It found that Europe has 429 installed EfW plants making it the world leader in use of the technology.
France and Germany have the most EfW plants and have been able to meet their targets for landfill diversion as a result, according to the report.
Frost & Sullivan research associate Karthikeyan Ravikumar said: The most important driver for the waste to energy plants market in Europe has been the Landfill Directive and its waste diversion targets. This has resulted in the diversion of waste from landfill to waste-to-energy plants.
He added that the growing demand for power and volatile oil prices have made EfW plants a viable alternative for the disposal of waste.
But he warned that the recession could make funding of facilities more difficult with some plants likely to be postponed for a year or two.
Additionally, the difficulty of obtaining planning permission in many European countries was restraining growth of the technology.
He added: The process of obtaining an environmental permit for the construction of a waste to energy plant is quite tedious and a substantial amount of time is spent on it. The delay affects the price of raw materials and, thereby, the overall revenues.