Sector Overview

Environmental services industry in India comprises service companies providing advisory and assistance to businesses and other organizations related to environmental issues as well as the designing, program management, Operations & maintenance, monitoring & evaluation of services across all areas. The major environmental services comprises of cleaning up polluted areas, management of natural resources, environmental auditing, waste management and environmental policy development, etc. The various environmental sub-sectors includes water supply & waste water treatment, monitoring equipment and services, solid waste management, renewable energy, air pollution and water sanitation, etc.

Environmental services industry
 

Trends

  • Globally, Environment Services market has reached $600 Billion in 2016 and India stood as the 3rd largest environmental technologies market worldwide.
  • India is also the 5th largest e-waste producer in the world with 1.8 million tons of e-waste generated every year which is expected to rise to 5.2 million tons by 2030.
  • Environment consulting is also one of the emerging environment services accounts for huge revenues worldwide. Water and waste management services accounts for 30%, contaminated land services – 29%, environmental management, compliance, and due diligence – 14%, environmental impact assessment and sustainable development -14% and climate change and energy nearly about 8%, as per an assessment of the aggregated revenues of the world’s top 20 firms by Environment Analyst.
  • Indian environmental consulting services market is the 8th largest in the world and is expected to grow from around $0.55 billion in 2016 to around $0.75 billion in 2020. Currently, India holds about 1.8% share of the global environmental consulting services market. Due to increasing investments in infrastructure and manufacturing, environmental consulting services market in the country is expected to grow at a CAGR of 4.3% in the forecast period.
  • India has also ratified the Paris Agreement in 2016 under which an ambitious target is been set up by the government to achieve 175 GW of renewable energy capacity by 2022. It also includes 100 GW of solar capacity addition and 60 GW of wind power capacity by 2022. 60 solar cities to be developed in India as part of Ministry of New and Renewable Energy’s Solar Cities program. With high set targets and growing environment related issues there exists huge opportunities for improvement and growth of environmental services in India.

Highlights of Sub-sectors

Waste Management

Waste Management Industry

As per the estimates, Waste Management Industry in India is expected to grow to USD 1 Billion by 2020.

Waste comprises of Municipal Solid Waste, Plastic Waste, E-Waste, Hazardous Waste, Industrial Waste and Bio-Medical waste. India is the 6th largest municipal waste generator in the world. As per (Task Force, Planning Commission), India generates approximately 62 million tonnes of waste per annum. With the increasing rate of urbanization in India, it is estimated that volume of waste will increase by 5% p.a. and waste generation will be ~436mn tonnes per annum by 2050.

 

 

Bio-Medical Waste – As one of the largest populated country and a well-known medical tourism destination worldwide, India generates 550 tons per day of medical waste. Although, only 15% of biomedical waste is hazardous, but the treatment of all waste is important, not just for the public but also healthcare workers. Ministry of Environment, Forest and Climate change has amended Bio-Medical Waste Management Rules in 2016 to improve compliance and strengthen the implementation of environmentally sound management of biomedical waste in India.

 
chart diogram
 

Plastic Waste

Over 300 million MT of plastics are produced globally p.a. and nearly 50% of this volume is for disposal applications. According to All India Plastic Manufacturer Organization, size of the plastic Industry in India is estimated at Rs 110,000 Crore with plastic consumption of 13 million tonnes per year and waste generated accounts for 9 million tonnes per year. More efforts towards recycling of plastic waste is the need of the hour to save the environment from land pollution, as most of the plastic is dumped into land creating land and soil pollution problems in the country.

 

E-Waste

India ranks as 5th largest

India ranks as 5th largest producer of E-waste in the world by generating 18 lakh metric tonnes of E-waste each year which is likely to raise to 52 lakh metric tonnes by 2020.

In India, over 95% of e-waste generated is managed by the unorganised sector and merely 1.5% of total e-waste gets recycled. This indicates that huge opportunity for investment is there for both government and private sector to contribute in the management of e-waste in the country.

 

Waste to Energy

Waste to Energy Programme is the initiative of Ministry of New & Renewable Energy (MNRE) with the objective to harness the available potential for the development of energy sector in the country. Aim is to convert Industrial waste to biogas and generate power from industrial solid waste. Globally, over 2200 plants are operating to convert waste into energy with China and USA alone having 150 and 86 plants, respectively. Despite of burgeoning population, India is only having 4 plants which is indicating immense potential and opportunities in this service sector. In India unused waste has the potential to generate 439 MW of power from 32,890 TPD of combustible waste which is enough to meet the power demand of a union territory like Pondicherry

 

Renewable Energy

Indian renewable energy sector is the 2nd most attractive renewable energy market in the world. India accounts for approximately 4% of the total global electricity generation and contributes 4.43% to the global renewable generation capacity. India ranks 4th in the world in terms of total installed wind power capacity and 6th largest in terms of solar power capacity. According to International Energy Agency’s World Energy Outlook, renewable energy is projected to supply 4,550 GW in 2040 globally.

 
Installed renewable
power generation

Installed renewable power generation capacity has increased steadily over the years, with a CAGR of 9.29% over FY08–19.

India is looking to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role. There is high untapped potential in renewable energy sector and India is estimated to have the potential of 900GW from commercially exploitable sources.

Air Quality Management

Air Pollution is one of the major health threat in the modern day metropolitan India. As per a report released by Health Effects Institute, USA (April 17, 2018) India alone accounts for 25% of all the air pollution-related deaths in the world during 2016. Government of India has initiated National Clean Air Program (NCAP) as a comprehensive plan to reduce air pollution in 100 Indian cities. Government is targeting to reduce air pollution by almost 35% over the next 3 years, followed by a 50% reduction within 5 years.

 

References – Data and reports available in the public domain including Ministries Annual Reports and Data Statistics, IBEF Sectoral Reports, Department of Industrial Policy and Promotion (DIPP), RBI Handbook of Statistics on Indian Economy, Media & Industry Reports, Press Information Bureau (PIB), Union Budget 2018-19

Disclaimer – This information has been collected through secondary research and is available in the public domain. We are not responsible for any errors in the same.