The Environmental Services Industry

 

Environmental Services is a unique emerging industry.   Rapid industrialization within several emerging markets – plus population increases and heightened public awareness of environmental dangers within several developed nations – has made management of environmental hazards a growing global industry.     The world market for environmental goods and services in 2003 was valued at $740 billion, and is forecast to grow to almost $1 trillion by 2010, representing an annual growth of 3%.   The global environmental services industry is therefore comparable in size to the pharmaceutical and aerospace industries.

 

Developed regions such as Western Europe, Japan and North America account for 85% of world markets.   While these regions have lower growth rates of 1-3%,  higher growth rates are forecast for such areas as renewable energy, waste management, and environmental consulting services.  In North America, the Environmental Services Industry contributes 1% ($96 Billion) of the US Annual Gross National Product.  The Canadian Environmental Industry earned $15.8 billion in 2002.  Waste services accounted for 72% of earnings, a 27% rise over 2000 earnings.  The majority of Canadian firms are small to medium-sized companies operating in a local provincial context.  Only 10% of Canadian suppliers participate in international activities, primarily in the US, and focus on environmental waste and remediation goods and services, and goods and services related to water and air.

 

Environmental markets in developing countries such as Central and Eastern Europe, Southeast Asia, China and Latin America will see higher growth rates (6-10%), particularly in areas such as water and wastewater treatment, water management, air pollution control and environmental monitoring and instrumentation. Developing countries will also see increasing demand for other environmental goods and services as their economies grow.  This will include cleaner technologies, renewable energy, contaminated land remediation and environmental consultancy.

 

(Sources:  Industry Canada, Executive Summary, A Decade of Challenge Report, 2007 Update; Van Eck Global Report, 2006)  )