Carbon Capture and Sequestration (CCS ) Market Expected to Reach $6.6 Billion by 2034

According to a new report published by Allied Market Research, titled, “Carbon Capture And Sequestration Market," The CCS market size was valued at $3.7 billion in 2024, and is estimated to reach $6.6 billion by 2034, growing at a CAGR of 5.8% from 2025 to 2034.

Introduction 

Carbon capture and sequestration is a process designed to reduce greenhouse gas emissions by capturing carbon dioxide (CO₂) from large point sources such as power plants and industrial facilities, transporting it to a storage location, and securely storing it underground in geological formations. This technology prevents CO₂ from entering the atmosphere, thereby mitigating its impact on climate change. CCS is considered a critical component in the global strategy to achieve net-zero emissions, particularly for industries where emission reductions are difficult to achieve through renewable energy. 

Market Dynamics 

Rise in investments in clean energy infrastructure are propelling the demand for carbon capture and sequestration (CCS) technologies, to meet net-zero emissions targets. Significant funding initiatives, such as the U.S. Department of Energy's $1.3 billion allocation for CCS projects, aim to reduce costs and increase the adoption by supporting shared CO₂ transport and storage infrastructure. In addition, private sector commitments such as microsoft's substantial carbon removal agreements with projects in Louisiana and pulp and paper mills, the increasing corporate engagement in CCS to offset emissions and achieve sustainability goals. This surge in investment enhances the scalability and economic viability of CCS and also positions it as a pivotal component in the global transition to a low-carbon economy. All these factors are expected to drive the growth of the carbon capture and sequestration (CCS) market growth during the forecast period. 

However, growth of the CCS market trends faces significant restraint due to challenges related to the availability and security of geological storage sites. Successful CO₂ storage depends on locating suitable underground formations that can reliably contain large volumes of carbon dioxide over long periods However, such sites are limited, as they must meet strict geological conditions such as appropriate depth, sufficient porosity, and impermeable rock layers to prevent leakage. Furthermore, high costs and technical complexity involved in identifying, evaluating, and managing these storage sites further impede the broader deployment and scaling of CCS technologies. All these factors are expected to hamper the carbon capture and sequestration market growth. 

Rise in investments in clean energy infrastructure is creating significant opportunities for the carbon capture and sequestration (CCS) market, as governments and industries prioritize technologies that support the transition to alow-carbon economy. With global commitments to net-zero emissions and climate change mitigation, carbon capture and sequestration is being recognized as a crucial component to renewable energy solutions, especially for hard-to-abate sectors such as cement, steel, and chemical manufacturing. As a result, public and private investments are increasingly directed toward developing and integrating carbon capture and sequestration into broader clean energy initiatives, including hydrogen production, bioenergy with carbon capture and storage (BECCS), and sustainable industrial operations. These investments help to reduce the financial and technical barriers traditionally associated with carbon capture and sequestration deployment by funding research, pilot projects, and large-scale infrastructure such as CO₂ pipelines and storage facilities. In addition, creation of shared carbon capture and sequestration hubs and industrial clusters allows multiple emitters to benefit from centralized capture and storage systems, further enhancing cost-effectiveness and scalability. This wave of clean energy funding accelerates the commercialization of carbon capture and sequestration technologies and strengthens investor confidence, driving innovation and global adoption of carbon capture and sequestration as a vital tool in achieving long-term climate goals. All these factors are anticipated to offer new growth opportunities for the CCS market forecast period. 

Segments Overview 

The CCS industry is segmented into type, technology, end-use industry, and region. On the basis of type, the market is segmented into ocean sequestration, terrestrial sequestration, and others. On the basis of technology, the market is segmented into pre-combustion capture, post-combustion capture, oxy-fuel combustion capture, and others. On the basis of end-use industry, the market is classified into oil and gas, power generation, iron and steel, cement, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. 

On the basis of type, the market is segmented into ocean sequestration, terrestrial sequestration, and others. The terrestrial sequestration segment is anticipated to grow at the fastest CAGR of 6.1% during the forecast period. This growth is driven by rise in recognition of nature-based solutions for carbon mitigation, such as afforestation, reforestation, and improved land management practices that enhance the carbon storage capacity of soils and vegetation. As governments and environmental organizations emphasize sustainable, low-cost, and scalable approaches to reduce atmospheric CO₂ levels, terrestrial sequestration is gaining traction as a key component in global climate strategies. 

On the basis of technology, the market is segmented into pre-combustion capture, post-combustion capture, oxyfuel combustion capture, and others. The pre-combustion capture segment is anticipated to grow at the fastest CAGR of 5.9% during the forecast period. This growth is driven by increase in adoption of integrated gasification combined cycle (IGCC) plants and rise in demand for efficient carbon capture methods at the initial stages of fuel processing. Pre-combustion technologies offer higher capture efficiencies and lower energy penalties compared to post-combustion methods, making them an attractive option for large-scale industrial and power generation applications seeking to reduce carbon emissions. 

On the basis of end-use industry, the market is classified into oil and gas, power generation, iron and steel, cement, and others. The power generation segment is anticipated to grow at the fastest CAGR of 6.9% during the forecast period.This growth is primarily driven by rise in global efforts to reduce carbon emissions from fossil fuel-based power plants, along with supportive government policies and investments in clean energy technologies. As power generation remains one of the largest sources of CO₂ emissions, the adoption of CCS market forecast sector is becoming increasingly vital to meet climate targets and transition toward a low-carbon energy future. 

Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific is anticipated to grow at the fastest CAGR of 6.7% during the forecast period. This strong performance is attributed to rapid industrialization, high energy consumption, and the presence of major carbon-emitting countries such as China and India. In addition, growing investments in clean energy technologies and supportive government policies aimed at curbing emissions are further driving carbon capture and sequestration (CCS )market growth in the region. Asia-Pacific is expected to maintain its leading position throughout the forecast period, supported by continued advancements in carbon capture infrastructure and increasing environmental awareness. 

Regional Analysis 

Region-wise, the carbon capture and sequestration (CCS) market share is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific is anticipated to grow at the fastest CAGR of 6.7% during the forecast period. This strong performance is attributed to rapid industrialization, high energy consumption, and the presence of major carbon-emitting countries such as China and India. In addition, growing investments in clean energy technologies and supportive government policies aimed at curbing emissions are further driving carbon capture and sequestration (CCS )market growth in the region. Asia-Pacific is expected to maintain its leading position throughout the forecast period, supported by continued advancements in carbon capture infrastructure and increasing environmental awareness.   

Key players in the CCS market include Siemens A.G., Fluor Corporation ExxonMobil Corporation, TotalEnergies, Chevron Corporation Air Liquide, Linde Plc, Mitsubishi Heavy Industries, Ltd, China National Petroleum Corporation, and Carbon Engineering Ltd.   

Key Market Insights 

• On the basis of type, the other segment accounted for more than two-third of the carbon capture and sequestration market share in 2024 and is expected to maintain its dominance during the forecast period. 

• On the basis of technology, the CCS market is segmented into pre-combustion capture, post-combustion capture, oxyfuel combustion capture, and others. The pre-combustion capture segment is anticipated to grow at the fastest CAGR of 5.9% during the forecast period. 

• On the basis of end-use industry, the carbon capture and sequestration (CCS )market is classified into oil and gas, power generation, iron and steel, cement, and others. The power generation segment is anticipated to grow at the fastest CAGR of 6.9% during the forecast period.