Direct Air Capture Global Market Opportunities and Strategies to 2034

This report describes and explains the direct air capture market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global direct air capture market reached a value of nearly $121.88 million in 2024, having grown at a compound annual growth rate (CAGR) of 123.77% since 2019. The market is expected to grow from $121.88 million in 2024 to $4.24 billion in 2029 at a rate of 103.46%. The market is then expected to grow at a CAGR of 22.08% from 2029 and reach $11.52 billion in 2034.

Growth in the historic period resulted from rising carbon credit prices, rising awareness of climate change, increasing government funding and increased policy support. Factors that negatively affected growth in the historic period were lack of CO₂ transport and storage infrastructure and intensive energy demand.

Going forward, rising environmental concerns, increasing awareness to reduce greenhouse gas emissions, growing investment by venture capital and energy companies and growth in demand for hydrogen and synthetic fuels support will drive growth. Factor that could hinder the growth of the direct air capture market in the future include immature technology, high costs and impact of trade war and tariff.

Western Europe was the largest region in the direct air capture market, accounting for 74.70% or $91.05 million of the total in 2024. It was followed by North America, Asia-Pacific and then the other regions. Going forward, the fastest-growing regions in the direct air capture market will be North America and Asia-Pacific where growth will be at CAGRs of 167.91% and 109.60% respectively.

The global direct air capture market is highly concentrated, with large players operating in the market. The top 6 competitors in the market made up 62.39% of the total market in 2024. Climeworks AG was the largest competitor with a 40.12% share of the market, followed by Heirloom Carbon Technologies with 18.62%, CarbonCapture Inc. with 4.10%, Zero Carbon Systems (Global thermostat), with 2.05%, 1PointFive, with 1.31% and Verdox with 1.18%.

The direct air capture market is segmented by product into absorption-based, adsorption-based, membrane-based and cryogenic-based. The adsorption-based market was the largest segment of the direct air capture market segmented by product, accounting for 61.98% or $75.54 million of the total in 2024. Going forward, the membrane-based segment is expected to be the fastest growing segment in the direct air capture market segmented by product, at a CAGR of 111.11% during 2024-2029.

The direct air capture market is segmented by scale into pilot-scale, demonstration-scale and commercial-scale. The commercial-scale market was the largest segment of the direct air capture market segmented by scale, accounting for 71.63% or $87.3 million of the total in 2024. Going forward, the commercial-scale segment is expected to be the fastest growing segment in the direct air capture market segmented by scale, at a CAGR of 110.62% during 2024-2029.

The direct air capture market is segmented by source into electricity and heat. The electricity market was the largest segment of the direct air capture market segmented by source, accounting for 62.08% or $75.67 million of the total in 2024. Going forward, the electricity segment is expected to be the fastest growing segment in the direct air capture market segmented by source, at a CAGR of 108.10% during 2024-2029.

The direct air capture market is segmented by application into carbon capture, and storage (CCS) and carbon capture, utilization and storage (CCUS). The carbon capture, and storage (CCS) market was the largest segment of the direct air capture market segmented by application, accounting for 73.97% or $90.15 million of the total in 2024. Going forward, the carbon capture, and storage (CCS) segment is expected to be the fastest growing segment in the direct air capture market segmented by application, at a CAGR of 107.89% during 2024-2029.

The direct air capture market is segmented by end-use into oil and gas, food and beverage, automotive, chemicals, healthcare and other end-uses. The oil and gas market was the largest segment of the direct air capture market segmented by end-use, accounting for 34.70% or $42.3 million of the total in 2024. Going forward, the automotive segment is expected to be the fastest growing segment in the direct air capture market segmented by end-use, at a CAGR of 121.90% during 2024-2029.

The top opportunities in the direct air capture market segmented by product will arise in the adsorption-based segment, which will gain $2.4 billion of global annual sales by 2029. The top opportunities in the direct air capture market segmented by scale will arise in the commercial-scale segment, which will gain $3.53 billion of global annual sales by 2029. The top opportunities in the direct air capture market segmented by source will arise in the electricity segment, which will gain $2.87 billion of global annual sales by 2029. The top opportunities in the direct air capture market segmented by application will arise in the carbon capture, and storage (CCS) segment, which will gain $3.41 billion of global annual sales by 2029. The top opportunities in the direct air capture market segmented by end-use will arise in the oil and gas segment, which will gain $1.65 billion of global annual sales by 2029. The direct air capture market size will gain the most in the USA at $3.15 billion.

Market-trend-based strategies for the direct air capture market include strategic investments drive scale-up in direct air capture market, innovative electrochemical DAC technology powers carbon negative limestone production, collaborative efforts accelerate development of advanced direct air capture solutions, advancement in efficiency and cost reduction with generation 3 direct air capture technology and electrochemical dual cell DAC prototype delivers major energy savings.

Player-adopted strategies in the direct air capture market include focus on expanding their business capabilities through strategic partnerships and expanding its business capabilities through new launches.

To take advantage of the opportunities, the analyst recommends the direct air capture market companies to focus on strategic investment and scalable deployment, focus on integration with industrial processes, focus on advancing modular technology for scale and efficiency, focus on advancing scalable, energy-efficient technologies, focus on absorption-based segment to maximize growth potential, focus on commercial-scale projects to capture largest market growth, expand in emerging markets, continue to focus on developed markets, focus on value-based pricing to align with buyer expectations and market readiness, continue to use b2b promotions, focus on strategic partnerships to accelerate commercialization and market expansion, focus on industry-specific communication channels to strengthen market position, focus on carbon capture and storage to maximize long-term market growth, focus on automotive applications to capture highest-growth demand.

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