Download - No Time to Waste! Growth Opportunities in the Polish and Russian Waste Management Markets
No Time to Waste! Growth Opportunities in the Polish and Russian
Waste Management Markets
Emilia Jelenska, Research Analyst
Suchitra Padmanabhan, Programme Manager
Environment & Building Technologies
March 31st, 2011
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Functional Expertise
• Over six years of research and consulting expertise, with a focus on market research and strategic consulting. Particular expertise in:
- Competitive intelligence and benchmarking
- New market entry and diversification strategies
- Technology / product road-map
Industry Expertise
� Experience base covering a broad range of sectors, leveraging long-standing working relationships with leading industry participants’ Senior Executives in
- Water and wastewater treatment market
- Waste management industry
What I Bring to the Team
• Understanding of the environmental markets and identification of key growth trends
• Market research and consulting for the environment market
• Extensive client management, business development and presentation skills
• Project management and delivery to clients including Top OEMs and Tier 1 suppliers
Career Highlights
• Extensive expertise in environmental research and analysis and worked with M.S. Swaminathan Research Foundation, Chennai for two years as a policy analyst covering biodiversity issues in pockets of Orissa and Tamil Nadu
Education
• MSc in Social Policy and Planning in Developing Countries, London School Of Economic, UK
• B.A. Political Science (Hons), Delhi University, India
Suchitra Padmanabhan
Suchitra PadmanabhanProgramme Manager
Environmental and Building Technologies
Frost & SullivanEuropeLondon, UK
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Functional Expertise
• 3 years of market research and consulting expertise. Particular expertise in:
- Market research – primary and secondary and Forecasting
- Competitive Analysis and Growth Opportunities Assessment
Industry Expertise
� Experience base covering broad range of sectors:
- Electronics & Security (physical security), Energy & Power Supplies (renewable energy)
- Environment & Building Technologies (fire safety equipment, tunneling machinery, waste management), Information & Communication Technologies (smart cards)
What I bring to the Team
• Strong analytical skills, Fluency in English, Polish and French, Understanding of CEE markets
Career Highlights
• Extensive expertise in market research.
• Worked directly with several leading companies:
- Tyco International, Russia
- GE Security, Russia
- Gemalto, France
- Herrenknecht, Germany
Education
• MSc in European Political Economy from London School of Economics (London, UK)
• BA in International Affairs, International Economics from American University of Paris (Paris, France)
Emilia Jelenska
Emilia JelenskaResearch Analyst
Frost & SullivanCentral & Eastern EuropeWarsaw
Place photo hereShadow Background
for effect
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Coverage
OverviewOverview
Presentation details an understanding of key growth regions in waste management
This section presents an analysis of the current trends in regional markets of Western Europe. It also discusses future growth markets covering Poland and Russia in detail
ConclusionConclusion
Russian Market Analysis
Russian Market Analysis
Polish Market Analysis
Polish Market Analysis
Presents a summary of critical success factors essential for covering these new markets as well as a summary of key findings. In addition, growth prospects for key segments are presented across both regions
This section covers market analysis of trends in the Russian waste management market. Forecasts of current market size as well as details on projected growth opportunities
This section covers market analysis of trends in the Polish waste management market. Forecasts of current market size as well as details on projected growth opportunities
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Growth Options in the EU Waste Management Market
1. Markets mature in Western Europe as key regions & companies look for outward expansion
2. Poland is poised for future activity due to the need for compliance with EU legislation
3. Russia presents significant opportunity due to the current over-reliance on landfill
- Waste management remains of key investment & environmental priority
- Market rebound has already demanded strategic profiling and investment decisions
- Markets with long-term support in the form of strong legislation and govt. support will flourish
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Regional Market Analysis of the European Waste Management Market
GermanyA key leader in the EU market but is approaching maturity as capacity exceeds current requirements for incineration for e.g.
United KingdomOne of the worst hit economies by the economic slowdown but EU and national legislation maintains an overall momentum for growth
Spain & PortugalOverall need for compliance with EU legislation considering how far behind the region is with many targets maintains pressure and need for compliance
PolandFocus shifts to the CEE region which constitutes a growth region for the waste management market due to the need to manage rising volumes of waste as per EU legislation
Maturing markets
Maintaining growth potential
Future growth prospects
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Market Hot Spots
Poland is of immediate relevance due to:
1. EU accession dictates requirements
2. Requirements of environmental legislation
3. Closeness to the EU has assisted regional
players to access the region such as
Remondis, Veolia, Sita, Alba
Russia
Russia is significant because:
• Large land area with a market still relatively
uncovered for waste management
• Transition away from landfill towards waste
management solutions is inevitable
• Growing prospects for international waste
management companies focusing on the region
Poland
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Legislative requirements drive regional
markets
Service opportunities
Growth Strategies
A B
Engage in competitive strategies
D
Prioritise growth segments
C
Higher value-add solutions present growth opportunities for EU waste management companies
2011 is expected to support activity in M&As and partnerships as the economy stabilises & large players look for expansion
EU legislation and need for compliance prompts market opportunities
Focus on growth centres such as collection in Russia and MSW management in Poland
Growth Options
Regional Growth Regional Growth Regional Growth
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Russian Waste Management Market Assessment
Market Growth Prospects
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Market Forces
Source: Frost & Sullivan
Waste Management Market: Market Drivers and Restraints (Russia), 2010-2016
Lack of Environmental
Education Among
Population
Severe Under-
Capacity of Treatment
Plants
Illegal Disposal of
Waste
Poor
Enforcement
of Waste
Regulations
Limited Financing
International Commitments Foster Positive
Business Climate
Growing Market for Recycling Services
Demand for New
Advanced Technologies
Growing Public and
Governmental Awareness
Increase in Prices for
Waste Services
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Market Size and Forecasts: Russian MSW Segment
Market growth is at a relatively low 5.6% due to considerable restraints that dampen
the potential of this market.
