Over the period from 2024 to 2032, the global market for CO2 capture and recovery is anticipated to expand at a compound annual growth rate (CAGR) of over 9.2%. Increasing government regulations and policies to control carbon emissions from various industries are driving the market. The CO2 capture and recovery process captures carbon dioxide from industrial processes such as power generation, oil and gas production, and manufacturing, and then recovers and reuses it. CO2 capture and recovery technologies are in high demand as a result of a growing emphasis on reducing carbon emissions and a greater understanding of the detrimental effects of greenhouse gases on the environment and climate change. In addition, the increasing adoption of enhanced oil recovery techniques is anticipated to fuel market expansion in the coming years. The use of carbon dioxide (CO2) in enhanced oil recovery increases oil production and decreases the carbon footprint of oil and gas production. This is fueling demand in the oil and gas industry for CO2 capture and recovery systems. Overall, the market for CO2 capture and recovery is anticipated to grow steadily over the next few years, as a result of increasing government regulations and policies, rising awareness of the need to reduce carbon emissions, and rising adoption of enhanced oil recovery techniques. However, the market may encounter obstacles including high capital costs, technological obstacles, and a paucity of infrastructure for CO2 transport and storage.
Government regulations and policies aimed at reducing carbon emissions are significant drivers of the market for CO2 capture and recovery. Governments across the globe are implementing policies and regulations to limit carbon emissions from industries such as electricity generation, oil and gas extraction, and manufacturing. For instance, the Environmental Protection Agency (EPA) in the United States has implemented the Clean Power Plan, which seeks to reduce carbon emissions from power plants. Likewise, the European Union has set a goal to reduce carbon emissions by 55 percent by 2030. CO2 capture and recovery technologies are in high demand due to the expanding awareness of the need to reduce carbon emissions. Consumers, investors, and businesses are becoming increasingly aware of the detrimental effects of greenhouse gases on the environment and climate change. Consequently, there is a growing demand for sustainable practices and renewable energy across all industries. CO2 capture and recovery technologies contribute to a cleaner environment by reducing carbon emissions from industrial processes. The growing use of enhanced oil recovery (EOR) techniques in the oil and gas industry is fueling demand for CO2 capture and recovery systems. EOR uses CO2 to increase hydrocarbon production while simultaneously reducing the carbon footprint of oil and gas production. In the future years, the use of CO2 for enhanced oil recovery (EOR) is anticipated to increase due to the rising demand for oil and gas and the need to reduce carbon emissions. According to a report by the Global CCS Institute, the use of CO2 for enhanced oil recovery (EOR) could account for as much as 70% of the demand for CO2 capture and storage by 2050.
The high costs associated with implementing CO2 capture and recovery technologies are one of the main factors restraining the market for CO2 capture and recovery. The installation and operation of CO2 capture and recovery systems necessitate substantial capital expenditures and operating costs. The cost of CO2 capture and storage systems can range from $50 to $100 per tonne of CO2 captured, according to a report by the International Energy Agency. This cost is considerably higher than the current price of carbon credits in the majority of markets, making it unfeasible for many businesses to invest in these technologies. In addition, the high costs associated with CO2 capture and recovery technologies can have an impact on the competitiveness of industries, especially in developing nations where companies may lack the financial resources to invest in these technologies. The high costs associated with CO2 capture and recovery technologies continue to be a significant barrier to their widespread adoption, and efforts are ongoing to reduce these costs and make the technologies more economically viable.
