Carbon Capture and Storage Market

Carbon Capture and Storage Market Size:

The global carbon capture and storage market size reached US$ 2.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 5.8 Billion by 2032, exhibiting a growth rate (CAGR) of 8.5% during 2024-2032. The growing popularity of corporate social responsibility among business organizations, rising focus on climate change mitigation, and favorable government initiatives to combat climate change and reduce emissions are some of the major factors propelling the growth of the market.

Carbon Capture and Storage Market Analysis:

• Major Market Drivers: The increasing government regulations and policies aimed at reducing greenhouse gas emissions represent the major driver of the market. Advancements in carbon capture and storage technology and increasing investments from both private and public sectors are making carbon capture and storage solutions more economically viable and accessible, further propelling the market growth.
• Key Market Trends: The increasing integration of carbon capture and storage with renewable energy sources to create carbon-neutral energy systems represents the key trends of the market. This synergy enhances the overall sustainability and efficiency of energy production. Another trend is the development of innovative carbon utilization technologies that convert captured CO2 into valuable products including fuels, chemicals, and building materials.
• Geographical Trends: North America accounts for the largest region in the carbon capture and storage market growth due to the significant government funding and incentives, strict environmental regulations, rising push for energy transition, and technological advancements.
• Competitive Landscape: Some of the major market players in the carbon capture and storage industry include Air Liquide S.A., Aker Solutions ASA, Baker Hughes Company, Exxon Mobil Corporation, Fluor Corporation, General Electric Company, Halliburton Company, Honeywell International Inc., Linde plc, Mitsubishi Heavy Industries Ltd., NRG Energy Inc., Occidental Petroleum Corporation, Schlumberger Limited, Shell plc, Siemens AG etc., among many others.
• Challenges and Opportunities: The market faces various challenges including high costs of implementation, technological complexities, and limited infrastructure for large-scale deployment. However, the market also faces several opportunities such as the development of cost-effective and scalable carbon capture and storage technologies, supported by increasing government incentives and investments.
   

Carbon Capture and Storage Market Trends:

Rising Focus on Climate Change Mitigation

There is a rise in the adoption of carbon capture and storage (CCS) due to the increasing focus on climate change mitigation. Climate change is recognized as one of the most concerning global challenges, with rising temperatures, extreme weather events, and increasing sea-level, threatening ecosystems and human societies. According to the European Environmental Agency, greenhouse gas (GHG) emissions dropped by 2% in 2022 across the European Union, as compared to 2021 levels as per estimates in their latest ‘Trends and Projections’ report. The EU has reduced net greenhouse gas emissions including international aviation, by 31% compared to 1990 levels, while simultaneously fostering economic growth. Against the backdrop of soaring natural gas prices, 2022 witnessed a 2% reduction in greenhouse gas emissions, driven by substantial decreases in the buildings and industrial sectors, while emissions from energy supply and transport saw an increase. This is expected to fuel the carbon capture and storage market forecast over the coming years.

Significant Technological Advancements

Continuous advancements in carbon capture and storage (CCS) technologies are making the processes more efficient, cost-effective, and scalable, which encourages broader adoption across various industries. For instance, in December 2023, Air Liquide announced to build, own, and operate a world-scale carbon capture unit in the industrial basin of Rotterdam, the Netherlands, leveraging its proprietary Cryocap™ technology. The new unit will be installed at the Group’s hydrogen production plant located in the port of Rotterdam and will be connected to Porthos, one of Europe’s largest carbon capture and storage infrastructure aiming at significantly reducing CO₂ emissions in this large industrial basin. This is further driving the demand for carbon capture and storage technology significantly.

Increasing Favorable Government Initiatives to Combat Climate Change

There is a rise in the need to combat climate change and reduce emissions across the globe. Governing agencies of various countries are promoting the adoption of carbon capture and storage (CCS) by implementing stringent environmental regulations and carbon pricing mechanisms. For instance, The Ministry of Petroleum and Natural Gas, Government of India (GoI) initiated efforts to provide opportunities for collaboration and knowledge sharing to the industry and prepare a unified and practical strategy for the development and implementation of Carbon Capture, Utilization, and Storage (CCUS)/ Carbon Capture and Storage (CCS) techniques in the oil and gas sector in India. A task force titled ‘Upstream for CCS/CCUS’ (UFCC) to this effect is working to prepare the ‘2030 Roadmap for CCUS’ that shall provide necessary direction and guidelines for all oil and gas companies to develop and scale up CCS/CCUS techniques.

Carbon Capture and Storage Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on service, technology, and end use industry.

Breakup by Service:

• Capture
• Transportation
• Storage
   

Capture accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the service. This includes capture, transportation, and storage. According to the report, capture represented the largest segment.

Capture is the initial and crucial stage of the CCS process and is responsible for capturing CO2 emissions from various industrial sources before they are released into the atmosphere. This stage involves the implementation of various capture technologies tailored to specific industries, such as power plants, cement factories, and refineries. There are mainly three types of capture technologies, such as post-combustion, pre-combustion, and oxy-fuel combustion. The capture process is essential for reducing emissions at the source and provides a foundation for further transport and storage stages in the value chain. For instance, in February 2023, India plans to launch a carbon capture policy to address its growing emissions while still utilizing its vast coal resources. The policy, set to be unveiled later this year, will provide incentives for companies to trap, recycle, and store their emissions underground. This is further boosting the carbon capture and storage market share.