2010
CAGR(2010-2017)
2017
$ 1.36 billion
5.6%
$ 1.87 billion
Time
Note: Size of bubble indicates market size
Gro
wth
($ b
illio
n)
1
2
3
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Key Market Trends
MSW is key growth segment
MSW is key growth segment
Dependence on landfill disposalDependence on landfill disposal
Incineration: 5%Recycling: 15%
Landfill disposal: 80%
Incineration: 5%Recycling: 15%
Landfill disposal: 80%
Industrial waste is often stored in back lots of plants where it is generated.
Industrial waste is often stored in back lots of plants where it is generated.
Large informal market across all segments
Large informal market across all segments
Fragmented competitionFragmented competition
Large cities: mostly private companiesSmaller cities: public + niche private
Rural areas: public companies
Large cities: mostly private companiesSmaller cities: public + niche private
Rural areas: public companies
60% public, municipally-run companies40% are private
60% public, municipally-run companies40% are private
Service Trends Segment Trends
Low profitability of treatment and recycling services
Low profitability of treatment and recycling services
Little demand for formal services for non-MSW waste types
Little demand for formal services for non-MSW waste types
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Market Segmentation: MSW Segment
Russian MSW Market
Public
Service Type
LocalRussian
Waste Management Market: Market Shares by Tiers (Russia), 2010
Ownership
Source: Frost & Sullivan
3% 5% 92% 85%
60% 40%
15%
Market development is hindered by the overreliance on landfill disposal.
RecyclingSorting
&Separation
Landfill (including
Collection &Transportation)
International
Private
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Competitive Landscape: MSW Segment
Source: Frost & Sullivan
Number of Companies +1000
Public vs. Private Proportion 60% Public, 40% Private
Tiers of Competition There are two tiers of competition in the MSW segment.
Waste Management Market: Competitive Structure (Russia), 2010
Tier 2: 85%Clean City, Ecotrans, Safe Technologies Inc.
UC AGHZO, PromGroup, Rosa-1, Ecoservice Prim, Moydodyr, Ecotrom, Perm Recycling
Tier 1: 15%Promotkhody, Remondis, Ecotechprom,
NEC, Ecosystem, TDF Ecotech
Competition in Russia is relatively high due to the market’s early stage of
development, and presence of large number of local market participants.
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Polish Waste Management Market Assessment
Market Growth Prospects
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Market Forces
Source: Frost & Sullivan
Waste Management Market: Market Drivers and Restraints (Poland), 2010-2017
Social Disapproval
of MSW Incineration
Facilities
Informal Sector in Most
Segments Thwarts Growth
Slow Pace of Adoption of
EU Directives
Frequent
Legal
Changes
Hinder
Development
Differing Regional Paces of
Investments
Inflow of EU Funds into the Environmental
Sector
Increased Public
Awareness of Environmental
Concerns
Compliance with EU
Directives
Closure of Landfills Directs
Waste to Treatment
Plants
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Total Market Size and Forecasts
CAGR(2011-2016)
6.3%
MSW segment has a higher CAGR (at 8%) than other non-MSW segments due to
large opportunities present in treatment, recycling and sorting services.
$2.96 billion
$4.62 billion
2010 2017 Time
Gro
wth
($ b
illio
n)
Note: Size of bubble indicates market size
1
2
3
4
5
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Key Market Trends
Significant shift away from
landfill disposal
Significant shift away from
landfill disposal
EU directives drive shift toward technologically-driven treatment
methods
EU directives drive shift toward technologically-driven treatment
methods
Many private companies providing incineration service for non-MSW types
Many private companies providing incineration service for non-MSW types
Substantial EU funds available to municipally-run companies
Substantial EU funds available to municipally-run companies
Limited market opportunities in non-MSW services due to in-house waste
treatment
Limited market opportunities in non-MSW services due to in-house waste
treatment
80% of non-MSW stems from the mining, metallurgy and chemicals
industries
80% of non-MSW stems from the mining, metallurgy and chemicals
industries
MSW facilities require better infrastructure for sorting, treatment and
recycling purposes
MSW facilities require better infrastructure for sorting, treatment and
recycling purposes
MSW landfill closures till end of 2011MSW landfill closures till end of 2011
Strong need to invest in waste facilities in less industrialized regions
Strong need to invest in waste facilities in less industrialized regions
Decreasing size of informal market across all segments
Decreasing size of informal market across all segments
Service Trends Segment Trends
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Total Market Segmentation
Polish Waste Management Market
Landfill (including
Collection andTransportation)
Recycling and
Treatment Services
Other Services
Public
Service Type
Private
Local International
Waste Management Market: Market Shares by Tiers (Poland), 2010
Ownership
51% 42% 7%
40%
40%60%
60%
As the market develops, waste management services will shift to more technology-
oriented solutions, and private companies will increase their market presence.
