How big is the carbon capture market?

This blog post has been written by the person who has mapped the carbon capture market in a clean and beautiful presentation

The carbon capture market reached $6.22 billion in 2024 and is accelerating rapidly.

With 65 operational facilities capturing 50 million tons annually and $6.4 billion in fresh capital deployed, the industry is transitioning from pilot projects to commercial scale. The cost to capture CO₂ has dropped significantly across technologies, while regulatory frameworks like the US 45Q tax credit and EU Carbon Contracts for Difference provide unprecedented financial backing.

And if you need to understand this market in 30 minutes with the latest information, you can download our quick market pitch.

What was the total market size of the carbon capture industry in 2024, and what is the estimated value for 2025?

The global carbon capture market reached $6.22 billion in 2024 and is projected to grow to $7.17 billion in 2025, representing a 15.3% year-over-year increase.

This growth reflects accelerating project deployment and increased commercial adoption across industrial sectors. The 2024 figure represents a significant milestone as the industry moved beyond demonstration projects into commercial-scale operations.

The $950 million increase from 2024 to 2025 is driven primarily by new facility commissioning, expanded capture capacity at existing plants, and growing utilization of captured CO₂ for enhanced oil recovery and synthetic fuel production. North America continues to dominate with 37% market share, while Europe and Asia-Pacific regions are rapidly expanding their project pipelines.

Investment flows have tripled since 2022, with $6.4 billion deployed globally in 2024 alone. This capital injection is funding both technology development and large-scale deployment, creating a foundation for sustained market expansion through the decade.

What's the projected annual growth rate of the carbon capture market from 2025 to 2030, and then to 2035?

The carbon capture market is expected to grow at a compound annual growth rate (CAGR) of 7.4% from 2025 to 2030, accelerating to 14.2% CAGR from 2025 to 2035.

The initial 7.4% growth rate through 2030 reflects the current phase of technology maturation and early commercial deployment. This period will see established technologies like amine-based capture systems achieving cost reductions through economies of scale, while newer approaches like solid sorbent systems and direct air capture move from pilot to commercial scale.

The acceleration to 14.2% CAGR through 2035 is driven by several converging factors: breakthrough cost reductions in direct air capture technology, expanded policy support including potential carbon border adjustments, and widespread adoption of carbon utilization for synthetic fuels and chemicals. The market is projected to reach $12.67 billion by 2029, positioning it for explosive growth in the following decade.

This growth trajectory assumes continued regulatory support, particularly the extension of US 45Q tax credits through 2032 and expanded EU funding mechanisms. Technology breakthroughs in modular capture systems and AI-optimized operations are expected to drive the higher growth rates post-2030.

Need a clear, elegant overview of a market? Browse our structured slide decks for a quick, visual deep dive.

If you want updated data about this market, you can download our latest market pitch deck here

How much capital was invested in carbon capture projects globally in 2024, and what's the trend so far in 2025?

Global investment in carbon capture projects reached approximately $6.4 billion in 2024, representing a tripling of investment levels compared to 2022.

This dramatic increase reflects the industry's transition from research and development to commercial deployment. Major funding sources included government programs like the US Infrastructure Investment and Jobs Act, private equity investments in technology companies, and corporate partnerships for industrial capture projects.

Early 2025 trends show continued strong momentum in funding flows, though complete annual figures remain pending. Notable first-quarter investments include expanded funding for direct air capture facilities, new industrial capture retrofits in cement and steel production, and significant venture capital rounds for next-generation capture technologies.

The investment composition has shifted toward larger-scale projects, with individual facility investments now commonly exceeding $100 million. This contrasts with the smaller demonstration projects that dominated funding in previous years, indicating growing investor confidence in commercial viability.

Which regions or countries led the carbon capture market in 2024, and how are rankings expected to shift in 2025 and beyond?

North America dominated the carbon capture market in 2024 with a 37% share, led by the United States at $1.87 billion in market value, followed by Canada as the second-largest individual country globally.

