Carbon Capture and Storage Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Carbon Capture and Storage Market is segmented by End-user Industry (Oil and Gas, Coal and Biomass Power Plant, Iron and Steel, Chemical, and Other End-user Industries) and Geography (Asia-Pacific, North America, Europe, and Rest of the World). The report offers the market size and forecasts in revenue (USD million) for all the above segments.

Carbon Capture And Storage Market Snapshot

Carbon Capture and Storage Market - Market Summary
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: North America
Largest Market: North America
CAGR: >10 %

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Market Overview

The carbon capture and storage market was valued at over 1.7 billion ton in 2021, and the market is projected to register a CAGR of greater than 10% during the forecast period (2022-2027).

The major factor driving the market are the emerging demand for CO2 injection techniques for enhanced oil recovery (EOR) and strict government norms toward GHG emissions.

Huge CCS technologies implementation costs and growth in shale investments are expected to hinder the growth of the market studied.

Augmenting prominence for bioenergy carbon capture and storage (BECCS) is likely to act as an opportunity in the future.

Scope of the Report

Carbon capture and storage (CCS) is a technology that can capture up to 90% of the carbon dioxide emissions pro­duced from various sources that use fossil fuels in electricity generation and industrial processes, preventing carbon dioxide from entering the atmosphere. The first stage in the CCS process is the capture of carbon dioxide released during the burning of fossil fuels or as a result of industrial processes, such as making cement and steel or in processes in the chemical industry. Capture technologies separate carbon dioxide from gases during electricity generation, which may be done in at least three different ways: pre-combustion capture, post-combustion capture, and oxy-fuel combustion. Similar methods are used for various industrial processes. The carbon capture and storage market is segmented by end-user industry and geography. The report also covers the market size and forecasts for the carbon capture and storage market across the major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).

End-user Industry
Oil and Gas
Coal and Biomass Power Plant
Iron and Steel
North America
Rest of the World

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Key Market Trends

The Oil and Gas Segment is Expected to Dominate the Market

Carbon dioxide stored in deep, onshore, or offshore geological formations uses CCS technologies for enhanced oil recovery that have been developed in the oil and gas industry.

Carbon dioxide is extensively used in the oil industry for enhanced oil recovery (EOR) from mature oilfields. When carbon dioxide is inserted into an oilfield, it can mix with the crude oil, triggering it to swell and drop its viscosity, helping to maintain or raise the pressure in the reservoir. The combination of these processes permits more of the crude oil to flow to the production wells.

In other circumstances, the carbon dioxide is not soluble in the oil. Here, the injection of carbon dioxide raises the pressure in the reservoir, helping to sweep the oil toward the production well.

In Texas (United States), for more than three decades, carbon dioxide has been used in enhanced oil recovery projects. EOR constitutes over 20% of total oil production, and some fields achieve recoveries of nearly 70%.

Kyoto Clean Development Mechanism is mostly applied among the OPEC Nations, which support CCS technology. For instance, Abu Dhabi National Oil Company (ADNOC) achieved dramatic reductions in gas flaring. ADNOC has reduced the volume of natural gas flared by more than 72% since 1995.

All the aforementioned factors are likely to increase the usage of carbon capture and storage technology in the oil and gas segment during the forecast period (2022-2027).

Carbon Capture and Storage Market - Segmentation

North America is Likely to Dominate the Market

The North American region dominated the global market. The growing demand for clean technology, accompanied by the growing use of CO2 in EOR practices, is likely to drive the CCS market in the countries like the United States and Canada.

Chemical production, hydrogen production, fertilizer production, natural gas processing, and power generation are among the industries in the United States where CO2 is captured and injected. These facilities capture and inject CO2 to store it underground in geologic formations or to use it to boost oil production from aged oil fields, a process known as enhanced oil recovery (EOR).

Since at least 1997, the US Department of Energy's Fossil Energy and Carbon Management Research, Development, Demonstration, and Deployment program (FECM) has financed research and development (R&D) in components of CCS.

The government has funded USD 7.3 billion for DOE CCS-related programs since FY2010, including annual increases in recent years. The country allocated USD 750 million to FECM in FY2021, with USD 228.3 million going to CCUS.

In December 2020, the Canadian government proposed regulations for the Clean Fuel Standard. Projects that employ CCS to minimize the lifecycle carbon intensity of fossil fuels are one of the approaches to earn compliance credits for the Clean Fuel Standard. In addition, Canada's recent Budget 2021 suggested an investment tax credit for capital spent in CCUS projects, with a target of lowering CO2 emissions by at least 15 Mtpa, which would take effect in 2022.

Therefore, all the above projects and initiatives may significantly enhance the usage of carbon capture and storage technology in North America during the forecast period (2022-2027).

Carbon Capture And Storage Market - Regional Trend

Competitive Landscape

The carbon capture and storage market is consolidated in nature. The major players in the market (not in a particular order) include Occidental Petroleum Corporation, Exxon Mobil Corporation, Dakota Gasification Company, NRG Energy Inc., and Air Liquide, among others.

Recent Developments

  • In October 2021, Exxon Mobil Corporation planned to increase carbon capture and storage at its LaBarge, Wyoming, facility based in the United States, with an investment of around USD 400 million. Moreover, the expansion project will capture up to 1 million metric ton of CO2, in addition to the 6-7 million metric ton already captured at this facility each year. Additionally, the operation at this facility is expected to start by 2025.
  • In April 2021, Exxon Mobil Corporation proposed a plan to construct a carbon capture and storage (CCS) facility in Houston Ship Channel of Texas, United States. Additionally, the company was willing to invest around USD 100 billion in this proposed project, which would capture and store 100 million metric ton of CO2 per year.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Drivers

      1. 4.1.1 Emerging Demand for CO2 Injection Technique for Enhanced Oil Recovery (EOR)

      2. 4.1.2 Strict Government Norms Toward GHG Emissions

    2. 4.2 Restraints

      1. 4.2.1 Huge CCS Technology Implementation Costs

      2. 4.2.2 Growth in Shale Investments

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition


    1. 5.1 End-user Industry

      1. 5.1.1 Oil and Gas

      2. 5.1.2 Coal and Biomass Power Plant

      3. 5.1.3 Iron and Steel

      4. 5.1.4 Chemical

    2. 5.2 Geography

      1. 5.2.1 Asia-Pacific

      2. 5.2.2 North America

      3. 5.2.3 Europe

      4. 5.2.4 Rest of the World


    1. 6.1 Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%)**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Aker Solutions

      2. 6.4.2 Baker Hughes

      3. 6.4.3 Dakota Gasification Company

      4. 6.4.4 Exxon Mobil Corporation

      5. 6.4.5 General Electric

      6. 6.4.6 Halliburton

      7. 6.4.7 Mitsubishi Heavy Industries Ltd

      8. 6.4.8 NRG Energy Inc.

      9. 6.4.9 Royal Dutch Shell PLC

      10. 6.4.10 Schlumberger

      11. 6.4.11 Siemens

      12. 6.4.12 Linde PLC

      13. 6.4.13 LanzaTech

      14. 6.4.14 Occidental Petroleum Corporation

    5. *List Not Exhaustive

**Subject to Availability

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Frequently Asked Questions

The Carbon Capture and Storage Market market is studied from 2017 - 2027.

The Carbon Capture and Storage Market is growing at a CAGR of >10% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Occidental Petroleum Corporation, Dakota Gasification Company, NRG Energy, Inc., Air Liquide, Exxon Mobil Corporation are the major companies operating in Carbon Capture and Storage Market.

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