Global Algae-Based Wastewater Treatment Market - 2025-2032

Global Algae-Based Wastewater Treatment Market reached US$ 2.65 billion in 2024 and is expected to reach US$ 4.19 billion by 2032, growing with a CAGR of 5.89% during the forecast period 2025-2032.

The Algae-Based Wastewater Treatment Market is experiencing continuous growth, driven by rising concerns regarding water pollution and the need for sustainable wastewater management solutions. Algae-based treatment systems utilize microalgae to efficiently remove nitrogen, phosphate, heavy metals and organic matter from wastewater, simultaneously producing valuable byproducts such biofuels, fertilizers and animal feed.

The swift expansion of the global economy and population has intensified water scarcity, rendering wastewater treatment a worldwide imperative. Microalgae, which flourish in various wastewater settings, have significant effectiveness in removing pollutants from industrial and urban discharges. Innovative ways are continually emerging, improving the efficiency of algae-based treatment.

A December 2024 report by Mongabay emphasizes a new microalgae-bacterial consortia developed by Indian researchers to eliminate harmful ammonium from wastewater. This technique utilizes the photosynthetic capabilities of algae to generate oxygen, hence decreasing energy expenses by as much as 90% relative to traditional aeration methods. This innovation is especially pertinent given India's severe wastewater crisis.

A 2022 Niti Aayog research stated that India's rural areas produced 39,604 MLD of wastewater, whilst urban centers produce 72,368 MLD (2020-21). These discoveries highlight the promise of algae-based solutions in mitigating water constraint and enhancing environmental sustainability.

Dynamics

Driver 1 - Reducing raw material dependence

Traditional wastewater treatment techniques depend significantly on energy-demanding aeration and chemical compounds, raising operational costs and negative environmental impacts. Algal technologies provide a sustainable solution by employing photosynthesis to naturally oxygenate wastewater, markedly decreasing energy usage and minimizing dependence on chemicals.

A recent research indicates that utility water and wastewater infrastructure constitutes 3-7% of global electricity usage, with aeration systems accounting for 60-70% of a treatment plant's energy expenditure. Substituting aeration with algae-based treatment enables facilities to reduce energy consumption and enhance operational efficiency.

This is especially beneficial in the worldwide effort for decarbonization, facilitating off-grid wastewater treatment solutions. Companies such as OneWater are progressing in the development of four off-grid systems, illustrating the viability of energy-independent treatment facilities. Traditional tertiary treatment techniques rely on chemicals like ferric chloride and ferric sulfate, which exacerbate carbon emissions and pose supply chain risks.

Algal technologies obviate the necessity for such additives, hence decreasing expenses and mitigating the emission of deleterious byproducts. Due to escalating regulatory pressures, including the EU's 2022 Wastewater Framework Directive, algae-based solutions are becoming vital for economical and environmentally sustainable wastewater management, especially in delicate ecosystems such as Australia's Great Barrier Reef catchment, where Pacific Bio is executing algae-based nutrient management initiatives.

Driver 2 - The rising role of algae-based fertilizer

Algae-based fertilizers are developing as an eco-friendly substitute for traditional chemical fertilizers, which have led to soil damage, with the global transition to sustainable agriculture methods. Agriculture constitutes up to 80% of worldwide water usage, leading to a heightened demand for sustainable solutions that improve soil health and decrease water consumption.

Algae-based fertilizers provide a natural source of vital nutrients, including nitrogen, phosphate and potassium, enhancing soil productivity and improving water and nutrient retention. Their contribution to promoting a low-carbon economy is substantial, as they offer an organic and sustainable substitute for synthetic fertilizers, which are energy-intensive and dependent on fossil fuels. The presence of algae-based fertilizers in many forms, such as liquid extracts, granules and powders, enhances their utility for a variety of crops, including vegetables, fruits, decorative plants and turfgrass.

Government incentives and technological innovations facilitate the deployment of algae-derived fertilizers. The EU Common Agricultural Policy allocates funding for farmers adopting sustainable practices, while companies like Yara are investing in initiatives such as the July 2023 opening of its inaugural water-soluble fertilizer facility in China, thereby supporting the shift towards sustainable agricultural inputs.

Restraint: High cost and complexity associated with algae biomass harvest

Fast proliferation and negative surface charge complicate the aggregation into bigger, easily harvestable particles even though the microalgae are useful in wastewater cleanup, their diminutive size. Moreover, the dry weight of algae comprises merely 0.05% of the whole solution, hence complicating the harvesting process.

The financial cost of harvesting algal biomass is considerable, representing up to 30% of overall production expenditures. This is primarily because of the substantial energy expenditure necessary for different harvesting procedures, which can vary from 0.1 to 15 kWh per cubic meter, contingent upon the method utilized.

As much as 90% of the overall inventory expenses in algae-based wastewater treatment systems are associated with harvesting and dewatering apparatus. Although numerous harvesting systems have been established, each has distinct limitations, requiring continuous research to discover more economical and efficient alternatives.

These issues impede the widespread implementation of algae-based wastewater treatment by elevating operational expenses and diminishing overall economic viability. Mitigating these limits is essential for realizing the complete potential of algae-based solutions in wastewater treatment.

Segment Analysis

The global algae-based wastewater treatment market is segmented based on type, technology, application and region.

Advances in raceway pond technology for efficient algae cultivation

Raceway pond technology has emerged as a significant approach in algae-based wastewater treatment, utilizing the inherent capabilities of microalgae to assimilate nutrients such as nitrogen and phosphorus, transforming them into biomass while emitting oxygen via photosynthesis. This technique facilitates bacterial activity in wastewater, assisting in the remediation of diverse pollutants.

Traditionally limited to laboratory environments, raceway ponds and photobioreactors are being utilized in practical wastewater treatment applications, including brewery wastewater. Raceway ponds has a semi-circular configuration at each end, characterized by a shallow open system in which paddle wheels perpetually agitate microalgae in wastewater to guarantee sufficient access to nutrients and sunshine.

Various microalgae strains can effectively treat diverse industrial effluent; nevertheless, elevated total suspended solids (TSS) levels pose a significant difficulty. A novel technique has been created to efficiently eliminate TSS from industrial effluent, rendering it appropriate for microalgae production. This innovation improves treatment efficiency, facilitating the production of value-added algae.

In recent years, In-pond Raceway Systems (IPRS) have enhanced sustainability in Chinese aquaculture. IPRS technology, developed by Jesse Chappell of Auburn University and financed by the US Soybean Council, has enhanced aquaculture techniques by increasing yields in big carp ponds. By the end of last year, China had more than 6,000 IPRS cells in production, highlighting the adaptability and worldwide applicability of raceway pond systems.

Geographical Penetration

Sustainable Algae-Based Wastewater Treatment in Asia-Pacific

Asia-Pacific is progressively emerging as a leader in the algae-based wastewater treatment market, driven by environmental challenges, industrial expansion and a dedication to sustainable solutions. Algae-based systems are increasingly recognized for their efficacy in eliminating nutrients and pollutants from wastewater while concurrently generating valuable byproducts such as biofuels and fertilizers.

In June 2024, an important breakthrough in this industry emerged when SUEZ, an established global organization in circular solutions for water and waste management, unveiled the initiation of three substantial projects in Singapore, China and the Philippines. The initiatives presented at the Singapore International Water Week (SIWW) emphasize the implementation of digital solutions, seawater desalination and water reuse technologies to tackle the escalating issues of water scarcity and pollution in the region.

These examples demonstrate the significant significance of algae-based systems in enhancing water quality and bolstering water management resilience in municipal and industrial sectors during climate change. SUEZ's dedication to advancing circular solutions in the region represents a significant measure in addressing water challenges in some of Asia's most densely populated and industrialized locales.

In October 2022, Xylem Water Solutions Singapore collaborated with Gross-Wen Technologies Inc. (GWT) on a combined research and development initiative to implement Revolving Algal Biofilm (RAB(R)) technology in Singapore. This algae-based wastewater treatment technique facilitates nutrient recovery, diminishes the carbon footprint of water utilities and demonstrates excellent efficacy in the treatment of industrial and municipal wastewater.

The RAB(R) technology signifies progress in sustainable wastewater treatment, particularly in densely populated areas such as Singapore, where creative solutions are essential to address increasing water demands. These findings indicate the growing implementation of algae-based technology in the region, propelled by environmental requirements and progress in sustainable water management methods.

Competitive Landscape

The major Global players in the market include Algotec Green Technology, Gross-Wen Technologies (GWT), Liqoflux, Agromorph, Xylem Inc., Valicor Environmental Services, Algenuity originClear Inc., Evodos B.V. and MicroBio Engineering Inc.

By Type

• Macroalgae
• Microalgae

By Technology

• Raceway Ponds
• Photobioreactors
• Rotating Biofilm Reactors

By Application

• Industrial
• Municipal
• Agricultural
• Mining
• Others

By Region

• North America
• South America
• Europe
• Asia-Pacific
• Middle East and Africa

Key Developments

• January 16, 2025, Gross-Wen Technologies developed a system to grow algae on vertical conveyor belts, aiming to reduce the cost of algae production. The system originally intended for biofuel production, was later adapted for wastewater treatment. It effectively digests nutrients like nitrogen and phosphorus, reducing harmful effluent and preventing algal blooms. This shift from biofuels to wastewater treatment opened up new opportunities for algae-based solutions in environmental management.

Why Purchase the Report?

• To visualize the global algae-based wastewater treatment market segmentation based on type, technology, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of the Algae-Based Wastewater Treatment market with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
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The global algae-based wastewater treatment market report would provide approximately 62 tables, 54 figures and 202 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies