According to ResearchAndMarkets.com, the global carbon capture and storage market size is expected to reach USD 5.61 billion by 2030, expanding at a CAGR of 7.1% from 2023 to 2030. This growth is attributed to the presence of favorable government policies and funding initiatives in the European Union (EU).
Increasing concerns regarding the detrimental effect of carbon emissions on the environment have prompted the adoption of carbon capture and storage technology. Various governments are encouraging the implementation of CCS technology through pilot projects across various industries. This is attributed to the ability of carbon capture and storage technology to serve as a large-scale solution for achieving high CO2 emission reduction targets and climate control goals.
The European Union emerged as a global leader by developing CCS as a part of its energy and climate policy to meet the 80%-95% emission reduction target by 2050. Various policies and funding programs favoring the development of more efficient and cost-effective CCS technologies are primarily driving the market in the region.
The increasing use of carbon dioxide in enhanced oil recovery (EOR) applications is fueling the demand for carbon capture and storage across the globe over the forecast period. However, the high cost of carbon capture and storage technology may not prove to be a viable solution for many industry players as well as countries globally. Therefore, the high cost of CCS is expected to restrain the growth of the CCS market in the near future.
The industry players are adopting several strategies including partnerships, new product launches, expansions, mergers & acquisitions, joint ventures, and partnership agreements to increase the customer base and individual market share. For instance, in June 2023, Technip Energies N.V. announced the launch of CaptureNow which is a platform that brings all the carbon capture, storage, and utilization technologies under one platform.
Carbon Capture and Storage Market Report Highlights
Based on technology, the pre-combustion segment dominated the market with a revenue share of over 69.0% in 2022 owing to its wide application and the production of clean energy such as e-fuels and blue hydrogen
Based on application, the power generation segment accounted for the highest market share of over 68.0% in 2022 due to imposed restrictions on power plants, the utilization of CCS facilities has become mandatory to reduce carbon emissions up to the required standards
Europe is expected to grow at the fastest CAGR of 8.9% over the forecast period owing to several favorable government policies in the region promoting the use of CCS technology. For instance, in March 2023, the European Union launched the Net Zero Industry Act that proposes an injection target for carbon dioxide annually of 50 Mt CO2 for 2030, thus promoting the adoption of CCS technology in the region.
The “Carbon Capture And Storage Market Size, Share & Trends Analysis Report By Technology (Pre-combustion, Oxy-combustion), By Application (Power Generation, Oil & Gas, Metal Production, Cement), By Region, And Segment Forecasts, 2023 – 2030” report has been added to ResearchAndMarkets.com’s offering.