The global Carbon Capture and Storage (CCS) market, valued at USD 3.38 billion in 2024, is projected to grow from USD 3.60 billion in 2025 to USD 5.96 billion by 2033, achieving a robust CAGR of 6.5% during the forecast period (2025–2033). The market’s expansion is driven by the rising adoption of CO2 injection for Enhanced Oil Recovery (EOR) and increasing global demand for sustainable solutions to combat climate change.
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Market Overview
Carbon Capture and Storage (CCS) is a critical technology for reducing carbon dioxide (CO2) emissions from industrial processes and power generation. By capturing CO2 from sources like steel, cement, and fossil fuel-based power plants, transporting it via pipelines or ships, and storing it in underground geological formations, CCS plays a pivotal role in mitigating global warming. The technology is particularly vital for decarbonizing heavy industries and achieving net-zero ambitions.
Key Market Drivers
Growing Demand for CO2-EOR: The oil and gas sector’s increasing use of CO2 injection for enhanced oil recovery is a primary growth driver. CO2-EOR not only boosts oil production but also enables permanent CO2 storage, aligning with global sustainability goals.
Stringent Government Regulations: Governments worldwide are implementing strict policies to curb greenhouse gas (GHG) emissions, accelerating CCS adoption.
Bioenergy with Carbon Capture and Storage (BECCS): The rising prominence of BECCS, which combines biomass energy with CO2 capture, offers significant opportunities for market growth by removing carbon from the atmosphere.
Market Challenges
High implementation costs and growing investments in shale gas exploration, particularly in regions like China and the U.S., pose challenges to CCS market growth. However, advancements in technology and government incentives are expected to mitigate these barriers.
Regional Insights
North America: Leading the global CCS market with a CAGR of 6.6% in 2024, North America benefits from strong demand for clean technologies and widespread CO2-EOR applications. The U.S. hosts 12 of the 24 global CO2 capture and injection facilities, as reported by the Global CCS Institute in 2020.
Europe: The fastest-growing region, Europe is projected to advance at a CAGR of 6.1% by 2031. Initiatives like Germany’s “CO2-Vermeidung und -Nutzung in Grundstoffindustrien” program and ambitious emission reduction targets (55% by 2030, net-zero by 2045) are driving CCS adoption in industries like cement and steel.
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Market Segmentation
By Technology: The Pre-combustion Capture segment dominated the market in 2024, driven by advancements in syngas-based CO2 separation. Post-combustion Capture holds the second-largest share, leveraging liquid solvents for efficient CO2 extraction.
By End-User: The Oil & Gas sector leads with a CAGR of 5.47%, utilizing CCS for EOR and emissions reduction. The Coal & Biomass Power Plant segment follows, driven by the need to decarbonize coal-based electricity production.
By Region: North America and Europe dominate, with emerging opportunities in Asia-Pacific, the Middle East, Africa, and Latin America.
Key Players
Leading companies in the CCS market include Aker Solutions, Air Liquide, Baker Hughes, Dakota Gasification Company, Exxon Mobil Corporation, Fluor Corporation, and General Electric. Recent developments include Aker Solutions’ 2022 collaboration with Siemens Energy for the Norfolk Boreas Offshore Wind Farm and a joint venture with Schlumberger and Subsea 7 to enhance subsea production economics while supporting decarbonization.
Market Opportunities
The rise of Bioenergy with Carbon Capture and Storage (BECCS) presents significant growth potential. With five global BECCS facilities capturing approximately 1.5 million tons of CO2 annually, applications like bioethanol production and waste-to-energy systems are creating new avenues for market expansion.
Conclusion
The global Carbon Capture and Storage market is poised for significant growth, driven by technological advancements, regulatory support, and the critical need to address climate change. As industries worldwide strive for net-zero emissions, CCS remains a cornerstone technology for sustainable progress.
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