What are the main business models currently used in carbon capture, and how do their revenue structures compare?

Four primary business models dominate the carbon capture industry, each with distinct revenue structures and risk profiles suited to different market segments and development stages.

Full-chain integrators own end-to-end assets from capture through storage, generating revenue through long-term off-take contracts or storage service fees. Companies like SLB's Sequestri platform exemplify this model, charging integrated fees that can range from $150-400 per ton for complete capture, transport, and storage services. These models offer higher margins but require substantial capital investment and longer development timelines.

Technology providers focus on licensing capture modules or proprietary solvents, earning revenue through upfront licensing fees, engineering services, and per-ton royalties. Capsol's royalty model, for example, generates ongoing revenue streams tied to facility throughput, creating recurring income with lower capital requirements. This approach typically yields 5-15% royalties on captured volumes.

Hub and cluster facilitators develop shared infrastructure for multiple industrial emitters, generating revenue through transportation tolls, storage fees, and cluster membership charges. Norway's Northern Lights project charges approximately $100-150 per ton for transport and storage services, serving multiple industrial customers through shared infrastructure.

Credit-driven models rely on carbon credit sales or tax incentives like the US 45Q program, which provides $85-180 per ton depending on storage method. Direct air capture projects particularly benefit from this model, as the high 45Q credit for DAC ($180/ton) can cover significant portions of operational costs.

What's the average cost per ton of CO₂ captured across the leading technologies, and how is that cost trending into 2025 and projected for 2030?

Capture costs vary dramatically by CO₂ concentration and technology maturity, with high-purity industrial streams costing $15-25 per ton while dilute power plant emissions cost $40-120 per ton.

Looking for growth forecasts without reading 60-page PDFs? Our slides give you just the essentials—beautifully presented.

If you want clear information about this market, you can download our latest market pitch deck here

Who are the top 10 players in the carbon capture space today (2025), and how did their market shares evolve from 2024?

The carbon capture industry leadership reflects a mix of established industrial companies and emerging technology specialists, with the top 10 players collectively controlling approximately 60-70% of announced 2025 capture capacity.

What are the most common use cases for captured CO₂ in 2025, and which use cases are projected to dominate by 2030?

Enhanced Oil Recovery (EOR) currently dominates captured CO₂ utilization with approximately 60% market share, but this dominance is expected to decline as alternative uses gain economic viability.

EOR remains the largest application because it generates revenue from increased oil production while providing permanent CO₂ storage. Major oil companies pay $20-40 per ton for CO₂ supply, making it economically attractive for capture projects. However, the association with fossil fuel production limits its appeal for some investors and regulators.

Synthetic fuels represent the fastest-growing segment, projected to increase from 15% current share to 25% by 2030. Companies like LanzaTech are scaling gas fermentation technologies that convert captured CO₂ into sustainable aviation fuel and chemicals. The aviation industry's decarbonization pressure is driving significant investment in CO₂-to-fuel technologies.

Building materials applications, including CO₂ mineralization and concrete curing, are expanding rapidly from 10% to an expected 15% share by 2030. Companies are developing profitable uses for CO₂ in cement production and aggregate manufacturing, where the CO₂ becomes permanently incorporated into building materials.

Chemical and polymer production represents a smaller but growing segment, with CO₂ being converted into specialty chemicals, plastics precursors, and other high-value products. This segment benefits from higher margins but typically requires smaller CO₂ volumes than EOR or synthetic fuels.

What is the current regulatory and subsidy environment by region, and what policy changes are expected to influence the market by 2026?

The regulatory landscape provides unprecedented support for carbon capture deployment, with the US 45Q tax credit offering up to $180 per ton for direct air capture and $85 per ton for geological storage.

Wondering who's shaping this fast-moving industry? Our slides map out the top players and challengers in seconds.

If you want to grasp this market fast, you can download our latest market pitch deck here

How many operational carbon capture facilities existed at the end of 2024, how many have come online in 2025 so far, and how many are expected by 2030?

