Carbon Capture Utilization and Storage Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Technology (Pre-Combustion Carbon Capture, Post-Combustion Carbon Capture, Oxy-Fuel Combustion Carbon Capture), By Application (Oi

Carbon Capture Utilization and Storage Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Technology (Pre-Combustion Carbon Capture, Post-Combustion Carbon Capture, Oxy-Fuel Combustion Carbon Capture), By Application (Oil and Gas Industry, Power Industry, Others), By Region and Competition, 2019-2029F

Global Carbon Capture Utilization and Storage Market was valued at USD 3.61 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 4.53% through 2029. One of the primary drivers propelling the growth of the global CCUS market is the increasing urgency to reduce greenhouse gas emissions and mitigate climate change. CCUS technologies offer a viable solution for capturing carbon dioxide (CO2) emissions from industrial processes, power plants, and other emission sources, preventing their release into the atmosphere. By capturing and storing CO2 underground or utilizing it for various applications, CCUS helps to curb emissions and mitigate the impact of climate change.

Supportive government policies and incentives play a crucial role in driving investment and growth in the global CCUS market. Many governments worldwide have implemented regulations, carbon pricing mechanisms, and financial incentives to encourage the deployment of CCUS technologies. These policies include carbon capture tax credits, subsidies for CCUS projects, and emissions reduction targets, creating a favorable market environment for CCUS development and deployment.

Advancements in CCUS technologies and innovations in carbon capture, storage, and utilization methods are driving market growth and expanding the capabilities of CCUS systems. Technological advancements such as solvent-based capture, membrane-based capture, and direct air capture (DAC) are improving the efficiency, scalability, and cost-effectiveness of carbon capture technologies, making CCUS more commercially viable.

Key Market Drivers

Growth in Power Industry

The power industry is one of the largest sources of carbon dioxide (CO2) emissions globally, accounting for a significant portion of total greenhouse gas emissions. As countries and regions set ambitious targets to reduce emissions and meet their climate goals, the power industry is under increasing pressure to adopt cleaner and more sustainable energy sources. CCUS technologies offer a viable solution by capturing CO2 emissions from power plants and preventing them from entering the atmosphere.

One of the primary drivers of growth in the global CCUS market is the power industry's increasing adoption of cleaner energy sources such as natural gas and renewable energy. Natural gas-fired power plants are often equipped with CCUS technologies to capture CO2 emissions, reducing their carbon footprint and enhancing environmental performance. Similarly, CCUS can be integrated with biomass and bioenergy facilities to capture and utilize CO2 emissions, further contributing to emissions reduction efforts in the power sector.

The growing deployment of renewable energy sources such as wind and solar power presents new opportunities for CCUS integration in the power industry. While renewable energy sources play a crucial role in reducing greenhouse gas emissions, they also pose challenges related to intermittency and grid stability. CCUS technologies can help address these challenges by providing flexible and dispatchable power generation from renewable energy sources, thereby supporting the integration of renewable energy into the power grid.

Government policies and incentives aimed at promoting CCUS deployment in the power industry are driving market growth. Many countries and regions offer financial incentives, tax credits, and regulatory support to encourage the adoption of CCUS technologies in power generation facilities. These policies create a favorable market environment for CCUS investments in the power industry and stimulate innovation and technological advancements in CCUS technologies.

Surge in Technological Advancements

Technological advancements have led to significant progress in carbon capture technologies, making them more efficient, cost-effective, and scalable. Innovations such as solvent-based capture, membrane separation, and solid sorbent capture are revolutionizing the way CO2 is captured from industrial processes and power plants, paving the way for large-scale deployment of carbon capture facilities.

Technological breakthroughs are unlocking new opportunities for the utilization of captured CO2 as a valuable resource. Innovations in carbon utilization technologies, such as CO2 conversion into chemicals, fuels, building materials, and consumer products, are creating new revenue streams and market opportunities while reducing CO2 emissions.

Technological advancements are enhancing the safety, reliability, and efficiency of carbon storage solutions. Innovations in geological storage, such as enhanced oil recovery (EOR) and saline aquifer storage, are expanding the capacity and viability of underground CO2 storage, providing long-term solutions for carbon sequestration.

Technological advancements are enabling carbon capture from difficult-to-decarbonize sectors such as cement, steel, and chemicals manufacturing. Breakthroughs in capture technologies tailored to specific industrial processes are addressing the challenges of high-temperature emissions and complex gas streams, unlocking the potential for emissions reduction in these critical sectors.

Key Market Challenges

Lack of Infrastructure

One of the primary challenges associated with the lack of infrastructure in the CCUS market is the absence of comprehensive CO2 transport networks. Captured CO2 must be transported from emission sources, such as power plants or industrial facilities, to storage sites or utilization facilities. However, in many regions, the infrastructure for transporting CO2, such as pipelines or shipping routes, is inadequate or nonexistent. Building a network of CO2 transport infrastructure requires significant investment and coordination among stakeholders, which can be a barrier to the deployment of CCUS projects.

Another critical aspect of CCUS infrastructure is the availability of suitable storage sites for captured CO2. Geological storage, such as depleted oil and gas reservoirs or saline aquifers, is a common method for long-term CO2 storage. However, identifying suitable storage sites and obtaining the necessary permits and approvals can be challenging. Additionally, the capacity of existing storage sites may be limited, necessitating the development of new storage facilities. Without sufficient storage capacity, CCUS projects may face constraints on the volume of CO2 that can be captured and stored, hindering their scalability and economic viability.

