Government investment in the industry, which languished over the past five years, is expected to resume as increased tax revenue improves municipal and state budgets.
New York, NY (PRWEB) January 01, 2015
As the economy has recovered from the recession, increased consumption and rising industrial and construction activity has led to growth in national waste generation, a boon to the Waste-to-Energy Plant Operation industry. While industry-wide revenue plummeted an estimated 13.0% in 2009, the industry has experienced grown each year since. Meanwhile, the economic recovery has also increased demand for the electricity, heating utilities and recycled steel produced through industry operations.
Though the industry overall has performed well over the past five years, growth has been somewhat hampered by stagnant electricity prices. According to IBISWorld Industry Analyst Zachary Harris, “Low natural gas prices have reduced costs for power plants, which have consequently been able to offer lower electricity prices. Due to this competition, industry operators have been unable to raise their own electricity prices.” The budgetary issues of state and municipal governments, the primary sources of industry revenue, have compounded this challenge. Nevertheless, the industry has experienced a moderate expansion over the past five years.
As these constraints subside over the next five years, IBISWorld expects the industry to grow at a faster pace. Economic expansion, on one hand, will continue to drive demand for both recycling services and power generation. More importantly, government investment in the industry, which languished over the past five years, is expected to resume as increased tax revenue improves municipal and state budgets. “A significant share of this investment is expected to go toward the development of more advanced plants,” says Harris in the updated report, “particularly gasification and pyrolysis plants.” While these positive trends are forecast to drive continued growth in the industry, demand for waste-to-energy services could potentially suffer from an expansion in the number of methane-capturing landfills, which perform a similar function.
For more information, visit IBISWorld’s Waste-to-Energy Plant Operation in the US industry report page.
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IBISWorld industry Report Key Topics
This industry owns and operates waste-to-energy plants. Waste-to-energy (WtE) is an umbrella term for a variety of processes that are used to create energy out of waste. While the vast majority of industry establishments are waste incinerators, this industry also includes gasification plants, pyrolysis plants and other miscellaneous waste-to-energy facilities.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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