Report Overview

Rapid urbanization and industrialization, growing population, and rising consumption levels generating voluminous municipal solid waste (MSW) are expected to boost the growth of Saudi Arabia Waste to Energy (WtE) Market during the forecast period between 2024 and 2030.

Saudi Arabia Waste to Energy (WtE) Market - Industry Trends & Forecast Report, 2030

Saudi Arabia Waste to Energy (WtE) Market size was estimated to be worth USD 286.38 million in 2023. During the forecast period between 2024 and 2030, Saudi Arabia Waste to Energy (WtE) Market size is projected to grow at a CAGR of 6.03%, reaching a value of USD 371.83 million by 2030. Major growth factors for Saudi Arabia Waste to Energy (WtE) Market include stringent government regulations and policies to stimulate proper waste disposal and management in the Kingdom and meet the growing energy demands from the major end-user industries. In addition, increasing levels of municipal solid waste owing to the rising population are also driving the growth of the Saudi Arabia Waste to Energy (WtE) Market.

Waste to Energy (WtE) – Overview

Waste to Energy (WtE) refers to the industry within a country's energy and waste management sector that involves converting various forms of waste into usable energy, typically in the form of electricity and heat. Waste to Energy (WtE) technologies offer a sustainable and environmentally friendly solution to two critical challenges: waste disposal and energy generation. Various types of waste materials, such as municipal solid waste (MSW), industrial waste, agricultural residue, and biomass, are utilized as feedstock in this sector. These waste materials are processed using different conversion methods, including incineration, anaerobic digestion, gasification, and pyrolysis, among others. The primary objective of the Waste to Energy (WtE) sector is twofold: first, to reduce the volume of waste going into landfills and thus alleviate the strain on existing landfill capacity, and second, to produce clean and renewable energy from the waste stream.

Saudi Arabia Waste to Energy (WtE) Market

Growth Drivers

Rising Industrialization and Urbanization

The rising population coupled with rapid urbanization and industrialization results in rising energy demand and significant waste generation in Saudi Arabia. According to reports, Saudi Arabia generates more than 110 million tons of waste annually, which demands efficient waste management in the Kingdom. As a result, both the government as well as private industry players are investing in the Waste to Energy (WtE) to efficiently handle waste and reach their sustainable goals by reducing the burden on landfills. Saudi Arabia plans to convert 16% of its Waste to Energy (WtE) by 2040, which is anticipated to drive the market over the forecast period.

Challenges

High Capital Requirement to Establish Waste to Energy (WtE) Plants

Waste to energy (WtE) processes are being used by the Saudi government and associated agencies to improve the Kingdom's waste management. However, the Saudi Arabian WtE sector is severely constrained by the high cost of building WtE plants. As Saudi Arabia is a global major in the producing of oil & gas, using waste as a fuel is less cost effective than fossil fuels for waste management and energy production. Moreover, building a WtE factory with an annual capacity of 40,000 tons would cost about USD 41 million. Consequently, the WtE industry's ability to grow is constrained by its reliance on funding from the government or large corporations.

Saudi Arabia Waste to Energy (WtE) Market

Segmental Coverage

Saudi Arabia Waste to Energy (WtE) Market – By Technology

On the basis of technology, Saudi Arabia Waste to Energy (WtE) Market is segmented into thermochemical, biochemical, and others. The thermochemical segment holds the largest share in the Saudi Arabia Waste to Energy (WtE) market. The segment is further classified into incineration, pyrolysis, and gasification. Municipal solid waste incineration, or MSWI, is a controlled burning process that is carried out in facilities specifically built to reduce waste volume and bulk while chemically converting it to inert gas through combustion (autothermic combustion) without the need for additional fuel. In addition to treating municipal and industrial solid waste and producing power, MSWI is a proven and effective technology in commercial applications as it enables the recovery of energy, minerals, and metals from the waste stream.

Saudi Arabia Waste to Energy (WtE) Market – By Waste Type

Based on waste type, Saudi Arabia Waste to Energy (WtE) Market is segmented into municipal solid waste, process waste, agriculture waste, and others. The municipal solid waste segment accounts for the highest market share owing to the high volume of waste generated in this sector. According to EcoMENA, Saudi Arabia generates around 15 million tons of municipal solid waste each year, with a per capita average of 1.4 kg per day. The growing population, rapid urbanization, and economic growth are associated with the increasing volume of municipal waste in the country, which is eventually degrading the environment. As a result, the need for efficient waste management is rising, which is driving the demand for WtE services.

Saudi Arabia Waste to Energy (WtE) Market – By Application

By application, Saudi Arabia Waste to Energy (WtE) Market is segmented into electricity and heat. The electricity segment dominates Saudi Arabia Waste to Energy (WtE) Market. The rising focus on sustainability and reducing CO2 emissions and the rising demand for clean energy directly influence the growth of the segment. Furthermore, an increasingly high demand for electricity from major end users in the Kingdom due to rapid economic growth is also driving the demand for WtE market which is driving the market. However, the heat segment also covers a major market owing to its high demand from the residential and industrial sectors.

Competitive Landscape

Major players operating in Saudi Arabia Waste to Energy (WtE) Market include Sembcorp Industries, Abu Dhabi National Energy Company PJSC (TAQA), Veolia Environnement S.A., Hitachi Zosen Corporation, Babcock & Wilcox, Masdar, Abengoa, BEE'AH BEE'AH Group, Suez Environnement Company, and Ramboll. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In November 2023 – Riyadh Cement Company, a cement manufacturer based in Riyadh, Saudi Arabia, announced its partnership of SAR 130 million (approximately USD 34.8 million) with Sinoma Energy Conservation Limited, an engineering services company based in China, to establish a waste heat recovery plant in the Kingdom.

Scope of the Report

By Technology

• Thermochemical

• Incineration

• Pyrolysis

• Gasification

• Biochemical

• Others

By Waste Type

• Municipal Solid Waste

• Process Waste

• Agriculture Waste

• Others

By Application

• Electricity

• Heat