Waste-to-Energy Plants Market – Global Industry Size, Share, Trends, Opportunity, and Forecast. Segmented By Technology (Thermochemical, Biochemical), By Waste Type (Municipal Solid Waste, Process Waste, Agricultural Waste, Others), By Application (Electricity, Heat), By Region, By Company and By Geography, Forecast & Opportunities 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 49.95 Billion
CAGR (2026-2031)	6.67%
Fastest Growing Segment	Municipal Solid Waste
Largest Market	Asia Pacific
Market Size (2031)	USD 73.58 Billion

Market Overview

The Global Waste-to-Energy Plants Market will grow from USD 49.95 Billion in 2025 to USD 73.58 Billion by 2031 at a 6.67% CAGR. Waste-to-energy plants are specialized industrial facilities that process municipal solid waste to generate electricity and heat through thermal treatment technologies such as combustion, gasification, and pyrolysis. The market is primarily supported by the escalating volume of waste generated by rapid global urbanization and the simultaneous enforcement of stringent environmental mandates aiming to minimize landfill dependency. Additionally, the growing necessity to diversify energy portfolios with reliable, renewable baseload power further propels the development and deployment of these infrastructure projects.

Despite the sector's growth trajectory, high capital expenditure requirements for plant construction and advanced emission control systems remain a significant challenge that can impede market expansion. Secure financing is critical, yet complex regulatory frameworks and public hesitation regarding facility location often delay projects. According to CEWEP, in 2024, 66% of surveyed plant operators reported high capacity utilization, marking a substantial increase from 42% recorded in the previous year, indicating a tightening market where existing infrastructure is increasingly maximized to meet demand.

Key Market Drivers

Rapid urbanization and industrialization are fundamentally reshaping the Global Waste-to-Energy Plants Market by drastically increasing the volume of municipal solid waste (MSW) requiring management. As population centers densify, traditional landfilling becomes spatially and environmentally untenable, compelling municipalities to adopt thermal treatment solutions that convert escalating waste streams into electricity and heat. This surge in waste generation provides the essential baseload feedstock necessary to justify the high capital costs of incinerator construction and operation. The direct correlation between urban waste volume and industry performance is evident in the financial results of major market players. According to Smart Water Magazine, in February 2025, Veolia reported that its waste division achieved organic revenue growth of 6.4% in 2024, a performance significantly driven by high demand for waste treatment services and favorable pricing dynamics in key urban markets.

Simultaneously, the growing global demand for non-fossil fuel and renewable energy sources is accelerating the integration of waste-to-energy plants into national power grids. Governments and financial institutions are increasingly prioritizing energy security and decarbonization, shifting funding away from conventional fossil fuels toward infrastructure that serves dual purposes of waste diversion and low-carbon power generation. This pivot is unlocking critical financing for new projects. According to the Asian Development Bank, in July 2025, the institution reported that it committed $3.8 billion to energy projects in the preceding year, with over 80% directed toward climate mitigation and zero financing provided for fossil-fuel-based energy, signaling a robust investment environment for alternative energy technologies. This sector-wide momentum is further supported by broader energy trends; according to Argus Media, in 2025, the International Energy Agency reported that global electricity consumption rose by 4.3% in 2024, creating a tightening supply landscape where reliable, non-intermittent power sources like waste-to-energy are increasingly valued.

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Key Market Challenges

The primary impediment hampering the growth of the Global Waste-to-Energy Plants Market is the substantial capital expenditure required for facility construction and the integration of mandatory, complex emission control technologies. Unlike other renewable energy sectors that have benefited from significant cost reductions, waste-to-energy projects necessitate heavy industrial infrastructure and specialized filtration systems to comply with rigorous environmental standards. This immense upfront financial burden increases the investment risk profile, often deterring private capital and straining municipal budgets, particularly in developing regions where funding for waste management is already scarce.

This financial barrier directly impacts the pace of technological modernization and capacity expansion. According to the European Suppliers of Waste-to-Energy Technology (ESWET), in 2024, only 14% of surveyed plant operators had taken decisive steps toward implementing carbon capture and storage projects despite high industry interest, primarily due to the prohibitive investment costs associated with these systems. When operators cannot afford the capital outlay for these critical environmental upgrades, it delays project approvals and creates a bottleneck that significantly slows the deployment of new market capacity.

Key Market Trends

The integration of Carbon Capture, Utilization, and Storage (CCUS) technologies is rapidly transforming waste-to-energy facilities from simple disposal units into pivotal carbon management hubs. As regulatory bodies tighten net-zero frameworks, operators are increasingly retrofitting plants to capture biogenic CO2, thereby creating negative emission pathways that are essential for offsetting industrial carbon footprints. This structural shift is evidenced by the increasing capital allocation toward commercial-scale sequestration infrastructure which mitigates the climate impact of incineration. According to Carbon Pulse, November 2025, in the article 'US and Canadian companies partner on landmark waste-to-energy CCS project', a US-based carbon management firm partnered with a Canadian developer to advance Canada’s first commercial-scale facility integrating carbon capture and storage in Alberta, underscoring the sector's move toward decarbonized operations.

