Carbon Capture and Sequestration Market

Carbon Capture and Sequestration Market Outlook from 2024 to 2034

The carbon capture and sequestration market is anticipated to be valued at USD 4.2 billion in 2024. The carbon capture and sequestration is predicted to rise at a staggering CAGR of 20.1% from 2024 to 2034. The global market is anticipated to reach USD 26.1 billion by 2034.

Attributes	Key Insights
Estimated Market Size in 2024	USD 4.2 billion
Projected Market Value in 2034	USD 26.1 billion
Value-based CAGR from 2024 to 2034	20.1%

Key Market Trends and Highlights

• Increasing investment and funding from governments, venture capital firms, and private investors support the development and commercialization of CCS technologies.
• The expansion of carbon markets and carbon offset programs creates opportunities for CCS projects to generate revenue through carbon credits.
• Ongoing advancements in carbon capture technologies, including solvent-based, membrane-based, and solid sorbent capture methods, expand the CCS market.

2019 to 2023 Historical Analysis vs. 2024 to 2034 Market Forecast Projections

From 2019 to 2023, the carbon capture and sequestration (CSS) market experienced a remarkable CAGR of 24.2%. This substantial growth can be attributed to several factors, including increasing awareness of climate change, stringent environmental regulations, and growing investments in low-carbon technologies.

Governments and industries worldwide have been increasingly focused on reducing greenhouse gas emissions, driving the adoption of CCS solutions as a key mitigation strategy. Advancements in CCS technologies, supportive government policies, and financial incentives have further propelled market growth during this period.

Looking ahead to the forecasted period of 2024 to 2034, the CCS market is anticipated to grow at a robust CAGR of 20.1%. Despite the slightly moderated growth rate compared to the historical period, this forecasted growth indicates sustained momentum in adopting CCS technologies.

Factors such as continued regulatory support, advancements in capture and storage technologies, and increasing investments in carbon mitigation efforts are expected to drive market expansion during the forecast period. Furthermore, as the global focus on combating climate change intensifies, the demand for CCS solutions is likely to remain strong, positioning the market for continued growth in the coming years.

Historical CAGR from 2019 to 2023	24.2%
Forecast CAGR from 2024 to 2034	20.1%

Carbon Capture and Sequestration Market Drivers

• Growing awareness of climate change and its environmental impacts incentivizes industries to invest in CCS solutions to mitigate carbon dioxide emissions.
• Continuous advancements in CCS technologies enhance efficiency, reduce costs, and improve the feasibility of large-scale deployment.
• Carbon-intensive industries such as power generation, cement production, and oil refining seek CCS solutions to comply with emission regulations and reduce environmental impact.

Carbon Capture and Sequestration Market Challenges

• The high upfront costs of CCS infrastructure, including capture, transportation, and storage, pose financial challenges for project developers and investors.
• Despite advancements, CCS technologies still face technical challenges such as energy consumption, storage capacity, and efficiency, hindering widespread adoption.
• Concerns over safety, environmental risks, and the potential for carbon leakage may lead to public opposition and regulatory hurdles for CCS projects.

Country-wise Analysis

The provided table highlights the top five countries in terms of revenue, with South Korea leading the list.

South Korea has invested substantially in developing advanced CCS technologies, driven by its commitment to combating climate change and reducing greenhouse gas emissions.

The robust technological capabilities, government support, and collaboration with leading industry players have enabled South Korea to develop cutting-edge CCS solutions and establish itself as a global leader in carbon capture initiatives.

Countries	Forecast CAGRs from 2024 to 2034
The United States	20.4%
China	21%
Japan	21.4%
South Korea	22.6%
The United Kingdom	21.8%

Power Generation and Industrial Applications Surge the Market in the United States

The carbon capture and sequestration (CCS) market growth in the United States is primarily utilized across various sectors, including power generation, oil and gas, and industrial manufacturing. CCS technologies are deployed in coal-fired power plants and natural gas facilities to capture carbon dioxide emissions, reducing their environmental impact.

CCS is used in industrial processes such as cement production and steel manufacturing to mitigate greenhouse gas emissions. The United States also invests in CCS projects for enhanced oil recovery (EOR) and carbon utilization initiatives, contributing to the growth of the market.

Emission Reduction in Coal-Fired Power Plants and Heavy Industries in China

The CCS market in China is predominantly utilized in the power generation and industrial sectors, where coal-fired power plants and heavy industries account for significant carbon emissions. CCS technologies are deployed to capture CO2 emissions from coal-fired power plants and industrial facilities, helping China reduce its carbon footprint and meet emission reduction targets.

China invests in CCS projects for carbon utilization applications such as enhanced oil recovery (EOR) and chemical manufacturing, contributing to the expansion of the CCS market.

Transitioning to a Low-Carbon Economy through CCS Deployment Fuels the Japan Market

In Japan, the CCS market is primarily used in the power generation and industrial sectors. CCS technologies are deployed to capture CO2 emissions from coal-fired power plants, natural gas facilities, and industrial processes.

Committing to reducing greenhouse gas emissions and transitioning to a low-carbon economy drives investment in CCS projects and research initiatives. Japan explores CCS applications for carbon utilization, including EOR and chemical synthesis, further enhancing the utilization of CCS technologies in the country.

Technological Innovation and Sustainability in CCS Drives the Market in South Korea

The CCS market is majorly utilized in the power generation, industrial, and transportation sectors. CCS technologies are deployed in coal-fired power plants, steel manufacturing facilities, and petrochemical industries to capture CO2 emissions and reduce environmental impact.

The strong focus on technological innovation and sustainability drives investment in CCS projects and research initiatives. South Korea explores CCS applications for carbon utilization in EOR and chemical synthesis, contributing to the growth of the CCS market in the country.

