Carbon Capture and Storage Market to Reach USD 13.14 Billion by 2030, Driven by Global Push for Emission Reduction

Carbon Capture and Storage Market Overview

The global carbon capture and storage market is experiencing a strong upward trajectory, driven by the urgent global need to mitigate greenhouse gas emissions and meet the ambitious targets set by the Paris Agreement. Valued at USD 8.5 billion in 2022, the market is forecasted to expand to USD 13.14 billion by 2030, growing at a steady CAGR of 5.6% during 2023–2030.

CCS technology plays a pivotal role in capturing carbon dioxide emissions from power generation and heavy industrial processes—such as steel, cement, and petrochemical manufacturing—and securely storing them underground to prevent atmospheric release. This makes CCS a cornerstone in the global transition to a low-carbon economy.

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Global Emission Targets Fuel Market Demand

The Intergovernmental Panel on Climate Change (IPCC) has underscored that to limit global warming to 1.5°C, it is no longer sufficient to reduce emissions alone; carbon removal technologies like CCS are essential. This recognition has prompted governments and industries to intensify investments in carbon capture infrastructure.

Countries such as the United Kingdom, the United States, and Norway are leading with large-scale CCS projects, integrating carbon storage solutions into industrial hubs and offshore reservoirs. For instance, the UK’s Zero Carbon Humber Project uses the Endurance saline aquifer—located 90 km offshore and around 1.6 km below the seabed—to store vast volumes of CO₂. Similarly, the Citronelle Project in Alabama, USA, leverages a deep saline reservoir for long-term carbon sequestration.

Key Market Drivers

• Rising Climate Commitments:

Governments worldwide are implementing stricter emission regulations and incentivizing CCS adoption as part of their net-zero goals.

• Industrial Decarbonization:

High-emission industries such as cement, steel, and petrochemicals are increasingly adopting CCS to reduce their carbon footprint and maintain regulatory compliance.

• Technological Innovations:

Advances in membrane separation, chemical looping, and sorbent-based capture technologies are improving capture efficiency and cost-effectiveness.

• Corporate Sustainability Goals:

Multinational corporations like Shell, ExxonMobil, and Equinor ASA are integrating CCS in their sustainability roadmaps to meet ESG commitments.

Market Restraints and Challenges

Despite its potential, the CCS market faces notable challenges.

• High Capital Costs: The setup and maintenance of capture and storage infrastructure demand substantial upfront investment.
• Limited Regulatory Frameworks: Inconsistencies in carbon pricing and inadequate legal frameworks for cross-border CO₂ transportation hinder market expansion.
• Public Acceptance Issues: Concerns about the safety and long-term storage of CO₂ underground continue to pose barriers to widespread adoption.

Key Opportunities in the CCS Market

• Government Funding & Tax Incentives:

Initiatives such as the U.S. 45Q tax credit and the EU’s Innovation Fund are providing strong financial support for CCS project deployment.

• Integration with Renewable Energy:

Combining CCS with bioenergy (known as BECCS) can achieve net-negative emissions, creating new avenues for climate-positive energy production.

• Emerging Markets in Asia-Pacific:

Nations like China, India, and Japan are investing heavily in CCS to decarbonize power generation and industrial production, presenting major growth potential.

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Segmentation Analysis

By Service:

• Capture
• Transportation
• Utilization
• Storage

The capture segment dominates the market, driven by rapid advancements in chemical absorption and membrane-based separation technologies.

By Technology:

• Chemical Looping
• Solvents & Sorbents
• Membranes
• Others

Solvent and sorbent technologies hold the largest share, offering efficient CO₂ removal from large-scale industrial sources.

By End-User:

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

The oil & gas sector remains a leading adopter of CCS, particularly in enhanced oil recovery (EOR) projects that utilize captured CO₂ to improve extraction efficiency while reducing emissions.

Regional Insights

North America dominates the CCS market due to robust regulatory support, large-scale pilot projects, and the presence of leading industry players like ExxonMobil and Schlumberger. The region’s proactive carbon credit policies and technological leadership make it a global hub for CCS innovation.

Europe follows closely, with projects such as the Northern Lights initiative in Norway and the Zero Carbon Humber project in the UK setting new benchmarks for large-scale CO₂ storage.

Meanwhile, Asia-Pacific is emerging as the next major growth frontier. Rapid industrialization, coupled with increasing government initiatives for emission reduction, is driving significant investments in CCS across China, India, and Japan.

The Middle East & Africa and Latin America regions are also exploring CCS applications, primarily in oil production and cement manufacturing sectors.

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Competitive Landscape

Key market participants are focusing on strategic partnerships, pilot projects, and technology collaborations to strengthen their foothold in the global CCS industry.

Leading Companies Include:

• Fluor Corporation (US)
• ExxonMobil Corporation (US)
• Linde PLC (UK)
• Royal Dutch Shell (Netherlands)
• Mitsubishi Heavy Industries Ltd. (Japan)
• JGC Holdings Corporation (Japan)
• Schlumberger Ltd. (US)
• Aker Solutions (Norway)
• Honeywell International (US)
• Equinor ASA (Norway)

These companies are actively developing next-generation CCS technologies to enhance carbon capture efficiency and lower operational costs.

Future Outlook

The Carbon Capture and Storage market will play a critical role in achieving global net-zero emission targets by 2050. With ongoing policy support, infrastructure expansion, and growing private sector participation, CCS is transitioning from a niche technology to a mainstream decarbonization solution.

As industries intensify efforts to offset their carbon footprint, the deployment of scalable and economically viable CCS systems will be indispensable for sustainable growth and climate stability.

Related Reports:

Carbon Capture Utilization Market

Green Hydrogen Market

Emission Control Catalysts Market

Advanced Energy Storage Systems Market