Andritz Boston Consulting Group Matrix

As the global push for decarbonization intensifies, Andritz's carbon capture technologies are positioning themselves as a star performer within its portfolio. The company is actively engaged in crucial front-end engineering design (FEED) studies for substantial carbon capture installations. This includes work on waste-to-energy facilities in Finland and a significant pre-engineering order for a carbon capture plant in Aarhus, Denmark, directly addressing the escalating demand for industrial emission reduction solutions.

Andritz's advancements in carbon capture technologies position this segment as a star performer. The company is actively involved in front-end engineering design studies for significant carbon capture installations, including waste-to-energy facilities in Finland and a pre-engineering order for a plant in Denmark. This focus directly addresses the growing global imperative to reduce industrial emissions.

The Metals Processing segment is also a strong contender, driven by increased order intake from China and the USA. This growth is directly linked to the global electrification trend and the rising demand for specialized materials like silicon steel for electric vehicles and power grids. This segment is a high-potential area, capitalizing on the shift towards electric mobility and sustainable energy solutions.

The company's strategic focus on sustainable nonwovens, including bio-wipes and Dry Molded Fiber technology, places it in a high-growth market. The global nonwovens market was valued at approximately USD 130 billion in 2023, with sustainability being a key growth driver. Andritz's acquisition of Dan-Web further strengthens its position in this environmentally conscious sector.

Andritz's hydropower segment is also a star, with order intake surging by over 72% in the first half of 2025, largely due to modernization projects and new pumped storage facilities, particularly in Asia. This reflects the increasing global demand for renewable energy and improved grid stability.

Andritz's traditional pulp & paper equipment, while facing some order volatility, represents a stable cash cow. The company's leadership in plant solutions for pulp, paper, board, and tissue production ensures consistent demand, especially for modernization and efficiency upgrades in existing mills.

This segment benefits from the ongoing need for operational improvements in established paper facilities, generating a reliable cash flow for Andritz. For instance, in 2023, Andritz reported a significant order intake in its Pulp & Paper segment, underscoring the continued relevance of its core offerings.

Andritz's global service business, particularly in hydropower maintenance and modernization, acts as a robust cash cow. This segment, which represented 44% of total revenue in Q2 2025, benefits from a mature market and a substantial installed base, ensuring consistent demand for upgrades and servicing.

The metals industry equipment segment also functions as a cash cow for Andritz. With stable demand for maintenance and upgrades in the mature metals processing sector, this area provides steady revenue streams. Global steel production is projected to remain stable in 2024, supporting this segment's consistent cash generation.

Similarly, Andritz's standard separation technologies, like screening and dewatering, are well-established cash cows. Their essential nature across industries such as pulp and paper and mining guarantees predictable cash flow, with the pulp and paper sector alone producing around 420 million metric tons in 2023.

Within Andritz's portfolio, certain segments within Pulp & Paper and Metals capital sales have been particularly susceptible to the economic headwinds of 2024. These areas experienced revenue declines due to weaker market demand. For instance, if specific product lines or geographical markets within Pulp & Paper continue to show persistently low order intake and revenue, even with broader market stabilization, they would fit this category.

Similarly, in the Metals sector, if certain niche capital equipment sales or specific regions continue to underperform without a clear path to recovery or new strategic drivers, these would represent segments heavily impacted. For example, a decline in orders for specialized rolling mills in a region facing prolonged industrial slowdown would exemplify such a situation, indicating a lack of immediate rebound potential.

Dogs within Andritz's portfolio are product lines or business units that have low market share in low-growth markets. These segments often require significant resources but yield minimal returns, making them candidates for divestment or careful restructuring. For example, a niche product serving a declining industrial sector would fit this description.

In 2024, while Andritz saw robust overall order intake of €11.2 billion, certain legacy product lines or underperforming regional operations might still exhibit characteristics of Dogs. These could include older technologies with diminishing demand or specific geographical segments facing prolonged economic stagnation.

The strategic implication for these Dog segments is to either revitalize them by aligning them with new growth drivers like decarbonization or digitalization, or to divest them to reallocate capital and management focus to more promising areas.

Consider a hypothetical scenario where a specific type of older machinery for a traditional manufacturing process, experiencing a 3% annual market decline, is still part of Andritz's offerings. If this product line holds only a 2% market share, it would clearly fall into the Dog category, representing a drain on resources with limited future potential.

Andritz is actively developing advanced industrial waste recycling technologies, exemplified by their investment in a pilot line for diaper waste recycling and broader waste-to-value solutions. This strategic focus taps into a rapidly expanding market fueled by the global push for circular economy principles and the escalating need for effective waste management.

These innovative recycling solutions are positioned to capitalize on a high-growth sector. For instance, the global waste management market was valued at approximately $1.6 trillion in 2023 and is projected to reach over $2.1 trillion by 2030, indicating substantial opportunity. Andritz's commitment to these areas aligns with this trend, addressing increasing waste challenges with sophisticated technological approaches.

While the potential is significant, Andritz's market share in these specialized and emerging recycling niches is likely still developing. This necessitates considerable market development efforts to establish a strong foothold and drive adoption of these advanced technologies.

The alternative protein market represents a significant growth opportunity for Andritz, driven by global food security and sustainability trends. The plant-based meat market alone is expected to surge from approximately USD 7.5 billion in 2023 to over USD 30 billion by 2030.

Andritz's involvement in this sector, through strategic partnerships, positions them as a new entrant with a nascent market share. This characteristic places their alternative protein ventures firmly in the question mark category of the BCG matrix.

Significant investment is required to build market presence and compete effectively in this rapidly expanding, yet currently low-share, segment. This strategic focus aims to diversify Andritz's portfolio and capitalize on future food production trends.