The global algae market is highly consolidated as the top three players accounted for a whopping combined share of 91.3% of the overall algae market in 2015, finds Transparency Market Research (TMR). These leading companies are Sapphire Energy, Inc., TerraVia Holdings, Inc., and Algenol. Several players are taking active initiatives in boosting their distribution and sales channels to gain a competitive edge over others, notes TMR.
TMR observes that several players are venturing into commercialization of algae cultivation technologies and making significant investments in projects focused on algae-derived biofuels to gain a competitive edge over others. Leading players are diversifying their portfolio and making strategic collaborations, such as equity tie-ups, to consolidate their presence in major markets.
The global algae market was valued at US$608.0 mn in 2015 and the opportunity in the market is anticipated to reach US$1.1 bn by the end of 2024. The market is expected to expand at a CAGR of 7.39% from 2016 to 2024.
Substantial Demand for Algae in Docosahexaenoic Acid (DHA) Production
Geographically, North America occupied a major market share in 2016 and expected to lead throughout the forecast period. The growth is majorly driven by substantial developments in algae cultivation in the U.S. The upsurge in production facilities and initiatives by several players in the U.S. have led to the dominant growth in the country. In addition, countries such as Canada and Mexico have the presence of a large number of algae producers.
Based on application, the algae market is segmented into marine sector, aviation sector, road transport, docosahexaenoic acid (DHA) production, and bioplastics. Of these, the application of algae for DHA production, for protein sales and pharmaceutical products as well, is the leading segment and is expected to lead the forecast period. Algae biomass has numerous applications in the healthcare, pharmaceutical, and food and beverages sectors.
Growing Demand for Algae-Based Biofuels to Catalyze Market Growth
The growth of the algae market is primarily driven by its demand in the production of biofuels to be used in various sectors such as marine, transport, and aviation. The mounting concern of rising carbon emission in various industries has led to a paradigmatic shift from fossil fuel to renewable sources of energy. The stricter implementation of energy norms in order to reduce carbon emissions is a key factor boosting the market, especially in several developed and developing regions. The growing use of algae in wastewater treatment has also fueled the market. The continued depletion of freshwater resources has led to the demand for wastewater treatment using sustainable technologies and algae has emerged as a viable option for this.
However, the high capital investments required for the research and development of algae productions may hinder the growth of the market to some extent in developing and less-developed regions. Moreover, the recent reduction in prices of crude oil has slightly hampered the demand for algae-based biofuels. Nevertheless, rapidly growing R&D investments for the production of genetically engineered algae and for emerging cultivation technologies are expected to boost the algae market. In addition, soaring initiatives for the commercialization of algae-based fuels to be used in aircrafts are anticipated to open up lucrative growth avenues for market players in developed nations.
The study presented here is based on a report by Transparency Market Research (TMR) titled, “Algae Market ( Application - Marine Sector, Aviation Sector, Road Transport, DHA Production (Protein Sales), DHA Production (Pharmaceutical Applications), and Bioplastics; Cultivation Technology - Open Ponds Cultivation, Raceway Ponds Cultivation, Closed Photo bioreactor Cultivation, and Closed Fermenter Systems Cultivation) - Global Industry Analysis, Size, Share, Growth, Trends, And Forecast 2016 - 2024.”
The global algae market is segmented based on:
- Marine Sector
- Aviation Sector
- Road Transport
- DHA Production (Protein Sales)
- DHA Production (Pharmaceutical Applications)
- Open Ponds Cultivation Technology
- Raceway Ponds Cultivation Technology
- Closed Photo bioreactor Cultivation Technology
- Closed Fermenter Systems Cultivation Technology
- North America
- The U.S.
- The U.K.
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of Middle East and Africa
- Latin America
- Rest of Latin America
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