Global carbon capture, utilization and storage market grew at a CAGR of 29.8% in 2021-26

According to a report released by Markets and Markets, an international market research institution, the global carbon capture, utilization and storage market is expected to reach US$2.
1 billion in 2021, and this data is expected to increase to US$7.
7 billion by 2026, with a compound annual growth rate of 29.
8%
during the period.

The carbon capture, utilization, and storage market is growing
due to increasing demand from various end-use industries across the globe.
Despite a decline in the market in 2020 due to the COVID-19 pandemic, especially in North America and Europe, companies briefly closed their operations and manufacturing facilities to prevent further spread of the virus, and the government restricted construction activities
.
This has led to reduced
carbon capture, utilization and storage consumption in end-use industries.
However, the spread of vaccines and the easing of lockdowns as well as the recovery of the economy will stimulate demand growth
during the forecast period.

Increased focus on carbon emissions

The carbon capture, utilization and storage market is being supported and developed
by the growing global concern about climate change and efforts to reduce emissions.
Currently, the use of fossil fuels and natural gas for power generation is a major source of
global CO2 emissions.
Carbon capture, utilization and storage prevent greenhouse gases from entering the atmosphere
.
For example, due to global warming due to increased carbon emissions from burning fossil fuels, President Biden signed an executive order declaring that the United States will produce 100% carbon-free electricity
by 2035.
In addition, to support the adoption of carbon capture, utilization and storage, governments offer a number of policies to achieve net zero, including tax credits and government subsidies
that benefit factory owners.

Harvesting technology improvements

Early on, most of the CO2 used in EOR technology was recovered from naturally occurring reservoirs
.
However, new technologies are being developed to produce carbon dioxide from industrial applications such as ethanol, fertilizers, hydrogen production plants, and natural gas processing where there are no naturally occurring reservoirs
.
EOR technologies include thermal extraction, gas injection and chemical injection
.
The use of CO2-EOR technology helps to produce 30-60% or more oil from reservoirs, restoring reservoir pressure, reducing viscosity, reducing oil density, and increasing permeability of carbonate formations
.

High costs are restraining market growth

The cost of carbon capture and storage, including all initial expenses and ongoing operating and maintenance expenses for a carbon capture and storage plant, is higher than non-carbon capture and storage
using the same fuel and net electricity output.
Carbon capture and storage costs include all components of the value chain: CO2 capture, transportation and storage
in a plant.
The energy absorbed during the capture process and the loss of efficiency due to the addition of dedicated equipment for capture are the main cost drivers of the CO2 capture process
.
Storage costs are calculated taking into account factors
such as initial exploration, site assessment, and site preparation.

High growth potential in the Asia-Pacific region

Current and upcoming carbon capture, utilization and storage projects in the Asia-Pacific region create an excellent gateway
to this market.
China and Australia are early adopters
of carbon capture, utilization and storage in the region.
The current portfolio of carbon capture and storage projects in these countries is expected to create significant opportunities
for companies operating in the storage carbon capture, utilization and storage ecosystem.
In addition to Australia and China, South Korea and India are also focusing on carbon capture, utilization and storage
.

Transportation services

The transportation services sector has the highest CAGR in terms of value during the forecast period, with transportation being the second process
after carbon capture.
It involves transporting carbon from the point of capture to the storage area; Trucks, ships and pipelines are the most common patterns
for this purpose.
Pipelines are the most preferred because they offer lower costs
in the long run.
For commercial applications, onshore trucks are preferred, while for EOR and storage applications, pipelines are preferred
both offshore and offshore.
Pipelines are widely used for the transportation
of carbon dioxide.

Power generation industry

From the end-application market, power generation has the highest
CAGR in terms of value.
The industry produces large amounts of carbon dioxide, thus attracting multiple stakeholders to reduce these emissions
.
Fossil fuel power plants emit large amounts of carbon dioxide into the atmosphere, which is a major cause of
climate change.
Among CO2 reduction schemes, carbon capture and storage is considered to be the only technology
that can significantly reduce carbon dioxide emissions from fossil fuels.
Existing fossil-fuel-burning power plants currently emit large amounts of carbon dioxide into the atmosphere (more than 12 billion tons per year).

This is where carbon capture, utilization and storage can be very useful in curbing these further CO2 emissions
.

North America

In terms of market share, North America holds the largest market share in the carbon capture, utilization, and storage market
.
North America dominated the global market
in 2020.
This dominance is attributed to the growing demand
from end-use industries in the region.
Due to large-scale development projects for carbon capture, utilization, and storage, the market in North America is expected to witness high growth
compared to other regions.