Carbon Capture and Storage Market Size, Share, and COVID-19 Impact Analysis, By Capture Source (Chemicals, Natural Gas Processing, Power Generation, Fertilizers Production, and Others), By End-Use (Enhanced Oil Recovery {EOR} and Dedicated Storage & Treatment), and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Analysis and Forecast 2024-2031

Carbon Capture and Storage Market: Global Share and Growth Trajectory

The global Carbon Capture and Storage Market size was valued at USD 3.49 billion in 2023 and is projected to grow from USD 3.79 billion in 2024 to USD 6.30 billion by 2031, exhibiting a CAGR of 7.5% during the forecast period.

The market is moving fast as the world tackles climate change. Governments, energy companies and industries are turning to carbon capture and storage to reduce greenhouse gas emissions and meet net zero targets. This technology captures carbon dioxide (CO₂) emissions from power plants, industrial processes and other sources, then transports and stores them in geological formations deep underground so they can’t get into the atmosphere.

The need to decarbonise energy systems and industrial operations, combined with tough climate policies, is driving carbon capture and storage adoption. With more investment, better regulation and rising environmental awareness the market is set to grow. Innovations in carbon capture materials, transportation infrastructure and long term storage are also propelling the industry forward making carbon capture and storage a key part of the global clean energy transition.

In June 2025 Norway launched the Long ship project, the first full scale carbon capture and storage value chain in Europe. This captures CO₂ from Heidelberg Materials’ cement plant and other industrial sources, transports it by ship and injects it into geological reservoirs beneath the North Sea via the Northern Lights infrastructure initially storing up to 1.5 million tonnes annually with plans to scale to over 5 million tonnes by 2028.

carbon capture and storage is key to enabling hard to abate sectors like cement, steel and chemicals to reduce emissions. As economies move towards sustainable development goals carbon capture and storage provides a pathway for industrial activity to be balanced with environmental responsibility. With government support, technological progress and increasing stakeholder collaboration the global carbon capture and storage is on a growth trajectory.

Key Market Trends Driving Product Adoption

Several key trends are driving carbon capture and storage adoption:

Increasing Regulatory Pressure and Climate Goals:

Governments around the world are introducing tough climate regulations and setting carbon neutrality targets. The Paris Agreement, national net zero pledges and regional emissions trading schemes are forcing industries to use carbon capture and storage as a emission reduction tool. Countries like the US, Canada, the UK and Norway have included carbon capture and storage in their national climate strategies and are providing funding and legal frameworks to drive growth.

Technological Advancements in Capture and Storage:

Technology is making carbon capture and storage more efficient and scalable. Solvent based, solid sorbent and membrane separation technologies have improved capture rates and reduced energy penalties. Digital tools and geospatial analysis are also helping with site selection and monitoring of storage reservoirs. These innovations reduce operational costs and improve long term CO₂ storage safety and reliability.

Industrial Decarbonisation and Energy Transition

 carbon capture and storage is key to decarbonising heavy industries that can’t be electrified or converted to renewable fuels. Cement, iron and steel and chemical manufacturing emit a lot of CO₂ even with energy efficiency gains. carbon capture and storage provides these sectors a pathway to reduce emissions without reducing output. And carbon capture and storage complements hydrogen production from fossil fuels (blue hydrogen) to accelerate the hydrogen economy.

Carbon Utilization Pathways:

Captured CO₂ now has more uses beyond storage. It’s used in oil recovery, fuels, building goods, and chemicals. Carbon utilization, often referred to as Carbon Capture, Utilization and Storage (CCUS) is creating new revenue streams and encouraging investment in capture infrastructure. This broadens the commercial viability of carbon capture and storage.

Major Players and Their Positioning

The market is a competitive mix of energy majors, engineering firms, technology developers and industrial end-users. Key players are deploying pilot projects, scaling up commercial facilities and forming cross sector partnerships to lead the market.

