Carbon Capture and Utilization (CCU) Market Size, Share, Trends, Growth 2032

Carbon Capture and Utilization (CCU) Industry Prospective:

The global carbon capture and utilization (CCU) market size was worth around USD 4.38 billion in 2023 and is predicted to grow to around USD 10.75 billion by 2032 with a compound annual growth rate (CAGR) of roughly 10.50% between 2024 and 2032.

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Carbon Capture and Utilization (CCU) Market: Overview

Carbon capture and utilization (CCU) consists of a broad range of applications that deal with capturing and utilizing carbon dioxide (CO2). CCU deals with ways in which the gas can be directly or indirectly converted into other products. The direct ways deal with chemical alteration while the indirect ways are related to the transformation of the gas. As per market research, around 230 Mt of carbon dioxide is used annually with the enhanced oil recovery and urea manufacturing industries acting as the leading contributors to the CCU market. Carbon captured from industrial processes is transported through an extensive network of pipelines. Although CCU, in theory, seems highly effective in achieving net zero carbon emissions, the process of capturing and utilizing carbon has several limitations, and the profitability of the CCU industry depends on the carbon price of atmospherically released carbon dioxide. The industry, as claimed by researchers, has significant growth potential as it can become one of the most efficient ways to overcome challenges related to global warming and reduce the total greenhouse gas emissions from large-scale industries. Carbon capture and utilization is significantly different from carbon capture and storage (CCS) since the latter deals with the permanent geological storage of CO2.

Key Insights:

• As per the analysis shared by our research analyst, the global carbon capture and utilization (CCU) market is estimated to grow annually at a CAGR of around 10.50% over the forecast period (2024-2032)
• In terms of revenue, the global carbon capture and utilization (CCU) market size was valued at around USD 4.38 billion in 2023 and is projected to reach USD 10.75 billion, by 2032.
• The market is projected to grow at a significant rate due to the rising efforts toward reducing carbon emissions globally
• Based on the application, the oil & gas segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the service, the capture segment is anticipated to command the largest market share
• Based on region, North America is projected to dominate the global market during the forecast period

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Carbon Capture and Utilization (CCU) Market: Growth Drivers

Rising efforts toward reducing carbon emissions globally will drive the market demand

The global carbon capture and utilization (CCU) market is expected to witness significant growth due to the increasing concern over rising CO2 levels across the globe. Environmental agencies and world leaders are focusing on adopting novel measures that can help curb the emission of greenhouse gasses which are the predominant factors for the changing global climatic conditions and excessive warming of the planet. Carbon dioxide is considered a dangerous greenhouse gas as it can lead to the trapping of heat thus causing the inside of the plant to heat. Scientific research suggests that around 0.4% of the current atmosphere is made of CO2. researchers are also suggesting that if precautionary and preventive measures are not undertaken soon, as of 2050, CO2 concentration can reach up to 550 parts per million (ppm). Such statistics and projections have led to global environmental agencies in association with regional governments undertaking new measures to curb CO2 emissions in the atmosphere. For instance, India has announced new measures to achieve its Net Zero vision by 2070. As per official data, Europe has envisioned itself as the first region to achieve climate neutrality by 2050. The regional leaders have agreed to reduce greenhouse emissions by 55% by the end of the decade. These factors are likely to drive the demand for CCU in the coming years.

Growing consumer awareness and rising demand for sustainable products will encourage the entry of new players

Consumers are becoming increasingly aware of their choices and its impact on the environment. This has resulted in higher acceptance of products that are made using sustainable means and incorporate ideas that encourage long-term survival of the currently available resources. CCU offers a means for product manufacturers to develop items made using materials derived in sustainable ways. For instance, the construction industry can benefit from the global carbon capture and utilization market by developing construction materials using CCU.

Carbon Capture and Utilization (CCU) Market: Restraints

High competition from other alternatives to product goods will restrict the market expansion rate

The global industry for carbon capture and utilization (CCU) is expected to be restricted due to the high competition the sector faces from alternative solutions. For instance, most industries have standard protocols and processes and may not require the use of CCU solutions. Moreover, companies are steadily shifting toward more established forms of renewable energy such as wind and solar for powering machines and producing goods thus contributing to net zero emissions. Other such alternatives exist in the commercial market and hence the consumer base of CCU remains highly fragmented.

Carbon Capture and Utilization (CCU) Market: Opportunities

Rising launch of new CCU technologies with higher performance efficiency will generate high growth opportunities

The global carbon capture and utilization (CCU) market will generate high growth opportunities due to the increasing launch of new technologies that are more cost-effective and offer higher performance output. In March 2024, an India-based startup announced the launch of an aqueous-based CO2 capture technology. It consists of a novel catalyst that is not only scalable but also cost-effective and highly robust. The Department of Science and Technology (DST) is responsible for developing new technology that has already found applications in capturing carbon dioxide in the wastewater treatment industry. In November 2023, Southern California Gas Company (SoCalGas) brought a new technology called Hybrid Direct Air Capture (HDAC) online in California. The engineering marvel has been developed by Avnos, Inc. and it aids the removal of CO2 from the air. The captured gas is then used for generating water with the help of electricity. The companies are expected to collaborate further with the goal of scaling the current iteration by 1000% in the coming years.

Rising investments in enhanced oil recovery (EOR) processes will aid further market expansion

The growing investments in enhanced oil recovery (EOR) segments will be helpful in pushing the demand for CCU. EOR deals with ways to enhance the quantity of crude oil extracted from reserves even after the projections from the primary and secondary methods have been achieved. By 2032, the global EOR market is expected to reach over USD 99 billion and CCU is one of the widely-used methods of optimizing enhanced oil recovery processes thus helping the global carbon capture and utilization (CCU) market grow.

Carbon Capture and Utilization (CCU) Market: Challenges

Lack of infrastructure supporting CCU is expected to challenge the market expansion rate

The global carbon capture and utilization (CCU) industry will be challenged by the lack of infrastructure necessary for capturing and utilizing carbon. Additionally, since carbon dioxide is carbon’s thermodynamically stable form, producing using CO2 is extremely energy intensive. The uncertainties associated with the profitability of the CCU industry further complicate the market revenue trends.

Carbon Capture and Utilization (CCU) Market: Segmentation

The global carbon capture and utilization (CCU) market is segmented based on application, technology, service, and region.

Based on application, the global market is divided into power generation, oil & gas, chemical & petrochemical, iron & steel, and cement, and others. In 2023, the highest demand was witnessed in the oil & gas industry since CCU is widely used in EOR procedures. Moreover, the rising number of investments in the oil & gas sector as energy demand globally is surging rapidly will fuel investments toward CCU in the coming years. The global oil & gas market is expected to grow at a CAGR of over 9% during the forecast period.

Based on technology, the global carbon capture and utilization (CCU) industry is segmented into post-combustion capture, oxy-fuel combustion capture, and pre-combustion capture.

Based on service, the global market segments are utilization, transportation, and capture. In 2023, the most revenue-generating segment was captured due to the growing emphasis on reducing carbon emissions globally. The process has wide applications in large industries such as oil production, water treatment, and power generating plants. The utilization segment is growing rapidly as captured CO2 is being put to use in other industrial processes. Current CCU systems can capture only up to 90% of CO2 emissions.

Carbon Capture and Utilization (CCU) Market Report Scope

Carbon Capture and Utilization (CCU) Market: Regional Analysis

North America is expected to continue holding the highest market share

The global carbon capture and utilization (CCU) market is expected to generate the highest growth in North America. The region is rapidly moving toward clean technology. The US is one of the leading nations taking massive steps forward toward reducing carbon and other greenhouse emissions. In April 2024, the current US government finalized a sequence of new standards to reduce pollution caused by power plants running on fossil fuels. As per the new Clean Air Act standards, power plants can emit only limited carbon pollution and must incorporate cost-effective and proven measures to achieve the goal. Canada, on the other hand, is projected to reduce carbon emissions by 40 to 45% by 2030 and achieve net zero by 2050. In January 2024, US-based Celanese announced the commencement of new CCU operations at its Texas facility. The new unit is considered the largest existing carbon capture and utilization facility globally and it is expected to capture more than 180,000 metric tons of CO2 from industrial emissions per year. The presence of a robust supporting infrastructure for capturing and transporting carbon further promotes regional expansion. Asia-Pacific is projected to deliver exceptional results in the coming years. Countries such as Japan, South Korea, and India may lead the regional market growth rate.

Carbon Capture and Utilization (CCU) Market: Competitive Analysis

The global carbon capture and utilization (CCU) market is led by players like:

• CarbonCure Technologies
• LanzaTech
• Blue Planet
• Solidia Technologies
• Carbon Engineering
• Cemvita Factory
• Aker Solutions
• Siemens Energy
• Climeworks
• Carbon Clean Solutions
• Global Thermostat
• Skyonic Corporation
• Covestro
• Novomer
• Svante Inc.

The global carbon capture and utilization (CCU) market is segmented as follows:

By Application

• Power Generation
• Oil & Gas
• Chemical & Petrochemical
• Iron & Steel
• Cement

By Technology

• Post-Combustion Capture
• Oxy-Fuel Combustion Capture
• Pre-Combustion Capture

By Service

• Utilization
• Transportation
• Capture

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa