Carbon Capture and Storage Market Size By Technology (Pre Combustion, Post Combustion, Oxy-Fuel Combustion), By Application (Oil and Gas, Chemical Processing, Power Generation) & Forecast, 2024 - 2032

Carbon Capture and Storage Market Size

Carbon Capture and Storage Market size exceeded USD 6.8 billion in 2023 and is projected to expand at more than 19% CAGR from 2024 to 2032.
 

A steady rollout of strict government regulations to reduce GHG emissions worldwide is set to positively shape the industry scenario. For instance, in May 2022, the U.S. government invested USD 2.3 billion to cut carbon pollution in the country. Such proactive emission control initiatives are creating a strong impetus for innovations in the field of carbon capture technologies. In July 2022, the UK government announced an investment of more than £54 million (~USD 66 million) towards projects aimed at developing innovative CO2 removal technologies.
 

Heavy installation costs of CCS projects may impede business growth

The high capital investments costs of carbon capture and storage projects is likely to hold back the industry outlook. The relatively complex nature of CCS projects also commands a high initial investment, restricting product adoption. Carbon capture projects also require more assistance for operating capture and storage units. The cost of carbon capture varies greatly between different sources ranging from USD 15 – USD 25/t CO2 for industrial processes, producing pure CO2 streams, to USD 40- USD 120/t CO2 for processes with dilute gas streams. Moreover, the highly expensive nature of direct-from-air capture systems presents further entry barriers to the market.
 

Carbon Capture and Storage Market Analysis

Based on application, the chemical processing segment held over 4% share of the carbon capture and storage market in 2022. Going ahead, the segment is likely to see notable growth from rigorous government efforts to help market players develop, accelerate, and reduce risk in the carbon capturing process while performing chemical operations. CCS systems are consistently and exponentially used in chemical processing plants, that emit gas streams, and fertilizer and ethanol production operations, which have significant emissions as well. In 2021, the U.S. alone produced over 15 billion gallons of ethanol, creating strong demand for CCS systems.
 

Asia Pacific carbon capture and storage market size surpassed USD 1 billion in 2022. This growth is attributed to the rising regional government focus on controlling industrial emissions from the food and beverages, cement, and chemical sectors. APAC is home to some of the most populous countries in the world, with many acting as manufacturing hubs for the rest of the world. Consequently, many countries in the region face high pollution levels, which presents an ideal growth opportunity for the market. In some countries, government efforts are being extensively aimed at carbon capture and sequestration initiatives towards applicable industries.
 

In June 2022, for instance, ExxonMobil, CNOOC, Shell, and China’s Guangdong Provincial Development & Reform Commission signed a MoU to assess the feasibility of world-scale CCS project to reduce harmful emissions in the Guangdong Province, which is one of the country’s largest industrial areas.