Carbon Capture Utilization and Storage Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Technology (Pre-Combustion Carbon Capture, Post-Combustion Carbon Capture, Oxy-Fuel Combustion Carbon Capture), By Application (Oil and Gas Industry, Power Industry, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.02 Billion
CAGR (2026-2031)	6.54%
Fastest Growing Segment	Oil and Gas Industry
Largest Market	North America
Market Size (2031)	USD 7.34 Billion

Market Overview

The Global Carbon Capture Utilization and Storage Market will grow from USD 5.02 Billion in 2025 to USD 7.34 Billion by 2031 at a 6.54% CAGR. Carbon Capture Utilization and Storage encompasses technologies designed to isolate carbon dioxide emissions from stationary industrial sources for either productive reuse or permanent geological sequestration. The market expansion is primarily propelled by stringent government mandates aiming for carbon neutrality and the urgent necessity to decarbonize heavy industries such as steel and cement manufacturing. Furthermore, substantial public funding and policy incentives in major economies are accelerating the commercial viability of these initiatives. According to the Global CCS Institute, in 2024, the total number of projects in the development pipeline surged by 60 percent to reach a record 628 facilities.

Despite this robust growth momentum, the sector encounters a significant impediment regarding the high capital and operational expenses required for deploying capture units and establishing transport networks. The absence of mature infrastructure and consistent financial frameworks creates economic uncertainty that restricts the rapid scalability of these projects. Consequently, securing final investment decisions remains a complex hurdle for many developers seeking to expand operations globally, thereby delaying the widespread adoption needed to meet climate goals.

Key Market Drivers

The availability of government financial incentives and tax credit programs acts as a primary catalyst for the deployment of carbon capture technologies by mitigating high upfront capital risks. Comprehensive policy frameworks, such as the U.S. Inflation Reduction Act and the EU Innovation Fund, provide the necessary fiscal security for companies to commit to large-scale infrastructure projects that were previously economically unfeasible. These financial mechanisms effectively lower the cost per tonne of carbon captured, encouraging private sector participation in direct air capture and point-source storage initiatives. For instance, according to Occidental, September 2024, the company’s subsidiary was awarded up to $500 million by the U.S. Department of Energy to support the development of the South Texas Direct Air Capture Hub, validating the critical role of public funding in advancing commercial-scale operations.

Concurrently, the rising necessity for decarbonizing hard-to-abate industrial sectors is accelerating market adoption, particularly in cement and steel manufacturing where electrification is challenging. Industrial operators are increasingly integrating capture units directly into their processing lines to comply with tightening emission mandates and sustainability goals. A notable development in this space occurred when, according to Heidelberg Materials, March 2024, the company selected a project at its Indiana cement plant that targets an emission reduction of approximately 2 million tonnes of carbon dioxide annually, demonstrating the sector's shift toward active decarbonization. This sectoral demand is contributing to broader capacity expansion; according to the Global CCS Institute, in 2024, the global operating capture capacity is on track to exceed 100 million tonnes per year once facilities currently under construction are completed.

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Key Market Challenges

High capital and operational expenditures required for deploying capture units and associated infrastructure present a substantial barrier to the Global Carbon Capture Utilization and Storage Market. The financial burden of establishing complex transport networks and retrofitting industrial facilities often outweighs the projected economic returns, particularly in the absence of mature revenue models. This cost intensity creates significant hesitation among developers and investors, leading to a prolonged period of uncertainty that restricts the ability of the sector to scale rapidly. Consequently, the high upfront financial requirements directly hinder the transition of projects from the planning phase to actual construction.

This difficulty in securing capital is reflected in the disparity between planned initiatives and committed projects. According to the International Energy Agency, in 2024, only around 20 percent of the announced capture capacity projected for 2030 had reached the final investment decision stage. This statistic underscores the difficulty developers face in validating the commercial viability of these ventures under current market conditions. The inability to close this investment gap delays widespread adoption and prevents the market from realizing its full growth potential within the anticipated timelines.

Key Market Trends

The Emergence of Shared Multi-User Carbon Capture and Storage Industrial Hubs represents a structural paradigm shift, moving the market away from standalone, single-source projects toward interconnected transport and storage networks. This "hub and cluster" approach allows multiple industrial emitters—such as cement, steel, and chemical plants—to share common infrastructure for compression, transport, and sequestration, thereby significantly reducing the unit cost of abatement and de-risking individual investments. By decoupling capture from storage, these hubs facilitate cross-border decarbonization and enable smaller operators to access sequestration solutions that would otherwise be economically unviable. Validating this operational model, according to Equinor, in August 2025, the Northern Lights joint venture officially commenced operations as the world's first cross-border CO2 transport and storage network, providing an initial injection capacity of 1.5 million tonnes per year for industrial emitters across Europe.

