Carbon Capture and Storage Market Report 2025

The carbon capture and storage market size has grown rapidly in recent years. It will grow from $6.22 billion in 2024 to $7.17 billion in 2025 at a compound annual growth rate (CAGR) of 15.3%. The growth in the historic period can be attributed to environmental regulations and policy support, growing concerns about climate change, investments in clean energy, industry transition and decarbonization, corporate sustainability initiatives.

The carbon capture and storage market size is expected to see rapid growth in the next few years. It will grow to $12.67 billion in 2029 at a compound annual growth rate (CAGR) of 15.3%. The growth in the forecast period can be attributed to government funding and incentives, increasing carbon pricing initiatives, rapid industrialization in developing regions, global commitments to net-zero target, collaborative industry initiatives. Major trends in the forecast period include technological innovation and cost reduction, advancements in ccs technology, investment and funding landscape, government policies and regulations, public and corporate perception.

The rise in global carbon dioxide emissions is expected to drive the growth of the carbon capture and storage (CCS) market. CO2 emissions result primarily from fossil fuel combustion, cement production, gas flaring, and the use of solid, liquid, or gaseous fuels. As CO2 emissions increase, the demand for carbon capture and storage grows, as CCS provides a method to reduce emissions by capturing, processing, and transporting CO2 from industrial sources to sites for long-term storage. For example, in April 2024, NOAA Research, a U.S.-based scientific organization, reported that the global average surface concentration of CO2 reached 419.3 parts per million (ppm) in 2023, an increase of 2.8 ppm over the previous year. Thus, rising global CO2 emissions are fueling the expansion of the carbon capture and storage market.

The imminent surge in industrialization is projected to significantly propel the carbon capture and storage market. Industrialization, characterized by transitioning economies from agriculture-based to large-scale mechanical production in factories, prompts increased greenhouse gas emissions. Carbon capture and storage technologies aim to mitigate these emissions by capturing CO2 from industrial sources and storing it underground. Notably, in March 2023, the National Bureau of Statistics highlighted a 2.4% year-on-year increase in industrial enterprise value creation, indicating a rapid industrial growth rate of 4.9% over two years. Thus, rapid industrialization acts as a driving force for the carbon capture and storage market.

Product innovation is an increasingly prominent trend in the carbon capture and storage (CCS) market. Leading companies in this sector are focusing on developing new methodologies to improve efficiency, lower costs, and enhance the effectiveness of capturing carbon emissions from industrial processes. CCS methodologies involve techniques for capturing carbon dioxide emissions from various sources and securely storing them underground to mitigate climate change. For example, in June 2024, Verra, a U.S.-based non-profit, introduced VM0049, a new Verified Carbon Standard (VCS) methodology tailored for CCS activities. This globally applicable framework provides guidelines for technology-based initiatives, including direct air capture and high-emission industrial processes, to capture and quantify carbon dioxide removals (CDRs) and emission reductions, supporting organizations in achieving net-zero climate targets.

Major players in the carbon capture and storage sector are embracing strategic partnerships to integrate cutting-edge technologies into comprehensive solutions. In November 2022, ExxonMobil Corporation joined forces with Mitsubishi Heavy Industries, Ltd., leveraging their expertise to serve clients striving for a lower-carbon future. This collaboration aims to advance carbon capture technologies, particularly focusing on lowering CO2 capture costs for heavy-emitting industrial clients. Additionally, Baker Hughes Company's acquisition of Mosaic Materials Inc.

in April 2022 signifies the intent to bolster carbon dioxide capture methods. Through this partnership, Mosaic Materials gains access to resources and expertise to enhance and market its direct air capture technology based on metal-organic frameworks (MOFs).

Major companies operating in the carbon capture and storage market include Aker Solutions ASA, Dakota Gasification Company, Equinor ASA, Fluor Corporation, Linde PLC, Mitsubishi Heavy Industries Ltd., Shell PLC, Siemens AG, Sulzer Ltd., NRG Energy Inc., General Electric Company, Maersk, Japan CCS Co. Ltd., Halliburton Company, ExxonMobil Corporation, Schlumberger Limited, Honeywell International Inc., Occidental Petroleum Corporation, Air Liquide S.A., Baker Hughes Company, LanzaTech, Calix Limited, Carbon America, Carbon Clean, CarbonFree, Carbon8 Systems, Chart Industries, Capsol Technologies AS, Global Thermostat.

North America was the largest region in the carbon capture and storage market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global carbon capture and storage market report during the forecast period. The regions covered in the carbon capture and storage market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the carbon capture and storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Carbon capture and storage (CCS) represents the process of capturing, transporting, and preserving greenhouse gas emissions from sources such as power plants reliant on fossil fuels, energy-intensive industries, and natural gas reserves. This method involves collecting these emissions and re-injecting them into the Earth, thereby offering a means to mitigate carbon emissions and combat global warming.

Within the realm of carbon capture and storage, several product categories exist, including pre-combustion, industrial processes, post-combustion, and oxy-combustion. These categories serve diverse purposes such as capturing emissions, facilitating transportation, enabling utilization, and ensuring storage. Pre-combustion carbon capture involves the extraction of carbon dioxide from a gas mixture prior to combustion, commonly employed in integrated gasification combined cycle (IGCC) power plants. These technologies find application across multiple industries, including oil and gas, coal and biomass power generation, iron and steel manufacturing, chemical production, among others.

The carbon capture and storage market research report is one of a series of new reports that provides carbon capture and storage market statistics, including carbon capture and storage industry global market size, regional shares, competitors with a carbon capture and storage market share, detailed carbon capture and storage market segments, market trends and opportunities, and any further data you may need to thrive in the carbon capture and storage industry. This carbon capture and storage market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The carbon capture and storage market include revenues earned by entities by offering comprehensive single-point carbon capture, carbon transit, and carbon management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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