What are the major factors driving the growth of the carbon capture and storage market?

In the year 2025, the industry size of carbon capture and storage is assessed at USD 9.26 billion. Read More

Carbon Capture and Storage Market Trends

Growth Drivers

Rising Demand for Power Generation

An estimated 580 million terajoules of energy are consumed worldwide each year. This is equivalent to 13865 million tonnes of oil or 580 million trillion joules. However, electricity is one of the major contributors to global CO2 emissions. Hence, it is crucial to swiftly decarbonize this sector of the economy in order to achieve net-zero emissions. As a result, the need for CCS is growing. Power stations using CCS would contribute to the stable and robust low-carbon grid of the future.

Growing Need to Recover Oil

The stored CO2 is injected in order to extract the remaining crude oil. These remaining crude oils are encountered as the injected CO2 passes through the pore spaces in the rock. As the crude oil and CO2 combine, the viscosity of the oil is reduced, it is pressurized, it is mobilized, and a concentrated oil bank is created that is swept to the producing wells. Oil and gas businesses are able to obtain oil in this method that would otherwise remain in the ground.

Surge in the Use of CCS in Producing Fertilizers

The synthesis of ammonia generates high-quality carbon dioxide (CO2), which is also a necessary ingredient in the creation of urea fertilizer. As a result, the industry catches CO2 released during the ammonia manufacturing process and reuses it throughout the urea manufacturing procedure.

Challenges

Large Price of Carbon Capture and Storage
Growing Risk to Environment - The primary argument against CCS is that, rather than implementing renewable energy options, it may increase dependence on non-renewable fossil fuels and coal mining. Regarding potential storage leakage, there is even another issue. Explosions, earthquakes, and any unfavorable consequences on the environment are additional concerns. Such elements have emerged as the primary CCS challenge that limits market expansion.
Lack of Awareness Among Industries

Carbon Capture and Storage Market: Key Insights

The global carbon capture and storage (CCS) market is anticipated to expand at a CAGR around 11.5% during 2018-2027. It is projected to reach around USD 7.8 billion by 2027. The rising environmental concern coupled with increasing demand from various energy sectors is anticipated to increase the market growth for the global carbon capture and storage (CCS) market during the forecast period.

The global carbon capture and storage (CCS) market can be segmented on the basis of service, technology, application and end-user. On the basis of services, it is sub-segmented into carbon storage, carbon transportation and carbon capture. On the basis of technologies, it is sub-segmented into pre-combustion capture, post combustion capture, oxy-fuel combustion capture and industrial separation capture. On the basis of application it is sub-segmented into industries, agriculture and enhanced oil recovery (EOR) process. Enhanced oil recovery (EOR) process sub-segment is anticipated to expand at fastest rate on the account of rising usage of carbon di-oxide in the oil and gas industries in order to reduce pressure. On the basis of end–user type, it is sub-segmented into food & beverages, manufacturing sector, coal and biomass power plants, iron & steel, oil and gas sector and chemical industries. Oil and gas sector is anticipated to be the fastest growing sub-segment on the account of the rising usage of carbon capture and storage (CCS) in oil and gas industry in order to conserve the environment from pollutants. By region, global carbon capture and storage (CCS) market is segmented into North America, Asia-Pacific, Latin America, Europe, Middle East and Africa. North America is anticipated to lead the global carbon capture and storage (CCS) market on the account of high number of oilfields in the region. The expansion of shale gas techniques is anticipated to propel the market growth of the carbon capture and storage (CCS) in the region.

Base Year	2024
Forecast Year	2025-2037
CAGR	19.8%
Base Year Market Size (2024)	USD 7.98 billion
Forecast Year Market Size (2037)	USD 81.86 billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Why is the demand for carbon capture and storage growing?

The carbon capture and storage market size was over USD 7.98 billion in 2024 and is anticipated to cross USD 81.86 billion by the end of 2037, witnessing more than 19.8% CAGR during the forecast period i.e., between 2025-2037. The market growth is driven by rising demand for power generation, growing need to recover oil, and surge in use of CCS in producing fertilizers.

Who are the top carbon capture and storage companies?

The major players in the market include Exxon Mobil, Honeywell International Inc., Aker Solutions, Dakota Gasification Company, Fluor Corporation, Halliburton, Shell, The Linde Group, Siemens AG, General Electric.

Carbon Capture and Storage Market Trends