The global carbon dioxide removals (CDR) market size is estimated to grow at a CAGR of 14.7% from 2024 to 2029 and is expected to reach USD 1.39 billion by 2029 from USD 0.70 billion in 2024.
Presently, nearly all of the global carbon removal is done via natural approaches. That's mainly plants and trees capturing CO2 from the atmosphere and the soil uptaking and storing it. Moreover, there is agreement amongst scientists that the earth’s temperature is increasing largely owing to the discharge of carbon dioxide, which, as per the study in 2021, stood at 33 billion tonnes, which is, by far, surpassing the quantity that is being eliminated. Also, this research recommends two billion tonnes annually. Out of these, 99.9% belong to nature-based CDR offerings like reforestation or reforestation.
The urgent necessity to augment technologies to eliminate CO2, the global warming greenhouse gas, from the environment, is mainly pushing the industry players to boost their efforts and gain a competitive edge. The increasing cognizance and worry regarding the effects of climate change fuel the need for carbon dioxide removal (CDR) technologies as a tool to actively solve and reduce the growing earth’s temperature. Another factor influencing market expansion is the escalating intensity of enforcement of strict laws and regulations for lowering carbon discharge to the level determined by governments around the world. This boosts the adoption of CDR products or approaches and forces companies to pursue sustainable activities and processes to adhere to ecological standards.
The incorporation of lasting CDR into carbon or emission cost systems and government acquisition of this, along with standards and requisites, have the biggest ability to stimulate demand. Thus, accelerating the market growth rate. This is due to current and intended carbon pricing systems already encompassing a significant share of world emissions. Also, the demand for durable CDR is encouraged by two means, i.e., border carbon adjustments and emissions trading schemes.
The exorbitant start-up and functional expenses related to the implementation of CDR technologies, like Enhanced Weathering and Direct Air Capture, can be steep. Expensive deployment can discourage certain players and public authorities from infusing substantial amounts is these solutions and products. This is restricting its extensive adoption. Apart from this, there are still several countries with no complete and enforceable legal framework for removing carbon which is hampering the market expansion. And, even if some nations have formulated regulations and made them applicable, those are highly doubtful or weak, causing inadequate or limited programs and policies for industry players to invest in CDR techniques, affecting their incorporation into prevailing sustainability measures and activities.
New criteria and guidelines could stimulate the decarbonization of several sectors, providing firms and organizations to utilize CDR as one choice to curb their emissions. This would encourage the need for lasting CDR, is more financially feasible than carbon reduction substitutes and would be particularly useful in industries like power and transportation. In addition, shipping and aviation are part of industries that are exceptionally tough to decrease, with inadequate decarbonization tools.
Technological ambiguities, limited knowledge & understanding and conflicts of priority are increasingly challenging the carbon dioxide removals (CDR) market growth. Moreover, CDR approaches such as direct air capture, BECCS, reforestation and afforestation are hindered by their requirement for land. The land also raises equity considerations because the Global South is usually viewed as feasible or affordable for tree plantation and implementing other large-scale CDR techniques. Consequently, such initiatives can severely impact the land rights of native societies and biological variety and contend with other types of land usage, such as agriculture which is important for making sure food supply. This is of great concern regarding technological CDR at a substantial magnitude.
