Carbon Capture and Storage: Market Outlook 2025-2035
The global Carbon Capture and Storage (CCS) market is growing driven by
- Climate imperatives strengthening,
- Government regulatory requirements and incentives,
- Developing commercial models and
- Maturing technology.
The global CCS market has experienced steady growth in recent years, though estimates vary
with various analysts estimating the CCS market around USD 2bn – 6bn today and growing at
between 7-14% per annum. Despite this growth, the scale remains far below what climate
models suggest is necessary. The International Energy Agency (IEA) has signalled that CCS
storage capacity will need to increase approximately 90 times from 2022 levels to reach
around 4.0 Gt by 2040 and 10.0 Gt by 2050 to align with a 1.5-degree scenario for global
warming.
Current projections indicate significant growth potential, with estimates suggesting expansion
from approximately USD 5.47 bn in 2025 to USD 20.59 bn by 2035, representing a compound
annual growth rate (CAGR) of 14.2%. This growth trajectory is driven by increasing
environmental regulations, corporate net-zero commitments, and the recognition of CCS as
an essential technology for decarbonising hard-to-abate sectors. The technology is particularly
valuable for decarbonising industries where direct electrification or alternative technologies
face significant challenges, including cement production, steel manufacturing, chemicals, and
certain power generation applications.
Success will require coordinated effort from policymakers, industry leaders, financial
institutions, and civil society. As the Global CCS Institute emphasises, achieving global climate
targets will require annual CO2 storage rates of approximately 1 Gt per year by 2030, growing
to around 10 Gt per year by 2050. While current deployment falls short of this trajectory, the
accelerating project pipeline and strengthening policy support offer promising signs for the
future of this essential climate technology.
This white paper provides a comprehensive analysis of the current carbon capture and storage
landscape and future market outlook from 2025 to 2035.