Cleantech Group reveals $1.4B PFAS treatment market projected to reach $2.65B by 2030
SAN FRANCISCO, CA – May 1, 2025 — PFAS (per- and polyfluoroalkyl substances) destruction technologies are gaining momentum as investor, corporate, and government attention intensifies. New research from Cleantech Group identifies $400B in environmental damages to global water systems requiring extensive remediation from insurance, government, and utility bodies.
Ongoing contamination studies in Australia, Europe, and the U.S. are now investigating health impacts related to the estimated 15,000 companies using PFAS in their daily operations.
PFAS, a family of chemicals used across a range of products including firefighting foams and water-repellent fabrics, are increasingly linked to serious health and environmental concerns. Novel contamination sources are now accelerating with expanding semiconductor manufacturing increasing PFAS use dramatically, often without full consideration of human harm or proper disposal.
Over 6,400 lawsuits have been filed globally claiming PFAS-related harm with more than $15B already paid out in damages from large chemical manufacturers. Mounting pressure across North America and Europe continues to play out in legislatures and court rooms while interest in next-generation technologies that can destroy PFAS at the molecular level is booming.
Cleantech Group described a range of solutions—from advanced oxidation and electrochemical processes to plasma destruction and bioremediation. These innovations are emerging as scalable alternatives to traditional methods like incineration, which often fail to fully eliminate PFAS or risk creating harmful byproducts.
“PFAS are among the most persistent pollutants we’ve ever encountered, and public pressure to address the issue is finally translating into funding and commercial traction,” said Parker J. Bovée, Associate, Waste & Recycling at Cleantech Group.
“We’re seeing a marked shift from bench-scale science to deployable systems. Start-ups that can prove their destruction efficiency and cost-effectiveness are attracting real interest from corporates, water utilities, and impact investors,” he added.
Key findings include:
- Funding gains momentum. Since 2020, PFAS destruction start-ups have raised over $120M in disclosed funding, with more than $70M of that raised since 2023. U.S.-based companies dominate the landscape, but activity is rising in Europe and Canada.
_ - Broad technology landscape. Multiple technology categories are gaining traction—including supercritical water oxidation (SCWO), plasma-based systems, electrochemical oxidation, and enzymatic degradation. Innovators like Aquagga, Allonnia, and Aclarity are leading the charge with field pilots and early commercial deployments.
_ - Early customers and pilots. First adopters include U.S. federal agencies, industrial manufacturers, and municipal water utilities. For example, the Department of Defense has been a major funder of PFAS destruction pilots to remediate legacy AFFF (Aqueous Film-Forming Foam) contamination on military sites.
_ - Strategic partnerships forming. Corporate interest is rising from sectors such as chemicals, energy, and waste management. Veolia and 374Water have collaborated on PFAS treatment systems, while others are testing integration of destruction units into existing wastewater infrastructure.
_ - Commercial challenges remain. While technologies are progressing, challenges around energy intensity, cost per liter treated, and scaling persist. However, as disposal costs rise, litigation fears mount, and regulations tighten, polluters are increasingly motivated to explore permanent destruction over simple removal technologies.
_ - Policy tailwinds accelerating. Regulatory actions such as the U.S. EPA’s PFAS drinking water limits and Canada’s draft PFAS prohibition are creating urgency for permanent treatment solutions. Europe’s REACH restrictions and potential PFAS bans are also pushing industries to act.
Bans on PFAS incineration and new, concrete legislation limiting PFAS levels in water systems will force market adoption of novel technologies. Companies slow to adapt to PFAS risks face an increasingly unfavorable legal climate and potential for billion-dollar liability settlements.
About Cleantech Group
Cleantech® Group is a research-driven company that helps corporates, public sector, investors, and others identify, assess, and engage with the innovative solutions and opportunities related to the world’s massive, and growing, environmental and climate challenges. Our insights and expertise are delivered to clients all over the world through our Research, Consulting, and Events. We have been the leading authority on global cleantech innovation since 2002.