Direct Air Capture (DAC) Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Technology (Solid DAC, Liquid DAC, Electrochemical DAC), By End User (Chemicals & Fuels, Carbon Mineralization, Oil & Gas, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 61.21 Million
CAGR (2026-2031)	4.42%
Fastest Growing Segment	Solid DAC
Largest Market	North America
Market Size (2031)	USD 79.35 Million

Market Overview

The Global Direct Air Capture (DAC) Market will grow from USD 61.21 Million in 2025 to USD 79.35 Million by 2031 at a 4.42% CAGR. Direct Air Capture (DAC) encompasses technologies designed to extract carbon dioxide directly from the atmosphere for permanent geological storage or commercial utilization. The market is primarily driven by the global imperative to achieve net-zero emissions, as DAC offers a critical solution for decarbonizing hard-to-abate sectors such as aviation and heavy industry. Furthermore, supportive government policies, including tax incentives and infrastructure funding, alongside rising corporate demand for high-quality carbon removal credits to meet sustainability mandates, provide substantial structural support for sector expansion.

Nevertheless, the high energy intensity and significant capital costs associated with current capture processes present a major challenge to rapid commercial scaling. This nascent developmental stage is reflected in recent operational figures. According to the International Energy Agency (IEA), in 2024, there were 27 commissioned DAC plants globally with a collective capture capacity of almost 0.01 million tonnes of carbon dioxide per year. Reducing these economic and technical barriers remains essential for the technology to transition from pilot projects to widespread global deployment.

Key Market Drivers

Supportive government policies and financial incentives function as the primary catalyst for the Direct Air Capture sector by de-risking early-stage projects and reducing the green premium associated with synthetic fuel production. Public funding mechanisms are essential for bridging the gap between demonstration and commercial viability, enabling developers to secure necessary capital for large-scale facilities. This structural support is evident in recent federal allocations aimed at scaling infrastructure. According to Occidental, September 2024, in the '1PointFive's South Texas Direct Air Capture Hub Awarded U.S. Department of Energy Funding' press release, the U.S. Department of Energy's Office of Clean Energy Demonstrations will provide up to $500 million to support the development of the South Texas Direct Air Capture Hub. Such financial injections validate the technology and encourage further private sector participation.

Concurrently, the acceleration of corporate net zero pledges and decarbonization targets significantly propels market growth as major organizations seek high-integrity removal credits to neutralize residual emissions. This surge in demand provides long term offtake agreements that bankable projects require to commence construction, thereby fostering a robust commercial ecosystem for carbon removal. Major technology firms are leading this trend by committing substantial capital to future removal capacity. According to 1PointFive, July 2024, in the 'Microsoft and 1PointFive Sign Agreement' announcement, Microsoft agreed to purchase 500,000 metric tons of carbon dioxide removal credits over six years from the Stratos facility. Beyond individual corporate deals, physical deployment milestones highlight the sector's trajectory toward tangible operations. According to Climeworks, in 2024, the company officially inaugurated its Mammoth plant in Iceland, which possesses a nominal capture capacity of up to 36,000 tons of CO2 per year.

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Key Market Challenges

The substantial capital investment and high energy intensity required for Direct Air Capture (DAC) facilities significantly impede rapid market expansion. Current capture processes demand large amounts of energy to separate low-concentration carbon dioxide from the ambient atmosphere, leading to elevated operational expenditures. These financial requirements create a substantial barrier to entry for potential developers and limit the economic feasibility of large-scale deployment compared to less capital-intensive carbon mitigation strategies. Consequently, the technology remains largely confined to pilot phases rather than achieving mass commercialization, effectively delaying the transition from niche applications to a mainstream industrial solution.

The economic burden is evident in current pricing structures, which struggle to compete in the broader carbon credit market. According to the International Energy Agency, in 2023, the levelized cost of capturing carbon dioxide through direct air capture technologies in early-stage plants ranged from USD 600 to USD 1,000 per tonne. This pricing disparity discourages widespread adoption by cost-sensitive heavy industries, thereby stalling the investment flow required to optimize infrastructure and reduce unit costs through economies of scale.

Key Market Trends

The rising utilization of captured carbon for sustainable aviation fuels (SAF) is fundamentally altering the Global Direct Air Capture (DAC) Market by creating a high-value commercial pathway beyond geological sequestration. This trend is characterized by the integration of capture facilities with power-to-liquid technologies, enabling the production of drop-in synthetic fuels that are critical for decarbonizing the aviation sector. Developers are rapidly securing capital to scale these production capabilities, validating the economic model of transforming atmospheric CO2 into tangible products. According to Twelve, September 2024, in the 'Twelve Announces $645 Million in Funding' press release, the company secured $645 million in financing to complete its AirPlant One facility, which is designed to produce sustainable aviation fuel from captured carbon dioxide.

