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Carbon Capture and Storage Market Size, Share, Growth & Industry Analysis, By Technology (Pre-combustion Capture, Post-combustion Capture), By Capture Source (Power Generation, Oil & Gas, Iron & Steel), By Application (Enhanced Oil Recovery, Geological Storage), By Service Type and Regional Analysis, 2024-2031
Pages: 210 | Base Year: 2023 | Release: April 2025 | Author: Versha V.
The market encompasses the comprehensive value chain involved in the capture, transportation, and long-term geological storage of carbon dioxide (CO₂) emissions generated from industrial processes and fossil fuel-based power generation.
This market serves a critical function in advancing global decarbonization objectives by facilitating large-scale reductions in CO₂ emissions, thereby supporting the achievement of climate change mitigation goals.
The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.
The global carbon capture and storage market size was valued at USD 3,091.2 million in 2023 and is projected to grow from USD 3,294.5 million in 2024 to USD 5,387.5 million by 2031, exhibiting a CAGR of 7.28% during the forecast period.
This growth is driven by the increasing global emphasis on reducing greenhouse gas emissions, stringent environmental regulations, and rising investments in clean energy technologies.
Major companies operating in the carbon capture and storage industry are MITSUBISHI HEAVY INDUSTRIES, LTD., Aker Solutions, Exxon Mobil Corporation, Equinor ASA, Shell.com, Linde PLC, Occidental Petroleum Corporation, Fluor Corporation, TotalEnergies, JGC HOLDINGS CORPORATION, Air Products and Chemicals, Inc., SLB, Honeywell International Inc., Baker Hughes Company, and Dakota Gasification Company.
Furthermore, the increasing implementation of carbon capture and storage (CCS) technologies across high-emission industrie ssuch as power generation, cement, steel, and chemical manufacturing is driving the growth of the market.
Market expansion is further supported by technological progress, favorable regulatory frameworks, and the development of carbon credit mechanisms, which together enhance the commercial viability of CCS projects.
Market Driver
"Rising Industrial and Power Sector Emissions"
The carbon capture and storage (CCS) market is being driven by persistently high emissions from the industrial and power generation sectors. Industries such as cement, steel, chemicals, and fossil fuel-based power generation are among the largest contributors to global CO₂ emissions.
These sectors face structural challenges in transitioning to low-carbon alternatives due to process-specific emissions and high energy requirements. CCS offers a practical and scalable solution to reduce emissions without overhauling existing infrastructure.
Market Challenge
"Uncertainty Around Long-Term Storage Liability"
Long-term storage liability is a key challenge in the carbon capture and storage (CCS) market. Once CO₂ is injected into geological formations, extended monitoring is required to verify storage permanence and prevent potential risks, such as leakage.
The absence of clearly defined legal, regulatory, and financial frameworks for long-term stewardship deters project developers and financial stakeholders from committing to large-scale initiatives.
Furthermore, the lack of harmonized international standards for post-closure obligations, liability transfer mechanisms, and risk mitigation protocols hinders the adoption of CCS.
To address these challenges, key players are collaborating with governments to establish clear liability transfer mechanisms, support long-term monitoring, and contribute to public stewardship funds. They are also investing in advanced MRV technologies and adopting international standards to ensure storage integrity and build investor confidence.
Market Trend
"Advancements in Capture and Storage Technologies"
Advancements in capture and storage technology is one of the leading trends in the market, significantly enhancing the technical and economic viability of carbon capture and storage across various sectors.
Innovations such as metal-organic frameworks (MOFs) and covalent organic frameworks are enabling higher efficiency and selectivity in CO₂ capture, offering scalable solutions for emission-intensive industries like cement, steel, and energy-from-waste.
Furthermore, the modularization of capture systems is streamlining deployment by reducing spatial requirements, capital costs, and retrofitting timelines for existing facilities.
Segmentation |
Details |
By Technology |
Pre-combustion Capture, Post-combustion Capture, Oxy-fuel Combustion, Direct Air Capture (DAC) |
By Capture Source |
Power Generation, Oil & Gas, Cement, Iron & Steel |
By Application |
EOR (Enhanced Oil Recovery), Geological Storage, Utilization (CCU) |
By Service Type |
Capture, Transportation, Storage |
By Region |
North America: U.S., Canada, Mexico |
Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe |
|
Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific |
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Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa |
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South America: Brazil, Argentina, Rest of South America |
Market Segmentation
Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.
Asia Pacific carbon capture and storage market share stood around 42.09% in 2023 in the global market, with a valuation of USD 1,301.1 million. This dominance is attributed to rapid industrialization and increasing government initiatives in decarbonization technologies across major economies such as China, India, and Japan.
The region is witnessing a surge in large-scale CCS projects, particularly in the power generation, steel, and chemical manufacturing sectors. National commitments to carbon neutrality, along with supportive regulatory frameworks such as carbon pricing mechanisms and emission reduction mandates.
They are driving the accelerated deployment of carbon capture and storage technologies across the region. The availability of suitable geological formations for CO₂ storage further enhances the region's capacity for long-term carbon sequestration.
Europe carbon capture and storage industry is poised to grow at a CAGR of 7.26% over the forecast period, supported by stringent climate policies, emission reduction targets under the European Green Deal, and substantial public and private investments in low-carbon technologies.
The region is placing a strategic focus on developing carbon management hubs that integrate capture, transport, and storage infrastructure to serve multiple emitters. Furthermore, funding programs under the EU Innovation Fund and Horizon Europe are accelerating the commercialization of CCS technologies.
The harmonization of regulatory frameworks across European member states is streamlining project approval processes and enhancing investor confidence, thereby reinforcing Europe’s position as a global leader in carbon capture and storage deployment.
The carbon capture and storage industry is highly competitive with established multinational energy corporations, specialized technology developers, and emerging innovators. Market participants are actively pursuing strategic collaborations, mergers, and acquisitions to expand their technological capabilities and geographic footprint.
Significant investments in research and development are aimed at enhancing capture efficiency, reducing operational costs, and accelerating the commercialization of advanced storage solutions.
Companies are increasingly adopting integrated decarbonization strategies, such as carbon dioxide utilization and low-carbon hydrogen production, to enhance their market value and competitiveness in the energy transition.
Recent Developments (M&A/Partnerships/Agreements/New Product Launch)
Frequently Asked Questions