Market Scenario 

Global carbon capture, utilization, and storage (CCUS) market was valued at US$ 3.5 billion in 2023 and is projected to hit the market valuation of US$ 51.6 billion by 2050 at a CAGR of 10.49% during the forecast period 2024–2050.

Carbon Capture, Utilization, and Storage, in short CCUS, is taking center stage with regard to the control measures aimed at addressing climate change and greenhouse gas emission reduction. According to the International Energy Agency (IEA) in 2022, global emissions of carbon dioxide reached a new maximum of 36.8 gigatons. Envisaging the world that achieves the net-zero emissions by 2050 IEA has issued a growth estimate on CCUS deployment from the current capturing of about 40 million tons to 1.6 billion tons by 2030. In 2023, there were about 300 CCUS projects at different stages of development including advanced and operating, which is a sharp rise compared to past years according to Global CCS Institute reports.

This transformation of Carbon capture, utilization, and storage (CCUS) market is due to improved government intervention, innovation and growing company’s awareness of the need to protect the environment. The segment’s demand has also been majorly stimulated by the governments who offer monetary rewards and supplies to help make CCUS cheap. The total amount of tax credits for CCUS projects in the U.S. Inflation Reduction Act of 2022 increased drastically, revising the “credit” for carbon dioxide capture and safe storage from US$ 50 to 85 per ton. In 2023, the European Union introduced the Net-Zero Industry Act as a means to cut time on deployment of enabling technologies such as CCUS. The 14th Five-Year Plan of China dedicates certain provisions to the development of CCUS as part of the objective to reach CO₂ emissions peak no later than 2030. There are changes in technology which are enhancing growth, for instance, Climeworks commenced operations of the biggest direct air capture in World and opened a plants orb, in Iceland in the year 2021 and in the year 2022 declared intending to develop even bigger plant mammoth.

As of 2023, the Global CCS Institute lists 35 CCUS commercially deployed (in operation or built) plants, 77 more were in the active research stage, and 7 plants were in advance construction activities around the world. Another recently designed facility in the carbon capture, utilization, and storage (CCUS) market, which is intended to begin construction in 2024 in Norway, the Northern Lights project will capture and store CO2 under North sea from industrial installations throughout Europe. EBITDA of companies participating in the Oil and Gas Climate Initiative (OGCI) plans to spend more than $ 1 billion on creating CCUS business. No, as for the prospects of the CCUS sector development, they are quite positive, the IEA expects that SC-CCUS can take the place of between 3 and 15 percent of the total GRA emissions reductions required in 2050 in order to meet worldwide climate targets. 

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Market Dynamics 

Driver: Government Policies and Incentives Promoting Carbon Capture Technologies Adoption

Government interventions and policies play a crucial role in the development of the carbon capture, utilization, and storage (CCUS) market. As of the year 2023, more than 30 countries have any policies or frameworks targeting CCUS initiatives’ which denotes the fight against carbon emissions at a global perspective. In this regard, the US government has set aside $3.5 billion through the Inflation Reduction Act, targeted at improving the CCUS capability, making it one of the dominant leaderships of this technology. Longship is among the largest projects in its category in Norway and it has been awarded considerable government funding of $2.7bn. In China, the national carbon market, which began operation in 2021, is expected to reach emissions cover of over 4000 million metric tons by 2030, providing strong market incentives for industries to use CCUS technologies: further, the European Union’s LOL innovation Fund has devoted approximately £ 10 billion to fund low carbon technologies, including considerable funds to the CCUS.

In Canada Carbon capture, utilization, and storage (CCUS) market, the government introduced a tax incentive for CCUS projects in the 2021 federal budget, which highlights more focus on Carbon capture utilization and storage (CCUS) market growth by the authorities. The initiative aims at removing 15 million metric tons of CO2 per year by the year 2030. Japan has also set a goal of building 30 carbon capture plants by 2030 as per the policies of the central government. In the UK, the government intends to capture and store ten million metric tons of CO2 net per year by 2030 from different projects that have potential country financial support. This shift in government perspective is not only peculiar to the British state, in fact the same source IEA indicates that there were 51 CCUS facilities under development in April 2021, an increase to 65 in April 2023. It becomes imperative why policies and measures of this kind will be of high usefulness in reducing the degree of overcapitalization in the development and ongoing installation of CCUS technologies enabling the countries and the world to achieve net-zero targets and fight climate change effectively within the CCUS market.

Trend: Integration of Carbon Capture with Renewable Energy Sources for Sustainability

New trends are also emerging in the carbon capture, utilization, and storage (CCUS) market such as the coupling of carbon capture technology to renewable energy sources. As of 2023, more than 100 carbon capture projects globally are seeking opportunities to combine it with renewable energy, with the goal of lowering the carbon emissions without compromising the energy efficiency. Most notably, the capture and utilization of carbon dioxide – particularly for generation of synthetic fuels from solar energy – is catching up fast, with some such German pilot installations making up to 500000 liters a year. In Australia, one innovative project integrates wind turbine energies with carbon captured processes for carbon dioxides containing over a million metric tons of C02 annually. Such integration is also supporting the plans like the EU Horizon 2020, that funded 17 CCUS-renewable integration projects with a targeted annual reduction of 3 million metric tons at the end of the coverage period of the project.

The opportunity for carbon capture utilizing renewable power is significant as Global CCS Institute expects that technologies such as these could contribute to up to 10% of global emissions reductions by the year 2050. In the U.S. Carbon capture, utilization, and storage (CCUS) market, a flagship project situated in Texas has been able to trap 1.6 million metric tons of CO2 annually with the use of solar energy. Also, in the case of Norway's Hywind Tampen, the first floating wind farm in the world for offshore oil and gas fields integrates CCUS technologies to generate energy for the fields. The blend of renewables with CCUS is not only ecological but also economical. It was also reported that by 2030, these developed integrated projects will result in the creation of approximately a thousand fifteen employment opportunities worldwide. As nations rush to attain climate objectives, this trend appears to provide an attractive ticket to emission cuts, maximum utilization of renewable recourses, and the progress of healthy development.

Challenge: High Costs Associated with Carbon Capture Technology Deployment and Maintenance

The high expenses incurred in the execution and upkeep of carbon capture technologies remain the greatest barrier in the Carbon capture, utilization, and storage (CCUS) market. By 2023, however, the normal cost to capture one metric of CO2 amounts to between $50 and $100 depending on the technology employed and the scope of work. The Petra Nova facility based in Texas, a showcase of large scale programs that has AC’s large-scale CO2 capture equipment assisting it functions flat, chronicled capturing about 1.4 million metric tons of carbon and was brought to a standstill on complementation previously illustrated the financial constraints involved with about $1 billion being used in operation costs in three years. Though the Boundary Dam project was able to attract $1 billion in taxpayer resources, it also encountered economic problems as a result of escalating operation and maintenance costs. As a matter of fact, in the report of the Global CCS Institute, the capital costs involved in construction of new CCUS facilities exceed $500 million, making it less attractive in the regions that have less financing options.

Those approaches are commencing in the Carbon capture, utilization, and storage (CCUS) market, with the production focus on new materials and processes, which will help decrease the capture costs by as much as 30% by 2030. Nevertheless, however, as of today, this decision has been made concerning 26 out of the 65 CCUS plants, which are considered to be in development across the global CCUS market indicating still financial issues. The challenge will be bringing CCUS deployment costs down to the levels required in order to achieve the scale that meets the climate required targets, the IEA states. To this, government and private sectors have upped their funding towards research and development, with the year 2023 alone having a total of $2 billion set aside for CCUS innovations. However, to such extent as shown above, this reasonable approach to solving the problem of carbon capture remains the most problematic. 

