No Time to Waste!Growth Opportunities in the Polish and Russian        Waste Management Markets             Emilia Jelensk...
Suchitra Padmanabhan                        Functional Expertise                        • Over six years of research and c...
Emilia Jelenska                    Functional Expertise                    • 3 years of market research and consulting exp...
CoveragePresentation details an understanding of key growth regions in waste management                      This section ...
Growth Options in the EU Waste Management Market          1. Markets mature in Western Europe as key regions & companies l...
Regional Market Analysis of the European WasteManagement Market  Maturing markets  Maintaining growth potential  Future gr...
Market Hot Spots                  Poland                                              RussiaPoland is of immediate relevan...
Growth Options                                Regional Growth                                Regional Growth  EU legislati...
Russian Waste Management Market Assessment             Market Growth Prospects                                             9
Market Forces                       Waste Management Market: Market Drivers and Restraints (Russia), 2010-2016            ...
Market Size and Forecasts: Russian MSW Segment     Growth ($ billion)                          3                          ...
Key Market Trends     Service Trends                                                       Segment Trends                 ...
Market Segmentation: MSW Segment                      Waste Management Market: Market Shares by Tiers (Russia), 2010      ...
Competitive Landscape: MSW Segment                          Waste Management Market: Competitive Structure (Russia), 2010 ...
Polish Waste Management Market Assessment             Market Growth Prospects                                            15
Market Forces                 Waste Management Market: Market Drivers and Restraints (Poland), 2010-2017                  ...
Total Market Size and Forecasts     Growth ($ billion)                                              CAGR                  ...
Key Market Trends    Service Trends                                                     Segment Trends    EU directives dr...
Total Market Segmentation                            Waste Management Market: Market Shares by Tiers (Poland), 2010       ...
Competitive Landscape: MSW Segment                 Waste Management Market: Competitive Structure of MSW Segment (Poland),...
Key Take-Aways                 21
Critical Success Factors                             Obtaining Funding from EU or                              Obtaining F...
Key Findings                       Market remains heavily linked towards EU       Legal                       legislative ...
Segment Prospects                         • Increase in waste volumes collected as the grey            Collection         ...
And Going Forward                                                                 Steady focus on recycling,   Evolving ho...
Waste Management Research Areas                  European Waste Management Market    Focus Areas    • Strategic Opportunit...
Next Steps Request a proposal for Growth Partnership Services or Growth Consulting Services to support you and your team t...
Your Feedback is Important to Us              What would you like to see from Frost & Sullivan?•Growth   Forecasts?•Compet...
Follow Frost & Sullivan on Facebook, LinkedIn,SlideShare, and Twitter                 http://www.facebook.com/FrostandSull...
For Additional Information  Name: Chiara Carella                                     Name: Suchitra Padmanabhan  Corporate...
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No Time to Waste! Growth Opportunities in the Polish and Russian Waste Management Markets

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An analysis by Emilia Jelenska and Suchitra Padmanabhan, Frost & Sullivan.

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No Time to Waste! Growth Opportunities in the Polish and Russian Waste Management Markets

  1. 1. 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
  2. 2. Suchitra Padmanabhan 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 TeamSuchitra • Understanding of the environmental markets and identification of key growth trendsPadmanabhan • Market research and consulting for the environment marketProgramme Manager • Extensive client management, business development and presentation skillsEnvironmental and • Project management and delivery to clients including Top OEMs and Tier 1 suppliersBuilding Technologies Career HighlightsFrost & Sullivan • Extensive expertise in environmental research and analysis and worked with M.S.Europe Swaminathan Research Foundation, Chennai for two years as a policy analyst coveringLondon, UK 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 2
  3. 3. Emilia Jelenska 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 Place photo here Industry ExpertiseShadow Background Experience base covering broad range of sectors: for effect - 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 CEEEmilia Jelenska marketsResearch Analyst Career Highlights • Extensive expertise in market research.Frost & Sullivan • Worked directly with several leading companies:Central & EasternEurope - Tyco International, RussiaWarsaw - 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) 3
