Carbon Capture and Storage Market By Technology (Pre-combustion Capture, Post-combustion Capture, and Oxy-fuel Combustion), By Application, (Enhanced Oil Recovery (EOR), Industrial Processes, Power Generation), and By End-user (Oil & Gas, Power Generation, Cement, Chemicals, Iron & Steel, and Others), Global Market Size, Segmental analysis, Regional Overview, Company Share Analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Carbon Capture and Storage market accounted for USD 3.58 Billion in 2024 and is expected to reach USD 27.8 Billion by 2035, growing at a CAGR of around 20.5% between 2025 and 2035.  Carbon Capture and Storage (CCS) market goods that involve technologies for capturing carbon dioxide (CO₂) emissions from industrial processes for energy generation. It incorporates capturing, transporting, and underground storage of CO₂ in geological structures or employing the gas in applications such as enhanced oil recovery. ECT, or the market is stimulated by demand for green power, climate targets, and regardless of regulations. Stable growth is underpinned by improvements in the use and application of carbon, as well as the enhancement of investment in clean technologies. The CCS market is also growing at a fast pace as power generation, cement, and steel industries look for options for operating in a low-carbon environment. New carbon applications to the market, including the CO₂ to value-added commodity transformation, remain vibrant growth prospects.

Report Scope:

Market Dynamics

Growing demand for reducing industrial CO₂ emissions globally

The need for efficiency and the elimination of industrial CO2 emissions at a global level is due to increase due to climate change and corporate efforts to rise to the challenge posed by the Paris Agreement. Cement, Steel, Chemicals, And Power Industries are among the industries that discharge the highest levels of CO₂ emissions globally,  a known greenhouse gas emission. Because most governments set higher limits on CO₂ emissions and introduce carbon prices, the pressure on industries to become more sustainable grows. The increased interest in sustainable objectives, together with the fact that many companies have set targets to achieve net-zero emissions, plays into this demand. CCS has come into focus as a promising technology that businesses can use to satisfy carbon reduction goals while reinventing current business models substantially. Furthermore, changing public and shareholders’ expectations requiring companies to act as environmental stewards is compelling more industries to analyze and fund carbon decrease solutions such as CCS.

Government regulations and incentives supporting CCS Adoption

Currently, CCS technology is included under several policies and government schemes, particularly the regulation and incentives that promote the use of carbon capture and storage technologies. Most nations have set ambitious emission-cutting benchmarks, as per the Paris Accord, to which CCS offers an attractive, viable solution. To overcome the high initial establishment costs of CCS, governments are offering cash incentives like tax credits, grants, and subsidies. The U.S. 45Q tax credit offers financial rewards to companies for every ton of CO2 captured and stored, making CCS projects more economically viable In Europe, programs such as the EU Emissions Trading System (ETS) that impose steep levies on high carbon emissions make industries opt for CCS to avert skyrocketing prices. Furthermore, there is sponsorship and funding from many countries to advance CCS’s research and its initial deployment. Such rules and financial measures contribute to the creation of a more suitable context for CCS technology expansion across segments like power and industrial.

Limited infrastructure for CO₂ transportation and storage

One of the most significant challenges that have slowed down the take-off of Carbon Capture and Storage (CCS) is the lack of an adequate network to transport and store CO2. Once captured, transported CO2 must be moved to long-term storage facilities by pipelines, trucks, or ships. However, there is a lack of infrastructure for transporting CO2 to the end-use point, especially where the industrial cluster is remote from the storage locations, including depleted oil fields or saline aquifers. The construction of new CO2 pipelines needs a very large initial capital investment and gets involves in lengthy bureaucratic procedures. Permission to construct CO2 pipelines sometimes gets rejected due to safety and environmental issues. Moreover, the absence of a highly developed network of storage facilities can be seen as an issue since suitable geological formations for CO2 storage are not located everywhere, around the world. This limitation raises the otherwise low transport cost and adds complexity, making CCS initiatives less economically viable, particularly for small-scale industries. Since this is not enough investment and policy measures to build more CO2 pipelines and sequestering facilities, large-scale CCS applications are thus limited.

Advancements in carbon utilization technologies for industrial applications

New technologies in carbon usage offer a breakthrough for the further development of the application of Carbon Capture and Storage (CCS) in industry. Unlike traditional mitigation technologies that confine captured CO2 emissions, these technologies allow industries to make timely utilization of the CO2 by converting it into feasible products, including fuels, chemicals, and construction materials. CCU is the process through which greenhouse gases emitted from factories, electric power plants, and other organizations can be captured, stored, and reused by other industries, effectively enabling industries to earn back their carbon footprint. For instance, captured CO2 can be utilized for the manufacturing of synthetic fuels that can be utilized to power vehicles or forging carbonates involved in construction. New technologies are equally used to support the use of CO2 in polymer production, fertilizer, as well as other chemical productions. These enhancements not only increase the prospects for CCS in business terms by creating new value but also embed CO2 in circular economic concepts that embrace carbon as an asset rather than a nuisance. Carbon recycling, possible across a wide range of industries, might boost CCS deployment where it is needed most for high-emitting sectors such as cement, steel, and chemicals.

Expanding carbon credits market promoting CCS Adoption

This growing market for carbon credit constitutes a highly appealing strategy to encourage the use of Carbon Capture and Storage (CCS) technologies. When governments followed by organizations made their attempts to meet climate change goals, carbon trading mechanisms were developed that enable organizations to sell and purchase carbon credits based on emission reductions. This gives CCS economic motivation because captured CO2 earns industries credit that can be used as a trading chip to cover emissions in other areas.

