The market revenue for CO2 direct air capture is expected to grow at a CAGR of 33% during the forecast period of 2024 to 2032. This expansion is attributable to growing concerns about greenhouse gas emissions and the rising demand for sustainable technologies to mitigate the effects of climate change. CO2 direct air capture is the process of removing carbon dioxide directly from the atmosphere using a variety of technologies and procedures. The captured carbon dioxide can be used for a variety of purposes, such as enhanced hydrocarbon recovery, production of synthetic fuels and chemicals, and carbon sequestration. The increasing demand for these applications is anticipated to propel the growth of the CO2 direct air capture market over the forecast period. The rising investment in research and development for the creation of new technologies and the commercialization of existing ones is anticipated to propel the growth of the CO2 direct air capture market. The deployment of pilot projects and demonstration facilities across multiple regions is anticipated to contribute to the market's growth over the forecast period. In addition, the increasing adoption of government policies and regulations aimed at reducing greenhouse gas emissions is anticipated to generate substantial growth opportunities for the CO2 direct air capture market. In 2020, the European Union enacted the EU Climate Law, which seeks to reduce greenhouse gas emissions by at least 55 percent by 2030. Such endeavors are anticipated to increase demand for CO2 direct air capture technologies in the region.
The rising levels of greenhouse gas emissions have resulted in a variety of environmental problems, such as climate change, which have sparked significant global concern. This has increased the demand for technologies that can effectively mitigate the effects of climate change, such as direct CO2 air capture. For instance, the United Nations Framework Convention on Climate Change (UNFCCC) was established to address global climate change issues, and a number of international agreements to reduce greenhouse gas emissions have been signed. This rising global concern regarding greenhouse gas emissions is anticipated to fuel the expansion of the CO2 direct air capture industry.
Over the years, there has been a significant increase in the development of innovative and cutting-edge CO2 direct air capture technologies, resulting in the creation of more efficient and cost-effective solutions. Climeworks, a Swiss corporation, announced in 2019 that it would construct the world's largest direct air capture plant, which would capture 4,000 metric tonnes of CO2 annually. Increasing adoption of advanced CO2 direct air capture technologies is anticipated to drive market expansion. Several governments throughout the globe are implementing programs to reduce greenhouse gas emissions and promote the use of clean energy sources. Governments provide funding and support for CO2 direct air capture technology development and deployment. For example, the Canadian government has allocated 100 million CAD towards the development of direct air capture technologies. Such initiatives are anticipated to propel the expansion of the market for CO2 direct air capture.
Browse for report at : https://www.acutemarketreports.com/report/co2-direct-air-capture-market
The high cost of implementing and operating CO2 direct air capture technologies is one of the primary factors restraining the market for CO2 direct air capture. Capturing and retaining carbon dioxide from the atmosphere is more expensive than capturing it from industrial processes. In addition, the current scale of CO2 direct air capture technology is limited, and the cost per metric tonne of carbon dioxide removed is substantially higher than with conventional carbon capture and storage techniques. Climeworks, one of the foremost direct air capture technology companies, charges approximately USD 600 per metric tonne of CO2 removed, which is higher than the current carbon credit market price. The high cost of CO2 direct air capture technologies poses a significant barrier to market expansion and widespread adoption. In the future, however, technological advancements and supportive government policies are anticipated to reduce the price of direct air capture technologies, enabling their widespread adoption.
The market for CO2 direct air capture can be divided into two categories: physical absorption in liquid media and physical absorption in solid media. Utilizing solvents such as amines, physical absorption in liquid media captures carbon dioxide from the air. This technology has been deployed commercially and is regarded as the most mature among direct air capture technologies. Absorption in solid media employs solid sorbents to capture carbon dioxide, which is then regenerated at high temperatures to release the captured carbon dioxide. For carbon dioxide capture, metal-organic frameworks (MOFs), zeolites, and activated carbon are used as solid sorbents. The segment of the solid media type is expected to experience the highest CAGR from 2024 to 2032, owing to the increasing research and development activities in this area. Due to the commercialization of this technology, physical absorption in liquid media held the largest revenue share of the CO2 direct air capture market in 2023. Several large-scale direct air captures initiatives, such as Climeworks and Carbon Engineering, utilize the technology. In the CO2 direct air capture market, both physical absorption in liquid media and absorption in solid media is anticipated to experience significant growth opportunities.
By application, the market for CO2 direct air capture can be divided into four categories: food and beverage, greenhouse, energy fuel, and others. Due to the increasing demand for sustainable fuels and the need to reduce carbon emissions, the energy fuel segment held the largest revenue share of the market in 2023. Direct air capture of carbon dioxide can provide a sustainable carbon source for the production of fuels, thereby reducing reliance on fossil fuels. Due to the increasing demand for carbon-neutral food and beverage products, it is anticipated that the food and beverage segment will experience the highest CAGR between 2024 and 2032. By using direct air capture of carbon dioxide in the production of carbonated beverages, the food and beverage industry can reduce its carbon footprint. Due to the rising demand for carbon-neutral agricultural practices, the greenhouse market is also expected to experience significant growth opportunities. Direct air capture of carbon dioxide can be used to provide a carbon source for greenhouses, reducing reliance on carbon sources derived from fossil fuels. Overall, the CO2 direct air capture market has significant growth potential across all application segments as a result of the rising demand for sustainable carbon emission reduction strategies.
Due to the increasing adoption of sustainable solutions to reduce carbon emissions and the presence of several direct air capture companies, such as Carbon Engineering and Climeworks, North America holds the largest revenue share of the market in 2023. In addition, the region is witnessing substantial investments in the development of direct air capture technologies, which is fueling the market's expansion. Due to increasing investments in the development of direct air capture initiatives and the presence of numerous startups and research institutes focusing on direct air capture technologies, Europe is expected to experience the highest CAGR from 2024 to 2032. Direct air capture is viewed as a crucial technology for achieving the region's ambitious carbon emission reduction goals. Increasing investments in the development of direct air capture initiatives in nations such as China, Japan, and South Korea are also anticipated to generate significant growth opportunities in Asia-Pacific. These nations have set lofty goals for reducing carbon emissions and are investing in the development of direct air capture technologies in order to achieve them. The CO2 direct air capture market is anticipated to experience moderate growth opportunities in the Middle East and Africa and Latin America as a result of rising investments in sustainable solutions to reduce carbon emissions. Overall, the market for CO2 direct air capture has significant growth potential across all geographies due to the rising demand for sustainable carbon emission reduction solutions.
The market for CO2 direct air capture is highly competitive, with numerous market participants. The market is dominated by a handful of significant companies, including Carbon Engineering, Climeworks, Global Thermostat, and Infinitree. These actors are investing in the development of innovative and cost-effective direct air capture technologies to combat climate change and reduce carbon emissions. They are also emphasizing partnerships and collaborations with other market participants in order to increase their market share and expand their reach. Carbon Engineering has partnered with Chevron, BHP, and Oxy Low Carbon Ventures, among others, to develop and commercialize direct air capture technologies. Additionally, key players in the market for CO2 direct air capture are investing in R&D to increase the efficiency and cost-effectiveness of direct air capture technologies. Climeworks, for instance, is investing in the development of a new direct air capture facility that will utilize renewable energy sources, such as solar power, to reduce its energy costs and increase its efficiency. Diversification of product offerings is an additional important tactic utilized by market participants in CO2 direct air capture. Carbon capture and storage (CCS) technologies and other sustainable solutions for combating climate change are being added to the product offerings of market participants. Global Thermostat, for instance, has developed a CCS technology that can capture carbon dioxide emissions from industrial operations and convert them into valuable products such as fertilizers and building materials.
