Global Carbon Capture and Sequestration Market to br USD 13.70 Bn, 2032

Published Date: Jul 2025

The global carbon capture and sequestration market size is expected to be worth USD 3.89 Billion by 2025. It can scale its valuation to USD 13.70 Billion by 2032. The market is anticipated to exhibit a CAGR of 19.7% during the forecast period (2025-2032).

The market growth is driven by investments in industrial decarbonization projects, climate regulations, and scaling of direct air capture (DAC) technologies. Government support for the deployment of carbon capture and sequestration (CCS) projects in North America and Europe can facilitate the market growth.

However, the high capital expenditure required in the execution of CCS projects can limit the market growth.

Key Market Insights

The carbon capture and sequestration market growth is driven by industrial and power generation deployments, as well as collaborations between countries for CCS projects.

By technology, the pre-combustion capture segment is expected to score a 29.0% share in 2025. This can be attributed to the integration of the technology into gasification and hydrogen processes. The use of this technology to reduce flue gas complexities can make them lucrative for high-purity CO₂ streams in cement and hydrogen production processes.
By application, the industrial processes segment is anticipated to attain a 21.0% market share in 2025. The use of CCS to decarbonize facilities and reduce the carbon footprint can drive the segment growth.
By end-use industry, the power generation segment can account for a large market share in 2025. This can be attributed to the integration of CCS technology in new power facilities to meet the energy demand. Supportive government policies can incentivize power generation providers to integrate CCS in large-scale projects.
By region, Europe is anticipated to display the fastest growth rate during the forecast period. This can be on account of policies outlined by the EU Emissions Trading System to lower carbon emissions. Furthermore, initiatives like the Carbon Connect Delta Program to capture, transport, and store CO₂by 2030 can augur favorably for the market.

The full report is now available for purchase: https://www.coherentmi.com/industry-reports/carbon-capture-and-sequestration-market

Carbon Capture and Sequestration Market Report Coverage

Report Coverage	Details
Market Revenue in 2025	USD 3.89 Billion
Estimated Value by 2032	USD 13.70 Billion
Growth Rate	19.7%
Historical Data	2020–2024
Forecast Period	2025–2032
Forecast Units	Value (USD Billion)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By Technology, Application, and End-use Industry
Geographies Covered	North America (U.S. and Canada), Latin America (Brazil, Argentina, Mexico, and Rest of Latin America), Europe (Italy, Spain, U.K., Germany, France, Russia, and Rest of Europe), Asia Pacific (China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific), Middle East (GCC Countries, Israel, and Rest of Middle East), and Africa (South Africa, North Africa, and Central Africa)
Growth Drivers	Stringent Regulations for Reducing Carbon Emissions Innovations in Carbon Capture Methods for Improving Efficiency and Cost-effectiveness
Opportunities	Using Captured CO₂ for Offsetting Some Costs Associated with CCS Increased Financial Support and Subsidies can Lower Barriers to Entry
Trends	Shift Towards Pre-combustion and BECCS Technologies Net-zero Commitments between Countries to Lower Carbon Emissions
Restraints & Challenges	Significant Investment Required for CCS Infrastructure Reduced Efficiency of Power Plants Due to Additional Energy Requirements

Market Dynamics

The global carbon capture and sequestration market is characterized by investments from oil and gas producers in the technology. Many of them are driven by fiscal incentives proposed by governments and the use of the technology for oil extraction. On July 17, 2025, the U.S. government signed a new bill to boost the production of carbon capture and aid crude oil producers.

The new-found use of blue hydrogen as a low-carbon alternative in energy storage and electricity generation can induce the market growth. Hydrogen hubs can actively integrate CCS into their plants for reducing carbon emissions and produce blue hydrogen. On November 21, 2024, the U.S. Department of Energy announced USD 2 billion in investment for the deployment of clean hydrogen and expand its renewable energy systems.

Market Opportunity: Integration of CCS into Enhanced Oil Recovery

The use of CCS to enhance the crude oil extraction process and increase barrel production can augur favorably for the carbon capture and sequestration market. Public-private partnerships are playing a major role for governments’ efforts to lower their dependence on oil imports. The Canada Growth Fund, backed by the Canadian government, entered into an agreement with Strathcona Resources to invest USD 730 million on July 10, 2024. This can fund the development of a CCS plant for the capture and storage of carbon dioxide on the Saskatchewan and Alberta oil sands facilities.

