PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1933224
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1933224
The global carbon capture and sequestration (CCS) market is witnessing robust growth driven by government initiatives for decarbonization, adoption of carbon capture technologies in industrial processes, and increasing integration of CCS with enhanced oil recovery (EOR). The market was valued at USD 4.51 billion in 2025, projected to grow to USD 5.31 billion in 2026, and expected to reach USD 19.98 billion by 2034, reflecting a CAGR of 18.03% during the forecast period. North America dominated the market in 2025 with a share of 59.65%, attributed to strong government support, high investments in CCS projects, and the presence of multiple operational carbon capture facilities.
Carbon capture and sequestration technology involves capturing carbon dioxide (CO2) from industrial and energy processes, transporting it via pipelines or tankers, and storing it in deep aquifers or depleted reservoirs to prevent its release into the atmosphere. Common capture methods include pre-combustion, post-combustion, oxy-fuel combustion, and industrial separation techniques. CCS is increasingly recognized as a critical solution to mitigate climate change and achieve global net-zero emission targets.
Market Trends
The CCS market is seeing significant collaboration among industry players to execute large-scale projects. Partnerships help secure the high CAPEX required for advanced CCS infrastructure. For instance, in July 2023, Fluor Corporation entered a licensing agreement with Federated Co-Operatives Limited (FCL) to deploy Econamine FG PlusSM technology in FCL's renewable diesel complex in Canada, a USD 2 billion project expected to be operational by 2027. Such collaborations are key to accelerating technology deployment and scaling CCS operations.
Post-pandemic sustainability initiatives have also boosted CCS investments, with governments supporting green recovery programs. Companies like Chevron and Svante are scaling up production of carbon capture filters and storage technologies to meet rising demand. Additionally, CCS integration with enhanced oil recovery (EOR) and hydrogen production is emerging as a profitable synergy, enabling CO2 utilization while mitigating emissions.
Market Growth Factors
Stringent climate policies and rising global focus on net-zero targets are driving CCS adoption. For example, the European Union's Net Zero Industry Act (March 2023) aims to inject 50 million metric tons of CO2 per year by 2030 into CCS systems and strengthens authorization protocols for CCUS initiatives. Similarly, Canadian provinces like Saskatchewan and Alberta are actively incorporating CCS into their energy strategies, supporting both emission reduction and industrial competitiveness.
The growing adoption of EOR projects enhances market growth, as captured CO2 is used to increase oil extraction from depleted reservoirs, simultaneously reducing carbon emissions. CCS is also gaining traction in natural gas processing, a cost-efficient and low-emission CO2 capture source, accounting for 35.03% of global CCS demand in 2026.
Restraining Factors
High capital and operational costs remain key challenges. Setting up multi-MTPA CCS plants requires significant investment, long-term funding, and alignment of regulations across borders. Operational complexity and maintenance requirements can limit deployment, particularly in smaller or less-developed markets.
Market Segmentation
By End-Use:
By Capture Source:
North America: Valued at USD 2.69 billion in 2025, projected to reach USD 2.82 billion by 2026. Government funding, R&D investment, and high-capacity plants drive dominance.
Asia Pacific: Early-stage large projects in China, India, and Australia are expected to expand rapidly. Markets in China USD 0.06 billion, India USD 0.21 billion, and Japan USD 0.014 billion by 2026.
Europe: CCS initiatives in the UK (USD 0.77 billion) and Germany (USD 0.23 billion by 2026) are supported by clean energy policies and low-emission strategies.
Middle East & Africa: Old oil & gas reservoirs and EOR potential favor CCS adoption.
Key Industry Players
Leading companies include Chevron, Fluor Corporation, Carbon Engineering Ltd, ADNOC Group, Equinor, Dakota Gasification Company, Aker Solutions, ExxonMobil, Shell, BP, Linde Plc, Total Energies, and NRG Energy. Strategic investments and partnerships are driving commercial-scale CCS adoption, with Chevron and Svante scaling up filter production to capture millions of tons of CO2 annually.
Conclusion
The global carbon capture and sequestration market is expected to grow from USD 4.51 billion in 2025 to USD 19.98 billion by 2034, driven by net-zero commitments, industrial collaborations, and integration with EOR and hydrogen production. North America dominates the market, while Asia Pacific and Europe are emerging regions due to policy support and infrastructure development. Despite high initial costs and operational complexity, CCS remains a critical technology for global emission reduction, climate goals, and sustainable industrial development.
Unit Value (USD Billion) and Volume (MTPA)
Segmentation By Capture Source, End-Use, and Region
Segmentation By Capture Source
By End-Use
By Country