Global Direct Air Capture (DAC) Market - 2025-2032

Global Direct Air Capture (DAC) Market reached US$ 65.88 million in 2024 and is expected to reach US$ 3,008.30 million by 2032, growing with a CAGR of 61.23% during the forecast period 2025-2032.

The principal catalyst for the expansion of the direct air capture (DAC) market is the rising global consciousness and imperative to address climate change. Governments, corporations and organizations globally acknowledge the urgent necessity to diminish atmospheric CO₂ concentrations, a primary factor in global warming. The Paris Agreement's objective of achieving net-zero emissions by mid-century positions DAC technology as a feasible solution, as it captures CO₂ directly from the atmosphere for storage or reuse, so substantially mitigating carbon emissions.

Globally, governments are progressing towards attaining a net-zero emission objective. More than 140 significant carbon-emitting nations, including China, the US and India, have committed to achieving net-zero emissions by the year 2050. The heightened emphasis on net-zero emissions presents an earlier investment opportunity for developers of DAC solutions.

Several firms, especially within high-emission sectors like oil and gas, aviation and manufacturing, are allocating resources to Direct Air Capture (DAC) technology as components of their sustainability and decarbonization initiatives. Facing growing scrutiny from investors, authorities and consumers, these corporations are seeking methods to mitigate their carbon footprint. DAC provides a carbon capture system that may be stored or utilized, assisting firms in achieving their environmental objectives while preserving operational flexibility in challenging sectors for decarbonization.

Dynamics

Driver 1 – Increasing emphasis on global net zero emission goals

The increasing global environmental issues, particularly from carbon dioxide emissions, which are projected to account for around 76 percent of total greenhouse gas emissions, are collectively driving a global initiative to embrace Direct Air Capture systems.

In 2022, the Global Monitoring Lab of the National Oceanic and Atmospheric Administration (NOAA) reported that the average atmospheric carbon dioxide concentration reached 417.06 parts per million (ppm), marking a rise of 2.13 ppm from the previous year. Governments are taking measures to achieve net-zero emissions.

Over 140 nations, including significant emitters like China, the US, India and the European Union, are dedicated to achieving net-zero emissions by 2050. The strong shift towards net-zero emissions, requiring both emissions reduction and active CO2 removal, creates favorable conditions for the adoption and success of Direct Air Capture (DAC) systems.

Driver 2 - Utilization of Direct Air Capture (DAC) on a larger scale.

Globally, twenty-seven Direct Air Capture (DAC) facilities have been established, progressively storing around 0.01 million metric tons of CO2 each year. Currently, there are proposals for a minimum of 130 DAC facilities at different phases of development. Forecasts suggest that DAC technologies are expected to sequester more than 85 million tons of CO2 by 2030 and a significant 980 million tons by 2050.

Governments globally are aggressively endorsing DAC technologies as a component of their strategy to attain net-zero emission objectives, hence facilitating the potential for significant scaling of the technology. Consistent with this trend, Carbon Engineering ULC plans to construct a facility in 2025 capable of capturing up to 1 million metric tons of CO2 each year.

Restraint: High cost

Direct Air Capture (DAC) use renewable energy sources, such wind and solar, to extract atmospheric CO2; yet, it is more costly relative to other carbon removal methods. Direct Air Capture (DAC) entails the extraction of CO2, a process that demands significant energy and being a relatively nascent technology, it has fewer projects and companies involved, leading to associated cost challenges.

The World Resource Institute (WRI) states that the expenses for capturing CO2 from the atmosphere by Direct Air Capture (DAC) range from US$ 250 to US$ 600, with cost fluctuations influenced by the technology employed, the utilization of low-carbon energy and the scale of deployment. Despite existing cost hurdles for DAC, emerging technology may enhance its use and significantly lower expenses.

Segment Analysis

The global direct air capture (DAC) market is segmented based on product technology, energy source, application, end-user and region.

Carbon capture and storage growth fueled by regulations & mineralization

Carbon capture and storage is anticipated to be the most rapidly expanding sector. The expansion is related to the adoption of carbon mineralization, which entails the permanent sequestration of carbon dioxide by transforming it into a solid mineral form, typically a carbonate, via a chemical reaction with particular rocks. The escalating regulatory demand to reduce greenhouse gas emissions is a major catalyst for the CCS sector.

Governments are enforcing more stringent emissions limits, carbon pricing and cap-and-trade initiatives, compelling companies to employ carbon capture systems for compliance. Moreover, increasing corporate sustainability obligations and the necessity to mitigate hard-to-abate emissions in industries like energy, cement and steel are driving the demand for CCS solutions. Government incentives, including the US 45Q tax credit that compensates corporations for carbon dioxide sequestration, also promote investment in carbon capture and storage technology and implementation.

Geographical Penetration

North America’s growing interest in ashwagandha a natural solution for wellness

The North America Direct Air Capture (DAC) industry is experiencing significant growth, driven by stringent environmental regulations, technological innovations and increased investments in carbon removal technologies. The US assumes a dominant position, supported by specific policy frameworks and significant governmental activities. The US Department of Energy’s Regional DAC centers program is a vital initiative, promoting the establishment of four regional DAC centers to advance large-scale implementation. Moreover, initiatives like the 45Q tax credit and California’s Low Carbon Fuel Standard offer financial incentives for the adoption of DAC, hence enhancing market expansion.

Prominent industry participants, such as worldwide Thermostat (US), Carbon Engineering ULC (Canada) and Heirloom Carbon Technologies (US), bolster North America's robust standing in the worldwide DAC market. The US and Canada have implemented tax credits and subsidies to promote the commercialization of Direct Air Capture technologies. Moreover organizations are using DAC technologies into their sustainability initiatives to achieve carbon neutrality objectives. Due to escalating regulatory demands and a rising need for efficient carbon removal, North America is positioned to sustain its dominance in the DAC sector.

Competitive Landscape

The major Global players in the market include Climeworks, Carbon Engineering ULC., Global Thermostat, Heirloom Carbon Technologies, Soletair Power, CarbonCapture Inc, Avnos, Inc., Noya PBC, Skytree and RepAir.

By Technology
• Liquid DAC
• Electrochemical DAC
• Others

By Energy Source
• Electricity

o Geothermal

o Solar PV

o Wind
• Heat

o Heat Pump

o Direct Heat

o Waste Heat

By Application
• Carbon Capture and Storage
• Carbon Capture, Utilization and Storage

By End-User
• Agriculture
• Chemicals & Fuels
• Carbon Mineralization
• Food & Beverages
• Oil & Gas
• Other

By Region
• North America

o US

o Canada

o Mexico
• Europe

o Germany

o UK

o France

o Italy

o Spain

o Rest of Europe
• South America

o Brazil

o Argentina

o Rest of South America
• Asia-Pacific

o China

o India

o Japan

o Australia

o Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In June 2024, RepAir and EnEarth, the specialized Carbon Storage and Environmental Services subsidiary of Energean, entered into an agreement to utilize RepAir's Direct Air Capture technology for the sequestration of CO2 in the Prinos saline aquifer located in Kavala, Greece. The project is anticipated to recommence in early 2026 for the purpose of carbon dioxide storage.
• In September 2024, 1PointFive disclosed a contract with Microsoft to provide 500,000 metric tons of carbon dioxide removal (CDR) facilitated by Direct Air Capture (DAC) technology.

Why Purchase the Report?
• To visualize the global direct air capture (DAC) market segmentation based on product technology, energy source, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of the direct air capture (DAC) market with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global direct air capture (DAC) market report would provide approximately 70 tables, 63 figures and 201 pages.

Target Audience 2025
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies