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

The Global Carbon Capture Utilization and Storage Market is projected to expand from USD 5.02 Billion in 2025 to USD 7.34 Billion by 2031, reflecting a CAGR of 6.54%. This sector involves technologies designed to isolate carbon dioxide emissions from stationary industrial sources for either productive reuse or permanent geological sequestration. Market growth is primarily driven by strict government mandates aimed at carbon neutrality and the urgent need to decarbonize heavy industries like steel and cement manufacturing. Furthermore, significant public funding and policy incentives in major economies are accelerating the commercial viability of these initiatives. According to the Global CCS Institute, the project development pipeline surged by 60 percent in 2024, reaching a record 628 facilities.

Despite this strong growth momentum, the sector faces a major impediment due to the high capital and operational expenses associated with deploying capture units and establishing transport networks. The lack of mature infrastructure and consistent financial frameworks creates economic uncertainty that limits the rapid scalability of these projects. As a result, securing final investment decisions remains a complex hurdle for many developers seeking to expand operations globally, thereby delaying the widespread adoption needed to meet climate goals.

Market Drivers

The availability of government financial incentives and tax credit programs acts as a primary catalyst for the deployment of carbon capture technologies by mitigating high upfront capital risks. Comprehensive policy frameworks, such as the U.S. Inflation Reduction Act and the EU Innovation Fund, provide the necessary fiscal security for companies to commit to large-scale infrastructure projects that were previously economically unfeasible. These financial mechanisms effectively lower the cost per tonne of carbon captured, encouraging private sector participation in direct air capture and point-source storage initiatives. For instance, according to Occidental in September 2024, its subsidiary was awarded up to $500 million by the U.S. Department of Energy to support the development of the South Texas Direct Air Capture Hub, validating the critical role of public funding in advancing commercial-scale operations.

Concurrently, the rising necessity for decarbonizing hard-to-abate industrial sectors is accelerating market adoption, particularly in cement and steel manufacturing where electrification is challenging. Industrial operators are increasingly integrating capture units directly into their processing lines to comply with tightening emission mandates and sustainability goals. A notable development in this space occurred when, according to Heidelberg Materials in March 2024, the company selected a project at its Indiana cement plant targeting an emission reduction of approximately 2 million tonnes of carbon dioxide annually, demonstrating the sector's shift toward active decarbonization. This sectoral demand is contributing to broader capacity expansion; according to the Global CCS Institute, global operating capture capacity is on track to exceed 100 million tonnes per year in 2024 once facilities currently under construction are completed.

Market Challenges

High capital and operational expenditures required for deploying capture units and associated infrastructure present a substantial barrier to the Global Carbon Capture Utilization and Storage Market. The financial burden of establishing complex transport networks and retrofitting industrial facilities often outweighs the projected economic returns, particularly in the absence of mature revenue models. This cost intensity creates significant hesitation among developers and investors, leading to a prolonged period of uncertainty that restricts the ability of the sector to scale rapidly. Consequently, the high upfront financial requirements directly hinder the transition of projects from the planning phase to actual construction.

This difficulty in securing capital is reflected in the disparity between planned initiatives and committed projects. According to the International Energy Agency, in 2024, only around 20 percent of the announced capture capacity projected for 2030 had reached the final investment decision stage. This statistic underscores the difficulty developers face in validating the commercial viability of these ventures under current market conditions. The inability to close this investment gap delays widespread adoption and prevents the market from realizing its full growth potential within the anticipated timelines.

Market Trends

The Emergence of Shared Multi-User Carbon Capture and Storage Industrial Hubs represents a structural paradigm shift, moving the market away from standalone, single-source projects toward interconnected transport and storage networks. This "hub and cluster" approach allows multiple industrial emitters - such as cement, steel, and chemical plants - to share common infrastructure for compression, transport, and sequestration, thereby significantly reducing the unit cost of abatement and de-risking individual investments. By decoupling capture from storage, these hubs facilitate cross-border decarbonization and enable smaller operators to access sequestration solutions that would otherwise be economically unviable. Validating this operational model, according to Equinor, in August 2025, the Northern Lights joint venture officially commenced operations as the world's first cross-border CO2 transport and storage network, providing an initial injection capacity of 1.5 million tonnes per year for industrial emitters across Europe.

Concurrently, the Commercial Scaling and Deployment of Direct Air Capture Technologies is establishing a necessary pathway for addressing historical emissions and neutralizing residual carbon footprints that point-source capture cannot reach. Unlike traditional scavenging methods tied to specific smokestacks, this trend focuses on deploying large-scale, standalone facilities capable of extracting atmospheric carbon dioxide for permanent geological storage or utilization in synthetic fuels. This transition from pilot-scale demonstration to megaton-scale commercialization is being driven by the rising demand for high-quality carbon removal credits in voluntary markets. Highlighting this rapid scale-up, according to Occidental in September 2025, the company confirmed that its Stratos Direct Air Capture facility is advancing toward commercial startup with a designed capacity to capture 500,000 metric tons of carbon dioxide annually to support heavy industry decarbonization goals.

Key Players Profiled in the Carbon Capture Utilization and Storage Market

• Fluor Corporation
• ExxonMobil Corporation
• Linde PLC
• Shell PLC
• Mitsubishi Heavy Industries, Ltd.
• JGC Holdings Corporation
• Equinor ASA
• Schlumberger Limited
• Carbon Clean Solutions Limited
• Hitachi, Ltd.

Report Scope

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

Carbon Capture Utilization and Storage Market, by Technology:

• Pre-Combustion Carbon Capture
• Post-Combustion Carbon Capture
• Oxy-Fuel Combustion Carbon Capture

Carbon Capture Utilization and Storage Market, by Application:

• Oil and Gas Industry
• Power Industry
• Others

Carbon Capture Utilization and Storage 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 Utilization and Storage 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.