Carbon Capture and Storage Market

The Global carbon capture and storage Market is segmented by technology (pre-combustion, oxy-fuel combustion, industrial separation, and post-combustion), By End-User (Oil and Gas, Coal and Biomass Power Plants, Iron and Steel, Chemicals, Agriculture, Others) By Region (North America, South America, Asia-Pacific, the Middle East and Africa, and Europe):- Global Industry perspective Comprehensive analysis and Forecasts, 2022 - 2030 

The carbon capture and storage market is estimated to be worth around $ 2.6 billion globally and is expected to grow at a CAGR of 14.7 percent throughout the forecasted period.

Market Overview

Carbon capture and storage refers to the process of capturing carbon dioxide from areas where CO2 emissions are high, mostly industrial areas. This captured CO2 is then processed into valuable resources or services, or it is stored deep underground in geological forms. The global demand for carbon capture and storage is increasing due to government initiatives to lower carbon footprints. Carbon capture and storage (CCS) is an innovative technology that can capture up to 90% of the CO2 emitted into the atmosphere. As global warming and sustainability concerns rise, industries have started shifting to carbon capture and storage. As per the International Energy Agency (IEA), the facilities around the world have the capacity to capture up to 45 million tons of CO2.

COVID-19 Impact

The COVID-19 pandemic has taken a toll on the global economy. Various companies had to halt their operations due to disruptions in supply chains and complete lockdown measures implemented by the governments. Because of the lockdown imposed by the countries, sectors such as cement, chemical, and others were affected, which play a minor role in the carbon capture and storage industry. However, as soon as the lockdown was revoked and industries were reopened, they quickly adapted to the change.

Growth Factors

The rapidly increasing industrialization has led to rising demand for reducing carbon emissions. The rising need to address the global warming problems due to higher emissions of CO2 has put the carbon capture and storage industry in the spotlight. Furthermore, strict regulations by the government and the growing popularity of sustainable development are major factors in the growth of the industry. Climate change has become a major topic of discussion among the world's leaders in the last few years. Governments around the world have been launching various initiatives to promote carbon capture and storage. For instance, the government of the U.S. has invested $2.3 billion to cut carbon pollution in the country. The UK government had invested 60 million

Restraints

Carbon capture and storage is a capital-intensive business, which can be a factor that is likely to hold back the industry's outlook. Also, the complexity of the industry can be a cause of adoption. Moreover, the highly expensive nature of direct-from-air capture systems will act as an entry barrier to businesses that want to enter this industry.

Opportunities

Asia-Pacific is home to the most populous countries in the world, which are the manufacturing hubs as well as industry-intensive areas. Also, growth is still at its peak in the region. There is growth in reducing the emissions as the pollution levels in the countries are high; thus, this can be a growth opportunity for the carbon capturing and storage industry. The government is extensively aiming at carbon capture in the applied industries. The oil and gas industry has emerged as the leading source for application of the captured carbon due to increased numbers of enhanced oil recovery (EOR) projects, and according to the International Energy Agency, 550 million barrels of oil are being produced by CO2-EOR.

Carbon Capture and Storage Market Report Scope

Segment analysis

In carbon capture and storage, the first stage is to capture the carbon released through the burning of fossil fuels through industrial processes like cement production, the chemical industry, the steel industry, and others. The industry is segmented by technology, end users, and geography. By technology, the industry is segmented into pre-combustion, oxy-fuel combustion, industrial separation, and post-combustion. Post-combustion holds the first spot in terms of market share. Oxygen fuel combustion is expected to grow fastest in the future. The end user is segmented into Oil and Gas, Coal and Biomass Power Plants, Iron and Steel, Chemicals, and Agriculture. Power generation sources like oil and gas, coal, and biomass power plants have contributed the most to the end user segments, while iron and steel hold the second rank. The use of carbon in the chemical industry is also significant, and the agriculture industry uses it for the production of nitrogen-based fertilizers, which are used to replenish the nutrient content in the soil.

Segments

The carbon capture and storage market has been bifurcated by technology type, end-user type, and region.

   By Services

o   Capture

o   Transportation

o   Utilization

o   Storage

   By Technology

o   Pre-combustion

o   Oxy-fuel combustion

o   Industrial separation

o   Post-combustion

·         By End-User

o   Oil and gas

o   Coal and biomass power plants

o   Iron and steel

o   Chemicals

o   Agriculture

o   Others

·         By Region

o   North America

o   South America

o   Asia-Pacific

o   Middle East and Africa

o   Europe

Regional Analysis

The North American region dominates the carbon capture and storage industry. The reason being the continued government efforts and investments made. America holds the largest share, followed by Canada. The European Union has been more focused on R&D and has announced a lot of incentives for the same. The development of carbon capture and storage was initiated mainly by countries such as the U.K. and Germany. While Asia-Pacific is regarded as the growing region and has a high potential as the region has high industrial growth, relies more on fossil fuels for energy needs, and has a high population, The air pollution levels in this region have been at an alarming level, which compels the companies to adopt carbon capture and storage technologies. Leading countries like China and India have constantly increased the number of carbon capture and storage projects.

Key Players

The carbon capture and storage market is consolidating. The market leaders are focused on innovation and technological advancements to minimize emissions. Below is a list of some companies in the industry.

·         Shell PLC

·         ExxonMobil Corp

·         Aker solutions

·         Equinor ASA

·         Dakota Gasification company

·         Linde PLC

·         Siemens Energy

·         Fluor Corporation

·         Sulzor Ltd.

·         Mitsubishi Heavy Industries

·         Japan CCS Co., Ltd

·         Carbon Engineering Ltd.

·         Lanza Tech

·         NRG

·         Skyonic Corp

·         Sinopec

·         Huaneng

·         Maersk Oil

·         Schlumberger Limited

·         Statoil

·         Others