  4. 4. CoveragePresentation details an understanding of key growth regions in waste management This section presents an analysis of the current trends in Overview Overview regional markets of Western Europe. It also discusses future growth markets covering Poland and Russia in detail This section covers market analysis of trends in the RussianRussian MarketRussian Market waste management market. Forecasts of current market size Analysis Analysis as well as details on projected growth opportunities This section covers market analysis of trends in the PolishPolish MarketPolish Market waste management market. Forecasts of current market size Analysis Analysis as well as details on projected growth opportunities Presents a summary of critical success factors essential for Conclusion covering these new markets as well as a summary of key Conclusion findings. In addition, growth prospects for key segments are presented across both regions 4
  5. 5. 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 - Market rebound has already demanded strategic profiling and investment decisions - Waste management remains of key investment & environmental priority - Markets with long-term support in the form of strong legislation and govt. support will flourish 5
  6. 6. Regional Market Analysis of the European WasteManagement Market Maturing markets Maintaining growth potential Future growth prospects Germany A key leader in the EU market but is approaching maturity as capacity exceeds United Kingdom current requirements for One of the worst hit economies incineration for e.g. by the economic slowdown but EU and national legislation maintains an overall momentum for growth Poland Focus 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 legislationSpain & PortugalOverall need for compliancewith EU legislation consideringhow far behind the region iswith many targets maintainspressure and need forcompliance 6
  7. 7. Market Hot Spots Poland RussiaPoland is of immediate relevance due to: Russia is significant because:1. EU accession dictates requirements • Large land area with a market still relatively2. Requirements of environmental legislation uncovered for waste management • Transition away from landfill towards waste3. Closeness to the EU has assisted regional management solutions is inevitable players to access the region such as Remondis, Veolia, Sita, Alba • Growing prospects for international waste management companies focusing on the region 7
  8. 8. Growth Options Regional Growth Regional Growth EU legislation and A B Higher value-addneed for compliance Legislative solutions presentprompts market Service growth opportunitiesopportunities requirements opportunities for EU waste drive regional management markets companies Growth Strategies C D 2011 is expected to Focus on growth Engage in support activity incentres such as Prioritise growth competitive M&As and partnershipscollection in Russia segments as the economyand MSW strategies stabilises & largemanagement in players look forPoland expansion 8
  9. 9. Russian Waste Management Market Assessment Market Growth Prospects 9
  10. 10. Market Forces Waste Management Market: Market Drivers and Restraints (Russia), 2010-2016 Severe Illegal Poor Under- Lack of Disposal of Capacity of Environmental Enforcement Waste Treatment Education of Waste Plants Among Regulations Population Limited Financing Growing Market for Recycling Services Increase in International Prices for Growing Demand for Commitments New Waste Public and Foster Positive Services Governmental Advanced Business Awareness Technologies Climate Source: Frost & Sullivan 10
  11. 11. Market Size and Forecasts: Russian MSW Segment Growth ($ billion) 3 CAGR (2010-2017) 5.6% 2 $ 1.87 billion $ 1.36 billion 1 2010 2017 TimeNote: Size of bubble indicates market size Market growth is at a relatively low 5.6% due to considerable restraints that dampen the potential of this market. 11
  12. 12. Key Market Trends Service Trends Segment Trends 60% public, municipally-run companies Dependence on landfill disposal 40% are private Large cities: mostly private companies Incineration: 5% Smaller cities: public + niche private Recycling: 15% Rural areas: public companies Landfill disposal: 80% MSW is key growth Fragmented competition segment Industrial waste is often stored in back lots of plants where it is generated. Low profitability of treatment and recycling services Large informal market across all segments Little demand for formal services for non-MSW waste types 12
  13. 13. Market Segmentation: MSW Segment Waste Management Market: Market Shares by Tiers (Russia), 2010 Russian MSW Market Service Type Ownership 60% Public 40% Private Landfill Sorting (including Recycling & Collection & Separation Transportation) Local 85% 15% International 3% 5% 92% Russian Source: Frost & Sullivan Market development is hindered by the overreliance on landfill disposal. 13
  14. 14. Competitive Landscape: MSW Segment Waste Management Market: Competitive Structure (Russia), 2010 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. Tier 1: 15% Promotkhody, Remondis, Ecotechprom, NEC, Ecosystem, TDF Ecotech Tier 2: 85% Clean City, Ecotrans, Safe Technologies Inc. UC AGHZO, PromGroup, Rosa-1, Ecoservice Prim, Moydodyr, Ecotrom, Perm Recycling Source: Frost & Sullivan Competition in Russia is relatively high due to the market’s early stage of development, and presence of large number of local market participants. 14
  15. 15. Polish Waste Management Market Assessment Market Growth Prospects 15
  16. 16. Market Forces Waste Management Market: Market Drivers and Restraints (Poland), 2010-2017 Informal Slow Pace of Frequent Sector in Most Adoption of Social Legal Segments EU Directives Disapproval Changes Thwarts of MSW Growth Hinder Incineration Development Facilities Differing Regional Paces of Investments Increased Closure of Compliance Public Inflow of EU with EU Landfills Directs Funds into the Awareness of Waste to Directives Environmental Environmental Treatment Concerns Sector Plants Source: Frost & Sullivan 16
