Carbon Capture, Utilization, and Storage (CCUS) Technologies Market Size Report, Industry Share, Analysis, Growth, 2030

Carbon Capture, Utilization, and Storage (CCUS) Technologies Industry Prospective:

The global Carbon Capture, Utilization, and Storage (CCUS) Technologies market size was worth around USD 2500 million in 2022 and is predicted to grow to around USD 7900 million by 2030 with a compound annual growth rate (CAGR) of roughly 15.5% between 2023 and 2030. 

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Carbon Capture, Utilization, and Storage (CCUS) Technologies Market: Overview

CCUS entails the extraction of CO2, often from large point sources like industrial sites or power plants that burn either fossil fuels or biomass for fuel. If not utilized immediately, the captured CO2 is compressed and shipped, carried by rail, truck, or pipeline for use in a variety of applications. It may also be injected into deep geological formations like salty aquifers or depleted oil and gas reserves. One of the main variables influencing the carbon capture, utilization, and storage technologies market revenue growth is the growing interest in reducing carbon dioxide (CO2) emissions.

While fossil fuels respond more quickly to changes in electric demand, nuclear power, and renewable energy continue to make major contributions to lowering carbon emissions. Thus, there is a huge demand for Carbon Capture and Storage (CCS) as industry professionals seek a more conservative option that reduces emissions while increasing electricity generation. CCS is a tried-and-true method for reducing emissions that permanently removes CO2 from the environment.

Key Insights

• As per the analysis shared by our research analyst, the global Carbon Capture, Utilization, and Storage (CCUS) Technologies market is estimated to grow annually at a CAGR of around 15.5% over the forecast period (2023-2030).
• In terms of revenue, the global Carbon Capture, Utilization, and Storage (CCUS) Technologies market size was valued at around USD 2500 million in 2022 and is projected to reach USD 7900 million, by 2030.
• The global Carbon Capture, Utilization, and Storage (CCUS) Technologies market is expected to be driven by several factors such as increasing CO2 emissions owing to rapid industrialization.
• Based on the service, the capture segment is expected to dominate the market over the forecast period.
• Based on region, North America is expected to hold the largest revenue share over the forecast period.

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Carbon Capture, Utilization, and Storage (CCUS) Technologies Market: Growth Drivers

Increasing demand for power drives market growth

Coal and gas-fueled power plants continue to produce around two-thirds of the world's energy, a percentage that has mostly stayed stable since 2000 despite the introduction of low-cost variable renewable sources. The quantity of power generated from fossil fuels has increased by 70% in absolute terms since 2000, which reflects the ongoing increase in the global energy demand. To minimize carbon emissions and achieve the global climate objective, there is a growing need for carbon capture, utilization, and storage, which is propelling the global carbon capture, utilization, and storage technologies market revenue growth.

A highly flexible power system that can manage significant percentages of variable renewable energy sources is now being developed to meet climate goals. Coal and gas-fired power plants have been a major source of system flexibility since they provide benefits like inertia and frequency regulation, which are essential to the operation of the electrical grid. Due to carbon capture, storage, and utilization, these facilities can continue to provide these benefits and meet long-term flexibility requirements, such as yearly seasonality. Thus, this is expected to drive the market growth over the forecast period.

Carbon Capture, Utilization, and Storage (CCUS) Technologies Market: Restraints

Safety concern impedes market growth

The potential for leakage while storing CO2 underground is one of the main worries. Numerous detrimental outcomes, including water poisoning, soil acidification, groundwater alterations, and cryogenic burns, may emerge from these spills.

Determining the possible dangers and hazards requires choosing an acceptable place for CO2 storage. CO2 can escape from underground injection sites through a variety of channels, including well systems and unmanicured rock formations.

Leakage via wells is an issue since it may lead to blowouts or ongoing leaks from poorly built wells, leading cement to deteriorate and well failures. These unexpected occurrences have the potential to seriously harm the ecosystem and possibly put human and animal lives in peril.

Although blowouts are uncommon, they can have disastrous effects and the possibility might limit the carbon capture, utilization, and storage technologies market's ability to develop in terms of income. Thus, this is expected to impede the market expansion over the forecast period.

Carbon Capture, Utilization, and Storage (CCUS) Technologies Market: Opportunities

Government initiatives to reduce CO2 emissions offer an attractive opportunity for market growth

Global pressure to fulfill aggressive emission reduction targets is mounting on governments and companies. By accumulating and storing CO2 emissions from a variety of sources, such as factories, power plants, and even direct air capture (DAC) technologies, CCUS technologies offer a practical route to achieving these objectives.

