Smart Waste Management Market

Market Overview

The global smart waste management market size was worth USD 2,290 million in 2021. It is expected to reach USD 8,250 million by 2030, growing at a CAGR of 15.3% during the forecast period (2022–2030). 

Smart waste management refers to using sensors in waste to monitor the real-time status of municipal waste collection services and determine when bins need to be emptied or filled. It also keeps track of past information gathered by sensors and databases that can be used to pinpoint and improve driver routes, fill patterns, and lower operating costs. Effective waste collection is more practical with remote monitoring and IoT-based waste bins.  Urbanization and fast industrialization are the two main drivers of the smart waste management market. Consequently, the volume of waste from the municipal and industrial sectors has increased. The systematic collection and disposal of waste have increased due to the rising environmental awareness.

The market is expanding due to people becoming more aware of the advantages of smart waste management, including intelligent monitoring, route optimization, and analytics. Additionally, sensor technologies are being used more frequently worldwide. The market is positively impacted by this and the expanding initiatives by governments and municipal authorities across many nations toward sustainable garbage disposal.

Market Dynamics

Market Driving Factors

Rapid Urbanization and Industrialization to Bolster Market Growth

According to the WHO's estimates and projections, the world's urban population will increase by 1.63% annually from 2020 to 2025 and 1.44% from 2025 to 2030. According to current projections, by 2025, there will be 4.3 billion people living in metropolitan areas, producing 1.42 kg of municipal solid garbage per person per day. The ASEAN region has experienced an annual urban population growth rate of 2.6% during the last five years, according to the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).

The market for smart waste management is expanding due to significant players implementing data analytics and IoT to increase efficiency by supporting them in making data-driven decisions. Unprecedented trash production increases are anticipated due to this increase in the urban population. Hence, to manage waste sustainably by using sensor-based services and IoT-based systems, metropolitan and smart cities are expected to implement smart waste management, which, in turn, would propel the market's growth.

The Rise in Smart City Initiatives to Support Market Growth

The waste management sector comprises a range of tasks such as a disposal, recycling, collecting, and transportation. The substantial operational costs involved in trash supply and transportation make smart waste management more popular. Trends show that IoT and smart waste collection systems are being implemented in smart cities in countries like the US and the UK.

The rise in awareness among city leaders regarding benefits associated with smart waste management systems drives the smart waste management market growth. Major players are signing agreements to implement more energy from waste facilities. For instance, in December 2019, Covanta Holding Corporation signed a deal with Zhao County, China. The agreement aimed to operate its energy from waste (EFW) facility. All these factors significantly fuel demand for smart waste management services, which drives the market's growth.

Smart Waste Management Using IoT

The development of IoT has transformed and addressed operational expenses for waste-handling companies in the smart collection segment. Three solutions—intelligent monitoring, route optimization, and analytics—are the main areas of concentration for businesses that provide smart solutions for waste collection. Using sensors, network infrastructure, and data visualization platforms have enabled waste management organizations to produce insights that can inform choices. Companies have organized the fleet vehicles by the volume of trash in bins, decreasing the needless fleet fuel consumption and helping to reduce carbon emissions in cities by utilizing fill level sensors (and occasionally also cameras) near the trash bins. Municipalities in a few cities in the United States, United Arab Emirates, United Kingdom, etc., can reduce garbage collection expenses by about 30% by working with innovative companies like Enevo, Smartbin, Bigbelly, etc.

The market is being pushed toward robust growth due to commercially available technology providers, smart city initiatives, and falling IoT sensor costs.

Emission of Methane Contributing to Climate Change Globally 

Due to its flammability and explosive potential, methane, a potent greenhouse gas, may be dangerous. As a result, it is anticipated that the market for smart waste management will experience rapid expansion. Paddy rice farming in the agricultural sector contributes 8% of human-linked methane emissions, according to data from the United Nations Environment Protection (UNEP) published in 2021. at the same time, cattle dung and intestinal leaks account for 32% of human-caused methane emissions.

