United States | 5.8% |
The Waste-to-Energy (WTE) market in the United Kingdom is entering the upward trajectory due to the nation's prevalent drive for sustainability and adherence to the principles of the circular economy.
The UK is run by a government that is actively marketing the cleanest form of waste management, including WTE technologies for waste treatment, and producing renewable energy. Advancement in industrial waste management and the application of energy-efficient solutions are the stemming forces behind this trend.
Altering the fabrics of history whilst you take along a comprehensive WTE infrastructure program, the UK is establishing a path to cleaner energy amid the environmental pressures. Additional efforts together with the multiplying industrial and commercial sectors make up the position of the UK as a leader in the adoption of WTE technologies.
| Country | CAGR (2025 to 2035) |
|---|---|
| United Kingdom | 6.0% |
The European Union (EU) has become a global leader for the Waste-to-Energy (WTE) market thanks to strict environmental regulations and the commitment of reaching climate goals. With the support of an extensive regulatory framework, the EU along with directives such as the Waste Framework Directive ensures the application of technologies that will minimize landfill sites and gas emissions.
Source management through WTE is an integral aspect of the region's approach to the circular economy and sustainability and thus campaign for its resource recovery. Waste-to-Water Innovations: Adding thermal energy and biological conversion techniques in renewables.
| Country | CAGR (2025 to 2035) |
|---|---|
| European Union | 6.2% |
Japan's Waste-to-Energy (WTE) market is on a steady upward path, which comes from the trails of the nation in adopting high-tech, efficient waste management, and quality energy alternatives. For a long period of time, Japan has been ahead of the pack in the race for top technology in relation to dealing with waste disposal and generating renewable energy.
The country targets minimal landfill waste and significantly more energy recovery from waste-to-energy plants through these WTE systems. Strong environmental regulations and the need for clean energy sources are the additional factors that contribute to the market's growth.
Continuous innovation and technology refinements, present, and future strengthen Japan's relative position in global waste management and energy efficiency contributing along the way to achieve set sustainability goals. Innovative Waste Processing: Focus on miniaturization and high-efficiency WTE technologies.
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 5.5% |
South Korea's Waste-to-Energy (WTE) market is on a high, due to the industrial revolutions, clean energy applications, and improved waste management techniques.
Electronics and semiconductors, the country's booming industries, create a great deal of waste, which in turn raises the demand for more effective waste management. The government of South Korea is focused on clean energy and sustainability. This is evident from the various legislative points urging the use of WTE technologies effectively as well as generating renewable energy through waste diversion.
The nation wants to go to the next level of smart manufacturing and automation, operated by IoT, which among the other things involves WTE systems providing more productivity. The notion, that as companies become environmentally friendly, in terms of carbon emissions, their WTE also turns out to be more sustainable and energy-efficient, is what truly bolsters the country's development.
| Country | CAGR (2025 to 2035) |
|---|---|
| South Korea | 6.5% |
Veolia Environment
Veolia Environment is a world-class leader in WTE solutions with operations in many plants across the globe. The company emphasizes the efficient combustion of waste and circular economy strategies as its main tactics which are designed to cut down the amount of waste treated by the landfills.
The company also is a player in the area of digital transformation, which includes smart monitoring systems for real-time optimization of plant performance and waste processing efficiency. These innovations lend substance to Veolia as a driving force in the WTE market.
Suez Environment
Suez Environment is a major player in the sustainable waste management field, which aims to increase energy generation from waste through anaerobic digestion, biogas production, and high-temperature gasification. The company is investing substantially in smart waste monitoring systems to enhance operations thus reducing the environmental impact.
Suez has also been expanding its global footprint, particularly in Europe and Asia, through acquisitions and partnerships with local companies. Their exploration of waste valorization and energy recovery corresponds to recent regulatory pressures that require low-emission technologies. The company's commitment to a circular economy approach is what drove them to meet the Energy Conversion Efficiency
Covanta Holding Corporation
Covanta is a North American leader in the WTE industry, operating more than 40 plants across the continent. The company is enlarging its portfolio to include carbon capture and emission reduction technologies by working very closely with the municipalities to create public-private partnerships for waste management.
Covanta is well known for its process of mass-burn incineration, which not only produces high energy but also ensures that a minimum quantity of waste goes to landfills. On top of that, Covanta has launched new initiatives on materials recovery by extracting metals and other by-products from ash left by the incineration process.
The investments in the changed thermal treatment methods position the company not just as a leader in the waste management industry but also as a prominent player in the renewable energy sector.
Mitsubishi Heavy Industries Environmental & Chemical Engineering (MHIEC)
MHIEC is the premier company in the Waste-To-Energy field that stands out for the high-efficiency of, among others, gasification, incineration, and advanced flue gas treatment systems. Operating contracts in Japan, Europe, and the Middle East, the company continually innovates with low-emission and energy efficient WTE plants.
The integration of plasma arc gasification has increased the energy output while the hazardous emissions have been reduced. Automated waste sorting and AI-driven efficiency improvements are the company's main focus.
The digital transformation which has been leveraged by MHIEC, made the plant productivity high and thus it is a strong competitor in the WTE market. The company that is committed to solutions that feature high-tech engineering enhances its reputation as the provider of state-of-the-art WTE solutions.
Hitachi Zosen Corporation
Hitachi Zosen Corporation is a top-tier supplier of turnkey WTE plants, particularly in the Asia-Pacific region. The company is well known for its exclusive steam turbine technology and integrated waste processing systems, which are highly focused on low-emission and high-efficiency energy recovery.
High-Tech is Hitachi Zosen's main technology platform for energy projects gasification plants, which aims to increase energy conversion efficiency and abate environmental impact. Furthermore, the company is looking into the area of hydrogen production from waste using new technologies to generate clean energy.
By embedding automation and AI systems for monitoring, Hitachi Zosen increases reliability and also efficiency in addition to their technological position as a leader among WTE innovations.
In terms of Waste Type, the industry is divided into Solid Waste, Liquid Waste
In terms of Process, the industry is divided into Anaerobic Digestion, Depolymerization, Gasification, Hydrothermal Carbonization, Plasma Gasification, Pyrolysis
In terms of Application, the industry is divided into Electricity, Transport Fuels
The report covers key regions, including North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa (MEA).
The global Waste to energy (WTE) Market is projected to reach USD 42.7 billion by the end of 2025.
The market is anticipated to grow at a CAGR of 6.8% over the assessment period.
By 2035, the Waste to energy (WTE) Market is expected to reach USD 82.1 billion.
The Solid Wastes segment lies expected to hold a significant share due to increasing urbanization, driving the Waste to energy (WTE) Market.
Major companies operating in the Waste to energy (WTE) Market Veolia Environment, Suez Environment, Covanta Holding Corporation, MHIEC (Mitsubishi Heavy Industries), Hitachi Zosen Corporation.
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