Thermal Hydrolysis Technology Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Thermal Hydrolysis Technology Market is projected to expand from USD 1.94 Billion in 2025 to USD 3.19 Billion by 2031, registering a CAGR of 8.64%. This technology functions as a sludge pre-treatment method employing high-pressure steam and rapid decompression to break down cell structures in biosolids before anaerobic digestion. Key growth factors include the necessity for wastewater plants to decrease sludge volumes for lower disposal costs and regulations requiring pathogen-free Class A biosolids for agriculture. Furthermore, the push for energy neutrality encourages adoption, as the process boosts biogas generation and improves facility energy balances.

Conversely, the substantial initial capital investment poses a major obstacle, largely confining implementation to major utility providers and hindering growth among smaller municipalities. This economic hurdle significantly affects the potential market for such upgrades. Data from the American Biogas Council indicates that in 2025, wastewater treatment plants represented 47% of all functioning biogas sites in the United States. This figure emphasizes the broad but capital-constrained environment that thermal hydrolysis suppliers must address to expand their market presence.

Market Drivers

The increasing demand for renewable biogas energy is a primary catalyst for the Global Thermal Hydrolysis Technology Market. To achieve energy self-sufficiency, utilities are deploying thermal hydrolysis pretreatment to break down sludge cell structures, thereby optimizing biomass digestibility and substantially increasing biogas output. This enhanced efficiency enables wastewater plants to balance operational energy expenses and supply renewable energy grids. According to the European Biogas Association's 'Statistical Report 2024' released in December 2024, combined biogas and biomethane output in Europe hit 22 billion cubic meters (bcm) in 2023, a quantity exceeding the natural gas requirements of several countries, highlighting the massive scale driving these efficiency improvements.

Concurrently, the urgent necessity to reduce sludge volumes and cut disposal costs drives market growth. Thermal hydrolysis enhances sludge dewaterability, significantly lowering the volume needed for transport while ensuring adherence to strict pathogen regulations for Class A biosolids. This is crucial for utilities dealing with rising landfill taxes and bans on agricultural spreading. As reported in Cambi ASA's 'Third Quarter Report 2024' from November 2024, the firm reached 81,000 tonnes in bulk soil sales, marking a 23% rise from the prior year and demonstrating the viability of these disposal methods. Additionally, Cambi ASA reported a record order backlog of NOK 1.46 billion in the first quarter of 2024, underscoring strong global demand for these management solutions.

Market Challenges

The substantial upfront capital expenditure needed for installation acts as a major hurdle to the Global Thermal Hydrolysis Technology Market's growth. This heavy financial requirement effectively restricts thermal hydrolysis system adoption to large utility providers with significant capital resources, shutting out a large portion of smaller municipalities and operators. As a result, manufacturers face difficulties expanding into broader market tiers where budgetary limitations prevent investing in such intensive infrastructure, despite the promise of long-term operational gains.

Recent industry statistics regarding sector liquidity confirm the financial pressure on prospective buyers. The American Water Works Association noted in 2025 that financing capital improvements was the top challenge for the water industry, with merely 41% of utilities stating they could fully meet costs via current rates and fees. This lack of financial certainty directly inhibits the thermal hydrolysis market, as most of the potential client base cannot obtain the requisite funding to greenlight these costly modernization initiatives.

Market Trends

The emergence of modular and skid-mounted units is transforming the market by mitigating the logistical and financial hurdles linked to conventional large-scale infrastructure. Manufacturers are creating compact, pre-fabricated thermal hydrolysis systems that require minimal civil engineering for transport and installation, opening access to smaller or geographically isolated utility sites. This move toward plug-and-play designs enables operators to avoid the lengthy construction periods associated with custom-built plants, thereby speeding up project completion and lowering initial investment risks in remote areas. According to Cambi ASA's 'Annual Report 2024' from April 2025, the firm secured two thermal hydrolysis contracts in 2024 for island locations, illustrating the technology's increasing flexibility and use in infrastructure-constrained settings.

The integration of nutrient recovery technologies is becoming a key value driver, turning wastewater treatment plants from disposal sites into resource recovery hubs. By combining thermal hydrolysis with downstream nutrient extraction, utilities can generate high-grade, pathogen-free Class A biosolids compliant with agricultural standards, producing a sellable fertilizer instead of a waste burden. This trend aligns with the circular economy, returning nitrogen and phosphorus to the soil and creating revenue to supplement operational savings. Cambi ASA's 'Sustainability Report 2024' from April 2025 notes that its soil recycling subsidiary sold 270,000 tonnes of bulk soil in 2024, emphasizing the significant commercial value of these sustainable biosolid products.

Key Players Profiled in the Thermal Hydrolysis Technology Market

• Xylem Inc.
• General Electric Company
• Aqua-Aerobic Systems, Inc.
• Envirogen Technologies, Inc.
• Acciona, S.A.
• Ovivo, Inc.
• Kamstrup A/S
• Hynertech Co, Ltd.

Report Scope

In this report, the Global Thermal Hydrolysis Technology Market has been segmented into the following categories:

Thermal Hydrolysis Technology Market, by Type:

• Biothelys Thermal Hydrolysis
• Exelys Thermal Hydrolysis

Thermal Hydrolysis Technology Market, by End Use:

• Wastewater treatment
• Reduction of waste by product
• Production of biogas

Thermal Hydrolysis Technology Market, by Solution:

• Sewage Sludge Management
• Organic Waste Management

Thermal Hydrolysis Technology Market, by Region:

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

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Thermal Hydrolysis Technology Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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