Solid Recovered Fuel Market By Waste Source (Municipal Solid Waste, Commercial & Industrial Waste, Construction & Demolition Waste, Other Non-Hazardous Waste); By Fuel Grade (Low-Grade SRF, Medium-Grade SRF, High-Grade SRF); By Application (Cement Plants, Power Generation Plants, Combined Heat & Power Plants, Lime Plants, Industrial Boilers); By Geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa), Segment Revenue Estimation, Forecast, 2026–2032

From Waste to Energy: How Solid Recovered Fuel Is Powering the Next Wave of Industrial Decarbonization

The Global Solid Recovered Fuel Market was valued at USD 5.28 billion in 2025 and is projected to reach USD 7.28 billion by 2032, growing at a CAGR of 4.7% during 2026–2032, according to Strategic Market Research.

 

Solid recovered fuel (SRF) is produced from selected non-hazardous waste after reusable and recyclable materials are removed. Processing steps such as sorting, shredding and separation improve fuel consistency so that suitable residual waste can replace part of the coal, petroleum coke or natural gas used in industrial thermal processes.

 

Demand is increasing as waste operators seek alternatives to landfill and energy-intensive industries increase the use of alternative fuels. The strongest opportunities are developing around cement plants, CHP facilities and industrial sites that can use a steady supply of processed waste-derived fuel.

 

The market's direction is visible in the segment data. Municipal solid waste holds the largest waste-source share at 42%, commercial and industrial waste has the highest waste-source CAGR at 6.7%, medium-grade SRF leads fuel grades at 47%, and high-grade SRF is the fastest-growing grade at 7.4%. Cement plants account for 44% of demand, while CHP plants have the highest application CAGR at 7.3%.

 

Solid Recovered Fuel Market Growth Driven by Waste Expansion and Industrial Decarbonization

The Solid Recovered Fuel market is expanding rapidly as global waste generation continues to rise and industries intensify their shift toward low-carbon energy sources. A growing residual-waste pool is strengthening the feedstock base, with projections indicating municipal solid waste will increase from 2.1 billion tonnes in 2023 to 3.8 billion tonnes by 2050. At the same time, cement manufacturers are accelerating alternative fuel adoption, with Holcim achieving a 39% thermal substitution rate in 2025 and targeting 50% by 2030, reinforcing long-term SRF demand.

Modern SRF production is evolving beyond basic shredding into highly automated systems focused on precision, efficiency, and fuel consistency. Advanced facilities now integrate real-time quality monitoring using near-infrared technology to measure moisture, calorific value, and chlorine content during processing, eliminating delays from laboratory testing and ensuring uniform combustion performance. Multi-stage sorting lines combine shredding, screening, air separation, and metal recovery, while optical systems remove contaminants and improve fuel purity.

Leading waste processors are scaling continuous production facilities designed for uninterrupted supply to cement and industrial plants. Companies are also retrofitting existing recovery infrastructure with modular SRF systems, enabling efficient conversion of residual waste into high-grade fuel formats. These advancements are positioning SRF as a critical enabler of circular economy goals and industrial decarbonization strategies worldwide.

 

Which Waste Source Leads the Solid Recovered Fuel Market?

Municipal solid waste is the largest source, accounting for 42% of the market and USD 2.22 billion in 2025, with a 6.0% CAGR. Large recurring volumes of household residual waste keep this segment in the lead. However, mixed composition and moisture require sorting and treatment before the material can provide stable fuel characteristics. This keeps investment in waste preparation closely linked with SRF growth.

Commercial and industrial waste holds 37% or USD 1.95 billion and is the fastest-growing waste source at a 6.7% CAGR. Packaging, paper, plastics, textiles and manufacturing residues can provide more predictable material streams. This can make fuel preparation easier where waste is collected separately. For example, Geocycle and Holcim Colombia are expanding the Nobsa co-processing platform to process more than 100,000 tonnes of waste annually. The project is expected to raise fossil-fuel substitution at the plant from around 40% toward more than 70% by 2030.

Construction and demolition waste represents 13% or USD 0.69 billion and is projected to grow at 5.8%. The usable portion mainly comes from separated wood, plastics and other combustible materials after mineral fractions are removed. Lafarge Canada and Geocycle commissioned a CAD 38 million facility at the Exshaw cement plant in 2024 to replace up to 50% of natural gas used by one kiln with lower-carbon fuel derived mainly from construction and demolition wood waste.

