Carbon Capture, Utilization, and Storage Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2030)

Carbon Capture, Utilization, and Storage Market Size

Carbon Capture, Utilization, and Storage Market Trends & Growth Drivers

Environmental Concerns Are Biggest Market Driver

• The alarming rate of environmental degradation is the major carbon capture, utilization, and storage market driver.
• As per the International Panel on Climate Change, average surface temperatures have risen by 1.5 degrees Celsius the 1850s.
• This is a result of the burning the fossil fuels for power and transportation purposes, which now needs to be curbed.
• If not, then global studies estimate average surface temperatures to rise by 3 degrees Celsius above pre-industrial levels by the turn of the century.
• Apar from global warming, which results in climate change, air pollution also causes severe respiratory diseases, such as COPD and asthma.
• Therefore, countries around the world are taking steps to reduce GHG emissions.
• Under the Paris Agreement, a reduction of 45% by 2030 and 100% by 2050 has been agreed upon.
• This can be done in many ways, including using electricity generated from renewable sources, such as the sun and wind; adopting cleaner fuels for transportation, such as methanol and hydrogen; and capturing carbon dioxide from industrial processes before it is released into the atmosphere.
• The captured CO2 can then either be stored underground or somewhere else or utilized as an industrial feedstock.

Growing Investments Offer Business Opportunities

• Investors and venture capital companies are investing in carbon capture startups, which are involved in the development of new and innovative carbon capture technologies.
• Breakthrough Energy Ventures, led by Bill Gates, has invested USD 80 million in an American startup to develop a new electrochemical carbon capture technology.
• Climeworks, a Switzerland-based developer of carbon removal technology to capture carbon dioxide from the air, recently raised a USD 650 million round led by Partners Group and GIC.
• Also, commercial approaches for the deployment of CCUS solutions have turned away from huge, stand-alone installations, toward the creation of industrial hubs with shared CO2 transport and storage infrastructure.
• With new business models focusing on transportation and storage services, the setups have high economies of scale and low commercial risks.

High Cost of CCUS Equipment Restrain Market Growth

• Although CCUS is a novel and promising approach for decarbonization, its high costs are a major restraint for the growth of the market.
• The currently operational pre-combustion technologies cost USD 60 to extract 1 tonne of CO2, which can be significantly high for smaller companies.
• Similarly, users need a scrubber for post-combustion carbon capture and an air separation unit for oxy-fuel capture processes.
• Additionally, the leakage of the captured carbon can lead to compliance failure; therefore, companies must deploy sensors for leakage monitoring.
• Further expenses go into procuring infrastructure and equipment for transporting it.
• Moreover, storing the carbon requires huge land areas, which further raises spending for site feasibility studies, purchase, and development.
• This means that only large industrialists and government utilities can currently afford the CCUS technology, and only after the associated costs are lowered would smaller firms be able to use it.
• Furthermore, the available technologies are not as efficient as needed, which is why they will need to be advanced.
• This could further raise costs and hamper the market growth in the short term.

Carbon Capture, Utilization, and Storage Market Analysis

Technology Insights

• Pre-combustion technology dominates the market as this process yields syngas containing CO2, CH4, CO, and H2, which are all important industrial raw materials.
• Moreover, the hydrogen-rich fuels created by removing the carbon before combustion are ideal for numerous applications, including boilers, furnaces, engines, fuel cells, and gas turbines.
• The syngas then undergoes the water–gas shift reaction to produce carbon dioxide and hydrogen.
• As much as 50% of this gas mixture can be CO2, which can be easily removed, transported, and stored until further utilization.
• The demand for post-combustion technology is projected to rise at the highest CAGR, of 24.0%, during the forecast period.
• This growth can be attributable to the rising number of power plants in developing nations, such as India and China.
• This technology is the most viable method for separating carbon dioxide from exhaust gases produced by burning fossil fuels for power generation.

The report offers analysis of these technologies:

• Pre-Combustion Capture (Largest Category)
• Post-Combustion Capture (Fastest-Growing Category)
• Oxy-Fuel Combustion Capture

End Use Insights

• Power generation is the largest end use, accounting for around 40% of the market share in 2024.
• This is because more than 40 CCUS power generation projects are currently being developed across the globe, with most projects related to gas-fired and coal-fired power.
• As per estimates, as the world recovered from the pandemic, worldwide greenhouse gas emissions created a new record of 53.8 Gigatonnes in 2022, of which 36.8 Gigatonnes were attributed to energy generation.
• This is why power plants are increasingly taking steps to reduce their emissions by using cleaner fuels and integrating CCUS systems.
• The oil & gas category is expected to witness the fastest growth during the forecast period, as carbon capture, utilization, and storage have opened various opportunities such as enhanced oil & gas recovery from dwindling gas formations, ethanol production, oil & gas refining, low-carbon hydrogen generation, and direct-air capture.

The below-mentioned end uses have been studied:

• Power Generation (Largest Category)
• Oil and Gas (Fastest-Growing Category)
• Fertilizers
• Chemicals
• Others

Service Insights

• The capture category dominates the market in 2024 with 50% revenue contribution.
• This is because it is the first and most-important stage of the entire CCUS process and is utilized by several large-scale, emission-intensive industrial plants.
• A large variety of specialized equipment needs to be retrofitted to existing factory, which demands a considerable investment from users.
• Additionally, the pre-combustion technology, though expensive, is easily available, while post-combustion and oxy-fuel processes are being rapidly enhanced.
• Utilization is the fastest-growing category due to the rising focus on using the captured carbon dioxide as a feedstock for numerous industrial processes.
• The most prominent and the one being the most-vehemently explored of all is enhanced oil recovery. With crude oil still dominating the global energy mix, there is need to extract more from operational fields, in order to avoid drilling new wells.
• As pe the International Energy Agency (IEA), 500,000 barrels of oil are already being produced per day using the CO2-EOR technology.
• Moreover, in the U.S., every barrel of oil produced consumes between 300 and 600 kg of CO2.
• Because producing one barrel of oil yields 400 kg of carbon emissions, integrating the CCUS technology could offer carbon-negative oil.

The following services are covered:

• Capture (Largest Category)
• Transportation
• Utilization (Fastest-Growing Category)
• Storage

Regional Analysis

The North American carbon capture, utilization, and storage market accounts for the largest revenue share in 2024, of 40%, and it is expected to maintain its position during the forecast period as well. This is ascribed to the increasing demand for products and fuels with a lower CO2 footprint and the surging integration of CCUS projects with planned liquified natural gas projects in the region. Also, public and private organizations are investing in the development and commercialization of technologies that capture carbon from flue gas streams, which, in turn, is supporting the growth of the market.

In the region, the U.S. accounts for a larger market share because of the national government incentives along with regulations for CCUS projects. The government offers incentives through the 45Q tax credit, which provides USD 36 per ton of carbon dioxide retained in geological reservoirs or USD 24 per ton of carbon dioxide used in EOR for other purposes. Moreover, the country has 12 commercial facilities, which capture around 20 million tonnes of CO2 per year.

Similarly, the increasing capital investments in CCUS projects are been the major driving force for the market in Canada. Moreover, the Canadian Budget 2021 proposed a tax credit for capital invested in these projects, with the goal of lowering CO2 emissions by at least 15 million tonnes per year. Eligible direct air capture (DAC) projects can avail of a 60% credit, while non-DAC projects are eligible for 50% credit.

In addition, Europe is the second-largest market, globally. It has around 35% of the total projects in development worldwide. In fact, the U.K. has planned to establish four CCUS industrial clusters by 2030, capturing 10 Mt of CO2 per year, and announced an infrastructure fund of USD 1.23 billion. Moreover, Norway is committed to USD 1.8 billion to the Longship project, which includes the Northern Lights offshore storage hub; while the Netherlands dedicated USD 2.11 billion to the Porthos CCUS hub at the Port of Rotterdam.

The APAC market is expected to witness the fastest growth during the forecast period, with 25.0% CAGR. This is because the majority of new projects are emerging in developing countries, where emissions are high. Moreover, the region has suitable geology for carbon sequestration, adding advantages for companies to set up their projects in APAC.

China is targeting to achieve carbon neutrality before 2060, and the government is framing policies for the same, resulting in the setup of CCUS plants in the country. The Ministry of Ecology and Environment (MEE) has announced its support for CCUS pilot and demonstration projects in free-trade zones.

The regions and countries included in the report are as follows:

• North America (Largest Regional Market)
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe
  • Germany (Largest Country Market)
  • France
  • U.K. (Fastest-Growing Country Market)
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • Japan
  • Australia
  • South Korea
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa (Fastest-Growing Country Market)
  • Rest of MEA

Carbon Capture, Utilization and Storage Market Share

The carbon capture, utilization, and storage market is fragmented as many of the individual chemical reactions involved in emission capture are well known. Therefore, the related equipment is offered even by small industrial manufacturing companies, which, likewise, cater to end users with low-capacity requirements. Additionally, CCUS standards and mandates are not standard across regions, which allows companies with different scales of business to prosper.

Carbon Capture, Utilization, and Storage Market News

• In October 2024, LanzaTech Global Inc. announced plans to augment the capabilities of its biorefining platform to produce LanzaTech Nutritional Protein.
• In October 2024, ExxonMobil Corporation purchased a 271,000-acre site off the coast of Texas for CO2 storage.
• In September 2024, the Northern Lights joint venture of TotalEnergies SE, Equinor ASA, and Shell Plc completed the development of its facilities for CO2 receipt and storage in Norway. The facility has a terminal that will receive the carbon dioxide, 100-km pipelines to transport it offshore, and a 2,600-meter-deep subsea injection facility for its permanent storage.
• In January 2024, Linde plc began supplying captured carbon dioxide and green hydrogen from its CO and methane plant in Clear Lake, Texas, to Fairway Methanol LLC, a JV of Mitsui & Co. Ltd. and Celanese Corporation.