Carbon Capture and Storage Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2025-2034

The Global Carbon Capture and Storage Market was valued at USD 8.6 billion in 2024 and is estimated to grow at a CAGR of 16.0% to reach USD 51.5 billion by 2034, driven by global decarbonization initiatives, stringent emissions regulations, and increasing investments in clean energy technologies. CCS enables the capture of up to 90% of CO emissions from power plants and industrial sources, offering a scalable solution for carbon neutrality. Governments across the U.S., EU, and Asia Pacific are implementing incentive schemes, including tax credits, subsidies, and net-zero mandates, to accelerate CCS deployment.

Technology plays a vital role in hard-to-abate sectors such as cement, steel, and petrochemicals, reinforcing its relevance in the shift to a low-carbon economy. These industries produce process-related emissions that cannot be eliminated through energy substitution alone, making CCS essential for deep decarbonization. As net-zero targets become more urgent, companies in these sectors are integrating CCS as part of their long-term emissions reduction strategies, supported by stakeholder pressure, ESG commitments, and carbon pricing mechanisms. The deployment of CCS not only ensures regulatory compliance but also provides a competitive advantage in sustainability-driven markets.

The carbon capture and storage market is primarily segmented by technology, with post-combustion capture dominating in 2024, generating USD 5.39 billion, favored due to its adaptability for retrofitting existing power and industrial plants without major modifications to the original systems. Its ability to remove CO from flue gas using solvent-based systems has been significantly improved by next-generation amine blends, heat-integrated regeneration systems, and low-energy capture processes, making it the most commercially mature and widely deployed CCS solution. Its scalability and cost-effectiveness make it especially attractive in emerging economies aiming for phased climate compliance.

By application, the oil and & sector held the largest share in 2024, contributing USD 3.9 billion. The industry increasingly uses captured CO in Enhanced Oil Recovery (EOR), injecting it into mature reservoirs to boost production while storing the gas underground. As regulatory scrutiny intensifies, CCS enables oil and gas companies to decarbonize upstream and downstream activities.

North America Carbon Capture and Storage Market generated USD 5.1 billion in 2024, driven by the robust policy support like the U.S. Inflation Reduction Act, which allocates billions for carbon management technologies, and the Section 45Q tax credits, which incentivize carbon capture with up to $85 per metric ton of stored CO. The U.S. has the largest CCS projects globally, including multi-industry carbon hubs and dedicated CO pipeline networks. Additionally, Canada’s strong climate policy framework and investment in CCS at oil sands operations continue to strengthen the region’s leadership in carbon capture innovation and deployment.

Leading players such as Equinor, Linde, ExxonMobil, Air Products, and Chevron are expanding their CCS footprints through joint ventures, acquisitions, and public-private partnerships. Companies are securing long-term contracts with industrial emitters, investing in dedicated CO transport and storage hubs, and scaling modular CCS technologies. A notable strategy is the development of integrated CCS clusters to share infrastructure and reduce the cost per ton of captured CO. Investments in R&D for advanced solvents, membrane-based capture systems, and digital monitoring technologies are enhancing operational efficiency and scalability. Governments are also key collaborators, offering grants and regulatory frameworks that reduce project risk. The result is a robust ecosystem geared toward rapid commercial deployment and climate-aligned innovation.