Segmental Analysis 

By Service 

It has been observed that carbon capture has become the most profitable sector in the Carbon capture, utilization, and storage (CCUS) market with a market share of more than 54.4%. Out of which, the globalization of climate change, with more than 130 countries vowing to net zero emissions by 2050, has led to ample capital injection in these technologies. It should be noted that according to the International Energy Agency (IEA), carbon capture could help reduce approximately 800 million metric tons of CO2 per year by the year 2030. Besides, the solution is being developed in the short term, more than 70 large-scale carbon capture plants are now operational worldwide. These facilities are mostly from industrial players, power generation and natural gas exploration account for more than 60% of captured carbon. In addition, the profitability of carbon capture projects is also strengthened by many government subsidies like the 45Q tax incentive in the United States which pays up to US$ 50 for one ton of captured and stored carbon.

The Carbon capture, utilization, and storage (CCUS) market also experiences significant demand for carbon capture owing to its increasing use in industries seeking to go green. Cement and steel manufacturing are major end-users as the heavy end-users including the steel industry generates an equivalent of more than two billion metric tons of CO2 emissions per year. In addition, there is also growing interest in direct air capture (DAC) technology that seeks to pull out CO2 from the atmosphere where companies like Climeworks and Carbon Engineering have emerged as non-conventional leaders. Such innovations are likely to capture millions of tons of direct CO2 from the Earth’s atmosphere by the year 2030. In addition, enhanced oil recovery (EOR) using captured CO2, especially in the petrochemical sector, has also been a key market with an estimated 70 million tons of CO2 consumed annually. Therefore, as carbon capture concerns increase and authorities develop carbon markets, the carbon capture component is expected to grow at a large scale possibly attaining a stage worth 5 billion dollars by 2027.

By Source 

The fossil fuels are dominating the Carbon capture, utilization, and storage (CCUS) market is not only a story of demand but also of supply. In 2023, the segment constituted over 45.01% revenue share. Plant and industrial facilities, particularly power plants, become the greatest sources of CO2 emissions and thereby the greatest opportunities for carbon capture strategies Carbon capture, utilization and storage (CCUS) development appears to be an effective solution which can integrate and manage the existing fossil fuel energy infrastructure with reducing the carbon concentration in the air. This growth is propelled by such aspects as changes in government regulations as well as enhancement of energy efficiency incentives, technological capture and storage progression, and more funds being channeled towards green energy. Significantly, the International Energy Agency indicated that as early as 2023, the world managed to capture about 40 million metric tons of CO2 and The fossil fuel industry captured most of this. Also announced more than 120 new CCUS projects developed, primarily based on fossil fuel usage, indicating interest of the industry towards its reduction in environmental footprint.

In 2023, global investments in the Carbon capture, utilization, and storage (CCUS) market reached a record high surpassing $7 billion. The number of operating CCUS facilities increased to 35, of which 70% are associated with fossil fuel activities. Oil and gas sector alone managed to collect more than 20 million metric tons of CO2. Also, carbon capturing technology at existing coal, gas and nuclear power plants was expanded with the addition of 15 new units worldwide. The trend is noticeable also in the fields of carbon capture plants. Approximately 50 new smart carbon capture patents were recorded in the past year alone. There has been a revival of the process called enhanced oil recovery – re-injecting the CO2 captured already into the crust and hoping to extract more crude oil. 10 GigaWatts of capacity grade projects are under development at the moment. These trends are indicative of the fossil fuel industry’s domination in the development of CCUS market evolution spurred by the environmental responsibility combined with the business profit incentives.

By Technology

From the past few years, industrial Point-Source Carbon Capture, Utilization and Storage (CCUS) has unseated other technologies in the Carbon capture, utilization, and storage (CCUS) market primarily due to its focus and cost. In 2023, the segment accounted for more than 83.72% of the market share. Within the fact features, which propel its supremacy is its capacity to perform emission capture from fossil fuel-based energy activities making use of concentrated CO2 exhaust sources maximally. As per International Energy Agency, more than 2000 million metric tons of CO2 are released from point sources on earth every year, most of which are suitable for capture using the current day technologies. More than 70 operational or planned CCUS plants across the globe means that the segment is in a growth stage. The global spending on the CCUS technology in 2023 peaked at $3 billion according to Global CCS Institute confirming that there is strong footing and trust on this technological solution.