The shift in company goals and improved focus on decarbonization with net zero targets are creating more demand for carbon credits, which in turn is benefiting the asset. With the increasing maturity of the carbon market, the rules and benchmarks for the carbon credits are being developed further, thus increasing interest in CCS projects. Apart from enhancing the economic feasibility of CCS, this financial mechanism mobilizes intersectoral partnerships as they search for best practices to minimize their emissions. The increasing carbon credits market, therefore, plays an important and useful role in driving the deployment of CCS technologies more aggressively across the world.

Industry Experts Opinion

“When companies push for more "lower carbon energy," it typically means continuing to produce and use oil and gas, but with somewhat cleaner extraction and processing methods. "You're just doing it with fewer emissions, but the end product still can have a lot of carbon in it,"

• Paasha Mahdavi, Professor of political science at the University of California

Segment Analysis

Based on Technology, the CCS Market has been segmented as pre-combustion capture, post-combustion capture, and oxyfuel combustion. Post-combustion capture is now used most frequently because it can be added to new and existing power stations and industries. Pre-combustion capture mainly applies to the Integrated Gasification Combined Cycle (IGCC), although it captures CO2 before combustion and the use is still limited. The oxy-fuel combustion system is slowly gaining popularity because of its potential for a higher percentage and easier capture of CO2, although it has not extended widely commercially.

Based on Application, Enhanced Oil Recovery (EOR) is the key main application that drives the CCS since it enables businesses to use CO2 captured and inject it back into the reservoirs to increase the recovery of oil and decrease emissions. Coal and especially gas-fired power generation is a major contributor to the market attributed to their high CO2 emissions. However, CCS is also applied in the industrial sectors, including cement, steel, and chemicals industries, where the use of CCS will minimize emissions of greenhouse gases. Other applications, such as hydrogen generation and bioenergy with CCS, are likely to become other significant growth segments as the globe seeks to pursue low-carbon energy solutions.

Regional Analysis

Currently, North America dominates the CCS market due to large investments in large-scale CCS projects and government leverage. The U.S. and China take the lead with the Petra Nova and Illinois Industrial CCS projects and policies like tax incentives under the 45Q program. Moreover, the looming implementation of CCS by large IOCs, including ExxonMobil and Chevron, operating in North America will further strengthen its leading position.

The CCS market is advancing rapidly in the Asia Pacific region, and the growth continues to be propelled by factors such as surging industrial emissions and, therefore, frantic efforts from countries, especially the leading Asian economies like China and Japan, to reduce emissions. CCS is incredibly valuable to China, which is the leading emitter. China is stepping up the CCS deployment to electrify its largest coal-dependent energy sector and industries. Japan is also progressing in CCS through partnerships such as Japan CCS Co., Ltd., primarily based on carbon storage. This rapid growth is purely attributed to the increasing focus and ambition of the region to cut its carbon emissions and shift to cleaner forms of energy.

Competitive Landscape

Figures such as provide a glimpse of a rapidly evolving Carbon Capture and Storage (CCS) Market with a handful of leading companies that can underwrite major projects based on technology, footprint, and strategic investments. Shell PLC and ExxonMobil are at the forefront, employing their immense industry exposure as oil and providers of CCS projects like Shell’s Quest CCS and ExxonMobil’s La Barge Project to capture and store large amounts of CO2. Mitsubishi Heavy Industries is an industry giant that provides the most efficient post-combustion capture technologies and is involved in global CCS projects. Other industry players that rely on large-scale CCS projects such as the Northern Lights project are Aker Solutions and Equinor ASA, which are mainly engaged in the construction of CO2 storage. Viable solutions are delivered by Linde plc and Fluor Corporation from CO2 capture technologies. Fluor’s Econamine FG Plus® is used in industrial CCS applications globally. These companies lead because they use technology, have experience managing carbon on a big scale, and they work with other industries.

Carbon Capture and Storage Market, Company Shares Analysis, 2024

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Recent Developments:

• In July 2023, Fluor Corporation announced its recent agreement by which it has secured a license to implement Fluor's advanced Econamine FG PlusSM carbon capture technology within Federated Co-Operatives Limited's (FCL) Co-op Renewable Diesel Complex located in Regina, Saskatchewan, Canada. This partnership aligns with FCL's broader energy roadmap, where the renewable diesel initiative stands as a prominent feature within their comprehensive USD 2 billion investment strategy, focusing on developing an integrated agricultural complex.
• In January 2023, Equinor signed a contract with Linde that encompasses a significant Front-End Engineering Design (FEED) contract for the H2H Saltend project. The pioneering H2H Saltend venture involves the development of a substantial 600-megawatt low-carbon hydrogen production facility featuring carbon capture technology. Its primary aim was to contribute to establishing the Humber region as a prominent global center for the production and distribution of low-carbon hydrogen.

Report Coverage:

By Technology

• Pre-combustion Capture
• Post-combustion Capture
• Oxy-fuel Combustion

By Application

• Enhanced Oil Recovery (EOR)
• Industrial Processes
• Power Generation
• Others

By End-user

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

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Shell PLC
• Aker Solutions
• Equinor ASA
• Dakota Gasification Company
• Linde plc
• Siemens Energy
• Fluor Corporation
• Sulzer Ltd.
• Mitsubishi Heavy Industries Ltd. (MHI)
• Japan CCS Co., Ltd.
• Carbon Engineering Ltd.
• LanzaTech
• Exxon Mobil Corporation
• JGC Holdings
• Schlumberger Ltd.
• Honeywell International

Frequently Asked Questions (FAQs)