Carbon Capture Storage Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Technology (Pre-combustion Capture, Oxy-fuel Combustion Capture, and Post-combustion Capture), By Services (Carbon Capture Services, Carbon Storage Services, Carbon Capture Transportation Services, Others) By End-user Industry (Oil and Gas, Coal and Biomass Power Plant, Iron and Steel, and Chemical), By Region, By Competition Forecast 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 4.89 Billion
CAGR (2026-2031)	6.88%
Fastest Growing Segment	Post-combustion Capture
Largest Market	North America
Market Size (2031)	USD 7.29 Billion

Market Overview

The Global Carbon Capture Storage Market will grow from USD 4.89 Billion in 2025 to USD 7.29 Billion by 2031 at a 6.88% CAGR. Carbon capture and storage (CCS) encompasses the technological processes designed to intercept carbon dioxide emissions from large industrial and energy-related sources, transport the gas, and permanently sequester it within deep geological formations. The expansion of this market is fundamentally driven by stringent government mandates aimed at achieving net-zero emissions targets and the critical operational necessity for heavy industries to mitigate their environmental footprint. Furthermore, robust policy frameworks and financial incentives in key economic regions are providing the essential support required for heavy manufacturing sectors to adopt these decarbonization solutions.

This growth trajectory is substantiated by a significant increase in planned facility development and investment commitments. According to the Global CCS Institute, in 2024, the cumulative CO2 capture capacity for all projects in the pipeline reached 416 million tonnes per annum. Despite this positive momentum, the industry faces a significant challenge regarding the substantial upfront capital expenditure required for capture facilities and transport infrastructure, which continues to impede rapid, widespread commercial deployment in cost-sensitive markets.

Key Market Drivers

The expansion of Government Tax Credits and Financial Incentive Schemes acts as the primary catalyst for market acceleration by directly addressing the high capital costs of capture technologies. As public funding de-risks commercial projects, major economies are solidifying infrastructure commitments. According to the UK Government, October 2024, in the 'Government commits £21.7 billion for carbon capture' press release, the state pledged up to £21.7 billion over 25 years to launch two major carbon capture clusters. This fiscal support is rapidly expanding the sector's physical footprint. According to the Global CCS Institute, October 2024, in the 'Global Status of CCS 2024 Report', global operating capture capacity is on track to double to over 100 million tonnes per annum once facilities currently under construction commence operations.

Critical Decarbonization Imperatives in Hard-to-Abate Heavy Industries are simultaneously driving demand, as cement and steel manufacturers must adopt storage solutions to manage unavoidable process emissions. Unlike sectors that can decarbonize via electrification, heavy industry relies on retrofitting capture systems to meet net-zero targets. This operational necessity is triggering substantial project investment. According to Heidelberg Materials, November 2024, in the 'Quarterly Statement January to September 2024', the company is progressing a project selected for up to US$500 million in funding to capture approximately 2 million tonnes of CO2 annually at its Indiana cement plant. Such initiatives underscore how industrial players are leveraging incentives to decarbonize essential manufacturing assets.

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Key Market Challenges

The substantial upfront capital expenditure required for capture facilities and transport infrastructure serves as a primary financial barrier to the market's commercial expansion. Developing these large-scale industrial projects demands immense initial funding, often rendering the economic model unviable for companies operating with tight profit margins. This high cost of entry creates a significant risk profile for investors, leading to hesitation in committing the necessary funds for construction. Consequently, a disconnect emerges where many projects are announced but fail to progress past the planning or design phases due to the inability to secure final investment decisions.

This impediment is clearly reflected in the disparity between planned initiatives and actual deployed infrastructure. The inability to overcome these financial hurdles prevents the project pipeline from materializing into operational assets at the pace required by climate targets. According to the International Energy Agency, in 2024, the global operational carbon capture capacity stood at just over 50 million tonnes, a figure that represents only a small fraction of the total capacity announced in project pipelines. This significant gap underscores how capital constraints effectively bottleneck the industry, stalling the transition from proposed concepts to functioning decarbonization solutions.

Key Market Trends

The Emergence of Shared Industrial CCS Hubs and Clusters represents a fundamental structural shift from standalone projects to multi-user infrastructure, significantly improving the economic viability of carbon management. By aggregating emissions from various industrial sources into shared transport and storage networks, these hubs reduce unit costs through economies of scale and de-risk decarbonization for smaller emitters. This consolidated approach is rapidly advancing, with major capacity expansions already underway to accommodate third-party volumes. According to TotalEnergies, March 2025, in the 'TotalEnergies and partners launch the 2nd phase of Northern Lights CCS project' press release, the project partners reached the Final Investment Decision for Phase 2, which will increase the facility's transport and storage capacity to more than 5 million tonnes of CO2 per year by 2028.