Prominent companies in the carbon capture and storage industry include are Shell plc, ExxonMobil Corporation, Equinor ASA, Chevron Corporation, Aker Carbon Capture ASA, Schlumberger Limited, Mitsubishi Heavy Industries Ltd., Honeywell International Inc., General Electric Company, Air Liquide S.A. and others.

These companies are investing in infrastructure, technology licensing and collaborative hubs to gain an edge. Joint ventures and government supported projects – like Northern Lights (Norway), Alberta Carbon Trunk Line (Canada) and Petra Nova (USA) – are examples of how industry players are building carbon capture and storage momentum globally.

In April 2025, ExxonMobil and Calpine announced the Baytown carbon capture and storage Project in Texas. ExxonMobil will transport and permanently sequester up to 2 million metric tonnes of CO₂ per year captured at Calpine’s Baytown cogeneration facility, further expanding ExxonMobil’s Gulf Coast carbon capture and storage infrastructure.

Consumer Behaviour

carbon capture and storage adoption is driven by changing consumer behaviour and corporate environmental responsibility:

• ESG and Corporate Sustainability Mandates: Large corporations and institutional investors are prioritising environmental, social and governance (ESG) metrics. Businesses are investing in carbon capture and storage to demonstrate their commitment to sustainability and reduce climate related financial risks. Consumer demand for greener products and services is forcing companies to reduce their carbon footprint.
• Climate Conscious Industries: Industries with high carbon intensity – oil & gas, chemicals and power generation – are under growing scrutiny from regulators, customers and investors. As a result these industries are integrating carbon capture and storage into their long term sustainability strategies to maintain their social licence to operate.
• Public Support and Environmental Concerns: Public opinion on carbon capture and storage is shifting. While some environmental groups question the long term efficacy and safety of carbon storage, a growing segment of the public sees carbon capture and storage as a necessary bridge to a low carbon future. Government led awareness campaigns and transparent stakeholder engagement are improving carbon capture and storage’s public acceptance.

Pricing

carbon capture and storage economics are driven by capital expenditure (CAPEX), operating costs (OPEX), capture efficiency and access to storage infrastructure. Historically the high cost of carbon capture – $40 to $120 per ton of CO₂ – has been a barrier to widespread adoption. But things are changing.

Declining technology costs, economies of scale and policy incentives such as carbon pricing, tax credits (like the U.S. 45Q) and subsidies are making carbon capture and storage more economic. The creation of carbon markets and trading systems provides a financial reward for stored or utilised CO₂ and improves project bankability. As demand grows cost parity with other mitigation technologies is expected.

Growth Factors

Several things are driving the carbon capture and storage market:

• Global Climate Action Frameworks: As climate agreements gain traction, carbon capture and storage is the solution. IPCC and IEA say we can’t get to net zero by 2050 without carbon capture and storage. These frameworks give long term investment certainty and accelerate adoption.
• Technological Maturity and Scaling: From pilot to commercial scale, carbon capture and storage projects are global. Large scale facilities are proving the technology and scalability of carbon capture and storage, attracting private and public funding. Modular solutions and retrofitting of existing plants are driving faster adoption.
• Government Support and Funding Programs: Countries are launching big funding initiatives. The U.S. Infrastructure Investment and Jobs Act has billions for carbon capture and storage demonstration and deployment. The EU Innovation Fund and national budgets across Asia-Pacific are reducing financial barriers and streamlining permitting.
• Carbon Market Development: Voluntary and compliance carbon markets are monetizing captured CO₂. Carbon credits, trading platforms and emissions caps are incentivizing industrial emitters to invest in carbon capture and storage, while increasing transparency and accountability.

Regulatory Landscape

carbon capture and storage is regulated to ensure environmental safety and legal compliance:

• United States: The U.S. EPA controls CO₂ storage under water safety laws. Firms also get 45Q tax credits for each ton stored.
• European Union: The EU carbon capture and storage law sets rules for site checks and safety. Projects need green permits to move ahead.
• International Standards: ISO 27916 and ISO 27914 provide guidance on lifecycle risk management and geological storage of CO₂. These standards promote consistency, best practices and cross-border cooperation.

Efforts are underway to harmonize regulations across regions to enable international carbon capture and storage value chains and transboundary storage solutions.

Recent Developments

 Recent breakthroughs and initiatives are making a big impact in the carbon capture and storage market:

• Northern Lights Project (Norway): A joint venture between Equinor, Shell and TotalEnergies. This is the first open-access CO₂ transport and storage infrastructure in Europe. It’s the first to offer cross-border carbon storage services.
• ExxonMobil’s carbon capture and storage Investments: ExxonMobil plans to spend over $15 billion on carbon capture and storage by 2027. Projects in Texas and Louisiana aim to build carbon hubs for nearby industries.
• U.S. DOE Funding Boost: The U.S. DOE is funding carbon capture and storage demos and design work. This helps grow next-gen carbon tech.
• Direct Air Capture (DAC) Advancements: Firms like Climeworks now lead in pulling CO₂ from air. DAC tech works with carbon capture and storage to store it deep underground.

Current and Potential Growth Implications

Demand-Supply

As demand for decarbonization increases carbon capture and storage is becoming a key part of the global energy mix. Supply of skilled labour, suitable storage sites and carbon transport networks must grow to match project volumes. Equipment manufacturers and service providers are scaling up to support the surge in carbon capture and storage projects.

Gap

Progress is being made but there are still challenges. High upfront costs, infrastructure limitations and public scepticism are holding back wider adoption. Developing economies in particular are struggling to access finance and technology. Bridging these gaps requires targeted policy, international cooperation and public-private partnerships.

Top Companies in the carbon capture and storage Market

• Shell plc
• ExxonMobil Corporation
• Equinor ASA
• Chevron Corporation
• Mitsubishi Heavy Industries Ltd.
• Aker Carbon Capture ASA
• Schlumberger Limited
• Air Liquide S.A.
• Linde plc
• Honeywell International Inc.

Carbon Capture and Storage Market: Report Snapshot

High Growth Areas

• Post-Combustion Capture: Post-combustion capture fits old plants easily. It's flexible and widely used for carbon cuts.
• Power Generation: Power plants now add carbon capture and storage to cut carbon. This helps meet strict emission rules.
• Blue Hydrogen Production: carbon capture and storage and hydrogen plants now work together. This brings clean energy and new income paths.

Big Innovations

• Next-Gen Sorbents: Metal-organic frameworks (MOFs) and advanced solvents are boosting CO₂ capture efficiency.
• Digital Twin and AI Monitoring: Advanced analytics tools are improving reservoir monitoring, risk management and compliance tracking.
• Modular carbon capture and storage Systems: Modular carbon capture and storage units are small and easy to set up. They help smaller sites start faster.

Growth Opportunities

There are opportunities in the carbon capture and storage market:

• Emerging Markets Deployment: Asia, Latin America, and the Middle East are growing carbon capture and storage efforts. Global aid and funding help drive this scale-up.
• Carbon Hubs and Clusters: Industries now share carbon systems in close areas. This cuts costs and boosts joint gains.
• Integration with Renewables: carbon capture and storage is now paired with renewables and storage. This mix helps cut emissions and boost grid control.

Extrapolate says:

The carbon capture and storage market is entering a growth phase as climate imperatives, policy support and technological breakthroughs converge. Once a niche solution, carbon capture and storage is now a key part of global decarbonisation strategies. As demand grows in power generation, heavy industry and hydrogen production, carbon capture and storage is a scalable and impactful route to net zero. With more cross sector collaboration, investment in infrastructure and growing public acceptance, carbon capture and storage is set to be a foundation of the clean energy future.