Refuse-derived fuel (RDF) is a fuel produced from various waste streams through a process involving sorting, grinding, and blending. It is primarily obtained from municipal solid waste, commercial waste, and industrial non-hazardous waste. The process of producing RDF involves shredding and densifying waste to produce a fuel that can be used for generating heat and electricity. RDF provides an alternative renewable energy source and a means for waste treatment. It is widely used in waste-to-energy plants as a supplemental fuel or primary fuel to replace fossil fuels such as coal. With growing concerns over sustainability and environmental protection, there is an increasing demand for renewable and alternative energy sources. The global refuse-derived fuel market is estimated to be valued at US$ 4.91 Bn in 2023 and is expected to exhibit a CAGR of 8.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The global refuse-derived fuel market growth is majorly driven by the rising demand for renewable energy sources. As mentioned earlier, RDF provides a renewable source of energy and helps reduce dependence on non-renewable fossil fuels for generating heat and electricity. It also helps cut emissions of greenhouse gases as it displaces the need for coal in waste-to-energy facilities. Additionally, the production of RDF from municipal solid waste helps reduce the load on landfills and waste disposal sites. This need for sustainable waste management is another key driver fueling the market growth. Growing concerns regarding proper waste treatment and energy security across regions are expected to present lucrative opportunities for market players over the forecast period.
Segment Analysis
The refuse-derived fuel market can be segmented into commercial, municipal, and industrial categories based on source. The municipal sub-segment currently dominates the market as refuse-derived fuel production using municipal solid waste is higher. Municipal waste makes up over 60% of total waste processed for refuse-derived fuel production globally. Easier availability and collection along with policies promoting proper waste management have pushed municipal waste reuse for energy generation.
PEST Analysis
Political: Regulations around waste-to-energy projects and carbon emission norms influence market dynamics. Supportive policies for renewable and clean energy adoption boost demand.
Economic: Volatile fuel prices and need for sustainable alternatives drive refuse-derived fuel usage. It provides cost-effective fuel source for industries and power plants.
Social: Growing environmental concerns and sustainability goals of organizations increase refuse-derived fuel consumption. Public-private partnerships aid market growth.
Technological: Advanced waste sorting and processing technologies like artificial intelligence enhance refuse-derived fuel quality. Gasification and pyrolysis techniques improve fuel production yield.
Key Takeaways
The Global Refuse-derived Fuel Market Size is expected to witness high growth over the forecast period. The global refuse-derived fuel market is estimated to be valued at US$ 4.91 Bn in 2023 and is expected to exhibit a CAGR of 8.4% over the forecast period 2023 to 2030.
Europe currently dominates aided by stringent waste management rules. Countries like Germany, Italy and UK have established waste-to-energy infrastructure and recycling targets driving regional market size. Europe accounts for over 30% share due to supportive regulatory environment. Germany has over 25 waste-to-energy plants treating 12 million tons refuse-derived fuel annually making it the largest producer.
Key players: Key players operating in the refuse-derived fuel market are BD, Fresenius Kabi, ICU Medical, Smiths Medical, and Medtronic, among others. BD and Fresenius Kabi have established production facilities and distribution network across major markets.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