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2023 to 2029 |
|
Base Year |
2023 |
|
Forecast Period |
2024 to 2029 |
|
CAGR |
14.7% |
|
Segments Covered |
By Technology, Application, End-User Industry, and Region |
|
Various Analyses Covered |
Global, Regional, & Country Level Analysis; Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
|
Regions Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
|
Market Leaders Profiled |
CO2OL ENERGIE GmbH, Carbon Engineering Ltd., Running Tide Technologies, Climeworks AG, Swiss Direct Air Capture AG (DAC), Global Thermostat LLC, Skytree, Carbon Clean Solutions Limited, Plan A, Blue Planet, Verdox, KlimaDAO, CarbonCure Technologies Inc., Solidia Technologies, Project Vesta, and others. |
The Direct Air Capture (DAC) segment is the most prevalent category of the carbon dioxide removals (CDR) market. Strict government laws and a rising focus on artificial fuels to curb carbon discharge are some of the factors boosting the growth of the segment’s market share. Moreover, North America is predicted to be the biggest industry for Direct Air Capture due to the increased investment. The intensifying ecological concerns worldwide, especially the recognition that carbon dioxide discharge adds close to 76 percent of the world’s greenhouse gas release, is a critical factor in encouraging the implementation of Direct Air Capture (DAC) systems. Also, as per the National Oceanic and Atmospheric Administration’s (NOAA) Global Monitoring Lab, the average across the globe in 2022 of aerial carbon dioxide touched 417.06 elements per million ("ppm"), showing a significant rise of 2.13 ppm from the last calendar year.
The industrial applications segment spearheaded the carbon dioxide removals (CDR) industry and is expected to expand its market share during the forecast period. The segment in this market includes the implementation of CDR technologies into commercial procedures and operations to reduce and counterbalance carbon release. The pattern in industrial applications centers on the surging need for eco-friendly practices. In addition, companies are actively engaged in incorporating CDR techniques into production methods and shifting to carbon-neutral processes to come on par with environmental objectives.
The power generation segment is expected to dominate the carbon dioxide removals (CDR) market and is predicted to gain further acceleration over the estimation period. Moreover, the power sector net zero portfolio criteria could influence demand via the application of biomass fuels with carbon capture and storage, a carbon-negative process in electricity generation technology. Also, the power industry in the CDR market consists of retrieving and eliminating carbon dioxide discharge released by energy generation infrastructure. The electricity-producing industry is experiencing a pattern towards renewable and more eco-friendly practices, with substantial investment in CDR techniques to decrease the CO2 footprint in this segment.
North America is witnessing a rise in carbon dioxide removals (CDR) market share is propelled by a high priority on ecological sustainability. The area experiences growth in organizational obligations to Net zero carbon emissions, greater government aid for CO2 lowering programs, policies, and rising investments in unique CDR technologies.
Europe is the front-runner in carbon dioxide removals (CDR) market growth owing to a strong legal framework encouraging greenhouse gas abatement. The continent’s market size expanded with a surge in emission cost systems, a rising focus on circular economies, and enhanced partnerships between government authorities and private sectors to move forward towards green practices.
The Asia-Pacific region is currently seeing evolving patterns in the carbon dioxide removals (CDR) market with a rising consciousness of the implications of climate change. Ongoing developments consist of a transition towards the acceptance of clean energy, the incorporation of carbon capture in country-wide programs and initiatives and an increase in technological breakthroughs to curb the APAC’s surging carbon emissions.
This progress is propelled by a blend of financial and ecological concerns. Moreover, all the areas note an escalating interest in forest development projects, improved weathering solutions and a growing coordination of carbon removal techniques and plans with eco-friendly development targets.
The key players in the global carbon dioxide removals (CDR) market are CO2OL ENERGIE GmbH, Carbon Engineering Ltd., Running Tide Technologies, Climeworks AG, Swiss Direct Air Capture AG (DAC), Global Thermostat LLC, Skytree, Carbon Clean Solutions Limited, Plan A, Blue Planet, Verdox, KlimaDAO, CarbonCure Technologies Inc., Solidia Technologies, Project Vesta, and others.
By Technology
By Application
By End-User Industry
By Region
Frequently Asked Questions
Key drivers include increasing regulatory pressure to reduce emissions, technological advancements, growing corporate commitments to sustainability, and rising awareness of climate change impacts.
The CDR market is still in its nascent stages, with varying estimates on its current size. However, it is recognized as a rapidly growing sector with increasing investments and pilot projects worldwide.
Several companies are emerging as leaders in the CDR market, such as Climeworks in direct air capture, Carbon Engineering, and various bioenergy companies working on BECCS. However, the market is still relatively fragmented with many startups and research institutions also contributing.
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1800
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region