Direct Air Capture Global Market Report 2024

The direct air capture market size has grown exponentially in recent years. It will grow from $0.04 billion in 2023 to $0.07 billion in 2024 at a compound annual growth rate (CAGR) of 66.1%. The expansion observed in the historical period can be attributed to concerns regarding climate change, support from policies and regulations, corporate initiatives focused on sustainability, the implementation of carbon pricing mechanisms, increased public awareness and support, as well as international collaboration and partnerships.

The direct air capture market size is expected to see exponential growth in the next few years. It will grow to $0.44 billion in 2028 at a compound annual growth rate (CAGR) of 59.3%. The anticipated growth in the forecast period can be attributed to the pursuit of net-zero emissions targets, the emergence of carbon removal markets, increased integration with carbon utilization, a focus on climate resilience and adaptation, growing investor interest and financing, policy alignment, and enhanced international cooperation. Key trends expected in the forecast period encompass the adoption of direct air capture (DAC) as a negative emissions technology, collaborative efforts between DAC companies and industrial facilities, increased integration with carbon utilization projects, rising demand for sustainable fuels and materials, advancements in DAC efficiency, the development of scalable and modular systems, expanded deployment in industrial sectors, and ongoing innovation in DAC technology.

The escalating environmental concerns surrounding greenhouse gas emissions are poised to propel the growth of the direct air capture market in the foreseeable future. Greenhouse gas emissions, encompassing gases such as carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O), contribute to global warming by trapping heat in the atmosphere. These emissions have surged primarily due to industrial activities, deforestation, transportation, and agriculture. Direct air capture technology presents a promising solution for curbing greenhouse gas emissions by extracting CO2 directly from the atmosphere. For instance, in November 2023, as reported by the Environmental Protection Agency (EPA), greenhouse gas emissions in the US rose by 5% in 2021 compared to 2020. Notably, CO2 emissions from fossil fuel combustion increased by 7%, while those from natural gas consumption rose by over 1% in 2021. Consequently, the mounting environmental concerns regarding greenhouse gas emissions are stimulating the growth of the direct air capture market.

Key players in the direct air capture market are increasingly focusing on introducing advanced systems, such as the hybrid direct air capture system, to gain a competitive edge. A hybrid direct air capture (DAC) system integrates multiple approaches or techniques to capture CO2 directly from the atmosphere. For instance, in November 2023, Avnos, Inc., a US-based energy company, unveiled the inaugural hybrid direct air capture system (HDAC) in collaboration with Southern California Gas Company, a US-based utility company. The HDAC technology not only extracts CO2 from the air but also produces water using electricity. The pilot initiative aims to demonstrate the scalability of the technology by up to 1,000% from its current iteration. This hybrid approach to direct air capture comprises a two-stage system that first removes water vapor and subsequently captures CO2 from the dry air stream. It then compresses the captured CO2 for transportation, storage, or utilization, while simultaneously condensing the water vapor into liquid water for reuse.

In November 2023, Occidental, a prominent US-based oil and gas company, completed the acquisition of Carbon Engineering for $1.1 billion. This strategic move is in line with Occidental's integrated net-zero strategy and aims to strengthen its capabilities in direct air capture (DAC) technology. Carbon Engineering Ltd., headquartered in Canada, is a clean energy company focused on commercializing direct air capture (DAC) technology, which captures carbon dioxide (CO2) directly from the atmosphere.

Major companies operating in the direct air capture market are Mosaic Materials Inc., Sunfire GmbH, National Energy Technology Laboratory, Climeworks AG, Carbon Clean Solutions Limited, Carbon Engineering Ltd., Heirloom Carbon Technologies Inc., Oak Ridge National Laboratory, Skytree Technologies AS, CarbonCapture Inc., Immaterial Inc., Global Thermostat Inc., Spiritus Systems, Synhelion AG, Infinitree Inc., Avnos Inc., Noya PBC, RepAir LLC, MISSION ZERO TECHNOLOGIES Inc., Carbyon Inc., Sustaera Inc., Southern Green Gas Limited, Octavia Carbon, Inc., Capture6 Inc.

North America was the largest region in the direct air capture market in 2023. The regions covered in the direct air capture market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the direct air capture market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Direct air capture is a technology specifically engineered to extract carbon dioxide directly from the surrounding air. Typically, the process involves directing air over chemical sorbents or liquid solvents that selectively react with CO2, enabling other components of the air to pass through. Once captured, CO2 can be stored in underground geological formations or utilized in the production of products such as concrete.

The primary types of direct air capture include absorption-based direct air capture (DAC), adsorption-based direct air capture (DAC), membrane-based direct air capture (DAC), and cryogenic-based direct air capture (DAC). Absorption-based DAC is a technology designed to capture CO2 from the ambient air using a chemical solvent or sorbent, effectively removing carbon dioxide from the atmosphere. This technology can be implemented at various scales, including pilot-scale, demonstration-scale, and commercial-scale operations, and can be powered by electricity and heat. These applications span diverse industries such as carbon capture and storage (CCS), carbon capture, utilization, and storage (CCUS), and are utilized by sectors such as oil and gas, food and beverage, automotive, chemicals, healthcare, among others.

The direct air capture market research report is one of a series of new reports that provides direct air capture market statistics, including direct air capture industry global market size, regional shares, competitors with a direct air capture market share, detailed direct air capture market segments, market trends and opportunities, and any further data you may need to thrive in the direct air capture industry. This direct air capture 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 direct air capture market consist revenues earned by entities by providing services such as carbon removal, carbon offsetting, and research and development. The market value includes the value of related goods sold by the service provider or included within the service offering. The direct air capture market also includes of sales of carbon-neutral fuels, carbonated building materials, carbonated water, plastics, and polymers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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