Green drivers fuel the growth of remediation

As environmental legislation beds down, the future for the contaminated land treatment market is looking rosy, according to a recent report

The contaminated land assessment and treatment market is forecast to increase in value over the next four years, according to a report from Market & Business Development.

Annual growth rates are expected to slow from 6% in 2008 to 4% in real terms in 2012. But overall demand is projected to increase by 29% in real terms compared with 2007, reaching £1,470.7M (at 2007 prices) by the end of 2012. The increase is partially attributable to continued growth in construction output, government house-building targets, and impact of environmental legislation. Meanwhile, the excavation and removal sector is expected to reach £655.5M by 2012, increasing during each year of the review period.

Annual real-term growth rates are anticipated to slow marginally from 5% in 2008 to 4% in 2012. Overall, demand is projected to increase by 26% in real terms to £655.5M (at 2007 prices) in 2012, compared with 2007. The London 2012 Olympics is believed to be a contributing growth factor - provisional estimates suggest 400,000 tonnes of material will be excavated and removed from the 2012 site. The option of treating contaminated material on site is also being considered.

Excavation and removal is expected to continue to hold the largest share of the contaminated land treatment market, although the importance of the sector is projected to contract from 75% in 2007 to 73% in 2012. This is largely attributable to increased costs associated with this treatment method, the impact of increasingly stringent legislation, and environmental awareness.

Other physical remediation is expected to continue to represent the second largest share of the treatment market, with the proportional importance anticipated to increase from 7% in 2008 to 8% in 2012.

The value of the sector is anticipated to reach £67.3M (at 2007 prices) by 2012, representing an overall increase of 38% in real terms compared with 2007. This partly reflects increasing demand for lower cost treatment techniques, such as soil washing. Growth in the sector is also expected to be facilitated by funding for new environmental technologies, along with increased projects and investment pioneered by organisations such as CL:AIRE.

The report also reviewed the market over the past four years - 2003-2007. It found demand for contaminated land assessment and treatment had increased by 7% to £1,142.2M in 2007. This consolidates growth recorded during each of the four previous years of the review period.

Overall, the value of the market for contaminated land assessment and treatment has increased by an estimated 31% between 2003 and 2007. This reflects continued construction output, government targets to build homes on brownfield land, environmental regulations, and increased awareness of environmental responsibility.
  • The report can be bought direct from Market & Business Development for £600. To order a copy, call 0161 236 6845.

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