Other non-hazardous waste accounts for 8% or USD 0.42 billion and is forecast to grow at 5.9%. Its use depends mainly on whether individual waste streams can achieve acceptable calorific value and contaminant levels after processing.

 

Which SRF Grade Is Growing Fastest?

Medium-grade SRF is the largest fuel grade, with a 47% share and USD 2.48 billion in 2025, growing at a 6.1% CAGR. It serves a broad range of industrial applications because it balances fuel quality with processing cost. This makes it suitable for facilities that need predictable combustion without requiring the highest level of feedstock refinement.

High-grade SRF represents 29% or USD 1.53 billion and has the highest fuel-grade CAGR at 7.4%. Its faster growth reflects increasing attention to calorific value, chlorine content, contaminants and combustion stability as industrial users raise alternative-fuel substitution.

ISO 21640:2021 establishes specifications and classes for solid recovered fuels. Related ISO guidance also addresses characteristics relevant to subsequent use in heat and power applications. These standards give producers and users a common basis for defining SRF quality.

The shift toward better-controlled fuel is also visible in cement-industry targets. Heidelberg Materials aims to raise its alternative-fuel rate to more than 50% by 2030, while Holcim has set a 50% thermal substitution target. Higher substitution increases the importance of fuel consistency because larger SRF volumes must be introduced without disrupting kiln performance.

Low-grade SRF holds 24% or USD 1.27 billion and is projected to grow at 5.2%. It remains relevant where combustion systems can tolerate greater fuel variability, but its slower growth reflects fewer applications requiring large volumes of lower-specification material.

 

Why Do Cement Plants Account for the Largest SRF Application Share?

Cement plants are the largest application, accounting for 44% of the SRF market and USD 2.32 billion in 2025, with a 6.5% CAGR. Clinker production requires sustained thermal energy, allowing suitable processed waste to replace part of conventional kiln fuel. Mineral components in accepted waste streams can also become part of the clinker rather than remaining as separate combustion ash.

Current cement-industry activity shows that alternative-fuel use still has room to increase. UltraTech Cement achieved a 6.6% thermal substitution rate in FY2026 and used 2.57 million tonnes of alternative fuels in its kilns and thermal power plants. The company also reported substantial use of municipal, industrial and agricultural waste.

JSW Cement increased its thermal substitution rate from 6.89% to 16.5% in FY2024–25 through higher consumption of industrial waste, plastics/RDF and biomass. It targets a 30% substitution rate by 2030. These increases point to additional demand for waste preparation, fuel blending and reliable material flows as cement plants reduce conventional fuel use.

Power generation plants account for 22% or USD 1.16 billion and are forecast to grow at 5.5%. Growth is more moderate because SRF competes with biomass, conventional fuels and direct waste-to-energy routes.

Combined heat and power plants hold 14% or USD 0.74 billion and have the fastest application CAGR at 7.3%. CHP becomes attractive where both electricity and useful heat can be consumed locally. CEWEP estimates that waste-to-energy contributes around 10% of the energy supplied to European district-heating networks. Mannheim's waste-fired CHP plant has treatment capacity of approximately 935,000 tonnes per year.

Lime plants hold 11% or USD 0.58 billion and are projected to grow at 5.8%, while industrial boilers account for 9% or USD 0.48 billion and are forecast to grow at 6.6%. Their use of SRF depends heavily on plant configuration and acceptable fuel chemistry.

 

How Do Regulations and Standards Affect Solid Recovered Fuel Demand?

Regulation affects SRF demand by determining which residual waste can be recovered for energy and what characteristics the processed fuel must meet.

ISO 21640:2021 provides the principal international specification and classification framework for SRF. ISO 21912:2021 separately covers safe handling and storage of SRF produced from non-hazardous waste.

Europe has a strong policy framework for diverting suitable waste from landfill. The EU Landfill Directive restricts landfilling of waste suitable for recycling or energy recovery from 2030 and limits municipal waste sent to landfill to 10% by 2035. These targets increase pressure to find compliant recovery routes for residual materials that cannot be recycled.

