In this issue: E-Waste Recycling and Reuse Services Market Overview

Transcription

1 Issue 30 April 4, 2012 In this issue: E-Waste Recycling and Reuse Services Market Overview By Nana Lapham SBI Energy

2 E-Waste Recycling and Reuse Services Market Overview BY NANA LAPHAM SBI ENERGY E-Waste Recycling and Reuse Services Defined The term electronic waste (e-waste), also referred to as e-scrap or waste electrical and electronic equipment (WEEE), supports a number of definitions. In this report we define e-waste as electronic and electrical (E&E) equipment which has been discarded. E-waste may include equipment that is at the end of its life (functioning or non-functioning); equipment that is obsolete; and equipment that was mis-manufactured and is being discarded by its manufacturer. It includes: cell phones, desktop and laptop computers, TVs, stereo equipment, and small and large household appliances. Once collected, e-waste may be refurbished, reused or salvaged for its parts. E-waste recycling and reuse (R&R) services incorporate a wide variety of business types, including collectors, recyclers, refurbishers, used equipment marketers, disassemblers, smelters, refiners and brokers. E-waste R&R services may be formal or informal meaning that they are regulated, documented, and most likely operating legally (formal) or that they are not regularly regulated or documented, and may be operating illegally (informal). Many developing regions, such as in India and in Africa, operate mostly informally, which makes it extremely difficult to track imports, exports and domestic routes of e-waste. E-waste is estimated to only comprise.01 percent to 3 percent of the world s solid waste stream percent to 1 percent in developing countries and 1 percent to 3 percent in developed countries (per the UNEP s 2007 E-Waste Volume I: Inventory Assessment Manual). Despite being such a small portion of the world s total waste stream, e-waste is receiving a lot of attention as it is highly toxic and as its volume is growing rapidly (in some cases 2-3 times faster than any other waste stream, according to the EPA).

3 Because of its economic value, e-waste is quickly becoming less of an environmental problem and more of a market opportunity. Growth of E-Waste Recycling and Reuse Services As the e-waste market develops, e-waste is rapidly changing from an environmental burden to an economic opportunity, leading to dramatic growth of the e-waste recycling and reuse services market around the globe. A number of factors play a role in the projected growth of the industry: Electronic and electrical equipment are becoming more widely used (especially in developing regions such as China and India); Electronic products are becoming obsolete at a more rapid rate due to technological advancements; There has been an increase in the availability of less expensive electronics. Interest in the e-waste recycling and reuse services market is high, as the value of e-waste is becoming less of a secret and as the market value is recognized. This interest will continue to escalate as the industry becomes more defined, more formal and more lucrative. Total E-Waste Services Market Rests at $6.8 Billion in 2010 The value of the total global e-waste R&R services market rested at $6.8 billion in 2010, up from $6.2 billion in 2009 and up nearly 43.2 percent, or $2.05 billion, from The compound annual growth rate (CAGR) for the four-year period is estimated at close to 9.4 percent, while the most growth was seen from 2009 to 2010, when the market grew by almost 9.7 percent. This significant growth is due to a number of factors, including an increase in e-waste volume, expanded e- waste awareness and growing e-waste R&R market stability. In 2010, the global e-waste services R&R market processed a total volume of million tons of e-waste, after experiencing an 8 percent increase from 2009 when the market weighed in at million tons and a hike of close to 35.6 percent from 8.55 million tons in The CAGR for the four-year period is calculated at 7.9 percent.

4 The market for e-waste recycling and reuse services may be divided into five main areas: collection services, triage and de- manufacturing services, material processing and recovery services, asset management and logistics services, and refurbishment and reuse services.

