by The Carbon Capture And Storage Market is estimated to be valued at US$ 1.95 Mn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Carbon capture and storage refers to a technology that captures carbon dioxide (CO2) generated in large point sources like fossil fuel-fired power plants, cement plants, steel mills and transports it to storage locations for long-term isolation from the atmosphere. This technology plays a key role in reducing carbon emissions while allowing for the continued use of fossil fuels in power generation and industrial processes. It helps to curb climate change by preventing large amounts of CO2 from being released into the atmosphere.
Market key trends:
One of the key trends driving growth in the Global Carbon Capture And Storage Market is the stringent government regulations and policies promoting energy transition. Many governments across the globe are introducing policies to curb their reliance on fossil fuels and shift towards cleaner energy sources to meet their decarbonization goals under the Paris Agreement. They are offering tax incentives, funding projects and mandating carbon emission cuts which is boosting adoption of carbon capture and storage technology. For instance, the Infrastructure Investment and Jobs Act passed by the US in 2021 allocates $12 billion specifically for carbon capture and storage projects. Similar energy transition policies by EU, China and other countries are expected to drive the demand for CCS in the coming years.
Porter’s Analysis
Threat of new entrants: Low capital requirements and established buyers allow new companies to enter the carbon capture and storage market easily. However, existing players have established supply chains and brand loyalty giving them an advantage.
Bargaining power of buyers: Large industrial carbon emitters and government agencies are the major buyers in this market. Their size allows them to negotiate lower prices from suppliers.
Bargaining power of suppliers: A small number of technology providers dominate the supply of carbon capture equipment and geological storage solutions. This gives them significant influence over prices in the market.
Threat of new substitutes: No close substitutes exist for carbon capture and storage as an alternative to reduce industrial carbon emissions at scale.
Competitive rivalry: Major players compete on technology performance, reliability and price to gain market share.
SWOT Analysis
Strengths: Growing government support through regulations and funding to support carbon reduction goals. Established technologies available for pre-combustion and post-combustion capture.
Weaknesses: High capital and operating costs of carbon capture projects impact investment decisions. Public perception around safety of underground carbon storage is still emerging.
Opportunities: Potential for enhanced oil recovery using captured CO2 to boost oil production creates revenue streams. Growth of hydrogen economy increases demand for pure captured carbon.
Threats: Slow regulatory approval processes for storage sites delay commercial projects. Economic uncertainty during the COVID-19 pandemic led to delayed investment decisions.
Key Takeaways
The global carbon capture and storage market is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing governmental regulations around carbon emission targets. Countries across Europe and North America are implementing policies to achieve net zero emissions by 2050, driving need forccs technologies.
Regionally, North America dominated the carbon capture and storage market in 2023 with around 35% share owing to presence of many large-scale, operational CCS projects, particularly in the US. Europe and Asia Pacific are witnessing highest growth due strong government support through carbon pricing and hydrogen strategies in countries like UK, Norway and Japan.
Key players operating in the carbon capture and storage market are Honeywell International Inc., Aker Solutions, Dakota Gasification Company, Exxon Mobil Corporation, Baker Hughes, Air Liquide, Exxon Mobil, Air Liquide, Aker Solutions, Baker Hughes, Fluor Corporation, General Electric and Halliburton. Major players are focused on collaboration and developing new, cost-effective carbon capture solutions to meet regional emission regulations.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
