Carbon Capture and Sequestration Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Carbon Capture and Sequestration Market is projected to expand from USD 3.91 Billion in 2025 to USD 7.55 Billion by 2031, registering a CAGR of 11.59%. Defined as the technological process of separating carbon dioxide from industrial and energy-related sources, transporting the gas, and permanently sequestering it in deep geological formations, the sector is being propelled by strengthened net-zero commitments and government incentives like tax credits. Additionally, the urgent requirement to decarbonize hard-to-abate industries such as cement and steel manufacturing underpins sustained demand. As reported by the Global CCS Institute in 2024, the cumulative capture capacity of the global project pipeline has grown to 416 million tonnes per annum.

Despite this growth, the substantial capital costs associated with infrastructure development pose a major hurdle to market expansion. The high upfront investment needed for capture technology and transport networks often exceeds projected revenues, especially in regions without strong carbon pricing mechanisms. This financial obstacle complicates Final Investment Decisions and delays the commercial deployment of facilities, hindering the industry's ability to scale quickly.

Market Drivers

Government financial incentives and tax credit programs serve as the primary drivers for market acceleration by alleviating the high upfront capital risks linked to deployment. Legislative frameworks in North America and Europe offer direct subsidies and revenue stabilization tools that are crucial for project bankability in the absence of a unified global carbon price. These mechanisms bridge the gap between abatement costs and market rates, encouraging private sector participation by de-risking lengthy infrastructure development cycles. For instance, the European Commission's 'Innovation Fund' announcement in October 2024 awarded €4.8 billion to net-zero projects, with a significant allocation designated for carbon capture and storage initiatives in energy-intensive sectors.

Concurrently, the decarbonization of hard-to-abate heavy industries generates structural demand for sequestration technologies, as electrification cannot resolve process emissions inherent in cement and steel production. Producers are integrating capture units into kilns and furnaces to comply with regulatory caps and corporate sustainability goals, effectively making CCS a requisite for operation. In May 2024, Heidelberg Materials announced the 'Edmonton CCUS' project, detailing a facility designed to capture approximately 1 million tonnes of CO2 annually. This industrial adoption is mirrored in broader market data; the Global CCS Institute's '2024 Status Report' in October 2024 noted that the global pipeline of commercial CCS facilities has increased to 628, highlighting the rapid progression toward operation.

Market Challenges

The prohibitive capital cost of infrastructure development acts as a major constraint on the Global Carbon Capture and Sequestration Market, stalling the progression from planning to commercial operation. Developing essential assets, such as capture units, extensive pipeline networks, and deep geological storage sites, necessitates massive upfront expenditures. Because these costs frequently surpass projected revenue streams absent extremely high carbon pricing, private investors encounter an unfavorable risk-return profile. This financial uncertainty compels stakeholders to postpone Final Investment Decisions, resulting in a bottleneck where initiatives remain stuck in engineering phases rather than advancing to construction.

Consequently, this capitalization barrier creates a significant disparity between the industry's stated ambitions and actual physical deployment. Although the volume of planned projects has increased, the difficulty in securing execution funding keeps the installed base comparatively small. This gap is highlighted by recent statistics showing the challenges in finalizing construction; according to the Global CCS Institute in 2024, the total capture capacity of operational facilities stood at only 51 million tonnes per annum. This low operational figure relative to the massive pipeline of announcements illustrates how capital constraints directly impede the market's ability to scale.

Market Trends

The emergence of Regional Industrial CCS Hubs and Clusters marks a structural shift from single-point, vertically integrated projects toward shared transport and storage networks. By decoupling carbon capture facilities from dedicated infrastructure, this utility-style model enables multiple industrial emitters to utilize common pipelines and storage sinks, thereby reducing unit costs and entry barriers for smaller facilities. This separation is expanding the midstream and downstream segments, creating a distinct asset class for infrastructure developers independent of the capture source. Momentum is visible in recent data; the Global CCS Institute's 'Global Status of CCS Report 2024' from October 2024 indicated that dedicated transport and storage projects in development reached 222, a figure that more than doubled over the previous year.

Simultaneously, the strategic integration of CCS with Blue Hydrogen production is becoming a key growth vector, pushing capture technologies beyond traditional waste disposal applications. Major energy companies are increasingly utilizing CCS to enable low-carbon hydrogen manufacturing, pairing natural gas reforming with high-efficiency capture units to create clean fuel for power generation and heavy transport. This application is moving from theoretical planning to capital commitment, confirming the commercial viability of scalable 'blue' hydrogen pathways. According to the IEA's 'Global Hydrogen Review 2024' released in October 2024, committed production capacity for fossil-fuel-based hydrogen projects with CCUS reached 1.5 million tonnes per annum, reflecting a doubling of volumes reaching Final Investment Decision compared to the prior year.

Key Players Profiled in the Carbon Capture and Sequestration Market

• Aker Clean Carbon AS
• Alstom SA
• Chevron Corp.
• Fluor Corp.
• General Electric Co.
• Hitachi Ltd.
• Linde AG
• Mitsubishi Heavy Industries
• Siemens Energy Inc.
• Southern Co.

Report Scope

In this report, the Global Carbon Capture and Sequestration Market has been segmented into the following categories:

Carbon Capture and Sequestration Market, by Type:

• EOR Process
• Industrial
• Agricultural

Carbon Capture and Sequestration Market, by Application:

• Capture
• Transportation
• Storage

Carbon Capture and Sequestration Market, by Technology:

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

Carbon Capture and Sequestration Market, by End-Use Industry:

• Oil & Gas
• Chemicals
• Cement
• Iron & Steel
• Pulp & Paper
• Others

Carbon Capture and Sequestration Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Carbon Capture and Sequestration Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.