Carbon capture and storage, also known as carbon capture and sequestration (CCS), is a process used to capture waste carbon dioxide, mainly from large point sources such as fossil fuel power plants, separating it from other gases and storing it safely before it enters the atmosphere. It involves capturing carbon dioxide emitted from large industrial operations, transporting it to a storage site, and depositing it where it will not enter the atmosphere, normally underground geological formations or depleted oil and gas fields.
The global carbon capture and storage market is estimated to be valued at US$ 2.25 billion in 2024 and is expected to exhibit a CAGR of 10.59% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
Reducing carbon emissions is a major opportunity driving growth of the carbon capture and storage market. While transitioning to renewable energy sources will take time due to technological and economic challenges, CCS provides an immediate solution to reduce carbon emissions from fossil fuel power plants and industrial facilities. It can play a key role in limiting global temperature rise as per the Paris Agreement targets. The International Energy Agency estimates that CCS could account for 14% of total carbon dioxide mitigation effort by 2050 required to keep global warming under 2°C compared to pre-industrial levels. Growing policy support and carbon pricing initiatives by governments worldwide are encouraging adoption of CCS by large companies, which is expected to significantly contribute to the market growth over the forecast period.
Porter's Analysis
Threat of new entrants: The carbon capture and storage market requires high R&D investments and established distribution networks. This poses significant barriers for new companies to enter this market.
Bargaining power of buyers: Buyers in this market include power plants, oil and gas companies, and chemical plants. Their bargaining power is moderate as they have few alternatives for carbon capture technology.
Bargaining power of suppliers: A few large suppliers like Morgan Advanced Materials and SGL Group dominate the supply of materials. Their bargaining power over buyers is high due to differentiated products and technologies.
Threat of new substitutes: There are currently no close substitutes for carbon capture technology. Alternative green technologies are emerging but are not viable substitutes in the short run.
Competitive rivalry: The market is consolidating with large players acquiring smaller ones. Intense competition exists in terms of technology innovation and strategic partnerships.
SWOT Analysis
Strengths: Established technology, expertise, and IP. Players like Morgan Advanced Materials and SGL Group have decades of experience in materials and carbon capture.
Weaknesses: High capital costs and technical challenges. First-generation CCS projects faced cost overruns and plant downtime due to process issues. There is a need for standardization.
Opportunities: Growing policy and regulatory push for emissions compliance. Factors like carbon pricing and emissions targets present a viable business case for CCS adoption across industry sectors.
Threats: Uncertain long-term political and economic support. Sustained support mechanisms are required to incentivize large-scale commercial deployment of carbon capture projects.
Key Takeaways
The Global Carbon Capture And Storage Market Growth is expected to witness high over the forecast period between 2024 and 2031. Rapid growth is expected in regions like North America and Europe as governments there have introduced regulations to curb industrial emissions through incentives for CCS adoption. According to analysts, the market size for CCS is projected to reach over US$ 2.25 billion in 2024 from the current level of US$ 1.5 billion. The global carbon capture and storage market is estimated to be valued at US$ 2.25 billion in 2024 and is expected to exhibit a CAGR of 10.59% over the forecast period 2024 to 2031.
Regional analysis shows that North America currently leads the market with the USA implementing forty-five large-scale CCS projects and having the world's largest functional CCS system at Boundary Dam Power Station, Canada. Europe is the second largest market with the UK and Norway deploying projects across sectors. Asia Pacific is expected to be the fastest growing region owing to large emissions from China, India, and countries planning to scale up CCS to achieve decarbonization goals.
Key players operating in the carbon capture and storage market are Morgan Advanced Materials (UK), Mersen (France), TOYO TANSO (Japan), SGL Group (Germany), NAC Carbon Products, Inc. (USA), Graphite India Limited (India), Superior Graphite (USA), Qingdao Tennry Carbon Co., Ltd. (China), Zircar Ceramics (USA) & Schunk Group (Germany). These established players focus on strategic collaborations for technology development and identification of viable storage sites.
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