Tech Savvy Startups Transform Indian Waste Management: Frost & Sullivan
The Indian waste management and recycling market is undergoing radical transformation. Favourable government regulations, low penetration rates, and an influx of technology-savvy start-up companies are propelling double-digit growth. Companies that can provide viable, integrated, sustainable waste management and recycling technologies, business models and solutions are positioned for growth.
“Municipal corporations have started to deploy radio frequency identification (RFID) readers and tags in waste bins, and global positioning system (GPS) technology in waste collection and transportation to enable traceability of services. Start-up companies, such as Banyan Nation, Waste Ventures, and Pom Pom, are utilising smart and innovative digital technology platforms and systems like mobile apps and online websites for hassle-free, efficient waste collection bookings and recycling services,” said Nideshna Naidu, Consultant, Energy & Environment Practice, Frost & Sullivan.
Outlook of the Indian Waste Management and Recycling Market, 2017, new analysis from Frost & Sullivan’s Environment & Water Growth Partnership Service program (part of Energy & Environment Practice), finds that the total waste recycling market is set for growth with revenues forecast to reach INR 5.25 billion this year at a year-on-year growth rate of 22.6% from 2016 to 2017. The study analyses the Indian waste management and recycling market, focusing on key market developments, drivers, restraints, growth opportunities, technologies, and competitive landscape across the municipal solid waste (MSW), plastic waste, construction and demolition (C&D) waste, and electronic waste (E-waste) segments.
Trends and developments driving growth in the market include:
- Waste segregation and decentralised waste management enabling higher recycling rates
- Government-backed real estate developer initiatives that boost recycling of C&D waste
- Increasing source segregation due to customer awareness and start-ups paying a higher price to customers who segregate waste
- Focus on “waste to value” to encourage recycling
- Large corporate investment in waste management solutions for formal recycling, and
- Favourable government tariffs for waste-to-energy (WTE) plant investment
“Urbanisation-related lifestyle changes and new building development also lead to higher waste generation,” observed Naidu. “Waste management companies need to explore partnerships with informal waste collectors to increase waste volumes that are formally recycled.”