Anaerobic Digestion (AD) Market - Global Industry Analysis (2018 - 2020) - Growth Trends and Market Forecast (2021 - 2026)

Management of waste streams involves extensive employment of the anaerobic digestion (AD) process. While small-scale anaerobic digester systems generate biogas from livestock waste, large-scale systems that are based at industrial farms can produce biogas through co-digestion of organic wastes with other waste sources. Increasing commercial availability of anaerobic digester systems in the wake of ascending biogas demand is expected to predominantly drive the global anaerobic digestion market during 2021 - 2026. A newly published study forecasts a solid double-digit growth rate for AD market, crossing the estimated valuation of US$18.5 Bn by the end of forecast year.

Anaerobic Digestion Becomes a Contributor to Sustainability Goals

Favourable regulatory initiatives, and growing incentivisation are expected to add to the lucrativeness of AD as a practical, feasible, economical, and profitable solution. Several governments considering AD as an excellent vehicle to attain environmental sustainability by greenhouse gas (GHG) emission reduction, thereby driving the global anaerobic digestion market. Economically competitive when compared to conventional fossil fuel energy, anaerobic digestion is likely to represent a voluminous market in the near future. However, establishment of AD plants continues to face severe challenges thrown by expensive capital investment, high O&M costs, and inadequate awareness.

Co-digestion Trend to Influence AD Market Profitability

Incorporation of AD process into large-scale farm operations has been on the rise in an effort to achieve economic feasibility, and environmental sustainability. Moreover, there has been a lot of research around how food waste acts as a valuable feedstock for an anaerobic digestion plant. This has pushed multiple innovations, leading to enhanced profitability of the overall AD process with co-digestion of food waste. The market has been since witnessing greater adoption of this co-digestion strategy involving both food waste, and wastewater sludge, especially across highly populous urban areas.

Advanced Digestor Systems Continue to Win the Lion’s Share for Europe

The report projects Europe, and the US as the most interesting markets to look at. Led by Germany, Europe’s dominance in the global anaerobic digestion market is likely to prevail throughout the period assessment as the region has been an early adopter of AD systems. The market here drives on the back of high installed capacity. On the other hand, growth of the US market continues to face an impediment to rapid growth as the real AD conversion potential is still underutilised here. It only looks technically attractive here but the potential of huge volumes, and a wide variety of suitable feedstock remains underutilised. Heavy investments flowing in to the renewable gas sector point to a remunerative opportunity for the anaerobic digestion market players in the US.

On the other hand, high-potential markets like those in Africa, Asia, and South America continue to witness expanding bases of small-scale digester systems like those at a family/household farm level that typically cater to cooking gas demand. There has been remarkable progress in the sector of bioenergy production through anaerobic digestion over the past few decades, especially after the mid 2000’s Kyoto Protocol.

Key Competitors in Global Anaerobic Digestion (AD) Market

Some of the key companies that have been profiled in the report include AEV Energy GmbH, WELTEC BIOPOWER, Herhof GmbH, Veolia, Anaergia GmbH, WATERLEAU, Harvest Power, Voith GmbH, HOST, Siemens AG, Clearfleau Group Limited, and 2G Energietechnik GmbH.