The global waste recycling services market was valued at USD 56.14 billion in 2020 and is expected to grow at a CAGR of 5.4% during the forecast period. The market growth is driven by the factors such as waste recycling technological advancements, expanding industrialization, increasing urbanization, government measures to recycle waste products and push for reuse of waste materials.
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Increased public knowledge of the benefits of recycling and an increase in the number of recycling manufacturers are other factors that contribute to the services market growth. Furthermore, increasing global electronic waste and increased investment by key players focused on developing novel technologies to convert trash to fuel will likely enhance the waste recycling services market growth.
Vast amounts of garbage are being generated across the globe with rapid industrialization and urbanization. According to World Bank, approximately 2 billion tons of municipal waste is generated across the world every year, and it is expected to reach 3.4 billion tons by 2050. Industrial trash is also growing rapidly, with the generation of 7.6 billion tons of waste every year.
The U.S. alone contributes to 12% of municipal waste generated worldwide. Paper and paperboard items made up the largest municipal solid waste produced in the U.S., with 67.4 million tons in 2018. China is the second-largest producer of garbage globally, with over 242 million tons of garbage waste, in 2019. These factors have been the primary driving force behind the growth of the global waste recycling services market in recent years.
COVID-19 is expected to negatively impact the services market growth during the forecast period as there is a reduction in industrial garbage due to the shutting down of various non-essential industries in many parts of the world due to the lockdown imposed to contain the spread of the pandemic. Nevertheless, the situation is expected to stabilize in a short period which will help the garbage recycling services market grow.
The increasing garbage generation due to increased population and rapid industrialization, along with increased awareness for environment-friendly practices across the globe, is driving the growth of the global market during the forecast period. The advancements in new recycling technology are expected to propel the development of the services market further.
There is an increased awareness among various industries to follow environmentally friendly practices. Wastes produced in construction and demolition are inert and non-biodegradable, unlike residential trash. Hence, the adoption of construction and demolition waste management practices for materials such as wood, glass, concrete, soil, plastic, cardboard, and metal are gaining prominence worldwide.
Companies too are promoting environmentally friendly measures. For instance, in 2019, Coca-Cola India, PepsiCo India, Reliance Industries, Varun Beverages, Bisleri, SC Johnson, Diageo, and Dabur India collaborated to launch a packaging trash management venture known as 'Karo Sambhav' in India that will be involved in post-consumer packaging and optimizing material recycling processes. These factors will augment the growth of the global services market in the coming years.
The key services industry players are launching new recycling technology in recent years and involving in collaborations and acquisitions. For instance, in 2019, Eastman Chemical launched an advanced circular recycling technology that converts plastic garbage to versatile and straightforward molecular components by modifying the front end of Eastman's cellulosic production.
The company will then use the recycled components to produce methanol and its derivatives. Magnetic North Acquisition Corp. acquired Intergild Advanced Recycling Technologies Corp.? ?in 2020, which will allow expanding its e-waste recycling portfolio. Intergild has expertise in selective separation of the metal, fiber, and plastic components of e-waste and the crystallization of the metals that can be converted into marketable commodities.
The market is primarily segmented on the basis of product, application and region.
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The paper and paperboard segment holds the largest services revenue share and generated the highest revenue in 2020. The metals segment occupied the second-highest revenue. Reduction in energy consumption and the use of fewer materials are the advantages of metal recycling over original metal production.
The plastics segment is projected to grow at a high growth rate during the forecast period. According to (OECD), over 12% of plastic garbage is reused or recycled every year. The worldwide plastic waste volume is predicted to exceed 460 million tons by 2030, and hence a broad spectrum of industry players is transitioning away from the use-once-and-throw-away approach, which is likely to offer opportunities for services providers over the coming years.
The municipal recycling application segment dominated the services market and generated the highest revenue in 2020. The segment is expected to maintain its share during the forecast period due to supportive government policies, increasing urban population, and growing investment to boost the demand for the market in municipal segments of emerging economies such as Thailand, China, and China.
The industrial services application segment is projected to grow at a high growth rate during the projected period due to advancement in technology, increasing investment in various sectors, speedy urbanization, a surging number of production units, and strict regulations about waste discharge. The services market has a broad range of applications in multiple industries, such as food and beverage, paper & pulp, chemical, mining, and refineries.
Asia Pacific dominated the services market and is expected to maintain its share during the forecast period due to rapid industrialization, a growing economy, and a huge population in countries like China and India. Japan is another major market promoting waste recycling, and more than 300 waste-to-energy plants are being opened in recent times. All these will promote the growth of the services market in this region.
Europe and North America are also expected to significantly contribute to the recycling services market growth due to the increasing adoption of waste recycling practices in countries like the U.S., Germany, Austria, and others. Rising government initiatives in waste management services and the existence of key companies operating in the region will further drive the growth of the services.
Major players in the services market are investing in R&D to innovate new recycling technologies for complex waste materials. Companies are also into collaborations and acquisitions to increase their revenue share in the services industry.
Some of the key players functioning in the services market include Biffa plc, BioMedical Waste Solutions, LLC, Clean Harbors, Inc, Covanta Holding Corporation, Daiseki Co., Ltd, Eurokey Recycling, Ltd., FCC Environment Limited, Hitachi Zosen Corporation, Northstar Recycling, REMONDIS SE & Co. KG, Republic Services, Stericycle, SUEZ, Triple M Metal LP, Urbaser, Veolia Environnement S.A., Waste Connections, Waste Management, Inc.
Market size value in 2020
USD 56.1 billion
Revenue forecast in 2028
USD 84.8 billion
5.4% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD million/billion and CAGR from 2021 to 2028
By Product, By Application, By Region
North America Europe Asia Pacific Latin America; Middle East & Africa
Biffa plc, BioMedical Waste Solutions, LLC, Clean Harbors, Inc, Covanta Holding Corporation, Daiseki Co., Ltd, Eurokey Recycling, Ltd., FCC Environment Limited, Hitachi Zosen Corporation, Northstar Recycling, REMONDIS SE & Co. KG, Republic Services, Stericycle, SUEZ, Triple M Metal LP, Urbaser, Veolia Environnement S.A., Waste Connections, Waste Management, Inc.