Dublin, Jan. 21, 2025 (GLOBE NEWSWIRE) -- The "Carbon Capture and Sequestration Market Size and Forecast 2022-2031: Global and Regional Share, Trends, and Growth Opportunity Analysis" report has been added to ResearchAndMarkets.com's offering.
The Carbon Capture and Sequestration market is forecast to grow at a CAGR of 16% from 2024 to 2031, driven by increased investments from both the public and private sectors. The growth will be primarily fuelled by large-scale CCS projects in North America and Europe, along with new technological developments in carbon capture processes.
Market Dynamics:
The CCS market is driven by the increasing global focus on reducing carbon emissions to meet climate goals, such as those outlined in the Paris Agreement. Governments and industries are investing in CCS technologies as part of their long-term decarbonization strategies. However, the high cost of technology, limited infrastructure, and concerns over long-term storage risks pose challenges. The market is also influenced by innovations in capture efficiency, new funding mechanisms, and growing collaboration between the public and private sectors.
Market Trends:
Key trends in the CCS market include advancements in direct air capture (DAC) technology, increased focus on carbon utilization (e.g., converting CO2 into chemicals or fuels), and the development of large-scale carbon storage hubs. Investments in CCS projects are increasing, particularly in regions like North America and Europe, where governmental policies are pushing for net-zero emissions targets. The integration of CCS with renewable energy sources and hydrogen production is also emerging as a trend, expanding its application in the green energy transition.
Growing pressure to reduce greenhouse gas emissions
The primary driver of the CCS market is the growing pressure to reduce greenhouse gas emissions, driven by international climate agreements and national decarbonization commitments. Large industrial sectors and energy producers are adopting CCS as a key strategy to meet emission reduction targets. Additionally, government incentives, subsidies, and carbon pricing mechanisms, such as carbon taxes and cap-and-trade systems, are pushing industries to adopt CCS technologies to comply with environmental regulations.
High capital and operational costs
One of the main restraints for the CCS market is the high capital and operational costs associated with implementing and maintaining CCS infrastructure. The costs of capturing, transporting, and storing CO2 are substantial, particularly for industries where retrofitting existing facilities is required. Furthermore, the lack of established infrastructure for CO2 transportation and storage in many regions, along with public concerns about the long-term safety of CO2 storage, hinders widespread adoption.
Competitive Landscape:
The CCS market is highly competitive, with key players including multinational energy companies like Shell, ExxonMobil and BP, alongside technology providers such as Aker Solutions and Mitsubishi Heavy Industries. These companies are investing heavily in CCS technologies and forming strategic partnerships to enhance their market presence. Start-ups and smaller firms specializing in direct air capture, such as Climeworks, are also emerging in the competitive landscape. Collaboration with government bodies for funding and infrastructure support is crucial in this market.
Market Forecast:
The CCS market is forecasted to experience robust growth, driven by the need to meet global decarbonization goals. It is expected that by 2031, CCS will become a mainstream technology, integrated into various industrial sectors, particularly in oil and gas, power generation, and manufacturing. Increased government funding, regulatory support, and breakthroughs in cost-effective capture technologies will further accelerate the market's growth trajectory over the next decade.
Regulatory Framework:
The regulatory framework surrounding the CCS market is shaped by international agreements like the Paris Agreement, along with national carbon reduction targets and environmental regulations. Many countries have introduced policies to support CCS development, including tax credits, subsidies, and carbon pricing mechanisms. In the U.S., the 45Q tax credit encourages carbon capture projects, while the European Union's Green Deal sets stringent emissions reduction goals, promoting CCS adoption. However, regulations governing CO2 storage and transportation vary across regions, impacting the speed of project development. Customer Landscape:
The customer landscape for CCS technologies primarily includes industries with high carbon emissions, such as oil and gas, cement, steel, and power generation. Energy companies and industrial firms are adopting CCS solutions to align with regulatory requirements and corporate sustainability goals. Governments and regulatory bodies also play a significant role as customers by funding and incentivizing CCS projects. Additionally, environmental organizations and public interest groups are becoming influential stakeholders, advocating for effective carbon mitigation strategies.
Regional Analysis:
The North American and European markets dominate the CCS industry due to strong regulatory frameworks, government support, and established infrastructure for carbon storage. In North America, the U.S. leads in CCS development, driven by initiatives like the 45Q tax credit and large-scale projects. Europe, particularly countries like Norway and the UK, is making significant investments in CCS as part of its Green Deal initiatives. The Asia-Pacific region is also witnessing growth, with China investing in CCS to mitigate industrial emissions and meet its carbon neutrality goals.
Industry Outlook:
The outlook for the CCS market is positive, with increasing investments, technological advancements, and growing policy support driving the industry forward. CCS is expected to play a crucial role in global decarbonization efforts, especially for hard-to-abate industries. As technological innovations reduce costs and improve capture efficiency, CCS adoption will continue to expand. The market is likely to see more collaboration between governments, industries, and technology providers to accelerate the deployment of CCS solutions across regions.
Key Topics Covered:
1. Executive Summary
2. Market Introduction
2.1. Market Definition
2.2. Market Segmentation
2.3. Research Methodology
3. Market Dynamics
3.1. Market Overview
3.2. Carbon Capture and Sequestration Analysis
3.3. Value Chain Analysis
3.4 Porter's Five Forces Analysis
3.5. Technology Landscape
3.6. Regulatory Framework
4. Global Carbon Capture and Sequestration Market, by Capture Technology
4.1. Pre-combustion
4.2. Post-combustion
4.3. Oxy-fuel combustion
4.4. Direct Air Capture
5. Global Carbon Capture and Sequestration Market, by Storage Type
5.1. Geological Storage
5.2. Ocean Storage
5.3. Mineral Storage
6. Global Carbon Capture and Sequestration Market, by Service
6.1. Capture
6.2. Transportation
6.3. Storage
6.4. Monitoring and Verification
7. Global Carbon Capture and Sequestration Market, by End-Use Industry
7.1. Oil & Gas
7.2. Power Generation
7.3. Chemical & Petrochemical
7.4. Cement
7.5. Steel
7.6. Others
8. Global Carbon Capture and Sequestration Market, by Region
8.1. North America
8.2. Europe
8.3. Asia Pacific
8.4. South and Central America
8.5. Middle East & Africa
9. Competitive Landscape
9.1. Market Share Analysis
9.2. Company Profiles
- Shell
- ExxonMobil
- Schlumberger
- Chevron
- TotalEnergies
- Mitsubishi Heavy Industries
- Aker Solutions
- Linde
- General Electric
- Fluor
- Siemens Energy
- Carbon Clean Solutions
- Climeworks
- Equinor
- Honeywell International
For more information about this report visit https://www.researchandmarkets.com/r/vs27yb
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