Carbon capture and storage (CCS) is a set of technologies that enables the capture of carbon dioxide (CO2) from large point sources, such as fossil fuel power plants, transport it to a storage location, and deposit it where it will not enter the atmosphere, usually in underground geological formations. The technology helps reduce CO2 emissions from industrial processes such as natural gas processing, fertilizer and chemical production, cement manufacturing, steel making. It allows heavy-polluting industries and power plants to continue operating while meeting environmental regulations.
The global Carbon Capture and Storage Market size was estimated at US$ 2.25 billion in 2024 and is projected to grow at a CAGR of 10.59% during the forecast period 2024 – 2031.
Market key trends:
One of the key trends driving growth in the carbon capture and storage market is the increasing adoption of CCUS (carbon capture, utilization, and storage) projects globally. CCUS technology enables the captured carbon to be utilized in various industrial applications such as enhanced oil recovery, production of carbonated drinks, methane fuels, and plastics. Additionally, governments across nations are rolling out supportive policies and incentives to boost CCUS projects. For instance, the US has allocated $3.5 billion in tax credits for new carbon capture facilities in the Inflation Reduction Act passed in 2022. Stringent environment norms by regulatory bodies to curb emissions is another factor promoting CCUS deployment. With technological advancements, CCS is becoming more cost-effective, which along with favorable policies will ramp up commercialization of CCUS in the coming years.
Threat of new entrants: Low capital requirements and readily available production technology pose low threat of new entrants into the market. However, established players have strong brand loyalty and economies of scale.
Bargaining power of buyers: Large industrial consumers have significant bargaining power due to bulk purchase volumes. Supply side concentration increases bargaining power of buyers.
Bargaining power of suppliers: Suppliers of raw materials like carbon and graphite have moderate bargaining power due to differentiated products and supplier concentration in few regions.
Threat of new substitutes: No cost effective substitutes exist for carbon and graphite. Substitution threat is low in the near future.
Competitive rivalry: Market dominated by few top players with others targeting specific end user segments and applications. Intense competition on pricing and new product development.
The Global Carbon Capture And Storage Market Size is expected to witness high growth. The global CCS Market size was estimated at US$ 2.25 billion in 2024 and is projected to grow at a CAGR of 10.59% during the forecast period 2024 – 2031.
The Asia Pacific region currently dominates the market due to increasing carbon intensity of power generation and industrial activity. Countries like China and India are major markets. North America is the second largest market for carbon capture and storage led by government initiatives and investments in clean energy. Europe is also a significant market with stringent environmental regulations accelerating adoption.
Key players: Key players operating in the Carbon Capture and storage market are Morgan Advanced Materials (UK), Mersen (France), TOYO TANSO (Japan), SGL Group (Germany), NAC Carbon Products, Inc. (USA), Graphite India Limited (India), Superior Graphite (USA), Qingdao Tennry Carbon Co., Ltd. (China), Zircar Ceramics (USA) & Schunk Group (Germany). The top players focus on new product development and capacity expansion to meet the growing demand.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it