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Agriculture Carbon Sequestration Market Expected to Reach $912.9 Million by 2034

31 Jan 2025

Introduction

The agriculture carbon sequestration market focuses on reducing greenhouse gas emissions by capturing atmospheric carbon dioxide through sustainable agricultural practices. These include soil management, crop rotation, and forestry initiatives that enhance soil carbon storage and improve environmental sustainability. As climate change continues to be a pressing global issue, agriculture carbon sequestration has emerged as a critical tool for mitigating its effects while supporting the agricultural sector's resilience.

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Market Overview

The agriculture carbon sequestration market is witnessing robust growth due to increasing awareness about sustainable farming practices and global climate change mitigation efforts. Regulatory frameworks and incentives from governments worldwide further encourage farmers and corporations to adopt carbon sequestration techniques. According to BIS Research, the agriculture carbon sequestration market will grow from $155.0 million in 2023 to $912.9 million by 2034, at a 17.74% CAGR, driven by climate action and sustainable farming practices.

Market Segmentation

Segmentation 1: based on Application

• Crop Farming
• Livestock Farming
• Forestry

Segmentation 2: based on Type

• Natural-Based Solution
• Technology-Based Solution

Segmentation 3: based on Region

•    North America: U.S. and Canada
•    Europe: Germany, U.K., Italy, France and Rest-of-Europe
•    Asia-Pacific: China, Japan, India and Rest-of-Asia-Pacific
•    Rest-of-the-World: South America and Middle East and Africa

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Key Market Players

The agriculture carbon sequestration market includes leading companies that are driving innovation and adopting sustainable practices:

• Soil Capital
• Indigo Agriculture
• Yara
• Carbon8 Systems
• Cool Farm Alliance
• Corteva Agriscience
• BASF
• Syngenta
• Carbo Culture
• Charm Industrial 

Market Dynamics: Drivers, Challenges, and Opportunities

Market Drivers

Government programs like the EU’s Eco-Schemes and the U.S. Climate-Smart Agriculture initiative are promoting regenerative farming to capture carbon and improve soil health. These initiatives are helping integrate carbon farming into traditional agriculture, making it a key tool in fighting climate change.

Market Challenges

A lack of standardization in carbon markets makes it hard to measure, verify, and price carbon credits. Creating clear standards would improve transparency, stabilize prices, and encourage wider participation in the agricultural carbon market.

Market Opportunities

Advances in monitoring and verification technologies, like blockchain and AI, offer huge potential for carbon farming. These tools enable real-time tracking of carbon capture, ensuring transparency, accuracy, and easier access to new markets.

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Analyst View

Debraj Chakraborty, Principal Analyst at BIS Research, notes that the agriculture carbon sequestration market is set for strong growth as sustainable farming and climate action gain momentum. Investments in regenerative agriculture, carbon credits, and soil management are driving the market forward. Innovations in monitoring, remote sensing, and data-driven tools will ensure accurate and scalable carbon capture, boosting agriculture's role in fighting climate change while improving soil health and productivity.

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