The carbon capture and storage (CCS) market comprises technologies that capture carbon dioxide (CO2) from fuel combustion in industries such as electricity generation, cement production, and steel manufacturing. CCS facilities have the potential to significantly reduce CO2 emissions from these industries and are gaining importance due to stringent environmental regulations being imposed by governments worldwide to curb pollution levels. The captured CO2 can then be transported and stored deep underground in places such as saline formations and depleted oil and gas reservoirs to prevent its release into the atmosphere.
The Global Carbon Capture and storage Market is estimated to be valued at US$ 2.25 Bn in 2024 and is expected to exhibit a CAGR of 4.6% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the carbon capture and storage market are Morgan Advanced Materials (UK), Mersen (France), TOYO TANSO (Japan), SGL Group (Germany), NAC Carbon Products, Inc. (USA), Graphite India Limited (India), Superior Graphite (USA), Qingdao Tennry Carbon Co., Ltd. (China), Zircar Ceramics (USA) & Schunk Group (Germany). The key players are focusing on developing advanced technologies to reduce costs and improve the efficiency of carbon capture.
The rising demand for clean energy due to stringent environmental regulations worldwide is a major factor driving of Carbon Capture and Storage Market Growth. Many countries and industries are actively implementing CCS technologies to curb their carbon emissions and move towards a sustainable future. Power plants and other heavy industries are the major end-users adopting carbon capture technologies at a rapid pace.
The growing environmental concerns and increasingly strict emission norms by regulatory agencies worldwide are encouraging industries to reduce their carbon footprint. This is resulting in global expansion of the carbon capture and storage market with new projects coming up across regions. Government incentives and funding are also promoting investments in CCS technologies.
Market Key Trends
One of the major trends in the carbon capture and storage market is the development of cost-effective second-generation carbon capture technologies. Advanced amine-based solvents that allow for lower regeneration energy requirements and improved stability are being introduced. Membrane separation techniques are also gaining attention due to their lower energy needs and modular nature. Their widespread adoption would help reduce the costs associated with CCS which is a major barrier currently limiting large-scale commercial deployment. With ongoing research, costs are expected to decrease significantly over the coming years driving higher penetration of Carbon Capture and Storage Market.
Porter’s Analysis
Threat of new entrants: The large capital investment and steep technological learning curve required to have viable carbon capture facilities pose a high barrier to entry. However, government incentives and policies to support CCS can lower the barriers.
Bargaining power of buyers: Buyers have moderate bargaining power as CCS technology is specialized, limiting the availability of alternatives and suppliers somewhat. However, buyers can negotiate on costs as the CCS market grows.
Bargaining power of suppliers: Suppliers of CCS technologies and equipment have some bargaining power given the specialized nature of their products and services. However, competition between equipment suppliers keeps their power in check.
Threat of new substitutes: No close substitutes currently exist for Carbon Capture and Storage Outlook and Analysis. Future substitutes like renewable energy may pose a threat, forcing CCS companies to innovate.
Competitive rivalry: Intense as major players compete on technology, cost, and reliability to gain market share in the growing but still developing CCS industry.
Geographical Regions
The North American region currently holds the largest share of the overall carbon capture and storage market in terms of value. Factors such as stringent emission norms and active governmental support through funding and incentives for lowering carbon footprint is driving significant adoption of CCS technologies in the region.
The Asia Pacific region is anticipated to witness the fastest growth in the carbon capture and storage market during the forecast period. Rapid industrialization and economic growth in countries such as China and India have significantly increased greenhouse gas emissions. This is prompting governments to support demonstration CCS projects to meet international climate targets and regulations. Increasing awareness about the environmental benefits of carbon capture systems also presents numerous untapped opportunities for market growth in the Asia Pacific region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author – Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile