The number of waste-to-energy plants worldwide grew in 2025, though China’s once-booming market is contracting as Southeast Asia emerges as a new growth region.
More than 3,100 thermal waste treatment plants were operating globally by the end of 2025, with combined capacity exceeding 640 million tonnes per year. The sector added approximately 18 million tonnes of new capacity while decommissioning nearly 2 million tonnes, according to a market study by ecoprog.
China accounted for over 12 million tonnes of new capacity but faces significant headwinds. The country commissioned 190 plants in 2021 but has since slowed dramatically. Many major cities along the eastern seaboard now have sufficient or excess capacity, and plant operators struggle to secure enough waste due to economic challenges and expanded recycling efforts.
“For competitors in China, this presents a double challenge,” the report notes. Most major players both build and operate plants, meaning they lack new projects as constructors and available waste as operators.
Outside China, momentum is building in Indonesia, Thailand, the Philippines and Central Asian countries like Uzbekistan. Deteriorating waste management conditions drive demand, while years of institutional development are paying off in some countries. Chinese developers seeking new markets are also spurring growth through aggressive expansion strategies.
European capacity grew modestly by 300,000 tonnes in 2025. The continent commissioned 1.2 million tonnes of new capacity but decommissioned nearly 900,000 tonnes, reflecting a shift toward modernization rather than new construction. Southern and Eastern European countries still need additional capacity to meet EU requirements and reduce landfill dependence.
The study forecasts two to four million tonnes of new and modernized capacity in Europe annually through 2034.
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- Source: https://worldbiomarketinsights.com/waste-to-energy-industry-expands-worldwide-while-china-struggles/
