Carbon Capture and Storage Market to Reach $5.61bn by 2030, Driven by EU Policies and CCS Adoption for Emission Reduction.

The Carbon Capture and Storage (CCS) market is expected to reach $5.61 billion by 2030, growing at a CAGR of 7.40%. Favorable EU policies and funding drive the market's growth, with the European Union targeting an 80%-95% emission reduction by 2050. The market is led by the pre-combustion segment, with power generation dominating the application segment. Key players include Shell, Aker Solutions, Equinor, Dakota Gasification Company, and Linde.

The Carbon Capture and Storage (CCS) market is projected to reach $5.61 billion by 2030, growing at a robust Compound Annual Growth Rate (CAGR) of 7.40% [1]. This upward trajectory is primarily driven by favorable governmental policies and funding within the European Union (EU), which are pivotal in driving the market's growth. The European Union has positioned itself as a pioneer in CCS technology integration within its energy and climate strategy, targeting an 80%-95% emission reduction by 2050 [1].

The market's growth is supported by various factors, including the escalating concerns over carbon emissions' environmental impact. Governments globally are advocating for its deployment through various industrial pilot projects. The technology's potential as a large-scale solution to meet ambitious CO2 emission reduction targets and climate control goals is a key factor behind its adoption [1].

The pre-combustion segment led the market, capturing over 70% revenue share in 2024 due to its broad application in producing clean energy like e-fuels and blue hydrogen [1]. Power generation dominated the application segment, with a market share exceeding 69% in 2024, driven by regulatory mandates on power plants necessitating CCS facility implementation for carbon emission compliance [1].

The European Union's Net Zero Industry Act, launched in March 2023, sets a CO2 injection target of 50 Mt for 2030, further incentivizing CCS technology adoption [1]. This policy, along with other supportive measures, is expected to boost the region's market expansion, anticipated to grow at the highest CAGR of 6.8% during the forecast period [1].

Key players in the CCS market include Shell, Aker Solutions, Equinor, Dakota Gasification Company, and Linde. These companies are leveraging strategies such as partnerships, new product launches, expansions, mergers & acquisitions, and joint ventures to enhance their market presence and customer base [1].

Despite the promising outlook, high technology costs pose challenges, potentially hindering broader adoption by industries and nations worldwide [1]. However, industry players are actively exploring strategies to mitigate these costs and increase the market's accessibility.

References:
[1] https://finance.yahoo.com/news/carbon-capture-storage-ccs-market-080100161.html