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6 R&R Overview by Region North America North America s e-waste industry is mostly formal, although it is estimated that about 80 percent to 90 percent of US e-waste is exported to China and Nigeria. As the value of e-waste increases and becomes more apparent, the US e-waste market infrastructure becomes more defined and as law enforcement and environmental groups continue to crack downs on imports, it is likely more e-waste recycling will be processed domestically. South America and Central America The potential for a formal and lucrative e-waste market in South and Central America is growing, as sales of mobile phones, computers and other electronics soar. But numerous factors hold back growth in the Latin American e-waste industry. A lack of infrastructure may be the most pressing hurdle, with qualified e-waste handlers located unevenly across the region. A confusing regulatory network has emerged, as a common definition of e-waste and of what is considered hazardous has not been agreed upon and as differing regulations between importers and exporters sometimes hinder productive trade. Europe Europe s e-waste market has a stronger regulatory framework than is found in other areas of the world. Many countries in Europe recycle a relatively significant portion of their e-waste, although there is still much room for improvement. Sweden, Denmark and Norway have the highest e-waste collection rates from private households according to the United Nations University at 14.8 kg per capita, 13.9 kg per capita and 10.5 kg per capita, respectively. Africa Africa is often tagged as the world s dumping ground for e-waste. Although importing toxic and nonworking e-waste into non-oecd countries from OECD countries has been illegal since 1992, the import

7 of E&E second-hand equipment is not illegal. Non-working e-waste is often disguised as second-hand equipment or is mislabeled to deter authorities. Not only is e-waste regularly imported into Africa, but the continent is generating its own e-waste as well. An increase in the use of information technology has skyrocketed in many regions, leading to the generation of more e-waste. For example, in Nigeria in 2001, telephone usage was only.7 percent; by 2006 that percentage had increased to percent. Asia Throughout much of Asia the e-waste industry operates informally and is considered to be environmentally damaging and occupationally hazardous. Rudimentary techniques, such as acid leaching and open-air burning, are common. After the more valuable, sought-after components are extracted from the e-waste, most of the remaining product ends up being burned or disposed of in landfills. Asia s e-waste industry has also been accused of exploiting its workers, by using child labor and by allowing its workers to function in hazardous conditions. Asia s e-waste market will likely grow quickly, especially with the interest and support of some regional governments that realize the economic potential of e-waste R&R. The Asian Development Bank estimates that urban authorities in Asia already spend 50 percent to 70 percent of total revenue on waste management, according to an article in Waste Management World. Growth in Asian nations will be held back in part by a lack of infrastructure and will be slowed while authorities attempt to merge the dominant informal and growing formal e-waste markets. Australia and Oceania Government bodies and corporations in Australia and the Oceanic region are becoming more interested in the e-waste industry as avenues for economic profit emerge and as the seriousness of the e-waste problem exacerbates. Buyequip Pty Ltd, an Australian IT refurbisher and recycler, said in response to an interview question about increasing e-waste market interest, 2010 saw a marked increase in interest in responsible and secure environmental disposal, particularly in the corporate, SME [small and medium enterprises] and education sectors. Our inbound inquiries from the education sector have increased by

8 200 percent in 2010 and the inquiries from SMEs who have less than 25 employees have also increased significantly. About SBI Energy For more than ten years, SBI Energy has been providing comprehensive and insightful market research to business professionals in the industrial, energy, building/construction, automotive/transportation markets. From assistance in identifying the most relevant research, to post-sale question and answer support, our goal is to develop long-term relationships that meet the ongoing needs of our clients. SBI Energy also offers a full range of custom research services. Author Profile: Nana Lapham Nana Lapham is an analyst with SBI Energy. She wrote her first report for MarketResearch.com in Since then she has also conducted and analyzed environmental research in the Pacific Northwest, where she currently resides. Clients have included both the Packaged Facts and SBI divisions of MarketResearch.com; Oregon Websites and Watersheds Project, Inc., an eco-consultancy; and the Pacific Northwest Research Station, an arm of the US Forest Service. From , she was commissioned to research a biography of Oregon logging industry pioneer Ralph Hull. Her hands-on experience with environmental science gives her a unique perspective on the enhanced oil recover (EOR) industry. Contact Information SBI Energy International Tel: URL: Twitter: Shelley Carr scarr@marketresearch.com