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

Carbon Capture Market Size

Carbon Capture Market Trends and Growth Drivers

Rising Investment in CO2 Capture Technology Is Key Trend in Market

• There is a rise in R&D in carbon dioxide capture technology, which is a key trend in the market.
• CCUS has seen a significant rise due to strengthened climate targets and continuous policy support for technology around the world.
• Governments and international organizations are implementing financial investments in carbon capture technology.
• Moreover, the adoption of CCUS is encouraged by carbon trading schemes, which allow businesses to make a profit through the sale of carbon credits.
• An increased tax credit for the permanent sequestration of CO2 is part of the recently passed Inflation Reduction Act (IRA) in the U.S., which might hasten adoption and aid in the expansion of CCUS installations.
• According to the International Energy Agency, the U.S. announced significant opportunities in 2023, including USD 1.7 billion for carbon capture demonstration projects and USD 1.2 billion for direct air capture (DAC) hubs under the 2021 Infrastructure Investment and Jobs Act, to accelerate the development of CCUS projects.

Growing Concerns to Reduce CO2 Emissions Are Major Driver for Market

• There is a rising concern about the growing carbon dioxide all over the globe, as it directly contributes to greenhouse gases and global warming.
• CCUS plays an essential role in global decarbonization in several ways.
• It helps remove existing CO2 from the atmosphere by lowering emissions from hard-to-abate substances, such as chemicals, iron, and steel.
• Additionally, it can also help in transitioning a wide range of sectors away from fossil fuels as a way of producing electricity and hydrogen with low carbon emissions.
• The power plants that are running on coal, gas, and biomass as fuel can be integrated with the CCUS system to reduce carbon emissions.
• Furthermore, this low-carbon electricity can be utilized in personal transport, space heating, and the extraction of low- and medium-temperature heat in industry instead of using fossil fuels as energy sources.

Cost Associated with Developing and Implementing Carbon Capture Infrastructure Is Challenge to Market Growth

• The main challenge associated with CCUS is the high cost of developing and implementing its infrastructure.
• Captured CO2 has to be transported across a large distance, which requires an effective transportation system, such as pipelines.
• In addition, the equipment and energy required for the capture and compression phases are usually more expensive, and constructing and maintaining this pipeline infrastructure demands significant financial outlays.

Carbon Capture Market Analysis

Technology Analysis

• Pre-combustion technology will hold the largest market share, of 55%, in 2024.
• A high proportion of nitrogen in air acts as a challenge in removing carbon dioxide from the atmosphere.
• This challenge can be overcome by this pre-combustion technology.
• This technology uses water–gas shift for capturing carbon dioxide and acid–gas removal techniques for carbon dioxide removal.
• The oxy-fuel combustion technique is expected to grow at the highest CAGR, of 8.3%, over the forecast period because it involves burning fuel in nearly pure oxygen.
• Additionally, oxyfuel combustion can generate flue gases with a high concentration of carbon dioxide and water vapor.
• It helps in the separation of captured CO2 from the flue gases purely by low-temperature dehydration and desulfurization processes.

The technologies analyzed in this report are:

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

End User Analysis

• The power generation category will hold the largest market share, in 2024.
• The primary sources of carbon dioxide emissions are power plants that burn coal.
• Regulations currently apply to power plants necessitating the deployment of CCS facilities to cut carbon emissions to allowable limits.
• These technologies must be implemented to potentially permit the continuous use of coal resources for the production of power, while lowering CO2 emissions.
• The oil & gas category is expected to grow at the highest CAGR, during the forecast period.
• The rising need for natural gas and crude oil across the globe is boosting the oil and gas sector.
• Additionally, the growing demand for carbon capture technology in the oil and gas sector aims to reduce greenhouse gas emissions.

The end users analyzed in this report are:

• Oil & Gas (Fastest-Growing Category)
• Power Generation (Largest Category)
• Chemicals & Petrochemicals
• Cement
• Iron & Steel
• Others

Regional Analysis

• North America will hold the largest market share, of 55%, in 2024.
• This is due to the region's regulatory focus on promoting technology adoption among industrial players.
• In April 2024, Heidelberg Materials North America announced the latest phase of its two-stage competitive procurement process to select the carbon capture technology and contractor for providing the CO2 separation solution for its Edmonton, Alberta, Carbon Capture, Utilization, and Storage (CCUS) Project.
• This innovative project is expected to be the first full-scale use of CCUS in the cement industry.
• Europe is expected to grow at the highest CAGR, of 8.2%, during the forecast period.
• The rising rate of industrialization in Europe and the increasing investment in manufacturing facilities are driving the market for carbon capture in this particular region.
• Furthermore, the rising investment of European countries’ government bodies to reduce greenhouse gas emissions across different industries will promote the demand for carbon capture technology.

The regions and countries analyzed for this report include:

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

Carbon Capture Market Share

• The market nature of the global carbon capture market is consolidated as a major share is occupied by large companies, such as Royal Dutch Shell Plc, Flour Corporation, Mitsubishi Heavy Industries, Exxon Mobil Corporation, and Schlumberger NV.
• These companies are continuously performing R&D on pre-existing carbon capture technologies and investing to create new ones.

Carbon Capture Market News

• In May 2024, Mitsubishi Heavy Industries Ltd. agreed to collaborate with Chiyoda Corporation for the licensing of CO2 capture technologies.
• In June 2024, Exxon Mobil Corporation and Air Liquide S.A. announced a partnership to assist ExxonMobil's Baytown, Texas, refinery in producing low-carbon ammonia and hydrogen.
• In April 2024, FuelCell Energy Inc. and Exxon Mobil Corporation extended their joint development agreement to expedite the commercialization of a novel design for molten carbonate fuel cells (MCFCs), which can capture industrial CO2 emissions and simultaneously produce electricity and hydrogen.
• In July 2024, Schlumberger formed a unified carbon-capture-focused enterprise by acquiring 80% of Aker Carbon Capture.