Thermal Hydrolysis Technology Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Biothelys Thermal Hydrolysis, Exelys Thermal Hydrolysis), By End Use (Wastewater treatment, Reduction of waste by product, Production of biogas), By Solution (Sewage Sludge Management, Organic Waste Management), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.94 Billion
CAGR (2026-2031)	8.64%
Fastest Growing Segment	Production of biogas
Largest Market	North America
Market Size (2031)	USD 3.19 Billion

Market Overview

The Global Thermal Hydrolysis Technology Market will grow from USD 1.94 Billion in 2025 to USD 3.19 Billion by 2031 at a 8.64% CAGR. Thermal Hydrolysis Technology is a sludge pre-treatment process that utilizes high-pressure steam and rapid decompression to disintegrate cell structures within biosolids prior to anaerobic digestion. The primary drivers supporting the market’s growth include the urgent need for wastewater treatment plants to reduce sludge volume, thereby lowering disposal costs, and stringent environmental regulations mandating pathogen-free Class A biosolids for agricultural use. Additionally, the global imperative for energy neutrality incentivizes adoption, as the technology significantly increases biogas production and enhances the overall energy balance of treatment facilities.

However, the high initial capital expenditure required for installation constitutes a significant challenge, often restricting adoption to large-scale utilities and impeding broader expansion into smaller municipalities. This financial barrier is critical when analyzing the addressable market for these upgrades. According to the American Biogas Council, in 2025, wastewater treatment plants accounted for 47% of all operational biogas facilities in the United States. This statistic highlights the extensive yet capital-sensitive sector that thermal hydrolysis providers must navigate to achieve further market penetration.

Key Market Drivers

Rising Demand for Renewable Biogas Energy Production acts as a foremost accelerator for the Global Thermal Hydrolysis Technology Market. As utilities strive for energy independence, thermal hydrolysis pretreatment is increasingly deployed to disintegrate sludge cell structures, thereby maximizing the digestibility of biomass and significantly boosting biogas yields. This efficiency allows wastewater treatment plants to offset operational energy costs and actively contribute to renewable energy grids. According to the European Biogas Association, December 2024, in the 'Statistical Report 2024', combined biogas and biomethane production in Europe reached 22 billion cubic meters (bcm) in 2023, a volume surpassing the natural gas demand of several nations, which underscores the immense scale of the sector incentivizing these efficiency upgrades.

Simultaneously, the Critical Need for Sludge Volume Reduction and Disposal Cost Savings compels the market's expansion. Thermal hydrolysis improves the dewaterability of sludge, dramatically reducing the final volume requiring transport, while ensuring compliance with stringent pathogen standards for Class A biosolids. This capability is vital for utilities facing escalating landfill taxes and restrictive agricultural spreading bans. According to Cambi ASA, November 2024, in the 'Third Quarter Report 2024', the company achieved 81,000 tonnes in bulk soil sales, a 23% increase compared to the same period the previous year, illustrating the practical success of these sustainable disposal avenues. Furthermore, according to Cambi ASA, in 2024, the company reported a record-breaking order backlog of NOK 1,460 million in the first quarter, highlighting the robust global demand for such sludge management technologies.

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Key Market Challenges

The high initial capital expenditure required for installation constitutes a significant barrier to the expansion of the Global Thermal Hydrolysis Technology Market. This substantial upfront financial commitment effectively limits the adoption of thermal hydrolysis systems to large-scale utility providers that possess deep capital reserves, thereby excluding a vast segment of smaller municipalities and wastewater treatment operators. Consequently, manufacturers struggle to penetrate the broader tier of the market where budget constraints prohibit the acquisition of such intensive infrastructure, regardless of the potential long-term operational efficiencies.

This financial strain on potential buyers is substantiated by recent industry data which highlights the liquidity issues facing the sector. According to the American Water Works Association, in 2025, financing capital improvements was ranked as the primary challenge for the water sector, with only 41% of utilities reporting the ability to fully cover their costs through existing rates and fees. This lack of fiscal confidence directly hampers the thermal hydrolysis market, as the majority of the addressable client base is unable to secure the necessary funding to approve these expensive modernization projects.

Key Market Trends

Development of Modular and Skid-Mounted Units is reshaping the market landscape by addressing the logistical and capital challenges associated with traditional large-scale infrastructure. Manufacturers are increasingly engineering compact, pre-fabricated thermal hydrolysis systems that can be transported and installed with minimal civil engineering requirements, making the technology accessible to geographically constrained or smaller utility sites. This shift towards plug-and-play configurations allows operators to bypass the extensive construction phases typical of stick-built plants, thereby accelerating project timelines and reducing upfront investment risks in remote locations. According to Cambi ASA, April 2025, in the 'Annual Report 2024', the company secured two new thermal hydrolysis contracts in 2024 specifically for island destinations, demonstrating the technology's growing versatility and adoption in infrastructure-limited environments.