The Industrial Point-Source in the Carbon capture, utilization, and storage (CCUS) market stands to gain accentuated growth in the overall carbon capture, utilization and storage market over and above the available potential due to strong policy support and progress in utilization techniques. Approximately $5 billion in tax incentives and financing to promote CCUS have been brought forth in about 30 countries which include the US as well as China. In addition, further policies on CO2 utilization have opened up developmental opportunities with the CO2 utilization market being estimated at $70 billion by the year 2030. An integrated spinal cord of CCUS systems such as that of the port of rotterdam where more than a million metric tons of co2 are captured annually demonstrates the shifting trajectory in emissions at the regional level through the deployment of CCUS in industrial synergies. There is also a pressure for net zero commitments which has caused over 100 leading companies to sign up to CCS integration in their corporate sustainability programs which causes further demand for it. Thus, Industrial Point-Source CCUS is capable of fully responding environmental requirements and pursuing economic interests ensuring its leadership position in the carbon market.

By Industry 

The oil and gas industry plays a pivotal role in the Carbon capture, utilization, and storage (CCUS) market owing to its availability of infrastructure, massive funds, and experience in dealing with carbon dioxide emissions. The segment held over 32.16% market share in 2023. The industry is on the top of carbon emissions, because of its essential requirement to capture carbon and the legal obligations to meet more and more environmental standards with 500 million metric tons of CO2 captured worldwide in 2023. The use of the sector’s established pipeline and reservoir facilities is beneficial in ascertaining the cost of the initiation of the CCUS projects since it cuts down the expenses involved in contrary industries. Furthermore, oil and gas corporations are heavily focused on the R&D sector, with ExxonMobil, for example, focusing $3 billion by 2025 for low carbon technologies including CCUS in the firm’s capital expenditures, thus showing willingness for a long term future.

The prominence of the oil and gas industry in the Carbon capture, utilization, and storage (CCUS) market is further supported by many technology and scale enhancement partnerships and collaborations. It has a catalog of more than one 100 CCUS over the world that demonstrates its primacy in commercializing these technologies. The sector's revenue growth is facilitated by government incentives and carbon pricing mechanisms, which have seen a rise in carbon credit prices to $85 per ton in 2023. Payments were also made to the sector because of the requirement to use the captured carbon for Enhanced Oil Recovery (EOR), which is a current business of reclaiming few project the day 300,000 barrels of oil though EOR projects. The international financing of CCUS technology grew to $5 billion in 2024. Oil and gas companies contributed a considerable amount of this investment. Even as the world progresses towards a net-zero future, the oil and gas sector remains indispensable in the development of CCUS technology and markets and will continue to be a major earner and driver of positive growth.

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Regional Analysis 

North America, more specifically the United States of America, leads the world Carbon capture, utilization, and storage (CCUS) market accounting for nearly 40% of the global market owing to the fact that it has been at the cutting edge for many years as far as technology development and encouraging policy framework is concerned. Currently, out of the 21 operational facilities dealing with large scale implementation of CCUS in the world, 13 are in the U.S., which is proof significant steps embracing this technology by the nation. Offering a clear incentive is the U.S. government whose role is more pronounced in providing motivating factors such as the 45Q Tax credit to encourage carbon capture whereby up to about $50 is given per ton of CO2 sequestered. This has led to investments from the private sector, each year with more than US$ 3 billion invested in new CCUS projects over the recent months. The region’s well established oil and gas sector optimizes CCUS for enhanced oil recovery, capturing over 25 million tons of CO2 each year. Significant changes such as the Infrastructure investment and Jobs act have set aside $ 12 billion for carbon management technologies thus maintaining N.A as the hub. Pipelines dedicated to the transportation of CO2 around 5,000 miles in length and the presence of North America as a deployment giant for projects with Texas and Wyoming as tops on the pages ensures the relevance of N.A to global in the CCUS market.