Market Restraining Factors

Lack of Efficient Connectivity to Hinder Market Growth

For successful waste management and garbage collection, smart waste management systems use a variety of devices, including Bluetooth connectivity, IoT-based systems, and ultrasonic sensors. Garbage is effectively collected using IoT-based smart waste collection and monitoring systems. IoT-based systems occasionally malfunction due to a lack of internet connectivity, standardization, and other IoT hurdles, which impede the development of smart cities and waste management techniques. These factors are anticipated to restrain the growth of the global smart waste management market.

Huge Capital Investment

The necessity for significant capital expenditure to dispose of bio-medical waste and the absence of the required framework for trash collection and segregation are anticipated to constrain market expansion. Additionally, the market for smart waste management is anticipated to face challenges from high costs associated with recycling plastic and worries about the illegal export of e-waste to developing nations throughout the forecast period.

Key Market Opportunities

Rising Adoption in Developing Countries to Boost Market Opportunities

Emerging economies like India, China, and Mexico are concentrating on intelligent smart bins for environmentally friendly waste disposal. Government attempts to improve waste management techniques are also projected to open up prospects for market expansion. For instance, 140 public locations in Dharamshala, India, received smart underground trash cans in October 2018. 

Regional Analysis

Region-wise, the global smart waste management market is divided into North America, Europe, Asia-Pacific, and LAMEA.

Why is North America Projected to be the Most Rewarding Market?

North America is the highest revenue contributor and is estimated to grow at a CAGR of 12.9% during the forecast period. An increase in smart city initiatives in the US and Canada is anticipated to drive the smart waste management market. The utilization of smart bins for managing waste material effectively, with the use of IoT and cloud-based systems, will cater to the development of the market for smart waste management. In addition, an increase in awareness of the need for waste disposal and environmental safety is projected to supplement the market growth.

Furthermore, prominent manufacturers of smart waste management equipment in North America are expected to drive the development of the smart waste management market. Major players such as Covanta Holding Corporation and Republic Services Inc. are engaged in constructing new energy from waste for sustainable waste management solutions. For instance, in February 2020, Covanta Holding Corporation, Macquarie Green Investment Group, and Biffa plc. They have opened new energy from waste (EFW) facility, which can treat 350,000 tons of non-recyclable waste annually and generates up to 42 megawatts of carbon electricity. These factors are anticipated to garner the growth of the smart waste management market in North America.

Asia-Pacific is the fastest-growing region in the world. Demand for smart waste management is anticipated to rise due to improved infrastructure, increased number of people living in cities, and waste management reforms in developing nations such as China and India. For instance, India's urbanization increased at a 0.98% annual pace between 2018 and 2019, resulting in 62 million tons of municipal trash. The market in Asia-Pacific is growing at a significant CAGR, owing to initiatives such as Waste to Fuel and Waste to Energy.

Additionally, the rise in environmental awareness toward waste recycling has led to the massive demand for smart waste management technologies in Asia-Pacific. Furthermore, major players like Ecube Labs Co. Ltd. and Urbiotica offer customer-centric reasonable solutions. For instance, in 2018, Serena signed a partnership with Smart Ends, based in Belgium, for sensible waste bin resolution to dispose of, achieve trash pickup, and accurately monitor waste trucks and garbage vans. These factors are anticipated to propel the growth of the smart waste management market in Asia-Pacific.

Europe is the second-largest market for smart waste management. It is estimated to reach USD 1,790 million by 2030, growing at a CAGR of 14.5%. The increase in government laws toward clean energy solutions is anticipated to drive the growth of the smart waste management market in Europe. An increase in environment-related concerns about eliminating CO2 gas by using renewable energy resources is also projected to cater to the growth of the smart waste management market. As per the data released by the European Commission, in July 2020, total municipality waste production in the EU accounted for 58 million tons.

