MARKET OVERVIEW

The Carbon Capture and Storage (CCS) Market size was valued at USD 5.91 billion in 2025 and is projected to reach USD 14.27 billion by 2033, growing at a CAGR of 11.6% from 2025 to 2033.
Carbon Capture and Storage (CCS) is a proven method for reducing carbon dioxide emissions from industrial sources by capturing CO₂ before it enters the atmosphere, transporting it, and storing it in geological formations. As climate change policies tighten and decarbonization becomes mandatory for heavy industries, CCS is emerging as a critical technology.
Increasing government incentives, such as tax credits in the U.S. and funding through the European Green Deal, are enhancing CCS deployment. The U.S. Department of Energy has invested over USD 2 billion in CCS R&D. Countries like Canada and Norway have been pioneers with operational large-scale CCS facilities.
The power generation and oil & gas sectors lead the market due to their high emissions. Cement and chemical industries are also adopting CCS to meet net-zero targets. The growing demand for sustainable technologies and stricter emission regulations are expected to fuel market growth over the next decade.

DRIVER:

Rising Regulatory Pressure to Meet Net-Zero Carbon Goals
The key growth driver for the CCS market is the surge in international regulations pushing for carbon neutrality. More than 70 countries, including major economies such as the U.S., China, and members of the EU, have pledged net-zero targets by mid-century. The EU aims to reduce greenhouse gas emissions by at least 55% by 2030.
To meet these ambitious goals, heavy industries and power sectors are adopting CCS to reduce emissions without halting operations. The U.S. introduced the 45Q tax credit, offering up to USD 85 per metric ton of captured CO₂, which significantly boosts CCS investments.
CCS is also viewed as essential by the Intergovernmental Panel on Climate Change (IPCC) to limit global warming to below 2°C. These policy measures and financial incentives are compelling industries to accelerate CCS projects globally.

COUNTRY/REGION:

United States Dominates with Over 30% Market Share
The United States leads the global CCS market, accounting for over 30% of total capacity. As of 2025, more than 10 large-scale CCS facilities are operational, with several others in the pipeline. The government’s support through the Infrastructure Investment and Jobs Act and 45Q tax credit is fostering innovation and commercial-scale deployment.
Notably, ExxonMobil and Chevron have announced multi-billion-dollar CCS projects. The Midwest Regional Carbon Initiative and the Gulf Coast Carbon Center are hubs of CCS activity. In 2024, the U.S. Department of Energy announced funding of over USD 1.2 billion for carbon removal hubs.
Furthermore, the presence of suitable geological storage sites and a mature oil & gas sector enables cost-effective deployment. The U.S. remains a global CCS technology exporter and R&D leader, supporting its dominance in the global market.

SEGMENT:

Post-Combustion Technology Holds the Largest Market Share
Among the CCS types, post-combustion carbon capture holds the largest share, driven by its applicability to existing power plants and industrial facilities. It enables retrofitting without significant infrastructure overhauls, making it cost-effective.
This technology involves capturing CO₂ from flue gases after fuel combustion, primarily using amine-based solvents. It is widely used in coal-fired power plants and chemical industries. In 2025, post-combustion captured over 50% of total captured CO₂ worldwide.
Due to its scalability and relative ease of integration, major players like Aker Carbon Capture and Mitsubishi Heavy Industries continue to innovate and invest in this segment.

MARKET TRENDS

The Carbon Capture and Storage market is witnessing several emerging trends. Modular CCS units and mobile capture technology are gaining traction for small-scale industrial use. Countries are exploring Direct Air Capture (DAC), such as Climeworks' plant in Iceland, which removes CO₂ directly from the air.
Carbon utilization, where captured CO₂ is converted into fuels or building materials, is another growth area. In 2025, over 1.2 million tons of CO₂ were utilized in commercial applications globally. Partnerships between oil majors and startups to build CCUS hubs—like the Northern Lights project in Norway—are transforming CCS into a scalable business model.
Blockchain integration for carbon accounting and growing interest in bioenergy with CCS (BECCS) are reshaping the future of carbon management. These trends indicate a broader ecosystem beyond just capture and storage.

