Carbon Capture and Storage (CCS) Market
Carbon Capture and Storage (CCS) Market Analysis By Type (Direct Air, Bioenergy Carbon Capture and Storage), By Technology (Pre-combustion, Oxy-fuel Combustion, Post-combustion Capture), By Service Type, By End-use, By Region - Global Market Insights 2023 to 2033
Analysis of Carbon Capture and Storage (CCS) Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Carbon Capture and Storage Growth Outlook (2023 to 2033)
The market for carbon capture and storage was estimated to be worth roughly US$ 2.9 billion in 2023 and is projected to grow at a CAGR of 13.4% to reach US$ 10.2 billion by 2033.
Carbon dioxide (CO2) capture and storage (CCS) is a procedure that involves removing CO2 from energy- and industrial-related sources and transporting it to a storage facility and prolonged isolation from the outside world. The process is a very supportive strategy for the mitigation and stabilization of atmospheric greenhouse gas concentrations. Oil & Gas is the most prominent industry using CCS as it would benefit the current and future energy requirements of the planet.
Carbon Capture and Storage (CCS) Size (2022A)
US$ 2.5 Billion
Estimated Market Value (2023E)
US$ 2.9 Billion
Forecasted Market Value (2033F)
US$ 10.2 Billion
Global Market Growth Rate (2023-2033)
North America Market Share (2023)
Key Companies Profiled
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Global Carbon Capture and Storage (CCS) Historical Outlook (2018-2022) vs. Forecast Outlook (2023-2033)
As a result of increasing carbon in the atmosphere, hazardous impacts can be seen on the environment. CCS is a very efficient & cost-effective way of atmospheric decarbonization. It plays a vital role in carbon reduction from the “hard-to-abate” industrial sector. Additionally, the captured carbon can be further utilized for producing hydrogen fuel & low carbon electricity.
Carbon capture has gained significant momentum in recent years owing to the increasing concerns over changing climatic conditions. Since government policies supported by climatic targets have increased the overall market of companies offering carbon capture & storage services.
- Growth Factors for Short Term (2023-2026): CCS provides near term pathway to rapidly reduce the impact of the existing emission-intensive processes while zero-carbon alternative solutions mature.
- Factors for Medium-Term Growth (2026-2029): The solution for the rapidly evolving landscape of decarbonization potentially involves a large investment. CCS is a prominent solution for long-term atmospheric carbon reduction in scenarios where zero carbon alternatives are unclear.
- Long-Term Growth Opportunities (2029-2033): CO2 management business model and deployment approaches are evolving, facilitating rapid scaling of CCS. Investment in R&D can ensure that cutting-edge CCUS applications are economically adopted in important industries such as heavy industry (cement, steel, and chemicals), CO2 usage for the creation of synthetic fuels, and carbon removal.
Market Dynamics Overview
“Varied Applications of Captured Carbon to Increase Its Industrial Adoption”
Carbon capture and storage facilities are generally used to capture CO2 released into the atmosphere by the industries, agricultural, and oil & gas sectors as well as during EOR operations. Owing to its effectiveness in lowering greenhouse gas emissions in the oil and gas industry, the usage of captured carbon in enhanced oil recovery has been a prominent application.
Additionally, capturing and storing carbon dioxide produced during industrial and power-generating processes would prevent carbon dioxide from entering the environment. Using technologies for carbon capture and storage might drastically lower CO2 emissions from energy systems.
Also, the use of carbon capture and storage in the industrial sector has increased since it can be further used for large-scale industrial operations including refineries, iron & steel plant, cement production, ammonia production, and chemical processing and production of biofuels.
The use of carbon capture and storage is also expanding in the agriculture sector, biomass-to-energy where biomass is used as a source of energy in CO2 abatement, capture, and storage (BECCS) systems. This demonstrates how bioenergy carbon capture and storage have larger growth potential (BECCS). Such factors drive the CCS service market in a long run.
“Factors Affecting the Market’s Growth”
The market's development is hampered by safety concerns regarding storage methods and locations. One of the main problems with holding CO2 beneath the Earth's surface is CO2 leakage. Leaks of CO2 can result in cryogenic burns, acidification of the earth, changes to the groundwater, and water contamination. Therefore, an appropriate location for CO2 storage is essential for determining the gravity and likelihood of risks.
Additionally, infrastructure development for carbon capture & storage requires an enormous amount of capital. Despite the importance of CCUS for achieving a clean energy transition, the deployment has been very slow in the past years owing to the amount of money required to upgrade the infrastructure.
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What is the Demand Outlook for Carbon Capture and Storage (CCS) in the United States?
