NEW YORK, March 9, 2023 /PRNewswire/ — The global carbon dioxide removal (CDR) market to reach $2,083.4 million by 2031.
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Carbon Dioxide Removal Market Overview
The global carbon dioxide removal (CDR) market was valued at $418.1 million in 2021, and it is expected to grow with a CAGR of 18.2% and reach $2,083.4 million by 2031. The growth in the carbon dioxide removal market is expected to be driven by increasingly supportive government policies and growing investment and collaboration among industry players. However, high energy costs for some technologies and lack of monitoring, reporting, and verification are some of the factors hindering the growth of the market.
Market Lifecycle Stage
The global carbon dioxide removal market is in a growing phase. New trends, such as the focus on blue carbon and microalgae as a CDR tool, are expected to offer opportunities in the coming years.
Industrial Impact
With an increased worldwide focus on reducing carbon emissions, the shift towards technologies to remove carbon dioxide from the atmosphere is increasing, thereby creating demand for CDR. The shift is more prominent in regions such as North America and Europe.
Market Segmentation
- Segmentation 1: by Technology Type
o Biochar
o Direct Air Capture (DAC)
o Enhanced/Carbon Mineralization
o Ocean Alkalinization
o Others
Based on technology type, biochar accounted for a 43.8% share of the global carbon dioxide removal market in 2021.
- Segmentation 2: by Carbon Credit Buyer
o Finance Sector
o Technology Sector
o Others
Based on carbon credit buyer, the technology sector accounted for 66.2% of the global carbon dioxide removal market in 2021.
- Segmentation 3: by Region
o North America – U.S. and Canada
o Europe – Germany, Norway, Italy, and Rest-of-Europe
o Asia-Pacific – Australia and Rest-of-Asia Pacific
Rest-of-the-World (RoW) – Middle East and Africa and South America
Based on regional segmentation, North America accounted for a 58.0% share of the global carbon dioxide removal market in 2021.
Recent Developments in Carbon Dioxide Removal Market
- In October 2022, Carbon Engineering Ltd. and Occidental Petroleum Corp. started the construction of a carbon removal plant in the Permian Basin, U.S. The plant would have the capacity to draw 500,000 tons of carbon dioxide from the atmosphere per year using direct air capture technology.
- In October 2022, Climeworks completed the commercial operations of its first-generation technology at its world’s first commercial direct air capture facility in Hinwil, Switzerland. The operation would help the company to sharpen the focus and achieve gigatons of CO2 by 2050.
- In April 2021, Thermostat signed an agreement to supply DAC equipment to the Haru Oni eFuels pilot plant situated in Chile. The plant will be utilized for capturing carbon dioxide with electrolytic hydrogen for producing synthetic gasoline. The plant is designed to capture nearly 250 kilograms of CO2 per hour.
- In July 2021, Carbfix announced a partnership with Aker Carbon Capture of Norway. This partnership will help combine the companies’ complementary technologies to offer the full CCS value chain in the global fight against climate change.
Demand – Drivers and Limitations
Following are the demand drivers for the global carbon dioxide removal market:
- Favorable Government Policies Drive the Development of CDR
- Introduction of CDR Launchpad
- Investments and Collaboration Drive the Growth of Carbon Dioxide Removal
The market is expected to face some limitations too due to the following challenges:
- High Cost and Energy Usage Associated with Direct Air Capture (DAC)
- Lack of Proper Mechanism for Monitoring, Reporting, and Verification (MRV)
Analyst View
According to Pooja Tanna, Lead Analyst, BIS Research, “Carbon dioxide removal technologies are expected to be the way forward for achieving net zero targets in the coming years. The increasing focus by governments across the globe toward adoption of CDR technologies and private and public funding are the major factors propelling the growth of the industry.”
How can this report add value to an organization?
Product/Innovation Strategy: The product segment helps the reader understand the different types of technologies available for carbon dioxide removal and their potential globally. Moreover, the study provides the reader with a detailed understanding of the different carbon removal buyers, namely, technology sector, finance sector, and others.
Growth/Marketing Strategy: Business expansion, partnership, collaboration, and joint venture are some key strategies adopted by key players operating in the space. For instance, in October 2022, Carbon Engineering Ltd. and Occidental Petroleum Corp. started the construction of a carbon removal plant in the Permian basin, U.S. The plant would have the capacity to draw 500,000 tons of carbon dioxide from the atmosphere per year using direct air capture technology.
Competitive Strategy: Key players in the global carbon dioxide removal market analyzed and profiled in the study involve technology providers.Moreover, a detailed competitive benchmarking of the players operating in the global carbon dioxide removal market has been done to help the reader understand how players stack against each other, presenting a clear market landscape.
Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
Key Market Players and Competition Synopsis
The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.
Some prominent names in this market are:
Company Type: Carbon Dioxide Removal Market
- Climeworks
- Global Thermostat
- Charm Industrial
- Carbon Engineering
- Wakefield Biochar
Countries Covered
- North America
- U.S.
- Canada
- Europe
- Norway
- Germany
- Italy
- Rest-of-Europe
- Asia-Pacific
- Australia
- Rest-of-Asia-Pacific
- Rest-of-the-World
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