Global Waste Management Outlook

The global waste management industry is expected to grow, with industry experts anticipating an overall value of over $530 billion. An increase in environmental awareness, growing populations, and a rise in urbanization are all key to expansion in the industry. Additionally, implementing stringent government norms towards dumping is anticipated to lead to further growth in the sector. 

In areas where uncollected waste and dumping directly impact health, this is expected to be another key factor leading to growth in the market. However, a lack of awareness and investment in developing countries is expected to hinder growth in the industry in those regions. That said, the general consensus is that the positive factors in the industry will exceed any negatives. Furthermore, emerging economies in Asia-Pacific, Latin America, the Middle East, and Africa are contributing to growth in the space through the implementation of solid waste management solutions, which will spread awareness in those areas and increase the number of regions developing them in the near future. 

Europe has led the waste management market due to increases in favorable government initiatives, along with high-end technology adoption by management services. However, Asia is the region that is driving the demand for waste management services thanks to the presence of densely populated countries such as China and India where an increase in urban penetration is being witnessed. Moreover, as with Europe, government initiatives in the region are expected to increase the demand for waste management services.

SEGMENTATION

Based on type, the waste management market is segmented by:

• Municipal waste
• Industrial waste
• Hazardous waste

Industrial waste dominates the global market in terms of revenue, and hazardous waste is expected to see the highest ongoing growth.

Based on service, the industry is segmented by collection and disposal, with disposal leading the market in terms of global revenue.

KEY INDUSTRY FACTORS

In 1960, the United Nations found that the global urban population was just 34%, revealing plenty of potential growth. Since then, that number has surged. Furthermore, estimates by the World Health Organization predict the figure to increase by approximately 1.44% per annum through 2030. Naturally, as the urban population increases, the amount of waste being produced will also increase. In fact, the amount of municipal solid waste (MSW), a crucial by-product of urban lifestyle, is growing at an even higher rate than that of urbanization.

Your Business, Our Expertise – A Winning Combination.

The World Bank found that 2016 the world’s largest cities generated 2 billion tons of solid waste, which amounts to a footprint of 0.74 kilograms per person per day. With rapid global urbanization, annual waste is expected to increase by 70% from 2016’s figure to 3.4 billion tons in 2050.

Technological advancements are having a significant impact on waste management services, increasing efficiency and sustainability and changing the way the world deals with waste. These technologies include smart waste bins and waste level sensors that detect waste levels, artificial intelligence recycling robots that sort recyclables from non-recyclables, and other renewable energy solutions. These solutions help waste management companies optimize their collection routes, allow for more accurate monitoring of waste volumes in landfills, and improve recycling processes.

Rapidly evolving advancements in technology have shortened the lifecycle of electronic products. This is a significant factor driving the need for e-waste management services in the commercial sector.

Increasing levels of environmental awareness regarding factors such as renewable waste management systems and rising carbon dioxide emissions are expected to lead to further growth opportunities in the industry. Businesses in the industry have been pivotal in ensuring as much MSW as possible is recycled and are conducting programs for non-hazardous industrial waste management to reduce pollution and mitigate environmental hazards. Moreover, untreated waste and dumping affect health directly and indirectly by spreading infectious diseases, thereby boosting the demand for waste management services. 

Plenty of factors give us reason to be confident about the future of the waste management industry. With no sign of urbanization slowing down, waste management will remain an integral part of the global economy. 

M&A

The waste management sector continues to see a fair amount of M&A consolidation driven by several factors, including sustainability pressures, geographic expansion, and strategic addition of new service capabilities to enter new markets and create growth.

The outlook remains strong for M&A as strategics continue to seek out compatible companies to drive growth. Private equity firms are coming back to the market as interest rates fall and more opportunities for add-on investments arise. Sellers offering sustainability solutions, efficient operations, a strong customer base, and technological advantages will remain attractive in the M&A market. Buyers are looking for businesses that provide cutting-edge technologies to improve recycling rates and handle more complex waste sources. Companies that can offer proprietary technologies and/or strong research and development abilities are among the most attractive targets for acquisition from buyers.

It is also important to note how competition among strategic buyers has been driving EBITDA multiples higher. With leveraged free cash flow and multiples remaining elevated, the market is positioned for further consolidation.

Strategic M&A in waste management is anticipated to continue to see further consolidation, geographic expansion, service diversification, and sustainability solutions. Public strategies with favorable debt terms and emerging companies offering new innovations are fostering substantial opportunities for consolidation in a rapidly evolving world.

Schedule a Call