The global carbon capture and storage market is forecast to reach around USD 4.2 Billion in 2022. With the rising adoption of carbon capture and storage technologies across the world, the overall demand is slated to increase at over 14% CAGR from 2022 to 2032, totaling a valuation of around USD 9 Billion by 2032.
| Report Attributes | Details |
|---|---|
| Estimated Base Year Value (2021) | USD 4.0 Billion |
| Expected Market Value (2022) | USD 4.2 Billion |
| Anticipated Forecast Value (2032) | USD 9.0 Billion |
| Projected Growth Rate (2022 to 2032) | 14.0% CAGR |
Carbon capture and storage is an innovative technology used for capturing and storing carbon dioxide (CO2) produced during the burning of fossil fuels in electricity generation and industrial processes. The technology can capture around 90% of the CO2 emissions and thus prevents it (CO2) from entering the atmosphere.
The captured CO2 is either then utilized to create valuable products or permanently stored deep underground in geological formations. It is mostly transported through pipelines or ships from carbon capture and storage plants to its destination.
Increasing adoption of carbon capture and storage technologies including pre-combustion, post-combustion, and oxy-fuel combustion, across major industries such as oil and gas and power generation plants, is a major force driving the global capture and storage market.
As global warming and sustainability concerns rise, major fossil fuel-consuming industries are transitioning towards using carbon capture and storage technologies in their facilities.
The large-scale combustion of fossil fuels for a variety of industrial processes results in the emission of commercial greenhouse gases like carbon dioxide. Accumulation of these gases in the atmosphere triggers irreversible phenomena such as ozone depletion, climate change, etc. In order to counter this, industries are employing carbon capture and storage technologies. Adoption of these technologies prevents CO2 from entering the atmosphere and thus helps industries to comply with environmental regulations.
Currently, Carbon capture, utilization and storage (CCUS) facilities around the world have the capacity to capture over 40 MtCO2 each year as per the International Energy Association (IEA).
Countries like the USA and China are emerging as world leaders in carbon capture and storage technologies. These countries have the greatest number of carbon capture storage plants in the world.
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Rapid industrialization, the rising need for reducing carbon emissions, the implementation of stringent environmental regulations, and the growing popularity of sustainable technologies are some of the major factors triggering the growth of the carbon capture and storage market.
Climate change has become a major concern for world leaders during the last few years. It has severely affected the lives of people, animals, and the environment all over the world, and compelled countries to take various measures.
The rising need for addressing global warming due to higher emission levels has put carbon capture and storage technologies into the spotlight. The world’s major industries, which are the main contributors to carbon emissions, are increasingly adopting CCS technologies to reduce their carbon footprint. This is providing the impetus to the growth of the carbon capture and storage market and the trend is likely to continue in the foreseeable future.
Governments across the world are launching various initiatives to encourage the adoption of carbon capture and storage technologies. They are constantly implementing new regulations to curb the emission of carbon dioxide from industries and power generation plants. This will continue to ignite the demand for CCS technologies during the forecast period.
The oil and gas industry is emerging as the most ideal destination for carbon capture and storage technologies due to an increasing number of enhanced oil recovery (EOR) projects. According to the International Energy Association’s (IEA’s) database, around 500 thousand barrels of oil are produced daily using CO2-EOR.
During EOR techniques CO2 is injected into the existing oil field, which increases the overall pressure of the oil reservoir and forces the oil toward production wells. Increasing consumption of CO2 in the oil-enhanced oil recovery process is projected to spur the adoption of carbon capture and storage technologies in the oil and gas industry.
Subsequently growing awareness among people in developing and underdeveloped regions regarding the importance of carbon capture and storage technologies for tackling global warming and greenhouse gas emission will further expand the global carbon capture and storage market in the future.
There is no denying the fact that carbon capture and storage technologies have become ideal solutions for reducing carbon emissions. However, the market is still facing some issues that challenge its growth across various regions.
Some of the major factors restraining the growth of the carbon capture and storage market are the high cost associated with CCS technologies (including initial expenses and operational expenditures) and the lack of awareness among people of various developing and underdeveloped regions.
According to Future Market Insights, North America spearheaded by the USA will continue to remain the most lucrative market for carbon capture and storage technologies during the forecast period. The North American carbon capture and storage market is driven by the heavy presence of leading end-use industries, increasing demand for clean technologies, rising usage of CO2 in enhanced oil recovery techniques, and a surge in the number of regional market players.
North America has the largest number of carbon capture and storage projects in the world. Countries such as the USA and Canada are generating high demand for carbon capture and storage technologies, as they witness an uptick in enhanced oil recovery operations. According to the International Energy Association (IEA), around 50 new carbon capture projects were announced in the industry and fuel transformation sectors between January 2020 and August 2021 in the USA
Moreover, various initiatives are being taken by the governments of these respective countries to cut carbon emission levels to zero levels. For instance, in 2021, USA president Joe Biden signed an executive order for achieving a 100% carbon-free electricity goal by 2032. This will create lucrative growth avenues within the carbon capture and storage market in the future.
The carbon capture and storage market in Asia Pacific is poised to exhibit stupendous growth over the forecast period, owing to rapid industrialization, rising air pollution levels, and favorable government support.
Most of the Asia Pacific regions still rely on fossil fuels for electricity generation. As a result, the air pollution level in these regions is rising at an alarming rate, compelling power generation plants and other industries to adopt carbon capture and storage technologies.
Leading countries like China and India are constantly launching new carbon capture and storage projects to prevent the emission of greenhouse gases. For instance, in 2021 China’s National Offshore Oil Corp (CNOOC) launched the country’s first offshore carbon capture and storage project in the South China sea.
Some of the key participants present in the global carbon capture and storage market include ExxonMobil Corporation, Schlumberger, Huaneng, Linde AG, Sulzer, Equinor, NRG, AkerSolutions, Shell, Skyonic Corp., Mitsubishi Hitachi, Fluor, Sinopec
Leading players operating in the carbon capture and storage market are constantly focusing on developing sustainable carbon capture and storage technologies. Besides this, they are joining forces to complete large-scale carbon capture and storage facilities and commercialize CCS technology across attractive regions of Asia, Africa, and the Middle East.
| Report Attributes | Details |
|---|---|
| Growth Rate | CAGR of 14% from 2022 to 2032 |
| Base Year for Estimation | 2021 |
| Historical Data | 2015 to 2020 |
| Forecast Period | 2022 to 2032 |
| Quantitative Units | Revenue in USD Million, Volume in Kilotons, and CAGR from 2022 to 2032 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Technology; End-Use Industry; Region |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; Asia Pacific Excluding Japan; Japan; Middle East and Africa |
| Key Countries Profiled | USA, Canada, Brazil, Argentina, Germany, United Kingdom, France, Spain, Italy, Nordics, BENELUX, Australia & New Zealand, China, India, ASIAN, GCC Countries, South Africa |
| Key Companies Profiled | Exxonmobil Corporation; Schlumberger; Huaneng; Linde AG; Sulzer; Equinor; NRG; AkerSolutions; Shell; Skyonic Corp.; Mitsubishi Hitachi; Fluor; Sinopec |
| Customization | Available Upon Request |
FMI projects the global carbon capture and storage market to expand at a prolific CAGR of around 14.0% through 2032.
North America will continue to remain the most lucrative market for carbon capture and storage technologies during the forecast period.
Schlumberger, Linde AG, Alstom, Sulzer, Shell, Mitsubishi Hitachi, and Sinopec are some prominent carbon capture and storage manufacturers.
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