Due in part to its supportive climate policies and aggressive decarbonization targets, Europe has become the second-largest Carbon capture, utilization, and storage (CCUS) market. It was the European Union’s Green Deal with its goal of zero emissions by 2050 which also served as an impetus for the development of CCUS. As of now, Europe has over 70% CCUS projects on various level of the project development cycle, where Northern Light’s project of Norway is noteworthy for its intention to store annually as much as 1.5 million tons of CO2. In the UK, pipelines of greatest prospects have emerged owing to the £1 billion CCS Infrastructure Fund inclining number of projects. The regional market is further augmented by projects that cut across many countries with advanced technology being brought in due to the different consortium members providing funds for projects. The impact of the EU Emissions Trading System (ETS) has also been felt especially in making capturing carbon an economically reasonable option for the facilities that do emit it. Additionally, Europe’s attentiveness to hydrogen as a clean energy carrier is emphasized by the presence of more than 50 projects utilizing CCUS for the production of blue hydrogen.

In the Asia Pacific region, the Carbon capture, utilization, and storage (CCUS) market is ranked the third after North America and Europe, owing to the combine effect of fast industrialization and increasing awareness about the environment. China is leading this regional trend with over 30 ongoing CCUS projects having aims of achieving 10 million tons of CO2 within the year 2030. While Japan and South Korea are also important market players with Japan committing $2 billion into CCUS, South Korea has set a target of 4 million tons not emitted by 2030 through CCUS technology. The Asia Pacific region is able to integrate CCUS with development affordable housing in the cement and steel industries with a strong government support, evidenced by 14th Five Year plan of China on carbon neutrality by 2060 and huge investments in CCUS. Moreover, to further strengthen their presence in the world CCUS market, the Asia Pacific countries invest international organizations to exchange experience and obtain investments.

Top Players in Carbon Capture, Utilization and Storage Market

• Air company
• Air products & chemicals
• Aker Solutions
• Azolla
• Blue planet
• Carbon Clean
• CGG SA
• Chevron
• Dakota Gasification Company
• Equinor
• Exxon Mobil Corporation
• Global Thermostat
• JGC Holdings Corporation
• Kiverdi Inc.
• LanzaTech
• Linde Plc
• Mitsubishi Heavy Industries, Ltd.,
• Net power
• RWE AG
• Saipam
• Schlumberger Limited,
• Shell Plc
• Other Prominent Players

Market Segmentation Overview:

By Services

• Capture
• Transport
• Storage
• Usage/Utilization

By Carbon Capture Source

• Capture
• Transport
• Storage
• Usage/Utilization

By Process

• Post-Combustion
• Pre-Combustion
• Oxy-Fuel Combustion

By Technology

• Industrial-Point-Source CCUS
• Direct Air Capture (DAC)
• Bioenergy With Carbon Capture & Storage (BECCS)

By Usage Destination

• Aromatic polyurethane
• Indoor gardening
• Bioplastic
• SAF
• Astaxanthin
• Fine protein (food)
• Blast furnace carbon source
• Aromatic polycarbonate
• Algae biomass fuel
• Polyhydroxyurethane

By Industry

• Power Generation
  • Biomass
  • Geothermal
  • Hydrogen
  • Solar
  • Others
• Waste Treatment Plant
  • Sewage Treatment
  • Commercial Waste Treatment
  • Industrial Waste Treatment
  • Municipal Solid Waste
  • Others Waster Treatment
• Cement
• Oil & Gas
• Iron & Steel
• Chemical & Petrochemical
• Other Industries

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • The U.K.
  • Germany
  • France
  • Spain
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • ASEAN
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Turkey
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America