동남아시아의 폐기물 에너지화 : 시장 점유율 분석, 업계 동향 및 통계, 성장 예측(2026-2031년)

According to Mordor Intelligence, the southeast asia waste-to-Energy market size is expected to increase from USD 4.64 billion in 2025 to USD 5.22 billion in 2026 and reach USD 9.48 billion by 2031, growing at a CAGR of 12.65% over 2026-2031.

This report is Segmented by Technology (Physical, Thermal, Biological), Waste Type (MSW, Industrial, and More), Energy Output (Electricity, Heat and More), End-User (Utilities/IPPs, Industrial Captive, District Heating, Fuel Distributors), and Geography (Indonesia, Malaysia, Thailand, Singapore, Vietnam, Philippines, Rest of Southeast Asia). Market Forecasts are Provided in Terms of Value (USD).

Southeast Asia Waste-to-Energy Market Trends and Insights

Waste Generation Pressure Outpaces Landfill Absorption Capacity

Indonesia generated 56.63 million tonnes of municipal solid waste in 2023, and only 39% of that volume was properly managed, which shows how far collection and treatment systems still lag the waste stream itself. The core issue is not only the rise in waste volumes, but the widening gap between collection, treatment, and final disposal capacity across large cities and second-tier urban centers. That gap is becoming more important because waste growth is no longer concentrated only in megacities, and smaller urban clusters are now large enough to support commercial treatment assets. This is why plant formats in the 200 to 500 tpd range are becoming more viable in parts of the region where collection networks cannot yet support very large centralized projects. These local conditions make imported large-plant models less transferable without changes in scale, logistics, and financing. As a result, the Southeast Asia waste-to-energy market is expanding from a narrow metropolitan solution into a wider municipal infrastructure category.

Government Incentives and PPP Frameworks Unlocking Financing

Indonesia's Presidential Regulation No. 109 of 2025 replaced the earlier dual tipping-fee and power-purchase structure with a single fixed tariff of USD 0.20/kWh under a 30-year power purchase agreement, which materially changed project bankability. The regulation also moved procurement into a more centralized framework, which reduced fragmentation between municipal decision-making and project execution. In Thailand, an Asian Development Bank-backed THB 16.6 billion package, equal to USD 521.5 million, for 12 industrial waste-to-energy plants showed how multilateral backing can unlock projects that had previously faced financing constraints. These policy steps matter because private capital moves faster when tariffs, waste delivery, and concession terms are defined early. They also favor sponsors that can move from financing to engineering to plant operations without depending on a long chain of counterparties. This is one of the clearest reasons the Southeast Asia waste-to-energy market is moving from scattered pilots toward larger and more repeatable project pipelines.

High Upfront Capex Strains Project Bankability Across the Region

Recent project announcements show that 1,000 tpd class plants in the region still require capital commitments in the hundreds of millions of dollars, which keeps financing barriers high for new entrants. Malaysia's Sungai Udang facility carries a project cost of RM660 million, equal to USD 149 million, for 1,056 tpd and 22 MW under a 34-year concession. Hanoi's Phase 2 expansion at Soc Son adds 1,600 tpd and carries an investment of VND 5,830 billion, equal to USD 239 million. Long concession terms help revenue visibility, but lenders remain cautious when tariffs do not adjust for inflation over the operating life of the asset. Pretreatment systems, emissions controls, and construction risk raise the entry cost even before a plant reaches stable utilization. This means the Southeast Asia waste-to-energy market still favors sponsors with stronger balance sheets, better contractor control, and access to sovereign or multilateral support.

Other drivers and restraints analyzed in the detailed report include:

1. Renewable Energy and Sustainability Targets Raising Mandatory WtE Throughput
2. Landfill Closure Mandates Creating Captive Feedstock for New Plants
3. Feedstock Variability Imposes Hidden Technology Adaptation Costs

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Thermal technology held 62.1% of the Southeast Asia waste-to-energy market share in 2025, which kept it as the dominant route for large urban treatment systems. That lead comes from the fit between grate-furnace incineration and high-throughput municipal waste, especially where project economics depend on continuous intake and firm power offtake. Hanoi's Soc Son facility was already processing 70% of the city's daily household waste when it was inaugurated in October 2025, which shows how well thermal systems can absorb large city waste streams. Thermal plants also benefit from more mature operating models, deeper contractor pools, and a clearer commercial interface with utilities and local authorities.

Biological technology is projected to expand at 14.3% CAGR from 2026 to 2031, making it the fastest-growing technology segment in the Southeast Asia waste-to-energy market. The segment is being driven mainly by palm oil mill effluent projects in Malaysia and Indonesia, where waste streams are concentrated and methane capture is commercially meaningful. Malaysia and Indonesia were expected to produce 80.4 million metric tonnes of crude palm oil in 2025, or 83% of global output, which supports a very large residue base for anaerobic digestion and biogas systems. Yet fewer than 10% of Indonesian palm oil mills had installed anaerobic digestion by early 2026, so growth is starting from a low installed base even though feedstock availability is high. Physical technologies such as refuse-derived fuel production and mechanical biological treatment still support co-firing and recovery pathways, but they remain secondary to thermal and biological routes in the Southeast Asia waste-to-energy industry.

Municipal solid waste accounted for 56.4% of the Southeast Asia waste-to-energy market size in 2025, which kept it at the center of project development across the region. This position reflects the direct link between city waste collection systems and government-backed concession models. Indonesia's national programme is targeting 34 cities and 30 agglomeration zones by 2029, with planned waste intake of 33,000 tpd, which reinforces municipal waste as the main volume base for future plants. Industrial waste is also gaining weight in Thailand and Vietnam as environmental compliance standards tighten in industrial parks and export manufacturing zones.

Agricultural and agro-industrial residues are projected to grow at 13.8% CAGR from 2026 to 2031, making them the fastest-growing waste stream in the Southeast Asia waste-to-energy market. The strongest opportunity sits in the palm oil economy, where large volumes of methane-rich residue remain underused. In October 2025, Malaysia's Bioeconomy Corporation signed an MOU with Polaris Bio for a RM700 million network, equal to USD 158 million, of more than 20 Bio-CNG facilities, which highlighted growing commercial interest in residue monetization. The Philippines is also testing decentralized residue conversion, and the Biosfair pilot in Laguna is set to process 1,200 tonnes of organic waste annually while generating 250,000 kWh per year. These projects show that residue-based systems can scale quickly where feedstock is concentrated, and collection logistics are simpler than in mixed municipal waste systems.

Complete Report Scope:

• By Technology
  • Physical (Refuse-Derived Fuel, Mechanical Biological Treatment)
  • Thermal (Incineration/Combustion, Gasification, Pyrolysis and Plasma-Arc)
  • Biological (Anaerobic Digestion, Fermentation)
• By Waste Type
  • Municipal Solid Waste
  • Industrial Waste
  • Agricultural and Agro-industrial Residues
  • Sewage Sludge
  • Others (Commercial, Construction, Hazardous)
• By Energy Output
  • Electricity
  • Heat
  • Combined Heat and Power (CHP)
  • Transportation Fuels (Bio-SNG, Bio-LNG, Ethanol)
• By End-user
  • Utilities and IPPs
  • Industrial Captive Plants
  • District Heating Operators
  • Transport Fuel Distributors
• By Geography
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Vietnam
  • Philippines
  • Rest of Southeast Asia

List of Companies Covered in this Report:

1. Mitsubishi Heavy Industries Ltd
2. Hitachi Zosen Corp
3. Keppel Infrastructure Holdings
4. Sembcorp Industries
5. Veolia Environment SA
6. China Everbright Environment Group
7. China Jinjiang Environment
8. Jiangsu Tianying Group
9. Covanta Energy
10. Babcock & Wilcox Volund
11. MVV Energie AG
12. Martin GmbH
13. DP CleanTech
14. Ramboll Group
15. PT Yokogawa Indonesia
16. Gulf Energy Development
17. Earth Tech Environment
18. Wastech Exponential
19. Suez SA
20. WTE International

