Carbon Capture and Storage (CCS) Market Size (2024 – 2030)

The Global Carbon Capture and Storage (CCS) Market was valued at USD 5.56 billion and is projected to reach a market size of USD 14.08 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 14.19%.

Carbon Capture and Storage (CCS) involves capturing carbon dioxide (CO2) emissions from industrial processes or power plants, transporting it to a storage site, and securely storing it underground to prevent its release into the atmosphere. Industries such as power generation, cement manufacturing, and steel production are among the major contributors to CO2 emissions. Thus they actively seek CCS solutions. The Carbon Capture and Storage (CCS) Market is expected to grow significantly in the coming years due to increasing recognition of the importance of carbon emissions reduction in combating climate change. The major well-established key players in the Carbon Capture and Storage (CCS) Market are
Shell, ExxonMobil, Chevron, TotalEnergies, and BP

Key Market Insights:

The demand for CCS technologies has been increasing globally. This is driven by government regulations aimed at reducing greenhouse gas emissions and achieving climate targets. Government regulations, technological advancements, industry demand, financial incentives, and global expansion are propelling the Carbon Capture and Storage (CCS) Market. The restraints to the Carbon Capture and Storage (CCS) Market include the high costs, economic viability, regulatory uncertainty, public acceptance, CO2 storage risks, and infrastructure requirements. Ongoing advancements in technology have improved the efficiency and cost-effectiveness of CCS technologies. North America occupies the highest share of the Carbon Capture and Storage (CCS) Market. Asia-Pacific is the fastest-growing segment during the forecast period.

Carbon Capture and Storage (CCS) Market Drivers:

Government Regulations drive the demand for Carbon Capture and Storage (CCS) Market

Government regulations play a significant role by imposing strict emissions reduction targets and implementing carbon pricing mechanisms. The regulations create a financial incentive for industries to invest in CCS projects as a means of complying with emissions standards and avoiding penalties. Governments offer subsidies, tax incentives, or grants to support the development and deployment of CCS infrastructure. Regulatory frameworks such as emissions trading systems and carbon taxes incentivize industries to reduce their carbon footprint, spurring demand for CCS solutions. Governments worldwide intensify their efforts to combat climate change, the regulatory environment is expected to continue driving growth in the CCS market.

Technological Advancements are propelling the Carbon Capture and Storage (CCS) Market

Continuous advancements in CCS technologies are enhancing their efficiency, reliability, and cost-effectiveness. This makes them more attractive options for industries seeking to decarbonize their operations. Innovations in carbon capture techniques, such as solvent-based capture, membrane separation, and solid sorbent capture, are reducing energy consumption and operational costs. This increases capture rates. Improvements in CO2 transportation methods, such as pipeline networks and shipping technologies, are enhancing the reliability and safety of CO2 transport to storage sites. Advancements in geological storage technologies, including site characterization, monitoring, and verification techniques, are improving the understanding and management of CO2 storage reservoirs. This reduces the risks associated with long-term storage. These technological advancements are driving down the overall cost of CCS deployment. This expands its applicability across various industries. This is driving growth in the global CCS market.

Carbon Capture and Storage (CCS) Market Restraints and Challenges

The major challenge faced by the Carbon Capture and Storage (CCS) Market is its high upfront costs. The capital investment required for building carbon capture facilities, transportation infrastructure, and storage sites can be significant. This deterring some industries from adopting CCS technologies, especially in the absence of sufficient financial incentives. The other restraints to the Carbon Capture and Storage (CCS) Market include economic viability, regulatory uncertainty, public acceptance, CO2 storage risks, and infrastructure requirements.

Carbon Capture and Storage (CCS) Market Opportunities:

The Carbon Capture and Storage (CCS) Market has various opportunities in the market. Government incentives such as subsidies and tax credits encourage investment in CCS projects and accelerate market growth. Technological innovation in carbon capture, transportation, and storage can improve efficiency and reduce costs. This makes CCS more competitive with other low-carbon alternatives. Carbon pricing mechanisms, such as carbon taxes or emissions trading systems, can provide financial incentives for industries to invest in CCS. Enhanced policy support, including regulatory frameworks and long-term carbon reduction targets, can create a favorable environment for CCS deployment. International partnerships and cooperation agreements can facilitate the exchange of best practices, technology transfer, and funding opportunities.

CARBON CAPTURE AND STORAGE MARKET REPORT COVERAGE:

Carbon Capture and Storage (CCS) Market Segmentation: By Technology Type

• Pre-combustion capture

• Post-combustion capture

• Oxy-fuel combustion

• Direct air capture

In 2023, based on market segmentation by Technology Type, Post-combustion capture occupies the highest share of the Carbon Capture and Storage (CCS) Market. This is mainly due to its applicability to existing power plants and industrial facilities without major modifications.

