Western European Municipal Waste Management Services Market: Pre-Treatment Methods Will Support Growth
Frost & Sullivan finds that the Western European Municipal Waste Management Services Market earned revenues of $33.64 billion in 2005 and estimates this to reach $41.50 billion in 2012.
"Rising waste volumes, increase in the use of more sophisticated treatment technology and robust market prices are contributing to market growth," notes Frost & Sullivan Energy and Environment Practice Director John Raspin. "After a period of difficult competition, prices are increasing in several sectors, thus offering a boost in revenues."
The market is witnessing a shift in focus from direct disposal, which has typically relied on the use of low-cost methods such as landfill, to higher value pre-treatment methods. The enforcement of the EU Landfill Directive, which limits the use of landfill for the disposal of municipal solid waste (MSW) has resulted in greater demand for pre-treatment methods.
In the future, while collection services will remain the largest market segment, sorting/separation and biological treatment are expected to witness high levels of investment. Thermal treatment, although less preferred than in the past, will continue to play a role in several European countries.
The landfill sector, although affected by the Directive, is projected to benefit from the increase in prices caused by capacity constraints and the effects of taxation on the use of landfill in several countries
By the end of the decade, a reduction in volume growth is anticipated as a result of efforts towards waste minimisation. Despite the increase in the volume of MSW entering the commercial market, there is growing evidence that volumes are likely to decline as household separation of wastes increases. However, the shift towards higher-value services and rising prices will largely overcome the negative impact arising from this.
Apart from the above, while there is need for alternatives to the use of landfill, the current lack of interest from certain governments towards alternative technologies is likely to hamper growth.
"Reliance on a simple collection and disposal to landfill approach has led to a lack of interest in innovation," states Mr. Raspin. "In this scenario, it will become essential for MSW companies to forge links with technology providers in order to satisfy end-user demands. Due to intensifying price competition, market participants will also need to focus on service quality and delivery including after-sales service and consultancy in order to achieve market success."
SOURCE: Frost & Sullivan