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

TABLE OF CONTENTS

1 Introduction

• 1.1 Study Assumptions & Market Definition
• 1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Landscape

• 4.1 Market Overview
• 4.2 Market Drivers
  • 4.2.1 Increasing waste generation in fast-growing urban hubs
  • 4.2.2 Renewable-energy & sustainability targets (net-zero, RE100)
  • 4.2.3 Government incentives & PPP frameworks unlocking financing
  • 4.2.4 Rising landfill-tipping fees and closure mandates
  • 4.2.5 Carbon-credit monetisation via voluntary markets
• 4.3 Market Restraints
  • 4.3.1 High upfront capex / long payback periods
  • 4.3.2 Public opposition over dioxin & NOx emissions
  • 4.3.3 Low-calorific, high-moisture feedstock variability
• 4.4 Supply-Chain Analysis
• 4.5 Regulatory Landscape
• 4.6 Technological Outlook
• 4.7 Porter's Five Forces
  • 4.7.1 Bargaining Power of Suppliers
  • 4.7.2 Bargaining Power of Consumers
  • 4.7.3 Threat of New Entrants
  • 4.7.4 Threat of Substitute Products & Services
  • 4.7.5 Intensity of Competitive Rivalry

5 Market Size & Growth Forecasts

• 5.1 By Technology
  • 5.1.1 Physical (Refuse-Derived Fuel, Mechanical Biological Treatment)
  • 5.1.2 Thermal (Incineration/Combustion, Gasification, Pyrolysis and Plasma-Arc)
  • 5.1.3 Biological (Anaerobic Digestion, Fermentation)
• 5.2 By Waste Type
  • 5.2.1 Municipal Solid Waste
  • 5.2.2 Industrial Waste
  • 5.2.3 Agricultural and Agro-industrial Residues
  • 5.2.4 Sewage Sludge
  • 5.2.5 Others (Commercial, Construction, Hazardous)
• 5.3 By Energy Output
  • 5.3.1 Electricity
  • 5.3.2 Heat
  • 5.3.3 Combined Heat and Power (CHP)
  • 5.3.4 Transportation Fuels (Bio-SNG, Bio-LNG, Ethanol)
• 5.4 By End-user
  • 5.4.1 Utilities and IPPs
  • 5.4.2 Industrial Captive Plants
  • 5.4.3 District Heating Operators
  • 5.4.4 Transport Fuel Distributors
• 5.5 By Geography
  • 5.5.1 Indonesia
  • 5.5.2 Malaysia
  • 5.5.3 Thailand
  • 5.5.4 Singapore
  • 5.5.5 Vietnam
  • 5.5.6 Philippines
  • 5.5.7 Rest of Southeast Asia

6 Competitive Landscape

• 6.1 Market Concentration
• 6.2 Strategic Moves
• 6.3 Market Share Analysis
• 6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)}
  • 6.4.1 Mitsubishi Heavy Industries Ltd
  • 6.4.2 Hitachi Zosen Corp
  • 6.4.3 Keppel Infrastructure Holdings
  • 6.4.4 Sembcorp Industries
  • 6.4.5 Veolia Environment SA
  • 6.4.6 China Everbright Environment Group
  • 6.4.7 China Jinjiang Environment
  • 6.4.8 Jiangsu Tianying Group
  • 6.4.9 Covanta Energy
  • 6.4.10 Babcock & Wilcox Volund
  • 6.4.11 MVV Energie AG
  • 6.4.12 Martin GmbH
  • 6.4.13 DP CleanTech
  • 6.4.14 Ramboll Group
  • 6.4.15 PT Yokogawa Indonesia
  • 6.4.16 Gulf Energy Development
  • 6.4.17 Earth Tech Environment
  • 6.4.18 Wastech Exponential
  • 6.4.19 Suez SA
  • 6.4.20 WTE International

7 Market Opportunities & Future Outlook

• 7.1 White-space & Unmet-Need Assessment