by The increasing environmental concerns associated with emission of greenhouse gases from various end-use industries such as power & energy, cement, steel, oil & gas, etc. have augmented the demand for carbon capture and storage technologies globally. Carbon capture and storage involves capturing carbon dioxide emitted from large point sources and transporting it to suitable storage locations such as underground geological formations or deep ocean for safe long-term isolation from the atmosphere. The growing awareness regarding the negative environmental impacts of CO2 emissions has propelled industries to adopt carbon capture technologies to mitigate their carbon footprint.
The Global carbon capture and storage market is estimated to be valued at US$ 2.25 Bn in 2024 and is expected to exhibit a CAGR of 4.6% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the carbon capture and storage market are Morgan Advanced Materials (UK), Mersen (France), TOYO TANSO (Japan), SGL Group (Germany), NAC Carbon Products, Inc. (USA), Graphite India Limited (India), Superior Graphite (USA), Qingdao Tennry Carbon Co., Ltd. (China), Zircar Ceramics (USA) & Schunk Group (Germany). These players are focusing on developing innovative carbon capture solutions and entering into strategic partnerships with end-use industries to boost the adoption of their technologies.
The growing support from various governments in the form of subsidies and funding for carbon capture projects presents significant growth opportunities for market players. Various countries are developing policies to incentivize Carbon Capture and Storage Market Size technologies to meet their decarbonization goals.
Technological advancements in membrane separation, sequestration solutions and carbon transportation are further fueling the market growth. Players are increasingly investing in R&D to develop more efficient and affordable carbon capture technologies using improved materials like porous ceramics and advanced alloys.
Market Drivers
Stringent environmental regulations: Growing regulatory pressure on industries to reduce greenhouse gas emissions and meet nationally determined carbon reduction targets is a key driver for the adoption of carbon capture solutions globally.
Growing carbon pricing mechanisms: Implementation of carbon pricing through carbon taxes and emissions trading schemes is encouraging industries to incorporate carbon capture to offset carbon costs.
Maturing CCS projects: Increasing commercialization of integrated Carbon Capture and Storage Market projects and falling costs of carbon capture technologies are strengthening the business case for carbon capture adoption among end-use sectors.
Challenges in the Carbon Capture and Storage (CCS) Market
The carbon capture and storage market faces significant challenges related to high costs, technical feasibility, and public acceptance. CCS technology is still in the development and demonstration phase, with high capital and operating costs compared to conventional power generation. Integrating CCS into existing plants requires upgrading equipment and reducing plant efficiency. There are also concerns about the reliability of geological storage sites and long-term risks of carbon dioxide leakage back into the atmosphere. Changing existing energy infrastructure and gaining public trust for underground carbon storage presents regulatory and social challenges. More pilot projects and R&D is needed to improve performance and reduce costs to enable large-scale deployment of CCS.
SWOT Analysis
Strength: Potential to significantly reduce CO2 emissions from fossil fuel use; technology leverages existing CO2 transport and storage infrastructure.
Weakness: High cost of retrofitting existing plants or building new Carbon Capture and Storage Outlook and Analysis facilities; energy requirements reduce plant efficiency and output.
Opportunity: Growing policy and investment support for low-carbon solutions; potential for enhanced oil recovery using stored CO2 can improve project economics.
Threats: Uncertain long-term storage risks and need for continued monitoring; public concerns about underground CO2 injection could delay projects.
Geographical Regions
North America currently accounts for the largest share of the carbon capture and storage market, mainly driven by government incentives and projects in the United States and Canada. The region is an early adopter with several commercial-scale CCS facilities in operation for EOR purposes. Europe is the second largest region driven by carbon reduction targets and policies promoting CCS deployment.
The Asia Pacific region is expected to be the fastest growing market for carbon capture and storage during the forecast period. Rapid economic growth and expanding energy needs have made countries like China and India focused on developing and deploying CCS technology to reduce emissions from coal power generation. Government policies and pilot projects underway aim to accelerate large-scale commercial deployment of CCS across power and industrial sectors.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
