Carbon Capture and Storage Market Analysis | 2023-2028

Market Insights

The carbon capture and storage market was estimated at USD 3.57 billion in 2022 and is likely to grow at a CAGR of 5.92% during 2023-2028 to reach USD 5.04 billion in 2028.

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Market Dynamics

Introduction

Carbon capture and storage is the processing of capturing waste carbon dioxide, transporting it to a storage site, and depositing it where it will not enter the atmosphere. The market is segmented by technology type into pre-combustion, post-combustion, and oxy-fuel combustion and by application type into oil & gas, chemical processing, power generation, and others.

Market Drivers

The prime factors that is contributing to the growth of the global market are-

• Industrial Growth and Energy Demand - A constantly rising rate of industrialization, including North America and Asia-Pacific countries, is pushing up the energy demand and, respectively, CCS solutions requests. CSO analysts convene that it is the demand of ever-developing industries to reduce carbon output, which promotes CCS technologies. The recent announcements of funding for CCUS projects in the United States, including USD 1.7 billion for carbon capture demonstration projects, and USD 1.2 billion for direct air capture (DAC) hubs under the 2021 Infrastructure Investment and Jobs Act substantiate the goal of commercial-scale carbon capture technologies that can be integrated with CO2 transportation.
• Growing Emphasis on Reducing CO2 Emissions - Global energy-related CO2 emissions crossed 37 billion tonnes in 2023, states the International Energy Agency (IEA). This reflects a growth of 1.1% from the previous year 2022, driven primarily by emissions from coal, which accounted for over 65% of the rise.

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• Enhanced Oil Recovery (EOR) -  Among the industries, the oil and gas industry remains the most prominent impatient in the CCS development, especially the EOR projects. The injection of captured CO2 into oil reservoirs assists in the process of getting out more oil while at the same time serving as a storage for carbon hence the double advantage to energy companies. To evaluate the viability of permanent storage of CO2 in unconventional shale oil and gas reservoirs, the U.S. Department of Energy (DOE) Office of Fossil Energy and Carbon Management (FECM) announced two projects worth more than $23 million, in April 2024.
• Increasing Investments and Technological Advancements - CCS technologies are being developed globally due to increased investments and rapid development of enhanced carbon capture efficiency. This comprises new capture technologies like pre-combustion, post-combustion, and oxy-fuel combustion, which are essential for different uses. The substantial surge in global capture capacity for 2030, according to the International Energy Agency (iea.org), has scaled by 35% to ~435 million tonnes (Mt) per year, and storage capacity has expanded by 70%, reaching an estimated 615 Mt of CO2 per year.
• Regulatory Support and Government Initiatives - Governments all over the world are coming up with strict standards to reduce greenhouse gas emissions; this has created demand for CCS technologies. Of these, the ones targeting net-zero emissions are more impactful as they force industries to transition to cleaner technologies as per the set standards.

Segment Analysis

By Technology Type

The carbon capture and storage market is segmented as pre-combustion, post-combustion, and oxy-fuel combustion. The pre-combustion segment is projected to be the largest segment of the market share of more than 50% in 2022. Growing demand from the industrial sector including food processing and chemical is likely to boost the market for the pre-combustion segment.

Globally, pre-combustion CO2 capture using the Acid Gas Removal (AGR) technology is presently being used commercially. The benefit of adopting this capture technology under pressure is that it uses 20% less energy than current PCC technology at 90% CO2 capture.

By Application Type

The market is segmented as oil & gas, chemical processing, power generation, and others. The power generation segment is projected to remain the largest market share of more than 35% in 2022. Investment in the upstream oil & gas industry to cater to energy demand will drive the demand for the market.

Power plants that burn coal are the main sources of carbon dioxide emissions. Power plants are now subject to regulations, making the use of CCS facilities necessary to reduce carbon emissions to the required levels. To potentially allow the ongoing use of coal resources for electricity generation while reducing CO2 emissions, these technologies must be adopted.

Regional Insights

North America is estimated to be the largest market share of more than 35% in 2022 led by the USA. Shale gas exploration, huge energy demand, stringent regulations, and the adoption of new technologies in the USA are the major factors behind the dominance of the region. Europe and Asia-Pacific are also expected to offer substantial growth opportunities during the forecast period.

Owing to the rising demand from the oil and gas sector, coupled with strict government regulations to reduce carbon emissions, it dominated the market for CO2 capture and storage and is expected to continue over the coming years. Canada owns the second-largest share of the CCS market. These EU support programs aim to expedite the development of carbon capture and storage technologies in the region as well as the growth of commercial-scale CCS plants in the region.

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Key Players

Some of the key players in the global market are-

• Exxon Mobil
• Schlumberger Limited
• Shell Cansolv
• General Electric
• Halliburton
• Aker Solutions
• Linde
• Siemens
• NRG Energy, Inc.
• Fluor Corporation

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s carbon capture and storage market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

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