Carbon Capture Utilization Market Size (2024 – 2030)

The Global Carbon Capture Utilization Market was valued at USD 2.87 Billion and is projected to reach a market size of USD 9.98 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 19.5%.

This increase is being driven by the pressing need to reduce carbon emissions and the growing adoption of sustainable practices in all industries. Carbon capture, utilisation, and storage is the process of extracting carbon dioxide from fuel combustion or industrial processes, conveying it by ship or pipeline, and either converting it into useful products or services or permanently burying it deep underground in geological formations. CCUS technologies also set the framework for carbon removal or "negative emissions" when CO2 is created through bio-based processes or extracted directly from the atmosphere. Global demand for carbon capture, utilisation, and storage is primarily driven by an increasing emphasis on reducing CO2 emissions, government initiatives, and rising demand for CO2-EOR technology. Rapid worldwide development has resulted in higher CO2 emissions. To reduce the carbon footprint, governments in industrialised and developing countries such as the United States, the Netherlands, the United Kingdom, China, and India are constructing a large number of CO2 capture and storage plants. This factor is expected to drive the growth of the carbon capture, utilisation, and storage market over the forecast period. Furthermore, as technology advances, offshore oil and gas exploration and production operations are increasing, encouraging the adoption of gas injection-enhanced oil recovery. This refers to the usage of carbon dioxide during crude oil extraction. The maturation and depletion of oil reservoirs are expected to drive the use of gas injection EOR techniques for both onshore and offshore wells. As a result, the increasing demand for CO2 for EOR activities in the oil and gas industry is expected to drive carbon capture, utilisation, and storage growth over the projection period.

Key Market Insights:

To address the high costs and difficulties of massive carbon capture and storage (CCS) projects, businesses are banding together. These alliances seek to share the financial burden (CAPEX) and simplify project execution through more efficient regional agreements. A well-known instance is the Northern Lights CCS project, a multi-company endeavor with an initial expenditure of more than $680 million. This project aims to be the first large-scale CO2 storage and transit center, beginning with capturing and storing 1.5 million tonnes of CO2 per year.

Many governments are making significant expenditures in researching novel technologies for efficiently extracting carbon from a variety of sources. Furthermore, the groups intend to collect data on novel storage and use locations for sequestered gases. They also help to design numerous carbon capture methods. For example, in July 2020, the US Department of Energy (DoE) announced $11.5 million in funding for the FLExible Carbon Capture and Storage (FLECCS) project. The concept involves building new natural gas power plants and repairing existing ones that fulfill carbon capture and sequestration standards.

Global Carbon Capture Utilization Market Drivers:

Urgent Need for Carbon Mitigation Technologies to Address Rising Emissions and Government Action.

Stringent government rules aimed at stabilizing climate change and lowering carbon emissions have increased demand for solutions that can reduce carbon footprints, particularly in power plants. As governments around the world implement stricter regulations and initiatives, the demand for carbon-reducing technologies is expected to skyrocket, spurring innovation and investment in carbon capture and storage, renewable energy adoption, energy efficiency improvements, and the transition to low-carbon fuel sources.

CO₂ Enhanced Oil Recovery (EOR) projects are transforming the industry dynamics.

Enhanced oil recovery (EOR) is a critical tertiary technology used to retrieve more than 65% of the total recoverable oil in place that remains unrecovered after the primary and secondary stages. This procedure is critical for increasing oil output from aging fields and extending their economic life. Furthermore, with increased worries about climate change and the need to minimize carbon dioxide emissions connected with fossil fuel production and use, demand for carbon capture and storage (CCUS) technology is increasing. Such projects not only help to reduce carbon emissions but also showcase creative approaches to sustainable energy practices in the oil and gas business.

Global Carbon Capture Utilization Market Restraints and Challenges:

The carbon capture and sequestration market faces potential roadblocks due to the high initial costs and feasibility issues associated with new initiatives. Establishing large-scale carbon capture and sequestration systems requires significant financial investment, which limits industry expansion. Furthermore, many projects necessitate large annual operations expenses to keep systems running at peak performance, which adds to the financial load. Furthermore, the feasibility of building high-capacity facilities capable of capturing multi-million metric tonnes per annum (MTPA) of CO2 remains a limiting constraint, inhibiting technological adoption in a variety of industries. These limitations highlight the need for novel finance approaches and technology developments to break down barriers and promote wider adoption of carbon capture and sequestration systems.

Global Carbon Capture Utilization Market Opportunities:

The carbon capture, utilisation, and storage (CCUS) industry is growing rapidly, owing to several driving reasons and possibilities. A primary focus on CO2 emissions reduction, along with strong government backing worldwide, is driving investments and activities to reduce carbon footprints across industries. Particularly noteworthy is the growing demand for CO2-enhanced oil recovery (CO2-EOR) techniques, which not only improve oil extraction efficiency but also contribute to carbon sequestration. The Asia-Pacific (APAC) region is developing as a prominent participant in the CCUS industry, with a substantial number of projects scheduled for execution. This region's growing industrialization and urbanisation, combined with rigorous environmental rules, are encouraging the use of CCUS technologies. Furthermore, ongoing expenditures in research and development are encouraging the innovation of capture technologies, allowing for more cost-effective and economically feasible operations. As the worldwide focus on sustainability grows, the CCUS market is poised for significant expansion, providing lucrative potential for stakeholders from a variety of industries to contribute to carbon emission reduction and environmental preservation.

CARBON CAPTURE UTILIZATION MARKET REPORT COVERAGE:

Global Carbon Capture Utilization Market Segmentation: By Service

• Capture

• Transportation

• Utilization

• Storage

The Global Carbon Capture Utilization Market Segmented by Services, Utilization held the largest market share last year and is poised to maintain its dominance throughout the forecast period. The global carbon capture, utilisation, and storage (CCUS) market is likely to grow significantly throughout the forecast period, owing to several key drivers. The increasing rate of industrialization around the world, combined with significant investment in manufacturing facilities, is expected to be the primary driver of market expansion. Furthermore, government initiatives aimed at reducing greenhouse gas emissions in various industries will boost demand for CCUS technology during the projected period. Notably, the implementation of enhanced oilfield recovery plans unintentionally releases carbon dioxide during the extraction process, necessitating its capture and storage, hence driving the CCUS business.

Global Carbon Capture Utilization Market Segmentation: By Technology

• Capture Technologies

  • Pre-Combustion Capture

  • Oxy-Fuel Combustion Capture

  • Post-Combustion Capture

  • Advance-Capturing Technology-Chemical Looping

• Direct Air Capture

• Utilization Technologies - Solvents & Sorbents

• Bio-Energy CCS

The Global Carbon Capture Utilization Market is segmented by Technology, Capture Technologies held the largest market share last year and is poised to maintain its dominance throughout the forecast period. Capture technologies dominate the Carbon Capture Utilisation market since they serve as the initial phase in the CCUS process. Without absorbing CO2 emissions, there is nothing to use or store. Furthermore, capture methods such as amine scrubbing are more established than newer utilisation technologies, making them easier to adopt across industries. Finally, capture can function autonomously; captured CO2 can be sold or stored even if no perfect utilisation alternative exists. This adaptability makes capture an important investment for enterprises looking to decrease their carbon footprint, ensuring its dominant market share until utilisation technologies mature.

Global Carbon Capture Utilization Market Segmentation: By End User Industry

• Oil & Gas

• Chemical & Petrochemical

• Cement

• Power Generation

• Iron & Steel

• Others

The Global Carbon Capture Utilization Market is segmented by End User, Oil and Gas held the largest market share last year and is poised to maintain its dominance throughout the forecast period. The oil and gas industry dominates the Carbon Capture Utilisation market due to two main reasons. First, collected CO2 is a useful resource for Enhanced Oil Recovery (EOR), which involves injecting it into depleted reservoirs to extract more oil, increasing output and providing a clear economic advantage. Second, tightening greenhouse gas emission rules put pressure on oil and gas corporations to clean up their act. CCUS offers a solution that enables them to maintain operations while lowering their carbon footprint. Because of this unique mix of economic advantage and environmental compliance, oil and gas companies are at the forefront of CCUS technology adoption.

Global Carbon Capture Utilization Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

The Global Carbon Capture Utilization Market is segmented by Region, North America held the largest market share last year and is poised to maintain its dominance throughout the forecast period. North America has a well-established oil and gas industry, with Enhanced Oil Recovery (EOR) projects being particularly prominent. In this environment, Carbon Capture, Utilisation, and Storage (CCUS) emerge as critical, particularly in the sphere of EOR, making it an appealing technology for regional oil and gas companies. Government assistance strengthens this position even further, as North American administrations indicate their commitment to CCUS development through funding programs and supportive regulations. Such backing fosters a favourable financial and legal climate, encouraging businesses to invest in and implement CCUS technologies. Concurrently, there is a rising realisation of the need for carbon capture solutions to line with climate targets, which is driving increased investment and innovation in CCUS systems across North America.

Europe is the fastest-growing segment of Carbon Capture Utilization. Governments in Europe have imposed tough greenhouse gas emissions rules, prompting corporations to adopt low-carbon technology such as Carbon Capture, Utilisation, and Storage (CCUS) to meet environmental standards. The region's strong emphasis on sustainability and environmental responsibility adds to the appeal of CCUS as a solution for enterprises looking to minimise their carbon footprint while meeting consumer aspirations for eco-friendly practices. Furthermore, European governments actively assist CCUS development through significant financing programmes and favourable legislation, hastening the spread and use of CCUS technology across the continent.

COVID-19 Impact Analysis on the Global Carbon Capture Utilization Market:

The global pandemic has emerged as the most serious health threat, halting practically all activities across industries. The coronavirus infection has stymied practically all economies, forcing many countries to go into lockdowns to contain the spread. While this issue is likely to be remedied swiftly, climate change must be addressed long-term with strong action. However, the main issue that industry professionals face is the need for huge capital expenditures (CAPEX) to put up new carbon capture units. Furthermore, the unexpected drop in international crude oil prices has hampered chances for maximising hydrocarbon output through CO₂-based EOR activities. Still, the financial booster measures announced by various administrations to promote the economic revival, together with a good perspective towards industrial decarbonisation, will supplement the stability in this sector.

Latest Trends/ Developments:

The global carbon capture utilisation industry is witnessing interesting transformations. The emphasis is changing away from simply storing captured CO2, with new methods emerging for both capture and utilisation. The global number of CCUS projects is increasing, owing to stronger environmental restrictions and government incentives. While North America remains the market leader, Europe is seeing the quickest growth due to its climate goals and sustainability focus. This momentum suggests that CCUS will play a significant role in lowering carbon emissions as the technology advances and becomes more widely adopted.

Key Players:

1. ROYAL DUTCH SHELL PLC

2. EXXON MOBIL CORPORATION

3. HONEYWELL INTERNATIONAL INC.

4. MITSUBISHI HEAVY INDUSTRIES, LTD.

5. FLUOR CORPORATION

6. AKER SOLUTIONS

7. Schlumberger Limited

8. JGC HOLDINGS CORPORATION

9. LINDE PLC

10. HALLIBURTON