Concurrently, the Commercial Scaling and Deployment of Direct Air Capture Technologies is establishing a necessary pathway for addressing historical emissions and neutralizing residual carbon footprints that point-source capture cannot reach. Unlike traditional scavenging methods tied to specific smokestacks, this trend focuses on deploying large-scale, standalone facilities capable of extracting atmospheric carbon dioxide for permanent geological storage or utilization in synthetic fuels. This transition from pilot-scale demonstration to megaton-scale commercialization is being driven by the rising demand for high-quality carbon removal credits in voluntary markets. Highlighting this rapid scale-up, according to Occidental, in September 2025, the company confirmed that its Stratos Direct Air Capture facility is advancing toward commercial startup with a designed capacity to capture 500,000 metric tons of carbon dioxide annually to support heavy industry decarbonization goals.

Segmental Insights

The Oil and Gas industry constitutes the fastest growing segment in the global Carbon Capture Utilization and Storage market, primarily due to the increasing adoption of Enhanced Oil Recovery methods. Companies are actively deploying these technologies to improve extraction rates while complying with rigorous environmental standards. Regulatory frameworks advocated by entities such as the International Energy Agency further compel the sector to reduce carbon intensity. Furthermore, the industry benefits from established expertise in geological storage and pipeline infrastructure, enabling the rapid integration of capture systems compared to other industrial sectors.

Regional Insights

North America currently maintains the leading position in the global carbon capture utilization and storage market, driven by favorable government policies and established industrial infrastructure. The United States largely supports this dominance through regulatory mechanisms such as the 45Q tax credit, which provides financial incentives for companies to store or utilize carbon oxides. Furthermore, the U.S. Department of Energy actively funds research and large-scale demonstration projects to accelerate commercial deployment. The region also benefits from extensive operations in enhanced oil recovery, which offers a readily available application for captured emissions and strengthens the economic case for adoption.

Recent Developments

• In December 2025, an engineering and technology company secured a significant contract to provide detailed engineering services for Thailand's inaugural carbon capture and storage project. Working in collaboration with the national petroleum exploration and production company, the firm was tasked with designing carbon dioxide processing units and injection systems for an offshore gas field. The project aimed to reduce emissions from existing operations by reinjecting captured carbon back into the reservoir. This award marked a key step in expanding carbon management infrastructure and technical expertise within the Southeast Asian energy market.
• In October 2025, a multinational industrial conglomerate announced that its advanced carbon capture technology had been selected for a major clean energy project in Indiana, United States. The initiative, led by a domestic energy company, aimed to repurpose a gasification facility to produce low-carbon hydrogen and ammonia fertilizer. The deployed technology was projected to capture and permanently store approximately 1.65 million tons of carbon dioxide annually in underground geological formations. This collaboration underscored the critical role of carbon capture solutions in decarbonizing hard-to-abate sectors such as agriculture and chemical manufacturing.
• In March 2025, a joint venture comprising three major energy companies—TotalEnergies, Equinor, and Shell—announced a final investment decision to expand a prominent carbon transportation and storage project in Norway. The partners committed to investing NOK 7.5 billion to increase the facility's capacity to over 5 million tons of carbon dioxide per year by 2028. This expansion phase was designed to accommodate captured emissions from various European industrial sources, transporting them via ship and pipeline for permanent storage beneath the seabed. The initiative highlighted the growing commercial viability of cross-border carbon storage infrastructure.
• In May 2024, a Swiss company specializing in direct air capture technology launched its newest and largest commercial facility in Iceland. Named "Mammoth," this plant was designed with a nameplate capture capacity of up to 36,000 tons of carbon dioxide annually, making it significantly larger than the company’s previous facility. The project utilized renewable geothermal energy to power its operations and collaborated with a storage partner to permanently sequester the captured carbon underground by naturally transforming it into stone. This development represented a major milestone in scaling up carbon removal technologies to address global climate targets.

Key Market Players

• Fluor Corporation
• ExxonMobil Corporation
• Linde plc
• Shell plc
• Mitsubishi Heavy Industries, Ltd
• JGC Holdings Corporation
• Equinor ASA
• Schlumberger Limited
• Carbon Clean Solutions Limited
• Hitachi, Ltd

By Technology	By Application	By Region
Pre-Combustion Carbon Capture Post-Combustion Carbon Capture Oxy-Fuel Combustion Carbon Capture	Oil and Gas Industry Power Industry Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Carbon Capture Utilization and Storage Market, By Technology:

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

• Carbon Capture Utilization and Storage Market, By Application:

• Oil and Gas Industry
• Power Industry
• Others

• Carbon Capture Utilization and 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