The Global Carbon Capture and Storage Market size accounted for USD 2,784 Mn in 2021 and is estimated to reach USD 8,636 by 2030, with a significant CAGR of 13.7% from 2022 to 2030.
Carbon capture and storage (CCS) is the technology of capturing as well as storing CO2 produced during power generation and industrial activities so that it does not enter the atmosphere. Carbon capture and storage technologies have the potential to reduce CO2 emissions dramatically in energy systems.
The goal is to reduce heavy industry CO2 emissions in order to offset the effects of climate change. CO2 can be extracted directly from an industrial source, such as a cement furnace, using a number of procedures such as adsorption, absorption, membrane gas separation, chemical looping, or gas hydration. CCS captured around one-thousandth of worldwide CO2 emissions in 2020. The majority of projects were industrial. This technique can collect nearly 90% of carbon emissions caused by the use of fossil fuels in generating electricity and industrial activities such as steel or cement manufacture. Carbon capture and storage is also known as carbon capture and sequestration and carbon control and sequestration and has been used widely across industrial sectors.
Carbon Capture and Storage Market Growth Drivers:
|Market||Carbon Capture and Storage Market|
|Market Size 2021||US$ 2,784 Mn|
|Market Forecast 2030||US$ 8,636 Mn|
|CAGR||13.7% During 2022 - 2030|
|Analysis Period||2018 - 2030|
|Forecast Data||2022 - 2030|
|Segments Covered||By Technology, By Application, And By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||Aker Solutions, Exxon Mobil, Fluor Corporation, General Electric, Halliburton, Honeywell International Inc., Linde Plc, Mitsubishi Heavy Industries, Ltd, NRG Energy, Inc, Schlumberger Limited, Shell Cansolv, and Siemens.|
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
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Carbon Capture and Storage Market Dynamics
Carbon capture and storage technology has been hailed as a key component in the world’s shift towards renewable energy. Growing emphasis on reducing carbon emissions is the most important trend in the carbon capture and storage market. With global CO2 emissions reaching a new high in past few years, up more than 1.3 percent to a record of more than 33 billion tons, the need for instruments to help reduce pollution has never been higher. According to the International Energy Agency, in order to achieve the goals of the Paris Agreement, CCS will have to contribute 32% of the extra work required to go from a 2C scenario too well below 2C. According to the Intergovernmental Panel on Climate Change (IPCC), the cost of attempting to reach global climate change targets without CCS will climb by about 140%. Thus, the worldwide carbon capture and storage market revenue is increasing at a significant rate.
Increasing demand for CO2-EOR projects is expected to support the market growth in the coming years. According to the IEA's globalized database of enhanced oil recovery projects, over 500 thousand barrels of oil are generated daily employing CO2-EOR today, accounting for roughly 20% of total EOR oil production. Some of the injected CO2 stays below ground in CO2-EOR. If the CO2 that returns to the surface is segregated and reinjected to form a closed loop, permanent CO2 storage is achieved. In today's EOR procedures, between 300 and 600 kg of CO2 are injected into each barrel of oil produced in the U.S.
However, the high cost of carbon capture and storage as well as safety issues at storage sites are some of the aspects that are limiting the industry growth. Furthermore, rising investments by the private and public organizations to develop new capturing technologies and numerous strict government regulations to reduce carbon emissions are the factors that are expected to generate several growth opportunities for the market in the coming years.
Carbon Capture and Storage Market Segmentation
The global carbon capture and storage market is segmented based on technology, application, and geography.
Market by Technology
Based on technology, the pre-combustion segment achieved maximum carbon capture and storage market share in 2021. Pre-combustion is the practice of turning a fossil fuel into a combination of CO2 and hydrogen before it is burned. Oxy-fuel combustion technique produces CO2 and steam by flaming fossil fuels in practically pure oxygen. However, the removal of CO2 from the exhaust gases produced by the combustion of fossil fuels is known as post-combustion. Pre-combustion is better suited to new power plants because it would necessitate significant upgradation to existing power plants. However, post-combustion and oxyfuel technology can be adapted to existing facilities, allowing existing power plants to be converted into carbon-capture assets.
Market by Application
The oil & gas segment is expected to generate significant carbon capture and storage market revenue in 2021. CCS technology created in the oil and gas industry is used to store carbon dioxide in deep, offshore or onshore geological formations. Carbon dioxide is commonly used in the oil industry for improved oil recovery (EOR) from older oilfields. The implementation of rigorous emission standards to reduce emissions from the O&G industry has resulted in the deployment of carbon capture, utilization, and storage projects. Furthermore, the ongoing operation of government-funded CO2-EOR projects will result in a large increase in the industry.
Carbon Capture and Storage Market Regional Overview
· Rest of Europe
· Rest of Latin America
· South Korea
· Rest of Asia-Pacific
Middle East & Africa
· South Africa
· Rest of Middle East & Africa
Stringent Government Regulations For Carbon Emission Boost the North America Carbon Capture And Storage Market Growth
The North America region accounted for the largest market share in 2021 due to the availability of many high-capacity carbon capture and storage schemes. Furthermore, the increased usage of CO2 in enhanced oil recovery procedures, combined with the rising demand for clean technologies, is supporting the North American industry. The Asia-Pacific region, on the other hand, is expected to increase at the quickest rate throughout the projected period 2022– 2030. Favorable government initiatives, the accessibility of large volume storage locations, and rising demand from the oil & gas sectors are assisting the Asia-Pacific carbon capture and storage market to grow rapidly.
Carbon Capture and Storage Market Players
Some of the top vendors offered in the professional report include Aker Solutions, Exxon Mobil, Fluor Corporation, General Electric, Halliburton, Honeywell International Inc., Linde Plc, Mitsubishi Heavy Industries, Ltd, NRG Energy, Inc, Schlumberger Limited, Shell Cansolv, and Siemens.
The estimated value of global carbon capture and storage market in 2021 was accounted to be USD 2,784 Mn.
The projected CAGR of carbon capture and storage market during the analysis period of 2022 to 2030is 13.7%.
The prominent players of the global carbon capture and storage market involve Aker Solutions, Exxon Mobil, Fluor Corporation, General Electric, Halliburton, Honeywell International Inc., Linde Plc, Mitsubishi Heavy Industries, Ltd, NRG Energy, Inc, Schlumberger Limited, Shell Cansolv, and Siemens.
North America held the dominating share for carbon capture and storage during the analysis period of 2022 to 2030.
Asia-Pacific region exhibited fastest growing CAGR for carbon capture and storage during the analysis period of 2022 to 2030.
Growing emphasis on reducing CO2 emissions, rising demand for CO2-EOR projects, and strict government regulations toward GHG emission drives the growth of global carbon capture and storage market.
Based on technology, pre-combustion segment held the maximum share for carbon capture and storage market in 2021.