The establishment of regional Direct Air Capture hubs and clusters represents a strategic shift from standalone pilot projects to integrated industrial ecosystems that share transport and storage infrastructure. This approach allows technology providers to leverage economies of scale and access regionally concentrated renewable energy resources, which are essential for reducing the levelized cost of capture. The expansion of federally supported hubs highlights this consolidation, where multiple facilities co-locate to maximize operational efficiency. According to Heirloom Carbon Technologies, June 2024, in the 'Heirloom to Build Two Direct Air Capture Facilities in Northwest Louisiana' press release, the company announced plans to construct two facilities within the Project Cypress hub with a combined capture capacity of 320,000 tonnes of carbon dioxide per year.

Segmental Insights

The Solid DAC segment currently represents the fastest-growing category in the Global Direct Air Capture Market due to distinct operational advantages. Unlike liquid solvent systems that generally demand high-temperature heat for regeneration, solid sorbent technologies operate at significantly lower temperatures. This capability enables the utilization of low-grade waste heat or renewable energy sources, which materially reduces operational expenditures. Furthermore, the modular architecture of solid DAC units supports rapid manufacturing and flexible scalability. These technical and economic benefits are driving accelerated adoption by developers seeking versatile carbon removal solutions, thereby fueling segment growth.

Regional Insights

North America holds the leading position in the Global Direct Air Capture market, driven largely by robust government initiatives and financial incentives. The United States Department of Energy actively supports the sector through funding for Regional Direct Air Capture Hubs, fostering essential infrastructure development. Furthermore, the Inflation Reduction Act enhances market growth by offering tax credits that significantly lower the operational costs of carbon removal projects. These strategic policy interventions create a favorable investment climate, encouraging collaboration between public institutions and private enterprises to scale operations effectively across the region.

Recent Developments

• In December 2024, a prominent U.S. direct air capture company secured $150 million in a Series B funding round to scale its rapid carbon removal capabilities. The financing was supported by a consortium of investors, including major global corporations from the aviation and heavy industry sectors. The company planned to utilize this capital to reduce the costs of its proprietary limestone-based technology and to fund the construction of future facilities, including a major hub in Louisiana. This investment reinforced market confidence in the company’s approach, which accelerates natural carbon mineralization processes to capture atmospheric carbon dioxide in a matter of days rather than years.
• In December 2024, a climate technology firm announced the launch of its first pilot direct air capture facility situated on tribal land in New Mexico. This project was established to validate the company’s proprietary passive sorbent technology, which captures carbon dioxide using a specialized material designed to significantly minimize energy consumption compared to active systems. The pilot operations were intended to serve as a testing ground for the firm’s planned large-scale deployments known as "Carbon Orchards." By proving the efficiency of this novel approach in a real-world environment, the initiative marked a significant technological step toward achieving lower-cost carbon removal while generating skilled employment in the region.
• In September 2024, a subsidiary of Occidental was selected to receive up to $500 million in funding from the U.S. Department of Energy to advance the South Texas Direct Air Capture Hub. This financial award was granted by the Office of Clean Energy Demonstrations to support the engineering and development of a facility capable of removing an initial 500,000 metric tons of carbon dioxide per year. The project, situated on the King Ranch, aimed to leverage the company’s extensive expertise in carbon management and large-scale infrastructure. This collaboration between the federal government and the private sector marked a critical acceleration in deploying commercial-grade carbon removal systems.
• In May 2024, a leading Swiss carbon removal company commenced operations at its newest direct air capture facility, named Mammoth, located in Iceland. This industrial plant was designed with a nominal capture capacity of up to 36,000 tons of carbon dioxide annually, representing a significant scale-up from the company's previous commercial operations. The facility utilized a modular architecture and was powered entirely by renewable geothermal energy provided by a local utility partner. Once extracted, the carbon dioxide was injected underground to be mineralized and permanently stored in basaltic rock, demonstrating the operational viability of scaling direct air capture technology to address global climate targets.

Key Market Players

• Climeworks AG
• Carbon Engineering ULC.
• Heirloom Carbon Technologies, Inc.
• Soletair Power
• CarbonCapture Inc.
• Avnos, Inc.
• Skytree
• RepAir Carbon US Inc.
• Carbyon
• Zero Carbon Systems

By Technology	By End User	By Region
Solid DAC Liquid DAC Electrochemical DAC	Chemicals & Fuels Carbon Mineralization Oil & Gas Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Direct Air Capture (DAC) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Direct Air Capture (DAC) Market, By Technology:

• Solid DAC
• Liquid DAC
• Electrochemical DAC

• Direct Air Capture (DAC) Market, By End User:

• Chemicals & Fuels
• Carbon Mineralization
• Oil & Gas
• Others

• Direct Air Capture (DAC) 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