EU waste trends already show a long-term reduction in landfill use. Municipal waste sent to landfill declined from 121 million tonnes in 1995 to 50 million tonnes in 2024. EU municipal waste generation nevertheless remained substantial at 517 kg per person in 2024, leaving a large residual stream that requires recycling, recovery or disposal.

In the United States, EPA rules determine when non-hazardous secondary materials burned as fuels are considered solid waste under the Resource Conservation and Recovery Act. That classification affects which combustion requirements apply to cement kilns and industrial boilers.

 

Which Regions Are Advancing SRF Adoption?

Europe has the most established environment for SRF use because landfill restrictions, waste-processing infrastructure and high alternative-fuel use in cement production have developed together. The reduction in EU municipal waste landfilling to 50 million tonnes in 2024 reflects the broader shift toward recycling and recovery.

Europe also provides examples of how far alternative-fuel substitution can progress. Holcim has previously reported European cement plants obtaining more than 80% of their thermal energy from alternative fuels, while its global target is to reach 50% by 2030.

Asia-Pacific has stronger headroom for additional SRF use as alternative-fuel rates rise from a lower base in several cement markets. India is a key example. UltraTech increased alternative-fuel consumption from about 1.58 million tonnes in FY2024 to 2.1 million tonnes in FY2025 and 2.57 million tonnes in FY2026. Its thermal substitution rate reached 6.6% in FY2026.

North American activity is concentrated around cement production and locally available residual waste. Lafarge Canada's Exshaw project demonstrates the use of processed construction and demolition waste as kiln fuel, with the facility designed to replace up to half of the natural gas used by one kiln.

Latin America is developing through projects that connect waste treatment directly with cement production. The Geocycle-Holcim Nobsa expansion in Colombia illustrates this model by pairing increased waste-processing capacity with a defined industrial outlet.

 

What Will Shape Competition and the Solid Recovered Fuel Market Outlook?

Competition is increasingly influenced by the ability to secure suitable waste streams, process them to consistent fuel specifications and place the resulting SRF close to large thermal users.

Holcim and Geocycle have a strong position because waste recovery is integrated with cement operations. Holcim reported that Geocycle recycled 12.6 million tonnes of waste and by-products in 2025 for use as energy or raw materials.

Heidelberg Materials is also increasing alternative-fuel use and has set a target above 50% by 2030. UltraTech Cement and JSW Cement show how the same shift is developing in India, where thermal substitution is rising but remains below the levels achieved at several mature European cement plants.

The principal constraint to the 4.7% Solid Recovered Fuel Market forecast is the cost of converting heterogeneous residual waste into a dependable fuel. Moisture, chlorine, metals and non-combustible material can require additional treatment. Transport can also reduce the economic advantage of SRF when processing sites are far from cement kilns or energy plants.

This explains why the strongest growth is concentrated in high-grade SRF at 7.4% CAGR, CHP applications at 7.3%, and commercial and industrial waste at 6.7%. Each benefits from either more predictable fuel characteristics, higher energy recovery or more controllable feedstock. The market is therefore shifting toward better-prepared fuel and closer integration between waste processing and industrial energy use, rather than growth based on waste volumes alone.

 

Solid Recovered Fuel Market Report Coverage Table

Report Attribute	Details
Forecast Period	2026 – 2032
Market Size Value in 2025	USD 5.28 Billion
Revenue Forecast in 2032	USD 7.28 Billion
Overall Growth Rate	CAGR of 4.7% (2026 – 2032)
Base Year for Estimation	2025
Historical Data	2019 – 2024
Unit	USD Million, CAGR (2026 – 2032)
Segmentation	By Waste Source, By Fuel Grade, By Application, By Geography
By Waste Source	Municipal Solid Waste, Commercial & Industrial Waste, Construction & Demolition Waste, Other Non-Hazardous Waste
By Fuel Grade	Low-Grade SRF, Medium-Grade SRF, High-Grade SRF
By Application	Cement Plants, Power Generation Plants, Combined Heat & Power Plants, Lime Plants, Industrial Boilers
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Canada, UK, Germany, France, Italy, China, Japan, South Korea, India, Brazil, Mexico, Saudi Arabia, UAE, South Africa
Market Drivers	Rising landfill-diversion and waste-to-energy initiatives, increasing use of alternative fuels in cement manufacturing, stronger demand for lower-carbon industrial heat sources, and improving waste sorting and fuel-processing infrastructure
Customization Option	Available upon request