The global carbon capture infrastructure expanded to 65 operational facilities by the end of 2024, with a combined capture capacity of 50 million tons per annum (Mtpa).

An additional 10 facilities have come online in the first half of 2025, adding approximately 7 Mtpa of new capture capacity. These new facilities include several major industrial retrofits in cement and steel production, as well as the first commercial-scale direct air capture plants in the United States and Europe.

The project pipeline indicates dramatic expansion through 2030, with over 300 facilities expected to be operational by decade's end. This represents a six-fold increase from current levels, driven by 42 facilities currently under construction and hundreds more in advanced development stages. The projected 2030 capacity of 430 Mtpa would represent nearly a 9x increase from 2024 levels.

However, industry observers note that only approximately 20% of announced projects have reached Final Investment Decision (FID), highlighting the continued need for improved financing mechanisms and streamlined permitting processes. The gap between announced capacity and FID projects represents both a risk and an opportunity for the industry's growth trajectory.

What are the key technological breakthroughs anticipated in the next 5 to 10 years, and how would they affect scalability and margins?

Several breakthrough technologies are positioned to dramatically reduce costs and improve the scalability of carbon capture operations over the next decade.

• Advanced Sorbents and Solvents: Next-generation materials promise to reduce the energy penalty for CO₂ separation from 25-30% to under 15% of plant output. Companies like Svante are developing solid sorbent systems that operate at lower temperatures and pressures, reducing both capital and operating costs.
• Modular Capture Units: Pre-fabricated, standardized capture modules from companies like Capturi and Carbon Clean enable faster deployment and lower per-unit costs through manufacturing scale. These systems can be factory-built and truck-transported, reducing installation time from years to months.
• Electrified Industrial Processes: Technologies like Calix's electrified kilns integrate CO₂ capture directly into industrial production processes, eliminating the need for separate capture equipment and reducing overall system costs by 30-50%.
• AI-Optimized Operations: Digital twin technologies and machine learning algorithms are reducing operation and maintenance costs while improving capture efficiency. These systems can predict equipment failures, optimize solvent regeneration, and automatically adjust operating parameters for maximum efficiency.
• Low-Cost Direct Air Capture: Third-generation DAC technologies aim to achieve sub-$150 per ton capture costs by 2030, down from current levels of $400-600 per ton. This breakthrough would make DAC economically viable for large-scale deployment without subsidies.

How big is the voluntary vs. compliance carbon credit market related to carbon capture, and how are prices expected to move by 2026 and 2030?

The carbon credit market supporting carbon capture operates across two distinct segments: voluntary credits valued at $1.4 billion in 2024 and compliance markets worth $7-10 billion annually.

Voluntary carbon removal credits currently trade at premium prices of $100-600 per ton, reflecting high demand from corporations seeking net-zero commitments and limited supply from operational carbon removal projects. Technology-based removal credits from direct air capture command the highest prices, often exceeding $400 per ton, due to their permanent storage and measurable nature.

Compliance markets, dominated by systems like the EU Emissions Trading System and California's cap-and-trade program, trade at $80-100 per ton but offer much larger volumes. The US 45Q tax credit system effectively creates a compliance-like market by providing $85-180 per ton for verified CO₂ storage.

Price projections show voluntary credits rising to $200-800 per ton by 2026-2030 as demand outpaces supply growth, while compliance market prices are expected to reach $100-150 per ton in the EU ETS and remain supported by US 45Q credit levels. The integration of carbon removal requirements into compliance markets could blur these distinctions and create new price dynamics.

Planning your next move in this new space? Start with a clean visual breakdown of market size, models, and momentum.

Conclusion

Sources

1. Research & Markets
2. Grand View Research
3. EPI Group
4. World Economic Forum
5. Precedence Research
6. Global CCS Institute
7. EQ Mag Pro
8. ExoSwan
9. Brian Colwell
10. Climeworks
11. Mirror Review
12. Global CCS Institute
13. Carbon Credits