The carbon capture and sequestration market is expected to reach $6.6 billion globally by 2034, growing at a CAGR of 5.8%: Allied Market Research

Demand for the carbon capture and sequestration (CCS) market is driven by its integration into power generation, industrial manufacturing, and oil and gas sectors. Advances in capture technologies such as solvent-based absorption, membrane separation and cryogenic processes, as well as improved compression, transport and geological storage techniques, have increased system efficiency, reduced operating costs and improved the reliability of carbon storage. These developments position CCS as a viable alternative to traditional emissions reduction methods, supporting the growing demand for high-performance, climate-resilient and sustainable CO2 reduction solutions.

WILMINGTON, Del., Oct 8, 2025 /PRNewswire/ — Allied Market Research released a report titled: “Carbon Capture and Sequestration Market by Type (Ocean Sequestration, Terrestrial Sequestration, and Others), Technology (Pre-Combustion Capture, Post-Combustion Capture, Oxyfuel Capture, and Others), and End-Use Industry (Oil and Gas, Power Generation, Iron and Steel, Cement, and Others): Global Opportunity Analysis and Industry Forecast, 2025-2034”. According to the report, the carbon capture and sequestration market 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.

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Challenges and management strategies

The carbon capture and sequestration (CCS) market faces several challenges such as: B. high capital and operating costs, limited infrastructure for the transport and storage of CO2 and regulatory uncertainties in different regions. Technical hurdles such as energy losses during the capture process and the integrity of long-term storage also raise significant concerns. Public perception and environmental safety regarding potential leaks further complicate large-scale deployment. To address these challenges, stakeholders are pursuing strategies such as public-private partnerships to share investment burdens, advancing research and development to improve capture efficiency and reduce costs, and developing standardized regulatory frameworks to streamline project approvals. Additionally, leveraging existing oil and gas infrastructure for carbon transport and storage and increasing public engagement and transparency are critical steps to build trust and accelerate the adoption of CCS technologies.

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Applicable policies and regulatory implications

• Climate and Emissions Reduction Policies – International agreements such as the Paris Agreement and national climate action plans mandate significant reductions in greenhouse gas emissions, driving the adoption of CCS technologies as a critical tool for achieving carbon neutrality targets across the energy production and industrial sectors.
• Carbon pricing mechanisms – Policies that include carbon taxes, emissions trading schemes (ETS) and cap-and-trade programs in regions such as the EU, Canada and parts of the US incentivize industries to adopt CCS by assigning financial costs to CO2 emissions, thereby encouraging investment in carbon reduction technologies.
• Storage and Site Security Regulations – Regulatory frameworks such as the US EPA's Class VI wellhead regulations for geological sequestration and similar standards under the EU CCS Directive ensure the safe and permanent storage of CO2 and prevent risks such as leaks and groundwater contamination.
• Permits and Environmental Impact Assessments – Extensive permitting processes and mandatory environmental impact assessments (EIA) are required before CCS facilities are constructed and operated to ensure projects meet community environmental and safety standards.
• Monitoring, Reporting and Verification (MRV) – Strict MRV protocols are enforced by national and international regulators to ensure accurate measurement of CO2 captured and stored, ensuring transparency, accountability and compliance with climate commitments.
• Incentive programs and tax credits – Government initiatives such as the US Section 45Q tax credit, the EU Innovation Fund and various state-level subsidies provide financial support for CCS projects and encourage the research, deployment and commercialization of carbon capture technologies.
• Pipeline and Infrastructure Regulations – Regulations govern the development of carbon transport pipelines and focus on safety standards, land use and rights of way to enable efficient and safe transport of carbon dioxide from capture sites to storage locations.
• Cross-border transport and storage agreements – International regulatory cooperation is critical for CCS projects involving cross-border CO2 transport and requires harmonized policies and agreements to manage transnational pipeline infrastructure and offshore storage sites.
• Public Health and Occupational Safety Regulations – Workplace safety standards established by OSHA in the United States and EU-OSHA in Europe govern the handling of CO2 and related chemicals and protect workers from potential hazards during capture, transportation, and storage operations.
• Technology Qualification and Certification – Organizations such as ISO and DNV provide standards and certification protocols for CCS components and systems to ensure performance, reliability and scalability of capture and storage technologies.

Growth opportunities and future prospects

The growth of enhanced oil recovery (EOR) applications is creating significant opportunities for the carbon capture and sequestration (CCS) market, particularly in regions rich in oil and gas resources. EOR involves injecting captured carbon dioxide (CO2) into depleted oil reservoirs to increase pressure and stimulate the recovery of additional oil that would otherwise be inaccessible. This process extends the productive life of existing oil fields used for carbon capture and makes CCS more economically attractive. As oil-producing countries and companies look for ways to increase production while reducing carbon emissions, integrating CCS with EOR as a dual-benefit solution is becoming increasingly important. In addition, EOR supported CCS projects for broader carbon management strategies, contributing to the expansion of carbon transport and storage infrastructure that can later support other industrial emitters. The oil and gas industry's existing infrastructure, technical expertise and capital investment capacity are driving CCS deployment through EOR. All these factors are expected to provide new growth opportunities for enhanced oil recovery (EOR) applications in the carbon capture and sequestration market during the forecast period.

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Important developments

• In October 2025, Linde PLC signed an agreement with NEXTCHEM to provide carbon capture technology for the Abu Dhabi National Oil Company (ADNOC) Hail and Ghasha project. The project, based in the United Arab Emirates (UAE), is one of the world's largest offshore sour gas projects and aims to operate with net-zero emissions.
• In April 2024, Chevron Corporation announced a lead investment in ION Clean Energy (ION), a Boulder-based technology company that provides point source post-combustion capture technology through its third-generation ICE-31 liquid amine system.

Leading Market Players:-

• Siemens AG
• Fluor Corporation
• ExxonMobil Corporation
• TotalEnergies
• Chevron Corporation
• Air Liquide
• Linde Plc
• Mitsubishi Heavy Industries, Ltd.
• China National Petroleum Corporation
• Carbon Engineering Ltd.

The report provides a detailed analysis of these key players in the global carbon capture sequestration industry. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting the business performance, business segments, product portfolio, and strategic moves of market players, thus depicting the competitive scenario.

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SOURCE Allied Market Research