Source: Frost & Sullivan
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Competitive Landscape: MSW Segment
Source: Frost & Sullivan
Waste Management Market: Competitive Structure of MSW Segment (Poland), 2010
Tier 3: 70%Baj-Pros Eko, Eko Serwis, AG Complex, Almax, PUM, Art-Eko, Sanikom,
Biosystem, and all other MPO (municipal firms) in medium-sized or small cities
or villages
Tier 2: 20%Alba, PHP Transformers, Elana PET, Krynicki Recykling, ASA,
Polowat, Conkret, Quercus
Tier 1: 10%Remondis, SITA Polska, and all municipal
firms in major ten cities of Poland
Number of Companies 1000+
Public vs. Private Proportion 55% Public, 45% Private
Three Tiers of Competition There are three tiers of companies offering MSW management services.
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Key Take-Aways
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Critical Success Factors
Critical Success Factors
High Quality of Service &Price Competitiveness
High Quality of Service &Price Competitiveness
Technical ExpertiseTechnical Expertise
Strong Local PartnershipsStrong Local PartnershipsPositive Relations with
Local Government
Positive Relations with Local Government
Availability of FundsAvailability of Funds
Obtaining Funding from EU or National Funds
Obtaining Funding from EU or National Funds
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Market remains heavily linked towards EU
legislative support and financial backing
Market remains heavily linked towards EU
legislative support and financial backing
Little demand yet for technical advancement as
landfills for e.g. in Russia dominate market
space
Little demand yet for technical advancement as
landfills for e.g. in Russia dominate market
space
Competition is based on forging effective local
partnerships which can assist in uncovering
market opportunities
Competition is based on forging effective local
partnerships which can assist in uncovering
market opportunities
Poland is closer to Western European
standards for effective waste management
although Russia comprises a bigger market
potential in the long-term
Poland is closer to Western European
standards for effective waste management
although Russia comprises a bigger market
potential in the long-term
LegalLegal
TechnologicalTechnological
CompetitiveCompetitive
Market Dynamics
Market Dynamics
Key Findings
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Segment Prospects
Biological
Sorting & Separation
Collection • Increase in waste volumes collected as the grey market zone reduces and markets comply with requirements of environmental legislation
• Rise in demand as the market is legalised and landfill disposal is increasingly restricted for more advanced treatment processes.
• Stable growth prospects due to ongoing emphasis in Poland on composting & anaerobic treatment
• Steady decline as other advanced waste management techniques gain prominence due to legislative backing
Landfill
Waste to Energy
• Presents long-term growth prospect as the market moves away from dumping waste to managing ‘waste as a resource’
Growth
Prospects
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And Going Forward
Market Dynamics
Focus is on current news for e.g. growth opportunities through economic recovery & key segments such as WEEE
Opportunity Analysis
Regional Focus
Growth Segments
Steady focus on recycling, reuse and value recoveryEvolving hot-spots as
traditional pockets in Western Europe approach maturity
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Waste Management Research Areas
European Waste Management Market
Focus Areas for 2010
• Global Biological Waste to Energy Plants Market• European Recycling Services Market• Opportunities in the Russian Waste Management
Market• Opportunities in the Polish Waste Management
Market
Focus Areas for 2011
• Strategic Opportunities in the Romanian Waste Management Market (Q2)
• Global Opportunities in the WEEE Recycling Services Market (Q2)
• Growth Opportunities in the EU Industrial Waste Management Market (Q1)
• Opportunities in Paper and Plastics Recycling (Q3)• EU Medical Waste Management (Q1)
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– 18 May 2011
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For Additional Information
Name: Chiara Carella
Corporate Communications
Environment, Energy and Building Technologies
Direct: +44 (0) 207 3438314
Name: Suchitra Padmanabhan
Programme Manager
Waste Management Market
Direct: +91 44 61606666
Email: [email protected]
Name: Juliet Shaw
Sales Director
Energy & Environment
Direct: +44 (0) 20 7343 8363
Email: [email protected]
Name: Emilia Jelenska
Research Analyst
Energy and Building Technologies
Direct: +48 222 44 08 95
Email: [email protected]