Direct Air Capture (DAC) Systems Market Size (2026-2030)

The Global Direct Air Capture (DAC) Systems Market was valued at USD 170 million in 2025 and is projected to reach a market size of USD 2,142 million by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 66%.

Direct Air Capture systems are engineered technologies designed to remove carbon dioxide directly from ambient air. These systems use sorbents, solvents, or electrochemical processes to capture CO₂ molecules, then compress and condition them for storage or utilization. Unlike point‑source capture, DAC targets diffuse emissions, making it a critical tool for achieving net‑zero goals. The systems are modular, allowing flexible deployment near renewable energy sources or sequestration hubs. Their design emphasizes efficiency, durability, and scalability, with performance validated through measurement, reporting, and verification frameworks. DAC projects are increasingly supported by long‑term offtake contracts, policy incentives, and corporate demand for durable carbon removal credits. Developers focus on balancing capture efficiency with energy intensity to ensure net‑negative outcomes. Early deployments provide valuable operational data, guiding improvements in materials, process integration, and automation. The market is transitioning from pilot projects to commercial facilities, with emphasis on reliability, cost reduction, and standardized interfaces. DAC is positioned as a cornerstone of climate mitigation strategies, enabling permanent removal of atmospheric carbon dioxide while creating pathways for utilization in fuels, materials, and industrial applications. Its role is expanding as governments, investors, and corporations prioritize credible, scalable solutions for climate commitments.

Key Market Insights:

• By 2050, global carbon dioxide removal capacity must reach 6-10 gigatonnes annually to align with Paris Agreement pathways.
• Around 2.47 million tonnes of DAC credits have been contracted globally between 2022 and the first half of 2025.
• Current removal capacity is far below requirements, with only ~2 billion tonnes annually achieved today, highlighting urgent scale‑up needs.
• Durable technology‑based removals (including DAC) are essential, as they store CO₂ permanently with minimal risk of rerelease.
• Only 1,186 tonnes (~0.05%) of contracted DAC credits had been delivered by mid‑2025, highlighting scale‑up challenges in commercial deployment.
• North America accounted for 46.79% of DAC revenues in 2024, driven by strong policy support and infrastructure development.
• Asia‑Pacific DAC activity is accelerating, with governments funding pilot projects and renewable integration, positioning the region as the fastest growing.
• DAC currently represents ~8% of contracted durable carbon removal, showing its growing but still limited share of global carbon removal portfolios.
• Software firms purchased 38% of DAC credits, followed by transport at 17% and entertainment at 14%, reflecting diverse sectoral demand.

Market Drivers:

Policy momentum and durable carbon removal demand are the primary drivers of the Global Direct Air Capture (DAC) Systems Market.

Global climate strategies increasingly prioritize durable carbon removal, creating strong demand for DAC systems. Governments are introducing tax credits, subsidies, and funding programs to accelerate deployment. Buyers seek high‑quality credits with permanence and transparent verification, making DAC attractive compared to short‑term offsets. Multi‑year offtake agreements provide financial stability and encourage investment in large‑scale facilities. Standardized measurement and reporting frameworks build trust among stakeholders, reducing risk for financiers. International coalitions and climate forums promote best practices, aligning procurement standards across regions. As contracted volumes grow, confidence in DAC’s reliability strengthens. This policy and demand momentum ensures DAC remains central to achieving net‑zero targets, driving market expansion and encouraging innovation across capture technologies.

Technology progress and learning‑curve cost reduction are another driver of the Global Direct Air Capture (DAC) Systems Market.

Technology progress in sorbent chemistry, solvent regeneration, and electrochemical methods are improving capture efficiency and reducing energy requirements. Modular system designs simplify deployment, shorten timelines, and enable replication across geographies. Integration of capture, compression, and conditioning processes enhances reliability and lowers operational losses. Automation and predictive maintenance improve uptime while reducing costs. Co‑location with renewable energy sources minimizes lifecycle emissions, strengthening environmental integrity. Manufacturing scale and standardized components unlock learning‑curve benefits, driving down costs per tonne captured. Transparent operational data accelerates design improvements and strengthens performance guarantees. These technological advances, combined with disciplined execution, are steadily reducing barriers to commercial adoption. As costs decline and reliability improves, DAC systems are positioned for broader global deployment.

Market Restraints and Challenges:

Major restraint in the Direct Air Capture (DAC) systems market is the high energy requirements for DAC systems. Access to low‑carbon heat and electricity is limited in many regions, complicating siting decisions and lifecycle emissions. Sorbent degradation and replacement cycles increase operating costs, while specialized equipment supply chains can delay projects. Financing is complex, requiring robust verification, performance guarantees, and long‑term buyer commitments. Delivered volumes remain small compared to contracted credits, highlighting execution risks during scale‑up. Regulatory compliance, grid integration, and storage logistics add further complexity. These challenges demand careful planning, phased deployment, and conservative assumptions to de‑risk projects. Overcoming energy intensity and reliability issues is essential for DAC to achieve meaningful scale and deliver durable climate benefits.

