C&D waste market expected to reach $49B by 2031

Market research firm projects an annual growth rate of 4.5 percent from 2023 to 2031, largely driven by diversion regulations and innovation.

demolition waste on job site

The construction and demolition (C&D) waste market in Europe and North America is projected to expand at a compound annual growth rate of 4.5 percent from 2023 to 2031, reaching a total value of $49.4 billion by the end of the forecast period. 

According to Transparency Market Research Inc., the growth reflects the increasing commitment of governments, private companies and consumers to reducing the environmental impact of construction activities. 

C&D waste constitutes a substantial portion of the total waste generated in Europe and North America. Key materials include concrete, asphalt, wood, metals and soil. The majority of this waste originates from demolition projects, as aging infrastructure is replaced with modern developments.

Governments in these regions have identified the critical need for sustainable waste management. By setting ambitious recycling targets and investing in advanced processing facilities, stakeholders are addressing the twin challenges of waste diversion and resource recovery.

Regulatory drivers and innovationsStricter regulations across Europe and North America are instrumental in shaping the C&D waste market. For instance:

  • In Europe, the Waste Framework Directive mandates that member states achieve a 70 percent recovery and recycling rate for C&D waste.
  • In North America, policies like the Resource Conservation and Recovery Act and municipal zero-waste programs encourage sustainable practices, especially in urban redevelopment projects.

These regulatory frameworks have spurred innovation, with companies adopting robotic sorting systems and artificial intelligence- (AI-) powered technologies to enhance recycling efficiency. Facilities now process mixed waste streams with unprecedented accuracy, delivering high-quality recycled materials for reuse in construction and manufacturing.

Market scope and trends

The C&D waste market is evolving rapidly, with several trends shaping its trajectory. This includes the increased use of recycled aggregates by incorporating more recycled concrete and asphalt into road bases and foundation materials, reducing dependence on virgin aggregates. 

Additionally, green building initiatives hosted by organizations such as the U.S. Green Building Council have incentivized the use of recycled materials in construction. 

Integration with the plastic recycling market also has been a growth driver. As construction projects increasingly incorporate plastic-based materials such as insulation, piping and roofing membranes, the demand for effective recycling solutions has surged.

In Europe, initiatives under the European Green Deal promote the recovery of construction-related plastics, ensuring their reintegration into the manufacturing cycle. Similarly, in North America, companies like the Plastics Industry Association are collaborating with C&D waste processors to repurpose postconstruction plastics for use in road surfacing and composite materials.

Europe remains a global leader in C&D waste management, with countries such as Germany, the Netherlands and Sweden achieving recycling rates exceeding 80 percent. The region’s emphasis on circular economy principles has fostered public-private partnerships and investments in advanced recycling infrastructure.

Meanwhile, North America still lags behind Europe in recycling rates, but significant progress has been made in recent years. Municipal programs and private initiatives emphasize waste diversion and resource recovery, particularly in urban centers like San Francisco and Toronto.

Top Story Markets & Operations Demolition Equipment & Services