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The CO2 capture and recovery market can be segmented based on the type of technology employed, with liquid media and solid media constituting the two main categories. Chemical solvents, such as amines, are used in liquid media-based CO2 capture technologies to remove CO2 from industrial discharge gases. These solvents react with CO2 to form stable, easily-separable compounds, emitting pure CO2. Due to their extensive adoption in a variety of industries, including power generation, chemical processing, and oil and gas, liquid media-based CO2 capture technologies currently hold the largest share of the market's revenue. In addition, the liquid media-based CO2 capture and recovery segment is anticipated to maintain its dominant position in the market during the forecast period from 2024 to 2032, with a high CAGR. In contrast, solid media-based CO2 capture technologies use materials such as zeolites or metal-organic frameworks to absorb CO2. These materials have a large surface area and can adsorb CO2 through physical or chemical means. Due to the increasing demand for more energy-efficient and cost-effective CO2 capture and recovery systems, the solid media-based CO2 capture segment is projected to grow at a significant CAGR. Solid media-based CO2 capture technologies have the potential to significantly reduce the costs associated with CO2 capture and recovery, making them an attractive option for industries seeking to reduce their carbon footprint.
The CO2 capture and recovery market can be segmented by application into F&B, greenhouse, energy fuel, and others. In 2023, the energy fuel segment held the greatest market share in the revenue. This is due to the oil and gas industry's increasing adoption of carbon capture technologies to reduce carbon emissions. The F&B segment is anticipated to closely follow in terms of revenue, due to the rising demand for effervescent beverages and the implementation of sustainable measures to reduce carbon footprint. During the forecast period of 2024 to 2032, the greenhouse segment is anticipated to experience the maximum CAGR. This is due to the growing adoption of sustainable agriculture practices and the rising demand for food. The increasing adoption of carbon capture technologies in the oil and gas industry is also anticipated to result in significant growth for the energy fuels segment. Due to the rising demand for carbonated beverages and rising concerns about the industry's ecological footprint, the food and beverage sector is anticipated to experience substantial growth over the forecast period. According to a report by the International Energy Agency, the food and beverage industry accounts for approximately 7 percent of global CO2 emissions. To reduce its carbon footprint, the industry has adopted sustainable practices such as CO2 capture and recovery.
In many regions of the globe, the market for CO2 capture and recovery is experiencing rapid expansion. Due to its emphasis on minimizing carbon emissions, North America has been a significant market for CO2 capture and recovery. During the forecast period, the region is anticipated to dominate the market with a high revenue share and a substantial CAGR. The United States is the dominant nation in the region, accounting for the vast majority of market share. The nation's efforts to reduce its carbon footprint and promote sustainable energy sources have increased the demand for CO2 capture and recovery technologies. The market for CO2 capture and recovery is also experiencing significant growth in the Asia-Pacific region. Growing demand for CO2 capture and recovery technologies in developing nations such as China and India is anticipated to propel the region's high CAGR over the forecast period. These countries' increasing industrialization and urbanization has led to an increase in carbon emissions, necessitating the adoption of CO2 capture and recovery technologies.
The market for CO2 capture and recovery is extremely competitive, with numerous competitors contending for market share. To strengthen their market position, businesses are focusing on research and development, strategic collaborations, and partnerships. Air Products and Chemicals, Inc., one of the market leaders, has developed a variety of products and solutions for CO2 capture and recovery. Additionally, the company has invested in strategic collaborations and partnerships to broaden its product lineup and geographic reach. Another important participant is Mitsubishi Heavy Industries, Ltd., which offers a variety of CO2 capture and recovery technologies, including its proprietary KS-1 solvent. Additionally, the company has partnered with several other market participants to develop novel solutions and increase its customer base. Linde AG, ExxonMobil Corporation, Aker Solutions ASA, Fluor Corporation, Honeywell International Inc. And Other Notable Players. are additional market leaders. These businesses are concentrating on the development of new technologies and solutions to satisfy the rising demand for CO2 capture and recovery. Companies are focusing on partnerships and collaborations to develop new technologies and expand their geographic reach as part of their core strategies. Air Products and Chemicals, Inc., for instance, announced a partnership with ACWA Power in 2021 to develop a new CO2 capture and recovery project in Saudi Arabia. In addition, businesses are investing in R&D to develop new, more effective technologies for CO2 capture and recovery. This includes the creation of novel solvents and other materials, as well as the incorporation of artificial intelligence and other cutting-edge technologies into CO2 capture and recovery systems.
