The presence of several players has rendered the vendor landscape in the global resource circulation equipment (RCE) market highly fragmented. Among the prominent enterprises, the original equipment manufacturers currently have a stronghold in the market. As per Transparency Market Research (TMR), these companies mainly aim at entering into long-term contracts with buyers to continue gaining from sustainable growth.
Besides improving functionalities of end products, the leading companies have been focusing on their after sales services to gain from their long term contracts with buyers. The strategies adopted by prominent market players have a considerable influence on the sales of resource allocation equipment. Spurred by similar factors, the global resource circulation equipment market is expected to value US$14.15 bn by 2016. The market is expected to reach US$17.65 bn by the end of 2019.
Regionally, North America has emerged the leading producer as well as consumer of resource circulation equipment. Despite the market in developed economies reaching its maturity, favorable government incentives and rising waste levels will keep demand for resource circulation equipment high in North America. The region held over 39.5% of the global RCE market in 2012. Based on application, the electrical and electronics industry dominated the global RCE market with a share of over 20% in 2012.
Incentives from Government to Encourage RCE Installation Worldwide
Favorable regulations encouraging the installation of resource circulation equipment will create growth opportunities for the market. For instance, the U.S. government has recently launched an incentive scheme for installing recycling equipment under the Recycling Investment Saves Energy (RISE) Act. Such acts are expected to give impetus to investments in the RCE market. Several governments around the world have been encouraging RCE deployment in the form of tax credits on the purchase of the equipment. These factors are expected to fuel the RCE sales globally.
“Demand for RCE installation is expected to rise in response to the growth in construction and industrial waste,” said a lead TMR analyst. With industrialization and urbanization across developing countries notching higher, there is less likelihood for industrial and construction waste to reduce in the forthcoming years. The demand for resource circulation equipment is thus poised to surge at a faster pace in emerging economies, as these countries increase their investment in technologies for effectively disposing or reusing waste. “The shrinking of available area for landfill will also bolster opportunities for RCE sales,” added the TMR analyst.
High Initial Investment Required for Installation Limits Market’s Growth
High initial investment required for installing resource circulation equipment will constrain their sales to an extent. In underdeveloped regions the absence of proper infrastructure required to process materials limits RCE deployment. Furthermore, the cost structure of these equipment includes operational and maintenance cost, besides capital costs, which makes them suitable for installation only across enterprises with strong financial position.
In addition, the comparatively higher market price of recycled products also dampens the market’s growth. Despite support from government in the form of incentives, inadequate profit from the sales of recycled products often creates bottlenecks for RCE manufacturers.
Need for Curbing Carbon Emission from Industries to Fuel RCE Deployment in Near Future
Industrial activities have tremendously increased in the past few decades in response to the increasing population and the rising demand for consumer products. Energy consumption is more in industries engaged in the production of raw materials. Hence these industries majorly contribute to the rising CO2 emission. RCE installation across these industries is expected to increase in the near future as countries look for ways to curb carbon emissions.
As a direct outcome of increasing waste generated from industrial facilities, the demand for waste processing will increase as well. Countries around the world are expected to hold more importance for recycling waste materials, this is expected to fuel deployment of resource circulation equipment in the near future.
This review is based on a report published by TMR, titled “Resource Circulation Equipment Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2013 – 2019.”
The report segments the global resource circulation equipment market as:
Resource Circulation Equipment Market – Application Segment Analysis
- Electrical and electronics
- Plastic and Polymer
- Oil and Gas
- Others (Including agriculture and medical)
Resource Circulation Equipment Market – Regional Analysis
- North America
- Asia Pacific
- Rest of the World
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