New York, NY – October 1, 2025 – The global Carbon Capture And Storage Market Size is poised for steady expansion, valued at USD 3.38 billion in 2024 and projected to grow from USD 3.60 billion in 2025 to USD 5.96 billion by 2033, according to a comprehensive report by Straits Research. This growth trajectory reflects a compound annual growth rate (CAGR) of 6.5% during the forecast period from 2025 to 2033, fueled by the rising adoption of CO2 injection methods for enhanced oil recovery (EOR) and supportive regulatory frameworks aimed at curbing greenhouse gas emissions.

As industries worldwide intensify efforts to combat climate change, carbon capture and storage (CCS) emerges as a pivotal technology for reducing CO2 emissions from high-emission sectors like power generation and manufacturing. The process involves capturing CO2 from sources such as fossil fuel combustion or industrial activities, transporting it via pipelines or ships, and securely storing it in underground geological formations. This three-step approach not only mitigates global warming impacts but also unlocks opportunities in sectors seeking sustainable practices.

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Key Drivers Fueling Carbon Capture And Storage Market Size Growth

The expanding preference for CO2 injection in EOR stands out as a primary growth catalyst for the Carbon Capture And Storage Market Size. By injecting captured CO2 into mature oil fields, operators can boost oil production while achieving permanent underground storage. Straits Research estimates that CO2-EOR could recover 190 to 430 billion barrels of oil globally, making it an economically viable solution that aligns with energy demands and emission reduction goals. Recent announcements of over 30 commercial CCS projects, with plans for more than 100 additional sites, underscore the technology's resurgence amid heightened climate ambitions and investment incentives.

Additionally, the increasing visibility of bioenergy carbon capture and storage (BECCS) presents significant opportunities. BECCS combines biomass energy production with CO2 capture, effectively removing carbon from the atmosphere. With five operational plants worldwide capturing about 1.5 million tons of CO2 annually, applications like bioethanol production and waste-to-energy initiatives are poised to drive further innovation in the Carbon Capture And Storage Market Size.

Regional Insights and Market Segmentation

North America leads the Carbon Capture And Storage Market Size, commanding the largest share and expanding at a CAGR of 6.6% in 2024, driven by robust demand for clean technologies and widespread CO2 use in EOR. The region hosts 12 of the world's 24 operational CO2 capture and injection plants, primarily in the U.S., targeting sectors like chemicals, hydrogen, fertilizers, natural gas processing, and electricity generation.

Europe follows as the fastest-growing region, anticipated to advance at a CAGR of 6.1% through 2031. Ambitious targets, including a 55% reduction in greenhouse gas emissions by 2030 and net-zero by 2045, bolster CCS adoption. Germany's Climate Action Programme 2030 funds CO2 avoidance and utilization in primary industries like cement and steel, the continent's largest producers, while infrastructure expansions target North Sea storage.

In terms of technology, the pre-combustion capture segment dominates the Carbon Capture And Storage Market Size, leveraging gasification and reforming processes to produce syngas and separate CO2 efficiently. Post-combustion capture holds the second-largest share, using solvents to extract CO2 from flue gases in combustion-based systems.

By end-user, the oil & gas sector reigns supreme, projected to grow at a CAGR of 5.47%, as CCS enables emission reductions and EOR in geological formations. The coal & biomass power plant segment trails closely, benefiting from technologies like Integrated Gasification Combined Cycle (IGCC) and biomass's carbon-neutral potential.

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Challenges and Strategic Outlook

Despite promising prospects, the Carbon Capture And Storage Market Size faces headwinds from high implementation costs and surging investments in shale oil and gas. Global shale developments, including China's subsidized drilling expansions and Sinopec's 20% production increase in 2021, could divert resources from CCS initiatives. Nonetheless, stringent government regulations on GHG emissions continue to propel adoption, positioning CCS as indispensable for net-zero pathways.

Key players shaping the Carbon Capture And Storage Market Size include Aker Solutions, Air Liquide, Baker Hughes, Dakota Gasification Company, Exxon Mobil Corporation, Fluor Corporation, and General Electric. Recent milestones highlight industry momentum: In 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 500 megawatts of low-carbon electricity. June 2025 saw Air Liquide invest in the ELYgator electrolyzer in the Netherlands for European decarbonization, while Baker Hughes secured a major compression technology order for a Middle East CCS hub.

Straits Research's analysis covers the Carbon Capture And Storage Market Size across technologies (pre-combustion, oxy-fuel combustion, post-combustion), end-user industries (oil & gas, coal & biomass power plants, iron & steel, chemicals), and regions (North America, Europe, APAC, Middle East & Africa, LATAM). Historical data from 2021-2023 informs forecasts through 2033, emphasizing revenue trends, competitive landscapes, and regulatory influences.

For deeper insights into the Carbon Capture And Storage Market Size, including detailed segmentations and growth factors, visit Straits Research.

About Straits Research Straits Research is a leading market intelligence firm providing actionable insights and strategic advisory services to help businesses navigate dynamic industries. With a focus on emerging technologies and sustainable solutions, we empower clients to make informed decisions for long-term success.