Breakup by Technology:

• Post-combustion Capture
• Pre-combustion Capture
• Oxy-fuel Combustion Capture
   

Pre-combustion capture holds the largest share of the industry

The report has provided a detailed breakup and analysis of the market based on the technology. This includes post-combustion capture, pre-combustion capture, and oxy-fuel combustion capture. According to the report, pre-combustion capture represented the largest segment.

Pre-combustion capture is a carbon capture technology that targets CO2 emissions before the combustion of fossil fuels. This process is primarily employed in power plants and certain industrial facilities, particularly those using natural gas or coal. In addition, pre-combustion capture offers various advantages, such as it can generate a cleaner fuel while capturing CO2 before it is emitted. Apart from this, continuous research and development (R&D) efforts are focused on enhancing the efficiency and cost-effectiveness of pre-combustion capture, which offers a positive carbon capture and storage market outlook.

Breakup by End Use Industry:

• Oil and Gas
• Coal and Biomass Power Plant
• Iron and Steel
• Chemical
• Others
   

Oil and Gas represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the end use industry. This includes oil and gas, coal and biomass power plant, iron and steel, chemicals, and others. According to the report, oil and gas represented the largest segment.

In the oil and gas sector, CCS assists in addressing greenhouse gas (GHG) emissions resulting from the extraction, processing, and consumption of fossil fuels. This industry is a significant source of carbon dioxide (CO2) emissions, making it a key candidate for CCS implementation. In the oil and gas industry, it aids in minimizing the environmental impact of fossil fuel operations while contributing to both emission reduction and responsible resources, thus driving the carbon capture and storage demand.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest carbon capture and storage market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for carbon capture and storage.

North America held the biggest market share due to the increasing focus on addressing climate change. In line with this, the rising advancement in these techniques is bolstering the growth of the market in the region. Apart from this, the increasing adoption of CCS due to favorable regulatory frameworks is contributing to the growth of the market. In addition, the wide availability of suitable geological formations for CO2 storage, such as depleted oil and gas reservoirs and saline aquifers, is supporting the market growth in the region. For instance, in June 2023, as soaring fossil fuel emissions continue to heighten global warming, multiple projects seeking to remove carbon dioxide from the air have been launched across Los Angeles County an effort that project developers say is destined to make Southern California a global leader in climate adaptation. This is further fueling the carbon capture and storage market revenue across the region.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the carbon capture and storage industry include Air Liquide S.A., Aker Solutions ASA, Baker Hughes Company, Exxon Mobil Corporation, Fluor Corporation, General Electric Company, Halliburton Company, Honeywell International Inc., Linde plc, Mitsubishi Heavy Industries Ltd., NRG Energy Inc., Occidental Petroleum Corporation, Schlumberger Limited, Shell plc, and Siemens AG.
   
• The competitive landscape in the carbon capture and storage (CCS) companies is highly competitive, featuring key players like ExxonMobil, Shell, and Chevron, investing heavily in CCS technology development and deployment. Emerging companies and partnerships, such as those involving technology providers and energy firms, are also entering the space. Innovations in capture efficiency, cost reduction, and storage solutions drive competition. Government support and regulations further influence market dynamics, pushing companies to develop more effective and scalable CCS solutions. For instance, in June 2024, Shell Canada Products, a subsidiary of Shell plc, announced the Final Investment Decision (FID) for Polaris, a carbon capture project at the Shell Energy and Chemicals Park, Scotford in Alberta, Canada. Polaris is designed to capture approximately 650,000 tonnes of CO2 annually from the Shell-owned Scotford refinery and chemicals complex.

Carbon Capture and Storage Market News:

• In March 2024, SLB announced an agreement to combine its carbon capture business with Aker Carbon Capture (ACC) to support accelerated industrial decarbonization at scale. Bringing together complementary technology portfolios, leading process design expertise, and an established project delivery platform, the combination will leverage ACC’s commercial carbon capture product offering and SLB’s new technology developments and industrialization capability.
• In March 2023, Baker Hughes, an energy technology company, and HIF Global, the world’s leading eFuels company, announced their agreement to cooperate on the development of technology to capture carbon dioxide directly from the atmosphere (“CO2 Direct Air Capture” or “DAC”). More specifically, HIF Global and Baker Hughes intend to test Baker Hughes’ Mosaic DAC technology pilot units to accelerate DAC deployment at a commercial scale.
• In July 2023, Fluor Corporation announced its memorandum of understanding (MOU) with Carbfix, the world’s first carbon dioxide (CO2) mineral storage operator, to pursue integrated carbon capture and storage (CCS) solutions. Together, the companies look to minimize the impacts of climate change by helping to decarbonize hard-to-abate industries with high greenhouse gas emissions, such as steel, aluminum, and cement.

Carbon Capture and Storage Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the carbon capture and storage market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global carbon capture and storage market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the carbon capture and storage industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.