Decarbonization Efforts and CCS Integration Boost the United Kingdom Market

In the United Kingdom, the CCS market is predominantly utilized in the power generation and industrial sectors. CCS technologies are deployed to capture CO2 emissions from coal-fired power plants, natural gas facilities, and industrial processes.

Committing to decarbonization and achieving net-zero emissions targets drives investment in CCS projects and research initiatives. The United Kingdom explores CCS applications for carbon utilization in EOR, hydrogen production, and chemical synthesis, further enhancing the utilization of CCS technologies in the country.

Category-wise Insights

The below section shows the leading segment. On the basis of end-use, enhanced oil recovery is anticipated to expand at 19.8% CAGR by 2034. Based on the capture source, the chemicals segment is projected to expand at 19.5% CAGR by 2034.

With conventional oil reserves depleting and global energy demand rising, there is a growing emphasis on maximizing the recovery of remaining oil reserves. Chemical manufacturing processes are significant sources of CO2 emissions, making the industry a prime target for CCS implementation.

Category	CAGR from 2024 to 2034
Enhanced Oil Recovery	19.8%
Chemicals	19.5%

Enhanced Oil Recovery Segment to Hold a Significant Share in the Market

Enhanced oil recovery (EOR) is a leading carbon capture and sequestration (CCS) market segment. EOR involves injecting the carbon dioxide captured into oil reservoirs to increase oil production and extend the life of mature oil fields.

The anticipated expansion at a CAGR of 19.8% by 2034 reflects the growing adoption of CCS technologies for EOR applications globally. The growth in this segment is driven by factors such as the increasing demand for oil, the need for cost-effective production methods, and government incentives supporting CCS-EOR projects.

Chemical Segment to Hold a Dominant Share in the Market

Within the capture source segment of the CCS market, the chemicals industry emerges as a leading segment. Chemical plants and refineries are significant sources of CO2 emissions, making them prime candidates for CCS implementation.

The projected expansion at a CAGR of 19.5% by 2034 underscores the growing demand for CCS solutions in the chemicals sector to reduce carbon emissions and comply with regulatory requirements.

The growth is fueled by stringent environmental regulations, corporate sustainability initiatives, and technological advancements in carbon capture technologies tailored for chemical processes.

Competitive Landscape

The competitive landscape of the carbon capture and sequestration (CCS) market dynamics is characterized by key players such as ExxonMobil, Shell, and Chevron, alongside emerging companies like Carbon Engineering and Climeworks.

The industry leaders leverage extensive Research and Development investments, strategic partnerships, and technological expertise to drive innovation and market expansion.

Regional players and startups contribute to market competitiveness, offering niche solutions and driving price competition. Collaboration between governments, industries, and research institutions further intensifies competition, fostering innovation and market growth.

Key Industry Developments

• In December 2022, Petroleum Sarawak Bhd (Petros), Malaysia's state-owned oil and gas company, forged an agreement with South Korean steel-making giant Posco Group. The collaboration aims to advance carbon capture and storage (CCS) development efforts at a plant located in Sarawak, Malaysia.
• In December 2022, Oil and Natural Gas Corporation Limited (ONGC) inked a deal with Shell to collaborate on Carbon Capture, Utilization, and Storage (CCUS) studies. The partnership will primarily focus on conducting a joint CO2 storage study and enhanced oil recovery (EOR) screening assessment across significant basins in India.

Key Coverage of Carbon Capture and Sequestration Market Report

• Adjacent Study on Carbon Capture and Sequestration Market
• Opportunity Analysis of Carbon Capture and Sequestration Market
• Carbon Capture and Sequestration Market Size
• Demand for Carbon Capture and Sequestration Market in India
• Strategies for Carbon Capture and Sequestration Innovations

Report Scope

Attributes	Details
Estimated Market Size in 2024	USD 4.2 billion
Projected Market Valuation in 2034	USD 26.1 billion
Value-based CAGR 2024 to 2034	20.1%
Forecast Period	2024 to 2034
Historical Data Available for	2019 to 2023
Market Analysis	Value in USD billion
Key Regions Covered	North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; Middle East and Africa
Key Market Segments Covered	Capture Source, End Use, Region
Key Countries Profiled	The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel
Key Companies Profiled	Fluor Corporation; ExxonMobil; Carbon Engineering Ltd.; ADNOC Group; Equinor; China National Petroleum Corporation; Dakota Gasification Company; Shell; BP; Chevron; Linde; Total; Aker Solutions; NRG Energy

Carbon Capture and Sequestration Market - Key Segments

By Capture Source:

• Chemicals
• Natural Gas Processing
• Power Generation
• Fertilizers Production
• Others

By End-Use:

• Enhanced Oil Recovery (EOR)
• Dedicated Storage & Treatment

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia and Pacific
• East Asia
• Middle East and Africa

Frequently Asked Questions

What is the expected value of carbon capture and sequestration market in 2024?

As of 2024, the market for global carbon capture and sequestration is expected to be valued at USD 4.2 billion.

What is the anticipated market value for global carbon capture and sequestration in 2034?

By 2034, the market value of global carbon capture and sequestration is expected to reach USD 26.1 billion.

What is the projected forecast CAGR for the carbon capture and sequestration market from 2024 to 2034?

From 2024 to 2034, the global carbon capture and sequestration market is expected to flourish at a CAGR of 20.1%

Based on capture source, which segment dominates the global carbon capture and sequestration market?

The chemical segment is anticipated to register at a CAGR of 19.5% by 2034.

Which country is likely to dominate the global carbon capture and sequestration market?

South Korea is likely the top-performing market, with a CAGR of 22.6%.