Simultaneously, the market is witnessing a distinct pivot toward the production of high-value transport fuels, specifically hydrogen and Sustainable Aviation Fuel (SAF), diversifing revenue streams beyond electricity sales. Advanced non-combustion thermal technologies are enabling the conversion of municipal solid waste into syngas, which is then refined into clean fuels required to decarbonize hard-to-abate sectors like heavy transport and aviation. This trend allows facilities to bypass volatile power markets and supply the growing demand for green molecules. According to Waste Dive, November 2025, in the article 'Raven’s $75M California waste-to-hydrogen facility wins key approval', Raven SR received an air permit for its first commercial facility in Richmond, California, which is designed to process biomass and organic waste to produce up to 2,400 metric tons of renewable hydrogen annually.

Segmental Insights

Municipal Solid Waste represents the fastest-growing segment within the Global Waste-to-Energy Plants Market, driven primarily by rapid urbanization and the escalating generation of household refuse globally. Regulatory bodies, such as the European Union through its Waste Framework Directive, are actively implementing stricter mandates to divert waste from landfills, which directly incentivizes the adoption of thermal treatment facilities. This distinct regulatory pressure, combined with the continuous availability of municipal waste as a reliable feedstock, compels authorities to invest heavily in infrastructure that effectively converts residential refuse into dispatchable energy.

Regional Insights

The Asia Pacific region holds a dominant position in the global waste-to-energy plants market due to rapid urbanization and rising municipal solid waste generation. Major economies such as China and Japan are aggressively transitioning away from landfill dependency to address acute land scarcity and environmental concerns. Consequently, government authorities are implementing supportive regulatory frameworks and funding initiatives to accelerate the construction of thermal treatment facilities. This combination of pressing waste management requirements and favorable policy interventions drives the region's sustained leadership in the sector.

Recent Developments

• In November 2025, Acciona inaugurated its first operational energy recovery plant in Kwinana, Western Australia, delivering a critical piece of infrastructure for the region's waste management system. The newly commissioned facility is capable of processing up to 460,000 tons of waste each year, generating baseload renewable electricity sufficient to power more than 50,000 households. In addition to energy generation, the plant is designed to recover metals from bottom ash for recycling, effectively diverting significant volumes of waste from landfills. This launch demonstrates the successful execution of large-scale thermal waste-to-energy projects in the Australian market.
• In November 2024, Veolia secured a strategic contract worth €440 million to construct and operate a new waste-to-energy plant in the Corrèze region of France. The facility is designed to treat 79,200 tonnes of non-recyclable household waste annually, converting it into electricity and heat for the local community. A notable aspect of this project is the incorporation of artificial intelligence to optimize operational efficiency, from waste flow management to combustion control. This initiative underscores the company's focus on deploying advanced digital technologies to enhance energy recovery performance and support local energy autonomy.
• In September 2024, Babcock & Wilcox announced that it had been awarded a contract to conduct front-end engineering and design for a planned waste-to-energy facility equipped with carbon capture technology in Alberta, Canada. Working with Varme Energy, the company will design the plant’s combustion grate, boiler, and emissions control systems to process up to 200,000 tons of waste per year. This project highlights the increasing adoption of integrated carbon capture and sequestration solutions within the global waste-to-energy market, aiming to provide reliable energy while minimizing greenhouse gas emissions.
• In April 2024, a consortium including Hitachi Zosen Inova was selected to design, construct, and operate a major ultra-large waste-to-energy facility in Abu Dhabi. Awarded by the Emirates Water & Electricity Company and Tadweer Group, the project involves processing approximately 900,000 tonnes of non-recyclable waste annually. The plant is designed to significantly reduce carbon emissions by diverting waste from landfills and generating electricity through a highly efficient water-steam cycle. This development represents a strategic expansion of the company’s infrastructure footprint in the Middle East and supports the region’s transition toward sustainable waste management solutions.

Key Market Players

• Enerkem
• Waste Management
• Covanta Energy
• Mitsubishi Heavy Industries
• Suez
• China Everbright International
• Ramboll
• Stedin
• Keppel Seghers
• Mitsui

By Technology	By Waste Type	By Application	By Region
Thermochemical Biochemical	Municipal Solid Waste Process Waste Agricultural Waste Others	Electricity Heat	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Waste-to-Energy Plants Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Waste-to-Energy Plants Market, By Technology:

• Thermochemical
• Biochemical

• Waste-to-Energy Plants Market, By Waste Type:

• Municipal Solid Waste
• Process Waste
• Agricultural Waste
• Others

• Waste-to-Energy Plants Market, By Application:

• Electricity
• Heat

• Waste-to-Energy Plants Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE