by Carbon capture and storage (CCS) refers to the process of capturing waste carbon dioxide (CO2) from large point sources, such as fossil fuel power plants, before it enters the atmosphere. The captured CO2 is then transported to a storage site where it is injected deep underground into porous rock formations or depleted oil and gas fields for long-term isolation from the atmosphere. The key technologies associated with the CCS process include post-combustion carbon capture, pre-combustion carbon capture, oxy-fuel combustion capture, CO2 transport, and CO2 storage in geological formations. The global carbon capture and storage market is experiencing high growth due to increasing government initiatives and investment aimed at lowering carbon emissions. Furthermore, most utilities consider CCS as the best technology available to reduce emissions from fossil-fuel power generation while maintaining business continuity.
The global carbon capture and storage market is estimated to be valued at US$ 2.25 Mn in 2024 and is expected to exhibit a CAGR of 10.59% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing Government Initiatives for Carbon Emission Reduction is expected to drive the growth of the carbon capture and storage market over the forecast period. Many governments are implementing carbon pricing policies and providing incentives for deployment of CCS technology. For instance, 45 nations and over 20 sub-national jurisdictions have implemented or scheduled carbon pricing programs. The EU has implemented the EU Emissions Trading System (EU ETS) which is the largest multi-national emissions trading system in the world, covering over 11,000 power stations and industrial plants in 31 countries. Emerging economies like China and India are also implementing carbon pricing policies and initiatives to promote technologies like CCS to meet their NDC targets under the Paris Agreement. This growing policy push is expected to propel the demand for CCS. Additionally, maintaining business continuity of fossil fuel power generation while lowering emissions using CCS as mentioned in the heading is also expected to drive the adoption of CCS technology globally over the coming years.
Segment Analysis
The global carbon capture and storage market can be segmented based on technology, end use industry and regional analysis. Based on technology, the market is dominated by pre-combustion capture segment which captures and separates CO2 from fossil fuels before combustion. This segment is dominating as it offers advantages such as higher CO2 capture rates compared to post combustion capture.
PEST Analysis
Political: Many countries are coming up with carbon emission regulations and carbon credit schemes to reduce carbon footprint which is driving the growth of carbon capture and storage market.
Economic: Rising prices of fossil fuels and government subsidies are encouraging industries to adopt carbon capture technology to reduce operational costs in long run.
Social: Increasing awareness regarding green technologies and impact of global warming on environment is supporting the adoption of carbon capture solutions.
Technological: Advancements in membrane separation and chemical absorption techniques are improving the efficiency of carbon capture systems.
Key Takeaways
The Global Carbon Capture And Storage Market Growth is expected to witness high over the forecast period of 2024 to 2031. The global carbon capture and storage market is estimated to be valued at US$ 2.25 Mn in 2024 and is expected to exhibit a CAGR of 10.59% over the forecast period 2024 to 2031.
Regional analysis shows that Asia Pacific region dominates the market currently due to presence of large power and industrial sectors in countries like China and India. The North America region is expected to witness fastest growth during the forecast period owing to government initiatives and investments to commercialize carbon capture projects. Stringent environment regulations in USA and Canada are fueling adoption of carbon capture solutions in power and chemical sectors.
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). Key players are continuously investing in research & development of more efficient carbon capture technologies to gain a competitive edge in the market.
Some of the major end use industries for carbon capture technology are power generation, cement production, iron & steel industry, chemical processing and waste incineration plants. Power generation segment dominates currently as a large amount of carbon dioxide is emitted from coal and natural gas-based power plants globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
