September 12, 2025 – New York, USA – The global Carbon Capture and Storage (CCS) market is poised for significant growth, with its market size projected to increase from USD 3.60 billion in 2025 to USD 5.96 billion by 2033, registering a robust CAGR of 6.5% during the forecast period (2025–2033). This growth is driven by the rising adoption of CO2 injection methods for Enhanced Oil Recovery (EOR) and increasing global focus on reducing greenhouse gas emissions to combat climate change.

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Market Overview

Carbon Capture and Storage (CCS) is a critical technology for mitigating global warming by capturing carbon dioxide (CO2) emissions from industrial processes, such as power generation, steel, and cement production, and storing them underground in geological formations. The technology is gaining traction as a vital tool for decarbonizing heavy industries and achieving net-zero ambitions.

In 2024, the global CCS market was valued at USD 3.38 billion, with North America leading the market, growing at a CAGR of 6.6%. The Pre-combustion Capture segment dominated by technology, while the Oil & Gas sector remained the largest end-user. Europe is expected to be the fastest-growing region, driven by stringent government regulations and ambitious climate goals, including a 55% reduction in greenhouse gas emissions by 2030.

Key Growth Drivers

  • CO2 Injection for Enhanced Oil Recovery (EOR): The growing preference for CO2-EOR techniques, which boost oil production while permanently storing CO2 underground, is a major market driver. Globally, CO2-EOR has the potential to recover between 190 and 430 billion barrels of oil, supporting energy demands while reducing atmospheric CO2.

  • Rising Demand for Bioenergy Carbon Capture and Storage (BECCS): BECCS, a subset of CCS, is gaining visibility as a geoengineering solution that combines biomass energy production with CO2 capture. With five BECCS facilities worldwide capturing approximately 1.5 million tons of CO2 annually, this technology presents significant growth opportunities.

  • Stringent Government Regulations: Governments worldwide are implementing policies to curb greenhouse gas emissions, boosting CCS adoption. For instance, Germany’s Climate Action Programme 2030 supports CCS infrastructure development for primary industries like cement and steel.

Market Challenges

Despite its potential, the CCS market faces challenges, including high implementation costs and competition from rising investments in shale oil and gas. The shale industry’s growth, particularly in regions like the U.S. and China, could divert resources from CCS development, impacting market expansion.

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Regional Insights

  • North America: The region leads the global CCS market, driven by the U.S., which hosts 12 of the 24 operational CO2 capture and injection plants worldwide (as of 2020). The demand for clean technologies and CO2-EOR applications fuels growth.

  • Europe: With a projected CAGR of 6.1% by 2031, Europe is advancing rapidly, supported by government-backed initiatives like Germany’s CO2 avoidance program and increasing demand for low-carbon products.

  • Asia-Pacific, Middle East & Africa, and Latin America: These regions are witnessing growing interest in CCS, driven by industrial decarbonization efforts and energy security concerns.

Recent Developments

  • April 2025: Calpine and ExxonMobil partnered to transport and store up to 2 million metric tons of CO2 annually from a natural gas power facility, supporting low-carbon electricity production.

  • June 2025: Air Liquide announced the construction of ELYgator, a large-scale electrolyzer in the Netherlands, as part of Europe’s decarbonization efforts.

  • June 2025: Baker Hughes secured a major order for its compression technology for a CCS hub in the Middle East, marking one of its largest CCS contracts to date.

Key Players

Leading companies in the CCS market include Aker Solutions, Air Liquide, Baker Hughes, Dakota Gasification Company, Exxon Mobil Corporation, Fluor Corporation, and General Electric, among others. These players are driving innovation and expanding CCS infrastructure globally.

Market Segmentation

  • By Technology: Pre-combustion Capture, Oxy-fuel Combustion Capture, Post-combustion Capture

  • By End-User Industry: Oil & Gas, Coal & Biomass Power Plant, Iron & Steel, Chemical

  • By Region: North America, Europe, Asia-Pacific, Middle East & Africa, Latin America

Future Outlook

The CCS market is expected to play a pivotal role in achieving global net-zero targets, with increasing investments and technological advancements driving growth. The rise of BECCS and CO2-EOR applications, coupled with supportive government policies, will create significant opportunities for market expansion.