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The carbon capture and storage market is estimated to increase by 104.5 million tons between 2022 and 2027. The size of the market is forecast to grow at a CAGR of 22.91%. The growth of the market depends on several factors, including dependence on fossil fuels for the generation of electricity, a hike in investments and advances in technology, and the need to adhere to stringent environmental regulations.
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The hike in investments and advances in technology are notably driving the market growth, although factors such as risks associated with carbon capture and storage may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Driver
The hike in investments and advances in technology are notably driving the market growth. Investments in the R&D of next-generation capture technologies have increased over the years. Besides, governments are undertaking initiatives to promote CCS technology, and this is contributing to market growth. Both private and public sectors are investing heavily in the testing and commercialization of low-carbon technology as this reduces carbon costs and protects the environment.
Furthermore, advances in energy and CCS technologies enable the development of cost-effective solutions that tackle the global issue of climate change by reducing carbon emissions. According to the IEA, the adoption of CCS technologies will help in limiting the future rise in global temperature to around 2C. Many research institutes are investing in rigorous R&D to innovate new technologies. For instance, researchers at the University of California, Berkeley, Lawrence Berkeley National Laboratory, and ExxonMobil developed a new technique that uses porous material called a metal-organic framework, or MOF, modified with nitrogen-containing amine molecules to capture CO2. Therefore, these factors will boost the global market during the forecast period.
Significant Trend
Apprehensions related to the application of enhanced oil recovery are an emerging trend in the market. One of the most widely considered applications of the CO2 captured in the first stage of the CCS project is its use in the oil and gas sector, with depleting production volumes. The CO2 is injected into the wells to replenish the naturally occurring gas drive of the reservoir, which is one of the most important factors deciding the reservoir production volumes.
The release of the CO2, which is injected into the oil and gas reservoirs, also finds its way into the air as it comes up to the surface with the producing hydrocarbons, either dissolved in the oil or in an independent state. Moreover, a lot of CO2 also escapes from the old and uncapped reservoirs into the surrounding formations, ultimately finding its way to the atmosphere. Therefore, the abovementioned factors undermine the entire concept of the introduction in the power generation sector to create a sustainable environment by reducing carbon emissions. Although the statistics proving the authenticity of the abovementioned conditions are still in their preliminary stages, the entirety of the concepts cannot be questioned. This has the potential to boost market growth during the forecast period.
Major Challenge
Risks associated with CCS are major challenges impeding market growth. CCS has its own share of public apprehensions associated with it, as is the case with any emerging technology. The most significant of these apprehensions is related to the potential leakage hazards associated with the dedicated storage facilities. Although not established till now, many questions are being raised regarding the impact of leakage of stored CO2. This doubt, if proven true, will counter the whole purpose of implementing the CCS project, which is reducing the effectiveness of CCS as an option for climate change mitigation.
Many critical studies and research have analyzed the consequences of CO2 leaks from such storage sites. Any catastrophic or abrupt leakage of CO2 can lead to serious consequences in the form of the death of humans and animals. It has also been seen that pressure built up by injected CO2 could trigger small seismic events, which can also be regarded as a major challenge. Hence, factors like these will hinder market growth during the forecast period.
Key Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Enhance Energy Inc. - The company is primarily engaged in drilling wells for oil or gas field operations for others and specializes in spudding in, drilling in, redrilling, and directional drilling. The key offerings of the company include these solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the pre-combustion segment will be significant during the forecast period. Pre-combustion technology is the most mature technology within the fast-developing global CCS market. In pre-combustion technology, CO2 is removed from the fuel prior to combustion. The process is carried out in a traditional steam reformer, where the fuel is converted to carbon monoxide (CO) and hydrogen (H2). The CO gas and steam are then converted into H2 and CO2. The separated H2 gas can be then used as fuel for both power and industry plants or vehicles.
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The pre-combustion segment was valued at 24.83 million t in 2017 and continued to grow until 2021. Advances in first-generation pre-combustion technologies, especially improvements in the physical and chemical absorbing solvents, are expected to drive this segment during the forecast period. Vendors are developing new pre-combustion technologies, such as the ammonium carbonate-ammonium bicarbonate process and sorption-enhanced reforming process, that combines CO2 capture with coal gasification. The deployment of these technologies in the projects will increase in the future, and the cost of pre-combustion technologies will likely decline, which in turn is likely to drive the growth of this segment during the forecast period.
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Americas is estimated to contribute 64% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The US and Canada dominate the market in North America. Stringent regulations on carbon emission, coupled with support and incentives offered by governments in the region, are driving market growth in this region. Additionally, the application of CCS for enhanced oil recovery in the region will significantly drive the growth of the regional market in focus during the forecast period. Furthermore, the presence of factors such as abundant geological storage, diverse stakeholder support, and well-developed private-sector expertise has also played a major role in driving the demand for CCS projects in North America.
Furthermore, the demand for these projects is also rising in South America amid the need to upgrade the existing power plants. Countries such as Brazil are steadily investing in the projects to curb the growing emission rate and achieve atmospheric CO2 stabilization. The country has the Petrobras Santos Basin Pre-Salt Oil Field, which has been separating CO2 onsite as part of natural gas processing since 2013 and is now storing 3 Mtpa. The captured CO2 is injected directly into the Lula, Sapinhoa, and Lapa oil fields for enhanced oil recovery. The country has various operating and planned the demonstration projects. Two of which are the Petrobras Miranga Project and the CEPAC Carbometano Porto Batista Project. These factors will contribute to regional growth during the forecast period.
The global carbon capture and storage (CCS) market, though in a nascent stage, sees growth supported by initiatives like loans and tax incentives from entities such as the U.S. Department of Energy and the USDA Rural Utilities Service. Projects in industries like metal production, cement, and pulp & paper aim to reduce greenhouse gas emissions, particularly from coal-fired power plants. Technologies like oxy-combustion and integrated gasification combined cycle (IGCC) enable carbon capture, while the water-gas shift reaction (WGSR) and acid gas removal (AGR) processes further contribute to CO2 stream management.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and market growth and forecasting opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
205 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 22.91% |
Market growth 2023-2027 |
104.5 mn t |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
21.52 |
Regional analysis |
Americas, APAC, Europe, and Middle East and Africa |
Performing market contribution |
Americas at 64% |
Key countries |
US, Brazil, Canada, Australia, and Norway |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Air Products and Chemicals Inc., Aker Solutions ASA, Babcock and Wilcox Enterprises Inc., Chevron Corp., ENGIE SA, Enhance Energy Inc., Eni Spa, Equinor ASA, Exxon Mobil Corp., Fluor Corp., General Electric Co., Hitachi Ltd., Linde Plc, Mitsubishi Heavy Industries Ltd., NET Power, Occidental Petroleum Corp., Schlumberger Ltd., Shell plc, Siemens AG, and Sulzer Management Ltd. |
Market dynamics |
Parent market analysis, market research and growth, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Application
8 Market Segmentation by Distribution Channel
9 Market Segmentation by End-user
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Trends
13 Vendor Landscape
14 Vendor Analysis
15 Appendix
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