Albany, NY -- (SBWIRE) -- 01/17/2018 -- Led by Solazyme Inc., Algenol, and Sapphire Energy Inc., the global algae market demonstrate a highly consolidated business landscape, states Transparency Market Research (TMR) in a new research study. These three players collectively held more than 91% of the overall market in 2015 and the scenario is likely to remain more or less the same over the forthcoming years. Leading participants are likely to focus more on establishing robust distribution channels across various industries in the near future to strengthen their position in the global market, notes the research study.
According to the research report, the overall opportunity in the global market for algae was US$0.60 bn in 2015. Over the period from 2016 to 2024, the market is likely to rise at a CAGR of 5.32% and reach a value of US$1.1 bn by the end of the forecast period. DHA production has surfaced as the main application area of algae biomass across the world, owing to the increasing usage of DHA in the pharmaceutical, healthcare, and food and beverages sectors.
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Researchers expect the trend to remain so over the next few years. Geographically, Asia Pacific North America, the Middle East and Africa, Europe, and Latin America have emerged as the main regional markets for algae. North America, among these has taken the leading position and is projected to remain on the top in the near future, states the research study.
Increasing Demand for Biofuel to Boost Market's Growth
"Of late, the global market for algae has been observing a tremendous rise," says a TMR analyst. With an alarming increase in carbon emission from a number of industries, the need for a shift to renewable energy sources from fossil fuel resources has surfaced rather prominently. This, in turn, has driven the demand for algae biomass, which is one of the main ingredients used in the production of biofuel.
Since many of the developed as well as emerging countries have begun to focus on increasing the usage of renewable sources of energy to be in accordance with stringent emission policies and standards, fueling the demand for biofuels, the global market for algae is likely to witness strong growth over the next few years, reports the market study.
Need for High Capital to Hamper Market
On the flip side, the need for high capital investments in research activities for the advancements of algae production techniques may act as a deterrent to the growth of the global market for algae in the near future. The reduction in the prices of crude oil is also projected to impact the market negatively over the forthcoming years.
Nonetheless, the increasing usage of algae in wastewater treatment will support the market's growth in the years to come. The ongoing surge in industrial activities is also expected to propel this market over the next few years, states the research report.
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The review is based on a report by Transparency Market Research, titled "Algae Market ( Application - Marine Sector, Aviation Sector, Road Transport, DHA Production (Protein Sales), DHA Production (Pharmaceutical Applications), Bioplastics; Cultivation Technology - Open Ponds Cultivation, Raceway Ponds Cultivation, Closed Photo bioreactor Cultivation, Closed Fermenter Systems Cultivation) - Global Industry Analysis, Size, Share, Growth, Trends, And Forecast 2016–2024."