The global carbon capture, utilization, and storage market is expected to generate $17,835.6 million revenue by 2030, advancing at a CAGR of 27.3% during 2021–2030. The major factors influencing the market include the increasing focus on reducing carbon emissions and the rising demand for CO2-EOR techniques. Moreover, carbon capture startups developing innovative technologies for capturing carbon are receiving funds and investments from venture capital companies and investors, which, in turn, will propel the market growth during the forecast period.
The power generation category accounted for the largest revenue share, of around 40%, in the market in 2021, and it is expected to maintain its dominance during the forecast period as well. This is attributed to the technological innovations to reduce the carbon capture, utilization, and storage (CCUS) costs for power generation and the high potential capture capacity of all CCUS projects in their early and advanced deployment phase.
North America contributed the largest revenue share, of more than 35%, in 2021 in the market, wherein the U.S. is the leader in the regional market, while the Canadian market is projected to gain momentum at a significant rate during the forecast period. The growth of the market in both countries can be attributed to the governments’ incentives. In the U.S., the government introduced the 45Q tax credit, while the Canadian government proposed a tax credit for capital investment in CCUS projects in its 2021 Budget.
On the other hand, the APAC market is likely to depict the fastest growth during the forecast period, owing to the large number of new projects announced by companies in the region. China is one of the major markets in the region, as five CCUS power generation projects are under development in the country.
Other nations, such as Australia, Japan, Malaysia, Indonesia, and South Korea, are beginning to seek CO2 emission reductions by examining the potential for large-scale projects. These countries are supporting the establishment of projects through favorable government regulations and initiatives, such as in the case of Australia, the national government included carbon capture storage incentives in the Emissions Reduction Fund.
In recent years, companies operating in the market have been involved in investing in new projects. For instance:
Major players operating in the carbon capture, utilization, and storage market include ExxonMobil Corporation, TotalEnergies SE, Equinor ASA, Royal Dutch Shell Plc, Fluor Corporation, Linde plc, Mitsubishi Heavy Industries Ltd., Schlumberger Limited, Honeywell International Inc., and Hitachi Ltd.