Furthermore, an increase in energy efficiency, including the use of renewable energy resources such as wind power and hydro, is expected to drive the market during the forecast period. Major players offer waste recycling systems for sustainable waste management. For instance, in June 2020, Enevo Oy, based in Finland, signed a partnership with Recycle Track Systems in New York, which deals in waste recycling and management. The partnership aimed to broaden its waste recycling and tracking capabilities. These factors are anticipated to propel the growth of the smart waste management market in Europe. 

Segmental Analysis

The global smart waste management market is segmented into waste type, method, source, and region.

By Type

Waste type-wise, the global market is divided into Solid Waste, Special Waste, and E-waste.

The Solid Waste segment is the highest contributor to the market and is estimated to grow at a CAGR of 13.4% during the forecast period. Massive amounts of solid waste have been produced due to the quick industrialization and urbanization of developing and developed nations. The smart waste management market is expanding due to increased garbage production in countries like China and India. Moreover, the focus of governments on stringent regulations to manage industrial and commercial waste is expected to supplement the growth of the market. In addition, the increase in the adoption of technologies such as IoT and sensor-based systems across regions supports the development of the market. 

The E-waste segment is the fastest growing. Every year, many electronics, computers, and other electrical devices become obsolete and are thrown to waste. E-waste consists of chemicals and metals such as lead, mercury, and cadmium. E-waste contains toxic chemicals that harm human health and lead to deadly diseases. Hence, to manage waste effectively, many emerging countries such as the US and the UK are enabling smart waste management services, which is expected to boost the growth of the smart waste management market. 

By Method

Method-wise, the global market is divided into Smart Collection, Smart Processing, and Smart Energy Recovery & Smart Disposal.

The Smart Collection segment is the highest contributor to the market and is estimated to grow at a CAGR of 13.9% during the forecast period. Smart waste management is used in residential, commercial, and other industries to collect and transport waste effectively. Smart waste management tracks the live status of unfilled and filled waste bins. Smart waste management saves time and energy for waste management services by municipal corporations and industries, which is expected to drive the growth of the global smart waste management market. 

The Smart Disposal segment is the fastest growing. The global market is expected to expand due to the rise in trash generation brought on by increased urbanization and industrialization. According to the WHO, the global urban population is projected to grow at the rate of 1.63% per annum from 2020 to 2025 and around 1.44% per annum from 2025 to 2030. For the development of waste management solutions, countries have implemented laws and regulations to standardize waste management recycling and management solutions. All such instances are anticipated to drive the growth of the market.

By Source

Source-wise, the global market is segmented into Residential, Commercial, and Industrial.

The Residential segment is the highest contributor to the market and is estimated to grow at a CAGR of 16.8% during the forecast period. The residential segment has been witnessing an increase in demand for smart waste management over the past few years, owing to growth in urbanization and an increase in smart city initiatives around the globe. Moreover, the use of IoT and GPS-enabled systems connected to cars for effective waste management is anticipated to boost the growth of the global residential market. In addition, an increase in residential construction activities is also expected to drive demand for smart waste management.

The Commercial segment is the fastest growing. The rise in demand for smart waste management in commercial spaces can be attributed to rising health issues and a rise in awareness related to hygiene. In addition, growth in the commercial sector and healthcare construction buildings in countries such as India, China, Brazil, and Indonesia drive the development of the market for smart waste management. Furthermore, players in the smart waste management market are adopting business expansion as their key developmental strategy to grow their existence in the market.  

Recent Developments

• In January 2023, Covanta will expand into the heavily regulated New England market by purchasing Globalcycle and Global Remediation Services, both of which are based in Massachusetts.
• In December 2022, Covanta expanded and dramatically diversified its environmental offerings and market reach by purchasing three companies across the industries of engineered fuels, logistics, and waste-to-product operations.
• In January 2023, city and community leaders unveiled The Republic Services Sustainable Garden in Downtown Phoenix.