Carbon Capture, Utilization, and Storage (CCUS) Market Expected to Reach $10.3 Billion by 2032

According to a new report published by Allied Market Research, titled, “Carbon Capture, Utilization, and Storage (CCUS) Market," The carbon capture, utilization, and storage (CCUS) market was valued at $3 billion in 2022, and is estimated to reach $10.3 billion by 2032, growing at a CAGR of 13.3% from 2023 to 2032.

Introduction

Carbon capture, utilization, and storage (CCUS) is an emission reduction process, which is intended to prevent large amounts of carbon dioxide from being released into the environment. The technology involves the collection, transportation, and injection of carbon dioxide so that it does not escape into the atmosphere. The process involves three main steps and technologies such as capture, which includes the separation of CO2 from gases produced from different procedures. Furthermore, it involves transport, which is the transportation of the captured CO2 to a suitable site for storage with the help of pipelines, trucks, and ships. The last step is storage, which involves the injection of CO2 into underground rock formations, deep wells, and depleted reservoirs. These serve as the ideal storage options for storing huge amounts of CO2 for many years.

Market Dynamics

The major factors that drive the demand for carbon capture, utilization, and storage (CCUS) market analysis include a growing focus on reducing CO2 emissions and increasing demand for CO2-EOR techniques. Demand for carbon capture, utilization, and storage (CCUS) market growth driven by increasing penetration in end-use industries such as oil & gas, power generation, iron & steel, chemical & petrochemical, cement, and others.

All industry players are heavily investing to find new commercial avenues for their product segments via investment, contracts, and partnerships. For instance, Shell is a giant MNC and has undertaken several CCSU pilot projects, which include the world’s largest CCSU project, in Alberta, Canada. As a result of a partnership between Shell, Canada Energy, and Chevron, Quest was formed, which is a fully integrated CCSU project.

In the oil sands industry, Quest has come up as the first commercial application of CCSU. It has been designed to capture, transport, and store deep underground above one million tons of carbon dioxide. Chevron is further leading a CCSU project, where natural gas will travel through undersea pipelines to a liquefied natural gas plant at the Gorgon gas fields in Western Australia.

However, high cost of carbon capture and storage and decreasing crude oil prices are expected to hamper the growth of the carbon capture, utilization, and storage (CCUS) market. Contrarily, a large number of upcoming projects in Asia-Pacific and Europe and continuous investments in developing innovative capturing technologies enabling economic operations are expected to open new growth avenues for the growth of the global carbon capture, utilization, and storage (CCUS) market forecast period.

Segments Overview

The global carbon capture, utilization, and storage (CCUS) market report is segmented into service, technology, application, and region. By service, the market is segregated into capture, transportation, utilization, and storage. Depending on technology, it is categorized into pre-combustion capture, oxy-fuel combustion capture, and post-combustion capture. On the basis of application, it is divided into oil & gas, power generation, iron & steel, chemical & petrochemical, cement, and others. Region wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.

By service, the global carbon capture, utilization, and storage (CCUS) market is categorized into capture, transportation, utilization, and storage. The capture segment accounted for the largest market share in 2022, with more than two-thirds of the total market share, owing to increase in adoption of this service due to surge in CO2 emission from various industrial verticals such as oil & gas, power generation, iron & steel, chemical & petrochemical, and cement.

On the basis of technology, the global carbon capture, utilization, and storage (CCUS) market is segregated into pre-combustion capture, oxy-fuel combustion capture, and post-combustion capture. The post-combustion capture segment was the major shareholder in 2022, acquiring for more than two-fifths of the total market share, owing to surge in the adoption of post-combustion capture technology from coal and gas power generation plants across the globe to capture carbon and reduce the carbon footprint.

Depending on application, the global carbon capture, utilization, and storage (CCUS) market is segregated into across oil & gas, power generation, iron & steel, chemical & petrochemical, cement, and others. The oil & gas segment emerged as a leader in 2022, more than half of the total market share, owing to surge in consumption of carbon dioxide for enhanced oil recovery.

Regional Analysis

Region wise, the global carbon capture, utilization, and storage (CCUS) market is studied across North America, Europe, Asia-Pacific, and LAMEA. North America dominated the market in 2022, garnering more than two-fifths of the total share. The presence of robust manufacturing sector and significant investments toward the economic development have made North America one of the major stakeholders across the globe. A positive outlook toward the oil & gas industry along with the government focus to minimize the emissions from industrial facilities, including chemical, cement, and F&B industries will foster the regional industry growth.

The major players studied and profiled in the global carbon capture, utilization, and storage (CCUS) industry are Royal Dutch Shell PLC, Fluor Corporation, Mitsubishi Heavy Industries, Ltd., Linde Plc, Exxon Mobil Corporation, JGC Holdings Corporation, Schlumberger Limited, Aker Solutions, Honeywell International Inc., and Halliburton. Other players operating in this market include C-Capture Ltd., Tandem Technical, Carbicrete, Hitachi, Ltd., Siemens AG, General Electric, Total S.A., and Equinor ASA.

Key Findings of the Study

• On the basis of technology, the post-combustion capture segment emerged as the leader by acquiring nearly half of carbon capture, utilization, and storage (CCUS) market share in 2022 and is anticipated to continue this trend during the forecast period.
• On the basis of service, the capture segment held the highest market share in 2022 accounting for more than two-third of the carbon capture, utilization, and storage (CCUS) market size.
• On the basis of application, the oil and gas segment emerged as the leader by acquiring nearly three-fifths of the market share in 2022 and is anticipated to continue this carbon capture, utilization, and storage (CCUS) market trends during the forecast period.
• On the basis of region, North America is the major market of CCUS. It accounted for more than two-third of the market share in 2022.