Market Opportunities:

Significant opportunities exist in co‑locating DAC facilities with sequestration hubs and renewable energy sources. This integration reduces emissions and streamlines logistics. DAC can also support carbon utilization pathways, producing synthetic fuels, building materials, and chemical feedstocks. Long‑term offtake agreements across diverse industries expand demand and improve project bankability. Standardized modular systems enable rapid replication, supporting international expansion. Partnerships with utilities and industrial clusters accelerate permitting and reduce costs through shared infrastructure. Emerging carbon markets reward durability and transparency, allowing DAC credits to command premium pricing. Public‑private collaborations provide blended finance and de‑risk early projects. Together, these opportunities position DAC as a scalable solution for climate mitigation and industrial innovation.

DIRECT AIR CAPTURE (DAC) SYSTEMS MARKET REPORT COVERAGE:

Direct Air Capture (DAC) Systems Market Segmentation:

Direct Air Capture (DAC) Systems Market Segmentation By Technology

• Solid sorbent DAC
• Electrochemical DAC
• Liquid solvent DAC
• Cryogenic and membrane‑based DAC
• Others

Solid sorbent DAC systems dominate the market because they provide high capture efficiency and modular scalability. These systems use engineered sorbents, often amine‑functionalized materials, to selectively bind carbon dioxide molecules from ambient air. Their modular design allows flexible deployment near renewable energy sources or sequestration hubs. Solid sorbent systems are favoured for their relatively lower energy requirements compared to liquid solvent alternatives. They also benefit from ongoing material innovations that improve adsorption capacity and regeneration cycles. Early commercial plants have demonstrated reliable performance, strengthening investor confidence. Transparent measurement and verification frameworks further support adoption. As demand for durable carbon removal grows, solid sorbent DAC remains the most widely deployed and trusted technology segment globally.

Electrochemical DAC systems are the fastest growing technology segment due to their potential for lower energy intensity and innovative design. These systems use electro-swing adsorption or ion‑exchange processes to capture carbon dioxide with high selectivity. They can operate efficiently when paired with renewable electricity, reducing lifecycle emissions. Electrochemical DAC is attractive because it avoids high‑temperature regeneration, lowering operational costs. Startups and research institutions are advancing prototypes, supported by strong venture funding and pilot deployments. The modular nature of electrochemical systems enables rapid scaling and integration with distributed energy grids. As performance data accumulates, confidence in reliability increases. Electrochemical DAC is expanding faster than other technology pathways, with growing emphasis on energy efficiency and cost reduction.

Direct Air Capture (DAC) Systems Market Segmentation By Energy Source

• Renewable electricity
• Low‑carbon heat
• Hybrid energy integration
• Others

Renewable electricity is the largest energy source segment supporting DAC systems because it ensures low lifecycle emissions and aligns with climate goals. DAC facilities powered by wind, solar, or hydropower achieve net‑negative outcomes by minimizing fossil fuel reliance. Renewable electricity provides consistent supply for modular DAC units, especially in regions with strong renewable infrastructure. Buyers and regulators increasingly demand carbon removal credits backed by clean energy, reinforcing adoption. Co‑location strategies with renewable farms reduce transmission losses and improve efficiency. Policy incentives and renewable integration programs further accelerate deployment. As renewable penetration expands globally, DAC projects powered by clean electricity remain dominant, offering credibility, scalability, and environmental integrity for long‑term carbon removal commitments.

Low‑carbon heat is the fastest growing energy source segment because it addresses the thermal requirements of DAC processes. Technologies such as geothermal, waste heat recovery, and electrified heat are being integrated into DAC facilities. Low‑carbon heat reduces dependence on fossil fuels while ensuring efficient sorbent regeneration cycles. Governments and industrial clusters are promoting waste heat utilization, creating synergies between DAC and existing infrastructure. Geothermal resources provide stable, long‑term supply, making them attractive for large‑scale projects. As innovation in electrified heating advances, costs are declining, and adoption is accelerating. The combination of reliability, sustainability, and policy support positions low‑carbon heat as the fastest growing energy source segment in the DAC systems market.

Direct Air Capture (DAC) Systems Market Segmentation By Application

• Carbon capture and storage (CCS)
• Carbon capture, utilization, and storage (CCUS)
• Carbon management services
• Industrial CO₂ supply
• Others

Carbon Capture and Storage is the largest application segment because it provides permanent sequestration of captured carbon dioxide. DAC systems integrated with CCS inject CO₂ into deep geological formations, ensuring long‑term durability. Buyers prefer CCS because it delivers high‑quality credits with permanence, meeting strict climate commitments. Governments support CCS through tax incentives, funding programs, and regulatory frameworks. Large‑scale sequestration hubs are being developed to streamline logistics and reduce costs. CCS projects benefit from established infrastructure and proven methodologies, making them reliable for commercial deployment. As demand for durable removal grows, CCS remains the dominant application, offering credibility, scalability, and alignment with net‑zero strategies across industries and regions worldwide.

