Published Year: 2022
Carbon Capture Utilization and Storage Market - A Global and Regional Analysis: Focus on Application
The global carbon capture utilization and storage (CCUS) market was valued at $2,100.0 million...
Market Research Report
A quick peek into the report
Carbon Dioxide Removal Industry and Technology Overview
The global carbon dioxide removal market is projected to reach $2,083.4 million by 2031 from $462.0 million in 2022, growing at a CAGR of 18.2% during the forecast period 2022-2031. The growth in the carbon dioxide removal market is expected to be driven by increasingly supportive government policies and growing investment and collaboration among industry players. However, high energy costs for some technologies and lack of monitoring, reporting, and verification are some of the factors hindering the growth of the market.
Carbon Dioxide Removal Market Lifecycle Stage
The global carbon dioxide removal market is in a growing phase. New trends, such as the focus on blue carbon and microalgae as a CDR tool, are expected to offer opportunities in the coming years.
Industrial Impact
With an increased worldwide focus on reducing carbon emissions, the shift towards technologies to remove carbon dioxide from the atmosphere is increasing, thereby creating demand for CDR. The shift is more prominent in regions such as North America and Europe.
Market Segmentation
Segmentation 1: by Technology Type
• Biochar
• Direct Air Capture (DAC)
• Enhanced/Carbon Mineralization
• Ocean Alkalinization
• Others
Among different types of technology, biochar led the market in 2021. However, direct air capture is expected to have the highest growth during the forecast period.
Segmentation 2: by Carbon Credit Buyer
• Finance Sector
• Technology Sector
• Others
The finance sector is expected to be the largest carbon credit buyer during the forecast period 2022-2031. The growth of the finance sector is mainly driven by factors such as compliance, investment, carbon offsetting, and corporate social responsibility.
Segmentation 3: by Region
• North America - U.S. and Canada
• Europe - Germany, Norway, Italy, and Rest-of-Europe
• Asia-Pacific - Australia and Rest-of-Asia Pacific
• Rest-of-the-World
North America led the carbon dioxide removal market in 2021 and is anticipated to uphold its dominance throughout the forecast period, owing to the numerous government initiatives and investments by industry stakeholders to adopt carbon dioxide removal technology at scale.
Recent Developments in Carbon Dioxide Removal Market
• In October 2022, Carbon Engineering Ltd. and Occidental Petroleum Corp. started the construction of a carbon removal plant in the Permian Basin, U.S. The plant would have the capacity to draw 500,000 tons of carbon dioxide from the atmosphere per year using direct air capture technology.
• In October 2022, Climeworks completed the commercial operations of its first-generation technology at its world’s first commercial direct air capture facility in Hinwil, Switzerland. The operation would help the company to sharpen the focus and achieve gigatons of CO2 by 2050.
• In April 2021, Thermostat signed an agreement to supply DAC equipment to the Haru Oni eFuels pilot plant situated in Chile. The plant will be utilized for capturing carbon dioxide with electrolytic hydrogen for producing synthetic gasoline. The plant is designed to capture nearly 250 kilograms of CO2 per hour.
• In July 2021, Carbfix announced a partnership with Aker Carbon Capture of Norway. This partnership will help combine the companies’ complementary technologies to offer the full CCS value chain in the global fight against climate change.
Demand – Drivers and Limitations
Following are the demand drivers for the global carbon dioxide removal market:
• Favorable Government Policies Drive the Development of Carbon Dioxide Removal
• Introduction of Carbon Dioxide Removal (CDR) Launchpad
• Investments and Collaborations Drive the Growth of Carbon Dioxide Removal
The market is expected to face some limitations too due to the following challenges:
• High Cost and Energy Usage Associated with Direct Air Capture (DAC)
• Lack of Proper Mechanism for Monitoring, Reporting, and Verification (MRV)
Analyst View
According to Pooja Tanna, Lead Analyst, BIS Research, “Carbon dioxide removal technologies are expected to be the way forward for achieving net zero targets in the coming years. The increasing focus by governments across the globe toward adoption of CDR technologies and private and public funding are the major factors propelling the growth of the industry.”
Carbon Dioxide Removal Market - A Global and Regional Analysis
Focus on Technology Type, Carbon Credit Buyer, and Region - Analysis and Forecast, 2022-2031
Some Faq's
Frequently Asked Questions
The process of removing carbon dioxide from the atmosphere and permanently storing it in geological, terrestrial, or oceanic reservoirs or products is known as carbon dioxide removal, commonly referred to as negative CO2 emissions.
The key trends in the carbon dioxide removal market include a focus on blue carbon and microalgae as a CDR tool.
The carbon dioxide removal market has seen major development by key players operating in the market, such as business expansion, partnership, collaboration, and joint venture. According to BIS Research analysis, the majority of the companies have adopted new product collaboration and business expansion.
A new entrant can focus on developing and improving technologies and other services based on the demand from the buyers.
The following can be considered the USPs of this report:
• Market ranking analysis based on product portfolio, recent developments, and regional spread
• Start-up and investment landscape, including product adoption scenario and funding
• Volume market for carbon dioxide removal at regional and country levels
The report is suitable for carbon removal companies and carbon credit buyers.
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