Carbon Capture, Utilization, and Storage Global Market Report 2024

The carbon capture, utilization, and storage market size has grown rapidly in recent years. It will grow from $2.57 billion in 2023 to $2.93 billion in 2024 at a compound annual growth rate (CAGR) of 13.8%. The growth in the historic period was propelled by robust economic expansion in emerging markets, a heightened emphasis on curtailing carbon dioxide (CO2) emissions, heightened demand from the medical sector, and an uptick in energy consumption.

The carbon capture, utilization, and storage market size is expected to see rapid growth in the next few years. It will grow to $5.05 billion in 2028 at a compound annual growth rate (CAGR) of 14.6%. Forecasted growth in carbon capture is fueled by financial opportunities, government support, and increased investments, driven by oil and gas demands and COP26 climate efforts. Key trends include greenhouse supply, AI innovation, strategic partnerships, and advancements in direct air capture efficiency.

The carbon capture sector presents lucrative financial opportunities, driving the market's future growth. While the production of CO2 through carbon capture is more costly than conventional methods, the increasing carbon price is creating new profitable avenues for carbon capture and utilization (CCU). Companies embracing sustainable practices and products gain enhanced access to diverse financing options. As carbon pricing progressively influences the profitability of these companies and facilities, those leveraging CCU technology find themselves with additional funds for investment in innovation and research and development (R&D). A notable example is the Frontier initiative launched in 2022 by industry giants such as Stripe, Alphabet, Meta, Shopify, and McKinsey. This initiative plans to invest $925 million in permanent carbon removal from technology-developing companies over the next nine years, thereby boosting the carbon capture market.

The carbon capture, utilization, and storage market have received substantial support from the oil and gas industry, primarily driven by the increasing demand for carbon dioxide in enhanced oil recovery (EOR) processes. EOR, a tertiary crude oil production method, enables producers to extract 30-60% more oil compared to primary and secondary recovery processes. Gas injection EOR, which utilizes carbon dioxide, dominates the oil recovery landscape, constituting approximately 60% of total EOR processes in the US. This method involves injecting gases such as natural gas, nitrogen, or carbon dioxide into a reservoir to push additional oil towards a production wellbore or dissolve gases in the oil to enhance its flow rate. For instance, the Industrial gases market, valued at USD 97 billion in 2020, is anticipated to generate around USD 130 billion in revenue by 2026.

Government initiatives are expected to be a significant driver for the carbon capture, utilization, and storage market in the forecast period. In February 2022, the US Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) announced federal funding of up to $96 million for projects developing point-source carbon capture technologies applicable to natural gas power plants and industrial applications, with a target of capturing at least 95% of CO2 emissions. Similarly, in November 2021, the Morrison government in Australia invested $500 million in a new $1 billion fund aimed at commercializing low-emissions technologies, including carbon capture and soil carbon. At the United Nations Climate Change Conference in Glasgow (COP26), 50 countries pledged to establish climate-resilient and low-carbon health systems in response to the growing evidence of climate change's impact on public health.

A noteworthy emerging trend in the carbon capture, utilization, and storage market is the increasing investments made by governments and organizations. Significant efforts are being directed by major companies and governments towards investing in projects related to carbon capture, utilization, and storage, with the overarching goal of mitigating carbon emissions. As an illustration, a March 2022 report from AGU Publications, a US-based online library, outlines the investment scenario provided by the International Energy Agency (IEA). According to the report, the projections indicate that carbon capture, utilization, and storage (CCUS) investments could reach US$ 67.09 billion and US$ 776.61 billion from 2026 to 2030 and 2056 to 2060, respectively. This data underscores the increasing commitment of governments and organizations to drive advancements in the carbon capture, utilization, and storage market through substantial financial investments.

In April 2022, Baker Hughes, a prominent US-based energy technology company, made a strategic acquisition of Mosaic Materials for an undisclosed amount. This acquisition positions Baker Hughes to further develop and advance its next-generation carbon dioxide capture technology. Mosaic Materials, a US-based company, specializes in initiatives aimed at reducing the environmental impact of fossil fuels. This strategic move exemplifies the industry's commitment to fostering innovation and advancing technologies that contribute to the broader goals of carbon capture and emission reduction.

Major companies operating in the carbon capture, utilization, and storage market report are Shell PLC, Aker Solutions, Linde PLC, Fluor Corporation, Mitsubishi Heavy Industries Ltd., Carbon Engineering Ltd., Schlumberger Limited, Exxon Mobil Corporation, GC Holdings Corporation, Praxair Inc., NGK Spark Plug Co Ltd., Taiyo Nippon Sanso, Oxair, Air Products and Chemicals Inc., Yingde Gas Group Co. Ltd., Messer Group, Core Industrial Gases, Supagas, AMCS Corporation, Sinopec Qilu-Shengli Oilfield CCUS, Royal Dutch Shell, Equinor Total Energies, Lukoil, Polish Energy Group, Zeroco2, Terrasigna, NRG Energy, General Electric, Honeywell, Dakota Gasification Company, Chevron, Lanzatech, WIKA Alexander Wiegand SE & Co. KG, Gulf Cryo, Buzwair, Sasol, Air Liquide, Gas Africa Limited, Carbacid Investments Limited, Afrox.

North America was the largest region in the carbon capture, utilization, and storage market in 2023. The regions covered in the carbon capture, utilization, and storage market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the carbon capture, utilization, and storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary technologies in CCUS involve pre-combustion, post-combustion, and oxy-fuel combustion. Pre-combustion capture extracts CO2 from fossil fuels before their combustion. These processes include capture, transportation, utilization, and storage and are applied across diverse industries such as oil and gas, power generation, iron and steel, chemicals and petrochemicals, cement, and others.

The carbon capture, utilization, and storage market research report is one of a series of new reports that provides carbon capture, utilization, and storage market statistics, including carbon capture, utilization, and storage industry global market size, regional shares, competitors with a carbon capture, utilization, and storage market share, detailed carbon capture, utilization, and storage market segments, market trends and opportunities, and any further data you may need to thrive in the carbon capture, utilization, and storage industry. This carbon capture, utilization, and storage market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The carbon capture, utilization, and storage market includes revenues earned by entities by providing point source carbon capture, carbon transport and storage, carbon dioxide removal and conversion, hydrogen with carbon management, and integrated carbon management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.