Market Challenge: High Capital Investment to Pose a Challenge to Market Growth

The significant financial burden for the installation and maintenance of CCS technologies hinders their global adoption. The customization of the CCS plant and design complexity can raise the deployment costs. However, financial incentives by governments or laws passed for mandatory installments can drive up the market growth over the forecast period.

Analyst’s View

The demand for lactase enzyme supplements and personalized nutrition approaches by doctors for the management of malabsorption syndrome can drive the market growth.
Europe is expected to display a strong growth rate in the market, owing to the deployment of CCS projects and laws for the storage and sequestration of CO₂.
Key players are leaning towards public-private partnerships for achieving zero carbon goals.

Recent Developments

ION Clean Energy raised USD 45 million from Chevron USA Inc. on April 04, 2024. The capital will be used in the deployment of the former’s ICE-31 liquid amine carbon capture technology.

Competitor Insights

Equinor ASA
Linde AG
Linde plc
General Electric Company
Royal Dutch Shell plc
ExxonMobil Corporation
Siemens Energy AG
Honeywell International Inc.
Fluor Corporation
Schlumberger Limited
Mitsubishi Heavy Industries, Ltd.
TotalEnergies SE
Shell CANSOLV

Market Segmentation

By Technology

Post-Combustion Capture
Pre-Combustion Capture
Oxy-Fuel Combustion Capture

By Application

Enhanced Oil Recovery (EOR)
Industrial Processes
Agriculture
Others

By End-use Industry

Oil and Gas

Upstream
Downstream

Power Generation

Coal-Fired Plants
Natural Gas Plants

Chemicals and Petrochemicals

Petrochemical Plants
Chemical Manufacturing

Iron and Steel

Blast Furnace Operations
Direct Reduction Iron Plants

Cement

Clinker Production
Klin Operations

Others

Pulp and Paper
Textile Industry

Regional Insights

North America
- U.S.
- Canada
Latin America
- Brazil
- Argentina
- Mexico
- Rest of Latin America
Europe
- Italy
- Germany
- U.K.
- Spain
- Russia
- France
- Rest of Europe
Asia Pacific
- South Korea
- India
- China
- Japan
- Australia
- ASEAN
- Rest of Asia Pacific
Middle East
- GCC Countries
- Israel
- Rest of Middle East
Africa
- South Africa
- North Africa
- Central Africa

The global carbon capture and sequestration market size is expected to be worth USD 3.89 Billion by 2025.

It can scale its valuation to USD 13.70 Billion by 2032. The market is anticipated to exhibit a CAGR of 19.7% during the forecast period (2025-2032).

The market growth is driven by investments in industrial decarbonization projects, climate regulations, and scaling of direct air capture (DAC) technologies.

Government support for the deployment of carbon capture and sequestration (CCS) projects in North America and Europe can facilitate the market growth.

However, the high capital expenditure required in the execution of CCS projects can limit the market growth.

Key Market Insights

The carbon capture and sequestration market growth is driven by industrial and power generation deployments, as well as collaborations between countries for CCS projects.

By technology, the pre-combustion capture segment is expected to score a 29.0% share in 2025. This can be attributed to the integration of the technology into gasification and hydrogen processes. The use of this technology to reduce flue gas complexities can make them lucrative for high-purity CO₂ streams in cement and hydrogen production processes.
By application, the industrial processes segment is anticipated to attain a 21.0% market share in 2025. The use of CCS to decarbonize facilities and reduce the carbon footprint can drive the segment growth.
By end-use industry, the power generation segment can account for a large market share in 2025. This can be attributed to the integration of CCS technology in new power facilities to meet the energy demand. Supportive government policies can incentivize power generation providers to integrate CCS in large-scale projects.
By region, Europe is anticipated to display the fastest growth rate during the forecast period. This can be on account of policies outlined by the EU Emissions Trading System to lower carbon emissions. Furthermore, initiatives like the Carbon Connect Delta Program to capture, transport, and store CO₂by 2030 can augur favorably for the market.

The full report is now available for purchase:

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Global Carbon Capture and Sequestration Market to Reach USD 13.70 Billion by 2032

Global Carbon Capture and Sequestration Market to Reach USD 13.70 Billion by 2032

Global Carbon Capture and Sequestration Market to Reach USD 13.70 Billion by 2032

Global Carbon Capture and Sequestration Market to Reach USD 13.70 Billion by 2032