  17. 17. Total Market Size and Forecasts Growth ($ billion) CAGR 5 (2011-2016) 6.3% 4 $4.62 billion 3 $2.96 billion 2 1 2010 2017 TimeNote: Size of bubble indicates market size MSW segment has a higher CAGR (at 8%) than other non-MSW segments due to large opportunities present in treatment, recycling and sorting services. 17
  18. 18. Key Market Trends Service Trends Segment Trends EU directives drive shift toward MSW landfill closures till end of 2011 technologically-driven treatment methods MSW facilities require better infrastructure for sorting, treatment and Substantial EU funds available to recycling purposes municipally-run companies Significant shift 80% of non-MSW stems from the away from mining, metallurgy and chemicals landfill disposal industries Many private companies providingincineration service for non-MSW types Strong need to invest in waste facilities in less industrialized regions Limited market opportunities in non- MSW services due to in-house waste treatment Decreasing size of informal market across all segments 18
  19. 19. Total Market Segmentation Waste Management Market: Market Shares by Tiers (Poland), 2010 Polish Waste Management Market Service Type Ownership Public Private 40% 60% Landfill Recycling (including and Other Collection and Treatment Services Local International Transportation) Services 40% 60% 51% 42% 7% Source: Frost & Sullivan As the market develops, waste management services will shift to more technology- oriented solutions, and private companies will increase their market presence. 19
  20. 20. Competitive Landscape: MSW Segment Waste Management Market: Competitive Structure of MSW Segment (Poland), 2010 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. Tier 1: 10% Remondis, SITA Polska, and all municipal firms in major ten cities of Poland Tier 2: 20% Alba, PHP Transformers, Elana PET, Krynicki Recykling, ASA, Polowat, Conkret, Quercus 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 Source: Frost & Sullivan 20
  21. 21. Key Take-Aways 21
  22. 22. Critical Success Factors Obtaining Funding from EU or Obtaining Funding from EU or National Funds National Funds Availability of Funds Availability of Funds Technical Expertise Technical Expertise Critical Success FactorsStrong Local Partnerships Strong Local Partnerships Positive Relations with Positive Relations with Local Government Local Government High Quality of Service & High Quality of Service & Price Competitiveness Price Competitiveness 22
  23. 23. Key Findings Market remains heavily linked towards EU Legal legislative support and financial backing Little demand yet for technical advancement as Technological landfills for e.g. in Russia dominate market space Competition is based on forging effective local Competitive partnerships which can assist in uncovering market opportunities Poland is closer to Western European Market standards for effective waste management Dynamics although Russia comprises a bigger market potential in the long-term 23
  24. 24. Segment Prospects • Increase in waste volumes collected as the grey Collection market zone reduces and markets comply with requirements of environmental legislation Sorting & • Rise in demand as the market is legalised and Separation landfill disposal is increasingly restricted for more advanced treatment processes.Growth Biological • Stable growth prospects due to ongoing emphasisProspects in Poland on composting & anaerobic treatment • Steady decline as other advanced waste Landfill management techniques gain prominence due to legislative backing Waste to • Presents long-term growth prospect as the market Energy moves away from dumping waste to managing ‘waste as a resource’ 24
  25. 25. And Going Forward Steady focus on recycling, Evolving hot-spots as reuse and value recovery traditional pockets in Growth Western Europe Segments approach maturity Market Dynamics Regional Opportunity Focus Analysis Focus is on current news for e.g. growth opportunities through economic recovery & key segments such as WEEE 25
  26. 26. Waste Management Research Areas European Waste Management Market Focus Areas • Strategic Opportunities in the Romanian Waste for 2011 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) • Global Biological Waste to Energy Plants Market Focus Areas • European Recycling Services Market for 2010 • Opportunities in the Russian Waste Management Market • Opportunities in the Polish Waste Management Market 26
  27. 27. Next Steps Request a proposal for Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. (enquiries@frost.com) Join us at our annual Growth, Innovation, and Leadership 2011: A Frost & Sullivan Global Congress on Corporate Growth occurring in London on 17 – 18 May 2011 (www.gil-global.com) Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news) 27
  28. 28. Your Feedback is Important to Us What would you like to see from Frost & Sullivan?•Growth Forecasts?•Competitive Structure?•Emerging Trends?•Strategic Recommendations?•Other? Please inform us by rating this webinar. Frost & Sullivan’s Growth Consulting can assist with your growth strategies 28
  29. 29. Follow Frost & Sullivan on Facebook, LinkedIn,SlideShare, and Twitter http://www.facebook.com/FrostandSullivan http://www.linkedin.com/companies/4506 http://www.slideshare.net/FrostandSullivan http://twitter.com/frost_sullivan 29
  30. 30. For Additional Information Name: Chiara Carella Name: Suchitra Padmanabhan Corporate Communications Programme Manager Environment, Energy and Building Waste Management Market Technologies Direct: +91 44 61606666 Direct: +44 (0) 207 3438314 Email: spadmanabhan@frost.com chiara.carella@frost.com Name: Juliet Shaw Name: Emilia Jelenska Sales Director Research Analyst Energy & Environment Energy and Building Technologies Direct: +44 (0) 20 7343 8363 Direct: +48 222 44 08 95 Email: juliet.shaw@frost.com Email: emilia.jelenska@frost.com 30

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