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The Global Carbon Capture and Storage Market size is estimated to grow by 104.5 million T between 2022 and 2027 exhibiting a CAGR of 22.91%. The growth of the market depends on several factors, including dependence on fossil fuels for the generation of electricity, hike in investments and advances in technology, and the need to adhere to stringent environmental regulations.
This report extensively covers market segmentation by Technology (pre-combustion, post-combustion, and oxy-fuel combustion), Application (enhanced oil recovery and geological storage), Distribution Channel (pipeline and ships), End-user (power, oil, gas, and manufacturing), and Geography (Americas, APAC, Europe, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Carbon capture and storage technology captures and stores manmade CO2 instead of releasing it into the atmosphere.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Dependence on fossil fuels for the generation of electricity is a major factor driving the growth of the carbon capture and storage market. Fossil fuels dominate global energy demand, accounting for 80% of consumption. This leads to increased CO2 emissions, driving the demand for carbon capture and storage (CCS). Non-OECD countries like China and India will fuel the demand for fossil fuels due to their growing economies. Coal remains the primary fuel for power generation, with a significant share in global production. The proven reserves of fossil fuels are estimated at 6 trillion BOE, meeting energy demand for decades. However, fossil fuel usage has a significant environmental cost, with electricity production contributing 42% of global CO2 emissions. Reducing emissions and achieving environmental sustainability in the power sector is a priority. Carbon capture and storage in power generation are widely debated and seen as a crucial method for addressing environmental concerns. Various approaches exist, each with advantages and disadvantages, but CCS implementation shows potential for positive environmental impact.
The growing popularity of carbon capture and storage projects in developing nations is a major trend in the market. Carbon capture and storage (CCS) projects are gaining momentum in developed countries focused on reducing carbon emissions. These economies have invested in mature technologies and transitioned to low-carbon alternatives. In contrast, developing nations like China, India, and Brazil prioritize energy security due to their early stages of economic development. Reliance on coal remains high in these countries to meet energy demands. Although the quality of coal is improving, pollution levels remain a concern.
However, there is a notable shift toward emission reduction in these regions. Increased global cooperation and growing environmental awareness have led to a change in perspective. Involvement in international conventions and protocols has driven environmental sustainability efforts. This growing awareness presents opportunities for CCS in the power generation market of developing countries. China, in particular, has already initiated projects, and other countries are likely to follow suit in the near future.
Risks associated with carbon capture and storage are a major challenge in the market. Public concerns surrounding carbon capture and storage (CCS) technology have raised apprehensions, particularly regarding potential leakage hazards in storage facilities. The impact of CO2 leaks on the effectiveness of CCS as a climate change mitigation option is being questioned.
Numerous studies have analyzed the consequences of CO2 leaks from storage sites. Catastrophic leaks could have severe consequences for humans and animals, while pressure from injected CO2 may trigger small seismic events. Environmental assessments of demonstration sites like the Sleipner Gas Field in Norway, the oldest large-scale CO2 storage facility, have shown successful operation with minimal risks of leaks. Another test site in Saskatchewan, Canada, estimates the possibility of CO2 leakage to be less than 1% over 5,000 years. These studies provide promising results for CCS technology, affirming its potential as a key tool in reducing CO2 emissions and combating global climate change.
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. Post-combustion CO2 capture technology is widely recognized as the primary method for filtering CO2 from flue gas in existing plants. Its advantage lies in the ability to retrofit it into power plants with long lifecycles, typically lasting 40 years or more. In this process, flue gas enters a scrubbing tank, where a liquid solvent reacts with CO2 while allowing other components, such as nitrogen, to pass through. The captured CO2 is separated from the solvent at the bottom of the tank.
The post-combustion capture technology segment is expected to grow in 2020 and 2021 due to declining costs of materials, equipment, and processes driven by technological advancements. The development of new solvents, membranes, and sorbent platforms will further reduce costs. Increasing pilot-scale test projects will also contribute to segment growth. Optimizing the post-combustion process, including component reconfiguration and waste heat integration, will enhance overall efficiency. Furthermore, advancements in post-combustion technologies will reduce energy penalties, supporting segment growth.
Based on the distribution channel, the pipeline segment is expected to hold the largest market share. Pipelines play a vital role in commercial CO2 transportation, including for carbon capture and storage projects in the power generation sector. This method is projected to experience significant growth. Globally, there are extensive pipeline networks for transporting gases like CO2, with the US alone having around 800,000 km of hazardous liquid and natural gas pipelines. The estimated expansion of CO2 transportation infrastructure in the next few decades is about 100 times the current capacity. Notably, over 90% of the existing CO2 pipelines in the US are used for enhanced oil recovery. Pipeline transport is efficient for long distances when CO2 is in a dense liquid phase, requiring specific pressure and dehydration measures. Major CO2 pipeline networks exist in regions such as the Permian Basin, Rocky Mountain area, and Gulf Coast in the US. For instance, the Cortez Pipeline stretches 500 miles from Colorado to Texas, with a capacity of 1.5 BSCF/D (28 Mtpa).
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.
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The carbon capture and storage market in North America is dominated by the US and Canada, driven by stringent regulations and government support. Enhanced oil recovery using carbon capture and storage is a key factor contributing to market growth. Ongoing research in CO2-enhanced oil recovery in the US has the potential to produce 60 billion barrels of oil. ExxonMobil plans to establish a carbon capture and storage hub in the Houston Ship Channel, aiming to capture 100 million metric tons of CO2 per year by 2040. Supportive government policies, tax incentives, and the power sector's significant greenhouse gas emissions create demand for carbon capture and storage projects in North America.
In South America, countries like Brazil are investing in carbon capture and storage projects to reduce emissions and achieve atmospheric CO2 stabilization. Brazil has operational and planned demonstration projects, including the Petrobras Santos Basin Pre-Salt Oil Field. However, investments in South America remain relatively low. Brazil's reliance on hydropower and the planned installation of coal power plants by 2030 contribute to CO2 emissions.
The COVID-19 pandemic affected the carbon capture and storage market in 2020, causing disruptions and an economic downturn. However, with the introduction of vaccines and the lifting of restrictions, oil and gas production resumed, leading to a rebound in the regional demand for carbon capture and storage. Overall, factors such as regulations, government support, enhanced oil recovery, and the rebounding oil and gas industry contribute to the growth of the carbon capture and storage market in North America during the forecast period.
Vendors are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Linde- The company offers carbon capture and storage solutions which acts as a key strategy in meeting today's CO2 emission reduction targets.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, 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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Carbon Capture and Storage Market Scope |
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Report Coverage |
Details |
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Page number |
205 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 22.91% |
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Market growth 2023-2027 |
104.5 mn t |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
21.52 |
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Regional analysis |
Americas, APAC, Europe, and Middle East and Africa |
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Performing market contribution |
Americas at 64% |
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Key countries |
US, Brazil, Canada, Australia, and Norway |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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