Healthcare Waste Treatment Market Expected to Reach $31.4 Billion by 2035

According to a new report published by Allied Market Research, titled, “Healthcare Waste Treatment Market," The healthcare waste treatment market size was valued at $16.6 billion in 2023, and is estimated to reach $31.4 billion by 2035, growing at a CAGR of 5.5% from 2024 to 2035.

Healthcare waste treatment refers to the processes used to treat waste generated by healthcare facilities, including hospitals, clinics, and laboratories. This waste includes both hazardous and non-hazardous materials, such as used syringes, contaminated bandages, pharmaceutical residues, and biological waste. The proper treatment of healthcare waste is essential to prevent the spread of infections, reduce environmental impact, and comply with regulatory requirements.

According to healthcare waste treatment market opportunity analysis major factors driving the growth of the market are growth in cases of healthcare-associated infections (HAIs), favorable government initiatives for healthcare waste management, and rise in the number of hospitals. The growing cases of healthcare-associated infections (HAIs) significantly drive the growth of the Healthcare Waste treatment market. HAIs, which occur in healthcare settings such as hospitals, clinics, and long-term care facilities, pose a serious risk to patient safety and public health. These infections are often linked to improper handling and disposal of medical waste, including sharps, infectious materials, and contaminated equipment. According to a 2024 article by the European Centre for Disease Prevention and Control, 3.5 million cases of HAI are estimated to occur in the European Union and European Economic Area (EU/EEA) each year, leading to more than 90 thousand deaths.

As the incidence of HAIs rises, healthcare facilities are under increasing pressure to adopt stringent waste management protocols to minimize the risk of infection. This has led to heightened demand for advanced Healthcare Waste treatment solutions, such as autoclaving, chemical disinfection, and incineration technologies, to ensure the safe disposal of biohazardous materials. Thus, the rise in the cases of healthcare-associated infections is expected to drive the healthcare waste treatment market growth.

Favorable government initiatives for healthcare waste management significantly drive the growth of the Healthcare Waste treatment market size. Governments worldwide are implementing stringent regulations and policies to ensure proper handling, segregation, treatment, and disposal of medical waste to safeguard public health and the environment. For instance, regulatory agencies like the U.S. Environmental Protection Agency’s (EPA) Resource Conservation and Recovery Act (RCRA) and Europe’s Waste Framework Directive mandate the safe management of healthcare waste.

In addition, governments are providing financial incentives, grants, and subsidies to healthcare facilities and waste treatment providers to adopt eco-friendly and efficient waste treatment technologies. Public awareness campaigns and training programs on best practices in medical waste management further enhance compliance and drives the healthcare waste treatment market growth.

According to healthcare waste treatment market trends analysis the growing number of hospitals globally is a major factor driving the growth of the healthcare waste treatment industry. With the increase in prevalence of diseases and advancements in medical treatments, there has been a significant rise in the establishment of hospitals and healthcare facilities to cater to the growing demand for medical services. According to a 2024 article by American Hospital Association, there are 6,120 hospitals in the U.S. Hospitals generate a substantial amount of waste, including hazardous materials such as infectious waste, chemical waste, and sharps, which require proper treatment and disposal to prevent environmental contamination and health risks.

This rise in hospital numbers directly contributes to an increased need for advanced waste treatment solutions, including on-site waste management systems and centralized treatment facilities. Thus, the increasing number of hospitals is expected to contribute significantly to the growing demand for the healthcare waste treatment market share.

The healthcare waste treatment industry is segmented on the basis of treatment, type of waste, treatment site, end user, and region. On the basis of treatment, the market is divided into incineration, autoclaving, chemical treatment, and others. On the basis of type of waste, the market is divided into hazardous waste and non-hazardous waste. On the basis of treatment site, the market is segmented into onsite, and offsite. On the basis of end user, the market is segmented into hospitals and clinics, pharmaceutical companies, and others.

On the basis of region, the market is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, and Rest of Europe), Asia-Pacific (Japan, China, Australia, India, South Korea, and Rest of Asia-Pacific), and LAMEA (Brazil, Saudi Arabia, South Africa, and Rest of LAMEA).

On the basis of treatment, the incineration segment was the major revenue contributor in 2023. This is attributed to its effectiveness in handling a wide range of medical waste, including infectious, pathological, and pharmaceutical waste. The ability to completely destroy hazardous materials, reduce waste volume significantly, and eliminate the risk of contamination has made incineration a preferred treatment method. Stringent regulatory requirements for the safe disposal of medical waste, particularly in developed regions, have further driven the adoption of incineration facilities.

On the basis of type of waste, the non-hazardous waste segment was the major revenue contributor in 2023. This is attributed to its significantly higher volume compared to hazardous waste. Healthcare facilities generate large quantities of non-hazardous waste, including paper, plastics, food waste, and packaging materials, which require systematic collection, disposal, and recycling. Stringent regulatory guidelines mandate proper waste segregation and management, driving demand for specialized treatment solutions.

On the basis of treatment site, offsite segment emerged as major revenue generator. This is attributed to its cost-effectiveness, regulatory compliance advantages, and the increasing volume of medical waste generated by healthcare facilities. Many hospitals, clinics, and diagnostic centers prefer outsourcing waste treatment to specialized facilities rather than investing in expensive onsite treatment infrastructure. Offsite treatment facilities are equipped with advanced technologies such as autoclaving, incineration, and chemical disinfection, ensuring compliance with stringent environmental and safety regulations.

On the basis of end user, the hospitals and clinics segment was the highest revenue contributor in 2023. This is attributed to the high volume of medical waste generated in these facilities. The increasing number of patient admissions, surgical procedures, and diagnostic activities contributes to significant waste production, including infectious, hazardous, and pharmaceutical waste. Stringent regulations mandating proper waste disposal and the growing emphasis on infection control further drive the demand for specialized waste treatment services in hospitals and clinics.  

On the basis of region, North America accounted for a majority of the Healthcare Waste treatment market share in 2023 and is anticipated to remain dominant during the forecast period. This is attributed to strong presence of key players, well developed healthcare infrastructure, and rise in prevalence of chronic diseases. However, according to healthcare waste treatment market forecast analysis Asia-Pacific is anticipated to witness the fastest growth during the forecast period, owing to favorable government support to develop healthcare infrastructure, rise in awareness about Healthcare Waste treatment, and growth in medical tourism.

Key Findings of The Study

• By treatment, the incineration segment was the highest contributor to the market in 2023.
• By type of waste, the non-hazardous waste segment was the highest contributor to the market in 2023.
• By treatment site, the offsite segment was the highest contributor to the market in 2023.
• By end user, the hospitals and clinics segment dominated the market in 2023, and is expected to continue this trend during the forecast period.
• By region, North America garnered the largest revenue share in 2023. However, Asia-Pacific is expected to grow at the fastest rate during the forecast period