However, direct air capture is the fastest-growing segment during the forecast period and is projected to grow at a CAGR of 15%. This is due to its potential to capture CO2 directly from the atmosphere, offering flexibility and scalability in combating climate change across various sectors.

Carbon Capture and Storage (CCS) Market Segmentation: By Storage Type

• Geological storage

  • Depleted oil and gas reservoirs

  • Saline aquifers

• Ocean storage

• Mineralization

In 2023, based on market segmentation by Storage Type, the Geological storage segment occupies the highest share of the Carbon Capture and Storage (CCS) Market. This is mainly due to its well-established infrastructure and proven suitability for long-term CO2 storage.

However, the Saline aquifers are the fastest-growing segment during the forecast period. This is mainly due to their vast storage capacity and potential for widespread utilization in CCS projects, especially as advancements in technology make saline aquifer storage more accessible and economically viable.

Carbon Capture and Storage (CCS) Market Segmentation: By End-Use Industry

• Power generation

• Oil and gas

• Cement production

• Iron and steel manufacturing

• Chemical processing

In 2023, based on market segmentation by End-Use Industry, the Power generation segment occupies the highest share of the Carbon Capture and Storage (CCS) Market. This is mainly due to the increasing significant CO2 emissions associated with electricity generation.

However, Cement production is the fastest-growing segment during the forecast period. This growth is driven by increasing regulatory pressures and industry initiatives to reduce emissions in the cement manufacturing process, which is one of the largest industrial sources of CO2 emissions globally.

Carbon Capture and Storage (CCS) Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

In 2023, based on market segmentation by region, North America occupies the highest share of the Carbon Capture and Storage (CCS) Market. This growth is due to its extensive industrial base, supportive regulatory environment, and technological advancements in CCS. North America is a technologically advanced region with a well-established infrastructure for CO2 transportation and geological storage, further facilitating the deployment of CCS projects. The United States and Canada hold a significant share of the CCS market due to its mature industrial sector, abundant fossil fuel resources, and supportive regulatory frameworks. However, Asia-Pacific is the fastest-growing segment during the forecast period. This is mainly due to rapid industrialization, increasing energy demand, and government initiatives aimed at addressing climate change and reducing carbon emissions in countries like China, Japan, and South Korea. Countries like China, India, South Korea, Japan, and Australia, have significant market share due to rapid industrialization, increasing energy demand, and ambitious climate targets set by governments in the region.

COVID-19 Impact Analysis on the Global Carbon Capture and Storage (CCS) Market:

The COVID-19 pandemic had a significant impact on the Carbon Capture and Storage (CCS) Market. There were lockdowns and safety restrictions. The pandemic disrupted supply chains, workforce availability, and project financing. This led to delays in the development and implementation of CCS projects. Many planned CCS initiatives faced postponements or cancellations as companies reassessed their investment priorities and navigated economic uncertainties. The pandemic reduced industrial activity and energy demand. This led to temporary declines in greenhouse gas emissions, including CO2. The pandemic stimulated innovation and adaptation in the CCS sector. Companies and research institutions accelerated efforts to develop advanced CCS technologies, such as direct air capture and carbon utilization, as part of broader strategies to address climate change. Thus, the pandemic accelerated certain trends in the Carbon Capture and Storage (CCS) Market.

Latest Trends/ Developments:

One of the developments, in the Carbon Capture and Storage (CCS) Market is the rise in investment and funding directed towards CCS projects globally. This is driven by growing recognition of the importance of carbon emissions reduction in combating climate change. Direct Air Capture (DAC) technology has seen significant advancements, with several companies making progress in developing cost-effective and scalable solutions for capturing CO2 directly from the atmosphere. CCS is increasingly integrated with hydrogen production processes, particularly in the context of blue hydrogen production from natural gas. There is growing interest in Carbon Capture Utilization and Storage (CCUS), which involves capturing CO2 emissions and converting them into valuable products or utilizing them in industrial processes.

Key Players:

1. Shell

2. ExxonMobil

3. Chevron

4. TotalEnergies

5. BP

6. Equinor

7. Occidental Petroleum

8. Carbon Engineering

9. Mitsubishi Heavy Industries

10. Air Products

Market News:

• In January 2024, Indonesia implemented CCS rules allowing 30% carbon storage from overseas, with oil and gas contractors utilizing depleted reservoirs or aquifers; Pertamina partners with Exxon Mobil and Chevron for CCS investments, while BP launched a CCS project in West Papua province.

• In January 2024, Elkem ASA completes the carbon-capture pilot project in Rana, Norway, achieving high CO2 capture rates of up to 95% in silicon smelters; aims to strengthen the business case for CCS and reach net zero emissions by 2050, with support from Gassnova CLIMIT and collaboration with industry partners.