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Global Algae Market: Increase in Use of Renewable Energy Resources Encouraging Uptake, says TMR

Posted on Mar 03, 2017

Despite the involvement of more than 200 companies with some domestic presence, the global algae market is highly consolidated with three companies holding 91.3% of the shares in 2015. These three companies are Algenol, Solazyme, Inc., and Sapphire Energy, Inc. Algenol utilizes photobioreactor cultivation technology and has raised significant funds through public and private investments. Algenol also focuses on algae-to-biofuel production. On the other hand Solazyme, Inc. has a large product portfolio compared to Algenol and the company is engaged in manufacturing DHA-based products, and biofuel from algae biomass. Sappire Energy, Inc., utilizes fermenters, open ponds, and raceway ponds in manufacturing algae-based DHA and biofuels. 

The global market for algae was worth US$608.0 mn in 2015, and expanding at a healthy CAGR of 7.39% during the forecast period of 2016 to 2024, the valuation is estimated to reach to US$1.1 bn by the end of 2024. The Transparency Market Research (TMR) report expects several new strategic collaborations to be announced during the forecast period, enabling the top three players maintain their stronghold over the global market. 

algae market

Asia Pacific Projected for Healthy Growth Rate

By application, the report segments the global algae market into marine sector, aviation sector, road transport, DHA production of protein sales, DHA production of pharmaceutical application, bioplastics, and others. Out of these, the segments of DHA production of pharmaceutical applications and DHA production of protein sales accounts for the maximum share and are expected to remain most lucrative during the forecast period. Production of biofuels by algal biomass is commercially available on a smaller scale. Large-scale commercialization of algae-based biofuels is still in the research and development stage. By cultivation technology, the report segments the global algae market into open ponds, raceway ponds, closed photo, and closed fermenter systems. Open ponds cultivation technology segment amounted for the most prominent demand in 2016 and is expected to remain most profitable, despite losing some of the market share. 

Geographically, North America served an estimated demand of 5,485.29 tons in global algae market and is expected to remain most lucrative region throughout the forecast period. However, Asia Pacific is projected for the best CAGR, which is a reflection of more than half the global population in this region and presence of several emerging economies such as China, India, and Japan. 

Strict Regulations against Carbon Emission Driving Demand

Strict regulation related to carbon emission, low wastewater treatment costs, and excess depletion of fossil fuel reserves globally are the three most prominent factors favoring the global algae market. Excess carbon emissions from various industries has resulted in a shift from fossil fuel energy resources to renewable energy resources. However, factors such as high capital investments, low price of crude oil currently prevailing in the global market, and high payback period are expected to hinder the growth rate during the forecast period. 

According to the author of the report, “The increase in renewable energy usage has motivated several regional and global players to invest in algae cultivation projects. Government support in minimizing carbon emissions has laid a platform for the demonstration and commercialization of several algae-based projects. Moreover, several established players are expanding their production facilities to emerging economies, which will open new opportunities for the domestic players in the region.”

The information presented in this review is based on a Transparency Market Research report, titled, “Algae Market - Global Industry Analysis, Size, Share, Growth, Trends, And Forecast 2016 - 2024.” 

Key Segments of the Global Algae Market

Algae Market: By Application

  • Marine Sector
  • Aviation Sector
  • Road Transport
  • DHA Production (Protein Sales)
  • DHA Production (Pharmaceutical Applications)
  • Bioplastics
  • Others 

Algae Market: By Cultivation Technology

  • Open Ponds Cultivation Technology
  • Raceway Ponds Cultivation Technology
  • Closed Photo bioreactorCultivation Technology
  • Closed Fermenter Systems Cultivation Technology

Algae Market: By Region

  • North America
    • The U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • Russia
    • The U.K.
    • Rest of Europe
  • Asia Pacific
    • India
    • China
    • Australia
    • Rest of Asia Pacific
  • Middle East & Africa
    • Saudi Arabia
    • Nigeria
    • South Africa
    • Rest of Middle East and Africa
  • Latin America
    • Brazil
    • Argentina
    • Peru
    • Rest of Latin America 

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