In addition to storage infrastructure, the lack of infrastructure for carbon utilization poses a challenge to the CCUS market. Carbon utilization technologies, which convert captured CO2 into valuable products such as synthetic fuels, chemicals, and building materials, require specialized infrastructure for processing, distribution, and market integration. The development of carbon utilization infrastructure, including manufacturing facilities, distribution networks, and market channels, is essential to unlock the full potential of carbon utilization and create economic incentives for CCUS deployment.

Key Market Trends

Rising Focus on Carbon Removal and Negative Emissions

Governments worldwide are increasingly implementing policies and regulations aimed at reducing greenhouse gas emissions and achieving net-zero targets. Many jurisdictions are incorporating carbon removal and negative emissions strategies into their climate action plans, creating a favorable regulatory environment for the development and deployment of CCUS technologies.

Companies across various sectors are making ambitious sustainability commitments, including pledges to achieve net-zero emissions. To fulfill these commitments, corporations are investing in carbon removal technologies as part of their broader decarbonization strategies. This has led to increased demand for CCUS solutions that enable carbon capture and storage or utilization.

Advances in CCUS technologies, particularly in the area of carbon capture and utilization, are driving innovation in the market. New capture methods, improved CO2 conversion processes, and enhanced storage techniques are making CCUS solutions more efficient, cost-effective, and scalable. These technological advancements are enabling the deployment of negative emissions technologies on a larger scale.

There is growing interest from investors, venture capital firms, and government agencies in supporting carbon removal and negative emissions initiatives. Funding opportunities, grants, and financial incentives are being made available to companies and research institutions working on innovative CCUS projects. This influx of investment capital is accelerating the development and commercialization of negative emissions technologies.

Segmental Insights

Technology Insights

Based on the category of technology, the post-combustion carbon capture segment emerged as the dominant segment in the global market for carbon capture utilization and storage in 2023. PCC technology is highly compatible with existing fossil fuel-based power plants, particularly coal-fired and natural gas-fired facilities. It can be retrofitted onto these plants without significant modifications to the existing infrastructure, making it a cost-effective and practical option for reducing emissions from existing power generation facilities.

PCC technology can be applied to a wide range of industrial processes beyond power generation, including cement production, iron and steel manufacturing, and petrochemical refining. Its versatility in application makes it a valuable solution for reducing CO2 emissions across various sectors, contributing to its dominance in the CCUS market.

PCC technology is a well-established and proven method for capturing CO2 emissions from flue gases produced during combustion processes. Its reliability and scalability have been demonstrated through numerous commercial-scale projects worldwide, giving it a competitive edge in the CCUS market.

Application Insights

The oil and gas industry segment is projected to experience rapid growth during the forecast period. The oil and gas industry is one of the largest sources of anthropogenic carbon dioxide (CO2) emissions globally due to the combustion of fossil fuels for energy production. As a result, the industry faces significant pressure to reduce its carbon footprint and mitigate climate change by implementing CCUS technologies to capture and store CO2 emissions.

The oil and gas industry possesses extensive infrastructure, including pipelines, wells, and storage facilities, which can be repurposed for CCUS projects. This existing infrastructure provides a cost-effective and efficient means of transporting and storing captured CO2, making it easier for the industry to implement CCUS technologies compared to other sectors.

Many countries and regions have implemented regulations and carbon pricing mechanisms to limit greenhouse gas emissions, incentivizing the oil and gas industry to invest in CCUS technologies as a means of compliance. Regulatory requirements for emissions reductions and carbon neutrality drive the adoption of CCUS technologies in the oil and gas sector.

Regional Insights

North America emerged as the dominant region in the Global Carbon Capture Utilization and Storage Market in 2023, holding the largest market share in terms of value. North America, particularly the United States and Canada, is home to a significant number of carbon emission sources, including power plants, industrial facilities, and oil and gas operations. The abundance of these emission sources creates a substantial market for CCUS technologies, as there is a pressing need to mitigate greenhouse gas emissions in the region.

Both the United States and Canada have established regulatory frameworks that incentivize or mandate the reduction of greenhouse gas emissions. Policies such as carbon pricing mechanisms, emissions trading programs, and renewable energy standards create economic incentives for the deployment of CCUS technologies. Additionally, government funding and grants are often available to support CCUS research, development, and demonstration projects.

North America boasts a strong base of technological expertise and innovation in the energy and environmental sectors. Research institutions, universities, and private companies in the region are actively involved in developing and commercializing CCUS technologies, including carbon capture, utilization, and storage solutions. This technological leadership positions North America as a hub for CCUS innovation and deployment.

Key Market Players

• Fluor Corporation
• ExxonMobil Corporation
• Linde plc
• Shell plc
• Mitsubishi Heavy Industries, Ltd
• JGC Holdings Corporation
• Equinor ASA
• Schlumberger Limited
• Carbon Clean Solutions Limited
• Hitachi, Ltd

Report Scope:

In this report, the Global Carbon Capture Utilization and Storage Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Carbon Capture Utilization and Storage Market, By Technology:
• Pre-Combustion Carbon Capture
• Post-Combustion Carbon Capture
• Oxy-Fuel Combustion Carbon Capture
• Carbon Capture Utilization and Storage Market, By Application:
• Oil and Gas Industry
• Power Industry
• Others
• Carbon Capture Utilization and Storage Market, By Region:
• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Carbon Capture Utilization and Storage Market.

Available Customizations:

Global Carbon Capture Utilization and Storage Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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