For instance, according to the UN, 110 nations have pledged to become carbon neutral by 2050. Furthermore, according to the IEA, three oil companies, Equinor, Shell, and Total, have promised to invest USD 700 million in the Northern Light offshore CO2 storage project in May 2020 to reduce CO2 emissions. Thus, this is expected to offer a lucrative opportunity for the carbon capture, utilization, and storage technologies industry growth.

Carbon Capture, Utilization, and Storage (CCUS) Technologies Market: Challenges

High capital costs act as a major challenge for the market growth

CCUS projects sometimes need significant upfront financial investments for the development of collection, transportation, and storage infrastructure. For many companies and governments, these high prices can be a substantial barrier to entry, particularly for smaller-scale applications. Therefore, the high capital cost acts as a major challenge to the market growth during the projection period.

Carbon Capture, Utilization, and Storage (CCUS) Technologies Market: Segmentation

The global Carbon Capture, Utilization, and Storage (CCUS) Technologies industry is segmented based on service, technology, end-user, and region.

Based on the service, the global market is bifurcated into capture, transportation, utilization, and storage. The capture segment is expected to dominate the market over the forecast period. Capture technologies are responsible for capturing carbon dioxide (CO2) emissions from various sources before they are released into the atmosphere.

The growing research and development efforts continue to drive innovation in capture technologies, with a focus on developing more efficient, cost-effective, and scalable solutions. Thereby, driving the market growth.

Based on the technology, the global Carbon Capture, Utilization, and Storage Technologies industry is bifurcated into chemical looping, solvents & sorbents, bio-energy ccs, and direct air capture.

Based on the end-use, the global market is bifurcated into oil & gas, power generation, chemicals & petrochemicals, cement, iron & steel, and others.

Carbon Capture, Utilization, and Storage (CCUS) Technologies Market: Report Scope

Carbon Capture, Utilization, And Storage (CCUS) Technologies Market: Regional Analysis

North America is expected to hold the largest revenue share during the forecast period

North America is expected to hold the largest revenue share of the global carbon capture, utilization, and storage technologies market over the forecast period. The expansion of the infrastructure for carbon capture, utilization, and storage by several significant businesses and producers in this area is anticipated to fuel market revenue development.

For instance, the Office of Fossil Energy (FE) of the U.S. Department of Energy (DOE) announced USD 6.4 million in federal funding to focus on Hydrogen fuels for cost-shared research and development projects in December 2020, under the funding opportunity announcement (FOA) FE-FOA 0002397. Therefore, the aforementioned facts drive the market growth in the region.

The Asia Pacific is expected to grow at the highest CAGR during the forecast period. Revenue growth in this area is anticipated to be fueled by increasing investments and company development to provide cutting-edge and novel CCS solutions.

For instance, the largest carbon capture, utilization, and storage (CCUS) facility in the nation has been constructed, and two more facilities of a comparable capacity will be built by Sinopec Corp. of China by 2025. One of the leading companies in China creating prototype CCUS projects as part of the nation's goal to attain peak carbon emissions by 2030.

At Sinopec's Qilu refinery in eastern Shandong province, carbon dioxide is created to manufacture hydrogen. This carbon dioxide is gathered as a part of the new CCUS project, which has been in the planning stage for less than a year and is then pumped into 73 oil wells close to the Shengli oilfield. Thereby, driving the market growth in the region.

Carbon Capture, Utilization and Storage (CCUS) Technologies Market: Competitive Analysis

The global Carbon Capture, Utilization, and Storage (CCUS) Technologies market is dominated by players like:

• Captura
• CarbonOrO
• Carbon Engineering Ltd.
• Algiecel
• Carbyon BV
• CarbonCure Technologies Inc.
• Cambridge Carbon Capture
• Carbon Collect
• Climeworks
• Dimensional Energy
• Ebb Carbon
• Global Thermostat
• Fortera Corporation
• Heirloom Carbon Technologies
• High Hopes Labs
• Liquid Wind AB
• LanzaTech
• Lithos
• Living Carbon
• Mars Materials
• Mission Zero Technologies
• Mercurius
• Biorefining
• Paebbl
• Verdox

The global Carbon Capture, Utilization, and Storage (CCUS) Technologies market is segmented as follows:

By Service

• Capture
• Transportation
• Utilization
• Storage

By Technology

• Chemical Looping
• Solvents & Sorbents
• Bio-Energy CCS
• Direct Air Capture

By End-use

• Oil & Gas
• Power Generation
• Chemicals & Petrochemicals
• Cement
• Iron & Steel
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa