Direct Air Capture Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Direct Air Capture Market Size

Direct Air Capture Market Trends & Drivers

Innovations in Technology Is Key Market Trend

• Extensive research is being conducted on the DAC technology with the goal of increasing scalability, cutting costs, and improving efficiency.
• The advancements in materials science, engineering, and process optimization are driving the development of DAC systems with higher efficiency.
• Electro swing adsorption (ESA) DAC is one of the recent innovations in the industry. The electrochemical cells used in ESA-DAC are based on a solid electrode that absorbs CO2 when negatively charged and releases it when a positive charge is provided.
• Passive DAC relies on accelerating the natural process that transforms calcium hydroxide and carbon dioxide into limestone.

Net-Zero Initiatives Are Key Market Drivers Worldwide

• Numerous nations, businesses, and associations have made commitments to achieve carbon neutrality or net-zero emissions by a specific target year. For this, they are pursuing mechanisms to efficiently balance carbon removal with the remaining emissions; DAC enables companies to meet their sustainability objectives.
• For over a decade, governments worldwide have been offered financial support to encourage the development and application of technologies for capturing carbon dioxide emissions, in an effort to help lower emissions.
• For instance, the Infrastructure Investment and Jobs Act, which included over USD 12 billion in assistance for CCUS, was passed by the U.S. Congress in November 2021. USD 3.5 billion was granted to build four DAC hubs and associated infrastructure. The package also included USD 100 million for commercial-scale ideas and USD 15 million for pre-commercial ventures, as part of a DAC prize program.

Utilization of Direct Air Capture on a Large Scale Is an Opportunity

• China and the U.S. emitted 11.4 and 5.1 billion metric tonnes of CO2 in 2022, respectively, making them the world’s largest polluters. However, the U.S. has seen an 11% decrease in emissions since 2010 because of the several steps taken by its government.
• There were 15 CCS systems operational in the country as of September 2023. The majority of them are part of larger facilities that handle natural gas or make ethanol for use as fuel and other applications. These plants have the ability to absorb roughly 22 million metric tonnes of CO2 annually.
• The legislative support and investment are a result of the growing understanding of the DAC technology’s critical role in achieving net-zero targets. Leading DAC firms have raised around USD 125 million in financing since the beginning of 2020, with nearly USD 4 billion earmarked for DAC research, development, and deployment.

Direct Air Capture Industry Outlook

Technology Insights

• The liquid category holds the largest market share, of 50%, in 2024, because this technology was the earliest to be developed and deployed.
• Typically, liquid-based DAC systems use an absorbent substance or liquid solvent to extract CO2 from the air. After the solvent and CO2 combine, a chemical is created, which can be isolated and treated to release pure CO2 for storage or use.
• The solid category is projected to grow at the highest CAGR, of 61.5%, during 2024–2030. This is because solid DAC systems can reduce energy requirements and integrate carbon utilization processes, apart from offering improved efficiency, scalability, and economic viability over liquid-based variants. 

The technologies covered in the report include:

• Liquid (Largest Category)
• Solid (Fastest-Growing Category)
• Electrochemical

Source Insights

• The electricity category is the faster-growing market, with CAGR of 61.3% by 2030. This is because of the environmental damage that occurs due to use of heat as the power source for this process.
• Utilizing energy from low-carbon or renewable sources, DAC technologies can help reduce the environmental impact and support international efforts to slow down climate change. The selection of the source depends on a number of factors, including cost, carbon intensity, and availability of energy.

The sources that are covered in the report are as follows:

• Electricity (Larger and Faster-Growing Category)
• Heat

Application Analysis

• The CCS category holds the larger market share, of 70%, in 2024. It is expected to continue dominating the segment throughout this decade because of its cost-effectiveness, simplicity, risk and emission reduction capabilities.
• The CCS approach primarily focuses on CO2 capturing and storing underground to prevent its release into the atmosphere. On the other hand, CCUS encompasses an additional process of utilizing the stored gas for other purposes.
• The concept of utilizing stored CO2 seems good, but it has not yet been deployed on the commercial scale as it has high energy and investment requirements. The utilization of CO2 could even increase emissions, to counter which is the primary goal of CCS.

During the study, we have come across two applications of DAC:

• Cabon Capture and Storage (CCS) (Larger and Faster-Growing Category)
• Cabon Capture, Utilization, and Storage (CCUS)

North America - Largest Region

• Geographically, North America is the largest market, generating 45% of the global revenue in 2024. This dominance of the continent on the DAC market is because of the presence of the U.S., which is the second-most-polluting country in the world, with CO2 emissions of 5,057 million metric tonnes.
• Furthermore, the increasing government assistance and the swift integration of advanced technologies, such as solid DAC and electrochemical DAC, are driving the market expansion in this region.
• APAC is projected to record the fastest growth in the near future, with a CAGR of 61.6%. This will be because of the involvement of the players in strategic developments to gain a competitive edge in this region.
• This region is home to many highly polluting countries, such as China, India, and Indonesia. Led by them, the region is responsible for more than 14,956 million metric tonnes of annual CO2 emissions. This is why these countries are coming up with technologies to overcome environmental challenges.

The regions and countries analyzed in this report include:

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

Direct Air Capture Market Share

The global direct air capture market is fragmented due to the presence of a large number of regional and international players. The increasing backing from international organizations and governments is a noteworthy trend in the market for DAC systems. Global policymakers are enacting supportive laws offering financial initiatives to meet climate targets via DAC and other CCS/CCUS technologies. This support allows many new players to enter the market, backed by R&D.

Direct Air Capture Industry News

• In September 2023, Climeworks partnered with Great Carbon Valley to explore large-scale DAC + storage projects in Kenya.
• In November 2023, Heirloom Carbon Technology entered into an agreement with Carbon Cure, for the latter to permanently embed the CO2 Heirloom’s DAC facilities gather in concrete.
• In March 2023, CarbonCapture Inc. announced a partnership with Microsoft Corporation to supply manufactured carbon removal credits.
• In July 2021, Carbon Engineering ULC and LanzaTech began their collaboration on Project AtmosFUEL to produce sustainable aviation fuel (SAF) from atmospheric CO2. When the project is operational by 2031, it will produce over 100 million liters of SAF annually.