The global Carbon Capture and Storage Market is estimated to be valued at US$1.76 Bn in 2021 and is expected to exhibit a CAGR of 10.6% over the forecast period 2023 - 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Carbon capture and storage (CCS) is a technology that aims to capture carbon dioxide emissions from various sources, such as power plants and industrial facilities, and store them underground or put them to productive use. The market for CCS is driven by the growing need for reducing greenhouse gas emissions and mitigating climate change. CCS enables industries to continue their operations while minimizing their carbon footprint, making it an essential technology in the transition to a low-carbon economy.
Market Key Trends:
One of the key trends in the Carbon Capture and Storage Market is the increasing adoption of CCS technology in the oil and gas industry. Oil and gas production operations are significant contributors to greenhouse gas emissions. By implementing CCS, these companies can capture and store or utilize the emitted CO2, thereby reducing their environmental impact. Major players in the market, such as Honeywell International Inc., Aker Solutions, Exxon Mobil Corporation, and Baker Hughes, are actively involved in developing and commercializing CCS technology for the oil and gas industry. This trend is expected to drive the growth of the Carbon Capture and Storage Market in the coming years.
Porter’s Analysis
Threat of new entrants: The carbon capture and storage market is expected to face a moderate threat of new entrants. While the market offers attractive growth opportunities, the high capital requirements and technological complexity of carbon capture and storage projects act as significant barriers to entry for new players.
Bargaining power of buyers: The bargaining power of buyers in the carbon capture and storage market is expected to be moderate. Buyers, such as power plants and industrial facilities, have limited alternatives to carbon capture and storage technology to reduce their carbon emissions. However, their bargaining power is somewhat limited due to the specialized nature of the technology and the limited number of suppliers.
Bargaining power of suppliers: Suppliers in the carbon capture and storage market have a relatively high bargaining power. The technology and equipment required for carbon capture and storage projects are specialized, and there are a limited number of suppliers in the market. This allows suppliers to exert more control over pricing and terms of supply.
Threat of new substitutes: The threat of new substitutes in the carbon capture and storage market is relatively low. Carbon capture and storage technology is currently the most viable and cost-effective solution for reducing greenhouse gas emissions from large-scale industrial facilities and power plants. Unless alternative technologies with similar effectiveness and economic feasibility emerge, the threat of substitutes remains low.
Competitive rivalry: The competitive rivalry in the carbon capture and storage market is expected to be high. The market is dominated by a few key players, including Honeywell International Inc., Aker Solutions, Dakota Gasification Company, Exxon Mobil Corporation, Baker Hughes, Air Liquide, Fluor Corporation, General Electric, and Halliburton. These companies compete fiercely for market share, leading to intense competitive rivalry within the industry.
Key Takeaways
The Global Carbon Capture And Storage Market Size is expected to witness high growth, exhibiting a Compound Annual Growth Rate (CAGR) Of 10.6% over the forecast period. This growth can be attributed to increasing environmental regulations and government initiatives promoting the adoption of carbon capture and storage technology. For example, the Paris Agreement and other international commitments to reduce greenhouse gas emissions are driving the demand for carbon capture and storage solutions.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the carbon capture and storage market. The region has a significant number of large-scale industrial facilities and power plants, making it a key target market for carbon capture and storage technology. Additionally, the presence of key players such as Honeywell International Inc., Aker Solutions, and Exxon Mobil Corporation further strengthens the market growth in North America.
Key players operating in the carbon capture and storage market include Honeywell International Inc., Aker Solutions, Dakota Gasification Company, Exxon Mobil Corporation, Baker Hughes, Air Liquide, Fluor Corporation, General Electric, and Halliburton. These key players have a strong market presence and offer a wide range of carbon capture and storage solutions. They invest in research and development to develop advanced technologies and expand their product portfolios, thus maintaining their competitive edge in the market.