Carbon Capture, Utilization, and Storage is the fastest growing application segment because it creates economic value from captured carbon dioxide. CCUS enables production of synthetic fuels, building materials, and chemical feedstocks, expanding market opportunities. Industrial clusters are exploring CCUS to reduce emissions while generating revenue streams. Partnerships between DAC developers and manufacturing sectors accelerate adoption. Policy frameworks increasingly support utilization pathways, recognizing their role in circular economy strategies. Technological advances are improving conversion efficiency, lowering costs, and expanding applications. As industries seek both sustainability and profitability, CCUS adoption is rising rapidly. This dual benefit of climate mitigation and economic value positions CCUS as the fastest growing application segment in the DAC market.

Direct Air Capture (DAC) Systems Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

North America is the largest regional segment due to strong policy support, funding programs, and corporate demand. The United States leads with tax credits, subsidies, and public‑private partnerships that de‑risk DAC projects. Large buyers, including technology and energy firms, have signed multi‑year offtake agreements, stabilizing revenue streams. North America hosts several operational DAC plants, providing valuable performance data and building investor confidence. Infrastructure for sequestration hubs and renewable energy integration further strengthens deployment. Transparent verification frameworks and regulatory alignment enhance credibility. North America remains the dominant region, driving global leadership in DAC commercialization and long‑term climate mitigation strategies, with robust capital access, advanced research institutions, and supportive policies.

Asia‑Pacific is the fastest growing regional segment due to rising climate commitments and expanding renewable infrastructure. Countries such as China, Japan, and Australia are investing heavily in DAC research and pilot projects. Rapid industrialization and urbanization create strong demand for carbon removal solutions. Governments are introducing supportive policies, funding programs, and partnerships with global developers. Asia‑Pacific benefits from abundant renewable resources, enabling integration of DAC with clean energy. Industrial clusters are exploring CCUS applications, creating synergies between DAC and manufacturing sectors. As awareness of climate risks grows, adoption is accelerating across the region. Asia‑Pacific is emerging as the fastest growing DAC market globally, with strong policy momentum and technological collaboration.

COVID-19 Impact Analysis:

COVID‑19 disrupted supply chains, delayed component deliveries, and complicated commissioning of DAC projects. Travel restrictions hindered on‑site testing and verification, slowing operational learning. Investor caution temporarily extended fundraising cycles. However, stimulus programs and climate recovery initiatives renewed momentum, emphasizing durable carbon removal. Developers adopted modular designs to reduce field exposure and improve manufacturability. Remote monitoring and digital tools enhanced resilience, enabling faster troubleshooting. Buyers prioritized transparent verification and long‑term contracts to stabilize demand during uncertainty. The pandemic shifted focus from aspirational timelines to disciplined execution, strengthening operational reliability. As supply chains normalized, DAC projects emerged more resilient, with improved processes and stronger investor confidence in long‑term climate outcomes.

Latest Trends and Developments:

Contracted DAC credits are increasing rapidly, though delivered volumes remain limited, reflecting scale‑up challenges. Buyers are signing multi‑year agreements with strict verification requirements. Solid sorbent, liquid solvent, and electrochemical technologies are advancing through material innovation and process integration. Modular, factory‑built systems are gaining traction for faster deployment. Co‑location strategies with renewable energy and storage hubs reduce lifecycle emissions. Policy support is expanding globally, encouraging commercial offtakes and standardized reporting. Industry benchmarking and transparent disclosures are building trust among buyers and financiers. As operational data accumulates, performance guarantees strengthen, enabling more favourable financing terms. These developments mark a transition from pilot projects to commercial execution, positioning DAC as a credible climate solution.

Key Players in the Market:

1. Climeworks AG
2. Occidental Petroleum Corporation (Oxy)
3. Heirloom Carbon Technologies, Inc.
4. CarbonCapture Inc.
5. Zero Carbon Systems, Inc.
6. Verdox, Inc.
7. Mission Zero Technologies Ltd.
8. Carbyon B.V.
9. AirCapture LLC
10. Skytree B.V.

Latest Market News:

• February 2025: Occidental Petroleum’s STRATOS Direct Air Capture facility, developed with Carbon Engineering, is 94% complete and set to launch in 2025. Positioned as the world’s largest DAC plant, STRATOS will remove CO₂ directly from the atmosphere for permanent storage or enhanced oil recovery. The project represents a major milestone in global carbon removal efforts, combining scalability, cost efficiency, and technological innovation to advance net-zero climate strategies.
• October 2025: Climeworks advanced its Direct Air Capture initiatives through new long-term partnerships and strategic projects. The company expanded collaborations with global corporations, reinforcing DAC as a credible carbon removal solution. These initiatives focus on scaling modular plants, improving efficiency, and securing multi‑year offtake agreements. Climeworks’ efforts highlight growing confidence in DAC technologies, positioning the firm as a leader in delivering durable, high‑quality carbon removal worldwide.