The Expansion of Cross-Border CO2 Shipping and Transport Networks is simultaneously unlocking storage access for emitters located far from suitable geological reservoirs, effectively decoupling capture sites from sequestration locations. As pipeline infrastructure is often rigid and geographically constrained, flexible shipping solutions are being deployed to transport liquefied CO2 across international boundaries, creating a cohesive regional market. This logistics evolution is substantiated by new commercial arrangements connecting diverse European nations. According to INEOS, April 2025, in the 'Öresundskraft and INEOS led Project Greensand Sign Agreement' press release, the consortium finalized a cross-border arrangement to transport and permanently store 210,000 tonnes of CO2 annually from Swedish facilities into the Danish North Sea.

Segmental Insights

Recent market analysis identifies Post-combustion Capture as the fastest-growing segment in the Global Carbon Capture and Storage Market. This rapid expansion is primarily driven by the technology’s superior retrofitting capability, which enables existing power plants and industrial facilities to integrate carbon capture systems without extensive infrastructure redevelopment. Unlike pre-combustion alternatives that often require fundamental process changes, post-combustion solutions allow for the immediate decarbonization of current operational assets. Consequently, as industries strive to comply with tightening environmental mandates, this segment attracts significant investment due to its technological maturity and proven adaptability.

Regional Insights

North America dominates the global carbon capture and storage market due to strong regulatory support and established industrial applications. The region benefits from favorable government policies, including tax credits that lower the financial barrier for commercial adoption. The United States Department of Energy actively funds research and deployment initiatives, creating a stable environment for project development. Additionally, the extensive existing infrastructure for enhanced oil recovery allows for the practical integration of capture technologies. These factors collectively secure the region's position as the primary market for carbon management solutions.

Recent Developments

• In December 2025, Marubeni Corporation announced the commencement of first-phase operations at the Meadowbrook Carbon Storage Hub Project in Alberta, Canada. This development, executed through its equity stake in Bison Low Carbon Ventures Inc., marked a significant milestone as the first carbon capture and storage initiative involving a Japanese enterprise to collect carbon dioxide from a third-party emitter for underground sequestration. The operation involved capturing emissions at the Deep Sky Alpha Direct Air Capture plant and transporting them to an injection facility. This project was the first among twenty-five approved hubs in the region to achieve full regulatory compliance and begin injection activities.
• In March 2025, the joint venture partners behind the Northern Lights project—Equinor, Shell, and TotalEnergies—announced a final investment decision of 7.5 billion Norwegian kroner to fund the second phase of their carbon transport and storage initiative. This expansion aimed to increase the facility's storage capacity from 1.5 million tonnes to over 5 million tonnes of carbon dioxide annually. The development plans included the installation of additional onshore storage tanks, a new jetty, and more injection wells in the North Sea. The project was designed to accommodate growing demand for carbon storage services from industrial emitters across Europe seeking to meet strict climate targets.
• In August 2024, ADNOC, PETRONAS, and Storegga entered into a Joint Study and Development Agreement to evaluate the potential for carbon capture and storage facilities in the Penyu basin, offshore Peninsular Malaysia. The collaboration aimed to assess the storage capabilities of saline aquifers and develop a strategic hub capable of capturing and storing at least 5 million tonnes of carbon dioxide per year by 2030. The scope of the agreement included conducting comprehensive studies on shipping logistics, geophysical modelling, and reservoir simulation, while also exploring the application of advanced digital technologies to optimize storage capacity and ensure long-term containment.
• In July 2024, ExxonMobil signed a definitive commercial agreement with CF Industries to transport and permanently store carbon dioxide captured from a nitrogen manufacturing complex in Yazoo City, Mississippi. Under the terms of the arrangement, the energy company committed to managing up to 500,000 metric tons of emissions annually, with operations scheduled to begin in 2028. This project was designed to reduce the facility's carbon footprint by approximately 50 percent and marked the fourth significant carbon capture and storage contract for the company. The captured gases would be securely sequestered in geologic formations, leveraging the company's extensive pipeline network and subsurface expertise.

Key Market Players

• ExxonMobil Corporation
• Royal Dutch Shell plc
• Chevron Corporation
• BP p.l.c.
• TotalEnergies SE
• Equinor ASA
• Occidental Petroleum Corporation
• China Petroleum & Chemical Corporation
• Adani Enterprises Limited
• NRG Energy, Inc.

By Technology	By Services	By End-user Industry	By Region
Pre-combustion Capture Oxy-fuel Combustion Capture Post-combustion Capture	Carbon Capture Services Carbon Storage Services Carbon Capture Transportation Services Others	Oil and Gas Coal and Biomass Power Plant Iron and Steel Chemical	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Carbon Capture Storage Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Carbon Capture Storage Market, By Technology:

• Pre-combustion Capture
• Oxy-fuel Combustion Capture
• Post-combustion Capture

• Carbon Capture Storage Market, By Services:

• Carbon Capture Services
• Carbon Storage Services
• Carbon Capture Transportation Services
• Others

• Carbon Capture Storage Market, By End-user Industry:

• Oil and Gas
• Coal and Biomass Power Plant
• Iron and Steel
• Chemical

• Carbon Capture Storage Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE