Direct Air Capture Market by Product (Absorption-based DAC, Adsorption-based DAC, Cryogenic-based DAC), Technology (Electrochemical-DAC, Liquid-DAC, Solid-DAC), Scale, Application - Global Forecast 2024-2030

Direct Air Capture Market by Product (Absorption-based DAC, Adsorption-based DAC, Cryogenic-based DAC), Technology (Electrochemical-DAC, Liquid-DAC, Solid-DAC), Scale, Application - Global Forecast 2024-2030

The Direct Air Capture Market size was estimated at USD 190.85 million in 2023 and expected to reach USD 273.87 million in 2024, at a CAGR 44.52% to reach USD 2,513.17 million by 2030.

Direct air capture (DAC) refers to a suite of technologies engineered to extract carbon dioxide (CO2) directly from the atmosphere. This process serves as a pivotal strategy in reducing atmospheric concentrations of CO2, thus addressing climate change. The expansion of DAC deployment is primarily driven by increasing governmental and corporate commitments to achieving net-zero emissions, the advancement of carbon sequestration technologies, and growing financial incentives such as carbon pricing mechanisms. However, DAC faces limitations, including high energy requirements, substantial financial costs, and infrastructural challenges related to the storage and utilization of captured CO2. Addressing these disadvantages necessitates ongoing technological innovations aimed at enhancing energy efficiency, reducing operational costs, and developing effective carbon utilization pathways. Integrations with renewable energy sources, the development of scalable DAC facilities, and significant roles in carbon-neutral aviation fuels and carbon-negative building materials offer promising vistas for expanding DAC.

Regional Insights

In the Americas, particularly in the United States and Canada, there is a robust momentum in the development and deployment of DAC technologies, driven by governmental support, such as tax incentives and significant investments in research and development. Companies are pushing the DAC technology into commercialization and operational projects, with the U.S. leading in the number of installations and research facilities. The APAC region, while lagging behind in terms of operational DAC projects, is witnessing a growing interest in the technology, primarily due to escalating concerns over air quality and the urgent need to address climate change. Countries such as Japan and Australia are beginning to invest in pilot projects and research, exploring the technology’s viability and integrating it into their carbon reduction strategies. In EMEA, the scenario is mixed; the European Union’s strong regulatory framework and ambitious carbon neutrality goals have positioned it as a leader in climate technologies, including DAC. Several European countries have initiated research projects and are home to companies that have operational facilities in Switzerland and Iceland. With its vast energy resources, the Middle East is also starting to explore DAC technology as part of its diversification and climate mitigation strategies, albeit at a slower pace compared to Europe.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Direct Air Capture Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Rise of international climate agreements and targets to reduce carbon emissions
Government initiatives encouraging direct air capture facility establishment

Market Restraints

High cost of development and deployment of direct air capture

Market Opportunities

Advancements in direct air capture technologies and methods
Emerging corporate interest in direct air capture activities

Market Challenges

Technical limitations of direct air capture systems

Market Segmentation Analysis

Product: Use of adsorption DAC methods for their high scalability in operational projects
Application: Rising public-private investments in carbon capture & utilization

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Direct Air Capture Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Direct Air Capture Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

1PointFive and Trafigura Announce Direct Air Capture Carbon Removal Credit Agreement

1PointFive announced a significant partnership with commodities industry company Trafigura. This collaboration will see Trafigura committing to the purchase of carbon dioxide removal (CDR) credits from 1PointFive's groundbreaking Direct Air Capture (DAC) facility, STRATOS, currently in development in Texas. This landmark transaction supports Trafigura’s pledge as a Founding Member of the First Movers Coalition to acquire a minimum of 50,000 tons of CDR credits by 2030 using advanced technologies and sets a precedent in promoting scalable, high-quality carbon removal solutions.

Occidental Enters into Agreement to Acquire Direct Air Capture Technology Innovator Carbon Engineering

Occidental Petroleum announced its subsidiary's definitive agreement to procure Carbon Engineering Ltd. for a cash transaction approximated at USD 1.1 billion, distributed in roughly equal annual installments, the first coinciding with closing. This acquisition is a testament to Occidental's dedication to revolutionizing Direct Air Capture (DAC) technology. Carbon Engineering's DAC solutions, heralded for their standardized methodologies and reliability, promise to enhance shareholder value through technological leaps, cost efficiencies, and emerging revenue opportunities in licensing and royalties.

Biden-Harris Administration Announces Up To USD 1.2 Billion For Nation’s First Direct Air Capture Demonstrations in Texas and Louisiana

The U.S. Department of Energy (DOE) announced an investment of up to USD 1.2 billion to spearhead the development of two pioneering commercial-scale Direct Air Capture (DAC) facilities situated in Texas and Louisiana in a landmark move under President Biden's Investing in America agenda. This ambitious initiative is designed to launch a national framework of substantial carbon removal locations, focusing on mitigating preexisting CO2 emissions that contribute to climate change and extreme weather conditions and pose significant risks to public health and ecosystems worldwide.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Direct Air Capture Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Direct Air Capture Market, highlighting leading vendors and their innovative profiles. These include AirCapture LLC, Aircela Inc., AirMyne, Inc., Avnos, Inc., Capture6, Carbominer, Carbon Atlantis GmbH, Carbon Blade, Carbon Collect Limited, Carbon Engineering ULC., CarbonCapture Inc., Carbyon, Climeworks AG, Fervo Energy, Global Thermostat, Heirloom Carbon Technologies, Inc., Holocene Climate Corporation, Mission Zero Technologies., Nordic DAC Group, Noya PBC, Octavia Carbon Co., Parallel Carbon Limited, Removr, RepAir D.A.C Ltd., Sirona Technologies, Skytree, Soletair Power, South Ocean Air LLC, Sustaera Inc., and Valiidun.

Market Segmentation & Coverage

This research report categorizes the Direct Air Capture Market to forecast the revenues and analyze trends in each of the following sub-markets:

Product
Absorption-based DAC
Adsorption-based DAC
Cryogenic-based DAC
Membrane-based DAC
Technology
Electrochemical-DAC
Liquid-DAC
Solid-DAC
Scale
Commercial-scale
Demonstration-scale
Pilot-scale
Application
Carbon Capture & Storage
Carbon Capture & Utilization
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year