MARKET DYNAMICS

DRIVER-

Government funding and emissions penalties are propelling investment in CCS. In 2025 alone, over USD 3.4 billion was allocated globally for CCS R&D and infrastructure.

RESTRAINT-

High capital expenditure and operating costs remain a barrier. For instance, the Petra Nova project in Texas cost over USD 1 billion but faced shutdown due to low oil prices.

OPPORTUNITY-

Emerging economies like India and China are launching pilot CCS projects, opening opportunities for tech providers and EPC contractors to expand.

CHALLENGE-

Public resistance and environmental concerns around CO₂ storage safety challenge widespread adoption. Leakage risks from storage reservoirs create regulatory hurdles.

MARKET SEGMENTATION

The CCS market is segmented based on type and application:

By Type-

• Pre-Combustion involves CO₂ removal before fuel is burned, used in gasification processes. This segment is preferred in integrated gasification combined cycle (IGCC) plants.

• Post-Combustion is dominant due to compatibility with existing infrastructure.

• Oxy-Fuel Combustion burns fuel in oxygen to produce pure CO₂, simplifying capture.

By Application-

• Oil & Gas leads due to Enhanced Oil Recovery (EOR) applications.

• Power Generation is second, where coal and gas plants deploy CCS to meet emission norms.

• Chemicals and Cement industries are adopting CCS for process emissions not addressed by renewable energy.

REGIONAL OUTLOOK

North America-

Leads the market with favorable tax policies and over 25 operational CCS facilities. The U.S. and Canada are global pioneers.

Europe-

The EU Emissions Trading Scheme and projects like Porthos (Netherlands) and Acorn (UK) drive the market. Norway’s Northern Lights is a flagship CCS initiative.

Asia-Pacific-

Countries like China, Japan, and Australia are ramping up CCS investments. China alone plans to capture 20 million tons CO₂ annually by 2030.

Middle East & Africa-

Qatar and the UAE are leading with CCS in gas processing. ADNOC operates one of the world’s largest commercial CCS plants.

List of Top Carbon Capture and Storage Companies

1. ExxonMobil Corporation

2. Royal Dutch Shell Plc

3. Chevron Corporation

4. Mitsubishi Heavy Industries

5. Aker Carbon Capture ASA

6. Schlumberger Limited

7. TotalEnergies SE

8. Linde plc

9. Honeywell International Inc.

10. Fluor Corporation

These companies lead innovation in capture technology, storage solutions, and global partnerships. ExxonMobil plans to invest over USD 17 billion in CCS through 2030.

Investment Analysis and Opportunities

Investments in CCS are shifting from pilot-scale to full-scale commercial deployments. In 2025, global private and public CCS investment surpassed USD 10 billion. Venture capital is flowing into modular capture technologies and CO₂ utilization startups. Developing regions present untapped potential due to abundant storage reserves and rising industrialization.

New Product Development

Mitsubishi Heavy Industries launched a next-gen amine-based solvent system that cuts energy use by 20%. Aker Carbon Capture introduced modular units for decentralized industrial CCS. Linde and Shell are co-developing advanced membrane technologies to reduce operating costs.

Five Recent Developments

1. 2025 – U.S. DOE announced USD 1.2B for four new CCS hubs.

2. 2024 – Shell and Equinor launched Northern Lights CO₂ transport and storage network.

3. 2024 – ExxonMobil initiated Baytown CCS hub in Texas with 10 MTPA capacity.

4. 2025 – Aker signed contracts in Europe to deploy 8 modular CCS units.

5. 2025 – India launched its first industrial-scale CCS pilot in Gujarat.

Report Coverage

This report provides a detailed analysis of the Carbon Capture and Storage market, covering:

• Market size (2025–2033)

• Market drivers, restraints, and opportunities

• Competitive landscape and key players

• Regional and country-level forecasts

• Detailed segmentation by type and application

• Recent developments and future investment outlook