The United States continued to be the second-largest CO2 emitter as of 2021-2022, after China. Around 4.9 billion tons of CO2 were emitted from energy consumption in 2021. This has been the main factor driving the use of carbon capture and storage technologies in the United States.
In the United States, where the Inflation Reduction Act (IRA) of 2022, along with funds under the Infrastructure Investment and Jobs Act, is projected to encourage additional CCUS implementation, there is growing acknowledgment of the role that CCUS technologies play in achieving net zero goals.
Furthermore, the United States is home to eleven significant large-scale CCS plants out of the 51 large-scale CCS facilities that are operational or being built globally as of 2020. Also, the use of carbon capture and storage in the EOR process is expanding in the United States as oil companies adopt this method to effectively cut greenhouse gas emissions.
Also, when running for president, Biden discussed a plan to stop carbon emissions from US manufacturing facilities by 2035 and advocated for increased public investment in creating green infrastructure, including US$ 2 trillion that is planned to be allocated to clean energy projects.
All these factors suggest that there is more potential for expansion in the carbon capture and storage market in the United States in the years to come.
How does China be likely to Adopt Carbon Capture and Storage Practices?
China is the world's top CO2 producer and contributes approximately 27% of global carbon emissions. The current industrial expansion growth rate of China will eventually increase the atmospheric carbon.
Without China’s collaborative effort, achieving the global climate goal will be impossible. The government's carbon trading program is expected to depend heavily on revenue to sustain its long-term expansion.
By 2025, mainland China might have eight large-scale carbon capture, utilization, and storage (CCUS) plants developed, in addition to the 14 that are already operational and have a combined annual capacity of 2.1 million tons.
Why is the Oil & Gas Industry the Most Alluring in the CCS Market?
Carbon capture and storage (CCS) is being used by the oil and gas sector to cut greenhouse gas emissions. For increased oil recovery, the oil and gas industry has created CCS systems to store carbon dioxide in onshore or offshore deep geological formations.
Because carbon dioxide is insoluble in oil, adding more of it increases a reservoir's pressure, which helps push oil out of the production well. In Texas (the United States), carbon dioxide had been employed for EOR procedures for about 30 years. More than 20% of Texa's total oil production comes from enhanced oil recovery, with some locations recovering 70% of their initial oil.
Which Technology Is Expected to Drive Significant Growth?
Many technologies can be used to capture CO2 at the facility where it is being released. There are three types: oxy-fuel combustion systems, pre-combustion carbon capture, and post-combustion carbon capture, which is the main technique utilized in current power plants.
For post-combustion carbon capture, CO2 is taken out of the combustion exhaust. The use of CCS technology to lower industrial CO2 emissions has increased. Pre-combustion CCS technology has been developed as a result of industrial facilities having economically effective pre-combustion capture equipment in situ.
Yet pre-combustion capture technology is still in its infancy in power plants. This procedure entails converting fuel to gas and then taking out the CO2. As pre-combustion capture technology is less expensive than alternatives, hence, only newly built facilities have seen an increase in demand for pre-combustion carbon capture and storage services.
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Prominent Carbon Capture and Storage (CCS) manufacturers are Exxon Mobil Corporation, Halliburton, Hitachi, Honeywell International, JGC Holdings Corporation, Mitsubishi Heavy Industries, Ltd., Royal Dutch Shell, and Schlumberger Limited.
Companies like Calpine, Chevron, Dow, and 8 others, for instance, have pledged to start searching options that could result in the capture and safe storage of up to 50 million TPY of CO2 by 2030 and approximately 100 million TPY by 2040 in Houston's Industrial sector. Hence, the market is highly lucrative and long-term trade relations with potential industry operators are likely to offer immense growth opportunities to the market players.
Fact.MR has provided detailed information about the price points of key manufacturers of carbon capture and storage (CCS) positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.
Segmentation of Carbon Capture and Storage (CCS) Market
By Type :
- Direct Air
By Technology :
- Pre-combustion Capture
- Oxy-Fuel Combustion Capture
- Post Combustion Capture
By Service Type :
By Application :
- Oil & Gas
- Iron & Steel
- Building & Construction
- Chemical & Petrochemical
By Region :
- North America
- Latin America
- East Asia
- South Asia & Oceania
- FAQs -
In 2023, the market for carbon capture and storage (CCS) worldwide will be worth US$ 2.9 billion.
By the end of 2033, it is estimated that demand for carbon capture and storage (CCS) will reach US$ 10.2 billion worldwide.
The market is expected to propel at a CAGR of 13.4% owing to increasing concerns over increased carbon in the environment.
With a 38.2% share of the global market for CCS, North America dominates the market.
The oil & gas industry is the most prominent industry to deploy carbon capture and storage infrastructure to limit the emission of carbon into the atmosphere.