Coupling with Nutrient Recovery Technologies is emerging as a critical value driver, transforming wastewater treatment facilities from waste disposal centers into resource recovery factories. By integrating thermal hydrolysis with downstream nutrient extraction systems, utilities can produce high-quality, pathogen-free Class A biosolids that are fully compliant for agricultural application, creating a marketable fertilizer product rather than a waste liability. This trend supports the transition to a circular economy where phosphorus and nitrogen are returned to the soil, establishing a new revenue stream that complements operational cost savings. According to Cambi ASA, April 2025, in the 'Sustainability Report 2024', the company's soil recycling subsidiary achieved a sales volume of 270,000 tonnes of bulk soil in 2024, highlighting the substantial commercial potential of these sustainable biosolids products.

Segmental Insights

The production of biogas represents the fastest-growing segment within the global thermal hydrolysis technology market, driven by the increasing demand for energy recovery from wastewater sludge. Thermal hydrolysis significantly enhances the anaerobic digestion process by disintegrating organic cell structures, thereby maximizing biogas yields and reducing residual sludge volumes. This efficiency aligns with stringent environmental mandates, such as the European Union Landfill Directive, which discourages raw waste disposal and promotes renewable energy generation. Consequently, wastewater treatment facilities increasingly adopt this technology to achieve energy neutrality and minimize operational costs associated with waste management.

Regional Insights

North America maintains a leading position in the Global Thermal Hydrolysis Technology Market, primarily driven by stringent environmental standards and a strong focus on sustainable waste management. The United States Environmental Protection Agency (EPA) enforces rigorous regulations regarding biosolid land application, which encourages wastewater facilities to adopt thermal hydrolysis to produce pathogen-free Class A biosolids. Furthermore, the region actively upgrades aging infrastructure to enhance biogas production for renewable energy. These regulatory mandates and operational requirements collectively establish North America as the dominant territory for thermal hydrolysis adoption.

Recent Developments

• In January 2025, Cambi secured its first contract in the Indian market to deliver a thermal hydrolysis system for the Versova Wastewater Treatment Plant in Mumbai. This agreement with the municipal corporation involves supplying technology to upgrade the city’s sludge treatment infrastructure. The project aims to improve the efficiency of the anaerobic digestion process, resulting in higher biogas yields and pathogen-free biosolids suitable for safe disposal or use. This strategic development highlights the expanding global footprint of thermal hydrolysis technology as a key solution for managing wastewater solids in rapidly growing urban centers.
• In July 2024, Lystek International announced the substantial completion of a thermal-chemical hydrolysis installation at the Commerce Township Wastewater Treatment Plant in Michigan. The project successfully transitioned the facility from a reliance on landfill disposal to a sustainable resource recovery model by producing a Class A quality bio-fertilizer. This implementation of proprietary thermal hydrolysis technology enables the township to divert biosolids from landfills, thereby reducing the carbon footprint and operational costs associated with solids handling. The system provides a long-term, environmentally friendly solution for managing municipal wastewater residuals and supports the local circular economy.
• In April 2024, Sofiyska Voda, a subsidiary of Veolia, inaugurated a new thermal hydrolysis facility at the Kubratovo Wastewater Treatment Plant in Sofia, Bulgaria. Developed in partnership with the Municipality of Sofia, this installation introduces advanced sludge treatment capabilities that allow the plant to maximize energy recovery. By implementing this technology, the facility can increase biogas production and drastically reduce the final volume of sludge, eliminating the need for long-term storage. The project supports the utility's ambition to achieve energy neutrality by generating green energy from the treatment process, making the plant energy self-sufficient.
• In January 2024, Cambi signed a major contract with the City and County of Honolulu to supply a thermal hydrolysis process (THP) system for the Honouliuli Wastewater Treatment Plant in Hawaii. This project, which represents the company’s twelfth installation in the United States, is designed to modernize the facility's solids treatment infrastructure. The new system will allow the plant to handle increased solids volumes resulting from secondary treatment upgrades without the need for constructing additional digesters. The integration of this technology is expected to significantly enhance biogas production while reducing the volume of biosolids, thereby improving both economic efficiency and environmental sustainability.

Key Market Players

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

By Type	By End Use	By Solution	By Region
Biothelys Thermal Hydrolysis Exelys Thermal Hydrolysis	Wastewater treatment Reduction of waste by product Production of biogas	Sewage Sludge Management Organic Waste Management	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Thermal Hydrolysis Technology Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• 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
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE