Carbon Dioxide Removal (CDR) Market Size, Share, Analysis, Trends, Growth, Forecasts, 2032

Carbon Dioxide Removal (CDR) Industry Prospective:

The global carbon dioxide removal (CDR) market size was evaluated at $611 million in 2023 and is slated to hit $2,549 million by the end of 2032 with a CAGR of nearly 15% between 2024 and 2032.

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Carbon Dioxide Removal (CDR) Market: Overview

Carbon dioxide removal includes technologies & processes that remove carbon dioxide from atmosphere and stores it effectively. This process can help in reducing climatic changes along with restricting seasonal fluctuations as well as global warming.

Reportedly, few of the CDR methods such as reforestation and afforestation can help in restoring ecosystems along with improving biodiversity through carbon dioxide absorption by the planted trees.

Some of the other CDR systems include bioenergy with carbon capture & storage, ocean-based carbon dioxide removal, direct air capture, and soil carbon sequestration.

Key Insights

• As per the analysis shared by our research analyst, the global carbon dioxide removal (CDR) market (CDR) market is projected to expand annually at the annual growth rate of around 15% over the forecast timespan (2024-2032)
• In terms of revenue, the global carbon dioxide removal (CDR) market size was evaluated at nearly $611 million in 2023 and is expected to reach $2,549 million by 2032.
• The global carbon dioxide removal (CDR) market is anticipated to grow rapidly over the forecast timeline owing to surging climatic changes due to rising temperatures and demand for reducing carbon emissions through implementation of net-zero emission policy.
• In terms of technology, the direct air capture segment is slated to register the highest CAGR over the forecast period.
• Based on application, the industrial segment is predicted to contribute majorly towards segmental space in the upcoming years.
• Region-wise, the Asia-Pacific carbon dioxide removal (CDR) industry is projected to register the fastest CAGR during the assessment timespan.

Carbon Dioxide Removal (CDR) Market: Growth Factors

Escalating seasonal fluctuations with rising heat can protrude the global market expansion over 2024-2032

Surging climatic changes due to rising temperatures and demand for reducing carbon emissions through implementation of net-zero emission policy is likely to augment the global carbon dioxide removal (CDR) market growth.

Moreover, growing customer awareness about climatic changes along with humungous demand for carbon removing services globally will drive the global market sphere in the ensuing years.

Collaboration among the stake owners including research institutes, governments, and private firms can multiply the global market expansion.

With flourishing carbon credit sector offering financial soaps for CDR ventures & private as well as public investments are some of the major drivers of the global market.

Reportedly, a large number of firms such as Microsoft Corporation have not only made huge fund allocation for CDR programs, but have also set net- zero emissions as their goal for reducing carbon footprints. This, in turn, is likely to fuel the growth of the global market in the years to come.

Carbon Dioxide Removal (CDR) Market: Restraints

High operational charges can obstruct the global industry expansion over 2024-2032

Surging upfront costs for implementing CDR systems along with increasing operating costs as well as technological changes can result into massive decline in the growth of the global carbon dioxide removal (CDR) industry in the near future.

In addition to this, non-uniformity in the methodologies used for assessing, reporting, and verifying carbon removal from environment can obstruct the expansion of the industry globally.

Carbon Dioxide Removal (CDR) Market: Opportunities

An immense popularity of offering carbon incentives by government will create new growth dimensions for the global market

Burgeoning demand for carbon credits and supportive laws aiding the use of carbon dioxide removal process are likely to create new dimensions of growth for the global carbon dioxide removal (CDR) market.

Moreover, creation of new jobs in a spectrum of end-use sectors such as farming, engineering, and construction will steer the global market progress in the upcoming years.

Carbon Dioxide Removal (CDR) Market: Challenges

Lower consciousness about CDR among the customers is likely to challenge the global industry expansion by 2032

Lack of awareness among the people & decision makers about benefits of CDR can restrict the growth of the carbon dioxide removal (CDR) industry across the globe. In addition to this, political instabilities can further diminish the growth of the industry globally.

Carbon Dioxide Removal (CDR) Market: Segmentation

The global carbon dioxide removal (CDR) market is divided into technology, application, and region.                                       

In terms of technology, the carbon dioxide removal (CDR) market across the globe is segmented into direct air capture, afforestation & reforestation, soil carbon sequestration, bioenergy with carbon capture and storage, ocean-based CDR, and enhanced weathering segments.

Apparently, the direct air capture segment, which garnered nearly 67% of the global market revenue in 2023, is slated to record fastest CAGR in the coming eight years can be subject to ability of direct air capture to be deployed at any location. Apart from this, use of captured carbon dioxide in carbonated drinks and oil recovery will drive the segmental growth.  

Based on the application, the global carbon dioxide removal (CDR) industry is divided into consumer products, energy, transport, and industrial segments.

Apparently, the industrial segment, which dominated the global industry share in 2023, is predicted to contribute majorly towards the segmental expansion in the analysis timeline and this can be as a result of an increase in the carbon emissions from industries such as chemicals, steel, and cement.  

Carbon Dioxide Removal (CDR) Market: Report Scope

Carbon Dioxide Removal (CDR) Market: Regional Insights

North America is likely to maintain leading status in the global market over the assessment timeframe

North America, which accounted for about 36% of the global carbon dioxide removal (CDR) market size in 2023, is slated to establish a leading position in the global market in the analysis timeframe.

Moreover, the regional market surge in the coming few years can be owing to supportive government programs in the countries such as Canada and the U.S. such as tax benefits & carbon pricing.

In addition to this, a rise in the investments by government & private firms in CDR research activities will multiply the regional market growth in the next couple of years.

Availability of robust infrastructure facility in these North American countries along with an increase in the number of startups in the U.S. will pave a way for humungous expansion of the market in North America.

Asia-Pacific carbon dioxide removal (CDR) industry is expected to register the highest CAGR in the prognosis timespan. The elevation of the industry in APAC can be subject to swift industrialization, surging environmental consciousness, and supportive government policies. Presence of key players in Asia is likely to propel the industry expansion in APAC in the ensuing years.

Carbon Dioxide Removal (CDR) Market: Competitive Space

The global carbon dioxide removal (CDR) market profiles key players such as:

• Charm Industrial
• LanzaTech
• Noya
• Calix Limited
• Climeworks AG
• Heirloom Carbon
• Drax Group
• Aker Carbon Capture
• CarbonFree
• CarbonCapture Inc.
• Fervo Energy
• CarbonCure Technologies
• Carbon Engineering
• AirCapture

The global carbon dioxide removal (CDR) market is segmented as follows:

By Technology

• Direct Air Capture
• Afforestation & Reforestation
• Soil Carbon Sequestration
• Bioenergy With Carbon Capture and Storage
• Ocean-Based CDR
• Enhanced Weathering

By Application

• Consumer Products
• Energy, Transport
• Industrial

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