The global Carbon Capture and Storage Market is estimated to be valued at US$ 1.95 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Carbon capture and storage (CCS) is a set of technologies that helps to prevent large quantities of carbon dioxide (CO2) from fossil fuel-fired power plants and industrial processes from entering the atmosphere. It involves capturing the CO2 at its emission source, compressing it to a liquid state, transporting it, usually via pipelines or ships, and storing it away from the atmosphere for long periods of time. This helps in reducing the amount of CO2 entering the atmosphere and its contribution to global warming. The technology provides a viable solution to mitigate CO2 emissions from large point sources such as coal-fired power generation and industrial processes. It plays a crucial role in the transition to a low carbon economy and helps reduce the carbon footprint of these heavy industries.
Market key trends:
One of the key trends in the Global Carbon Capture And Storage Market is the growing focus on cost reduction through technological advancements. The high costs associated with CCS technologies is one of the major barriers to their widespread adoption. To address this, research efforts are underway to improve the capture processes and make them more efficient. Second generation capture technologies like advanced amine solvents and solid sorbents are being developed which can significantly reduce the energy penalty and costs associated with capturing CO2. Efforts are also ongoing to develop highly optimized systems and CO2 transportation infrastructure which can lower costs. Government policies in the form of carbon pricing and regulation are also ramping up to internalize the environmental costs of carbon and make CCS more economically viable compared to other alternatives.
Porter’s Analysis
Threat of new entrants: The high capital investment required for carbon capture and storage plants poses as a major entry barrier for new players. However, supportive government policies and funding can aid new entrants.
Bargaining power of buyers: The availability of substitutes like renewable energies limits the bargaining power of buyers to an extent. The need to curb emissions works in favor of buyers.
Bargaining power of suppliers: Key equipment and technology providers like Honeywell, ExxonMobil hold significant power in the supply chain. Suppliers integrate across the value chain to capture more profits.
Threat of new substitutes: Alternatives like renewable energy and carbon offsetting pose a threat. However, CCS provides solution for hard-to-abate industries to transition, aiding its demand.
Competitive rivalry: The market sees intense competition with presence of integrated oil and gas majors and technology providers. Players compete on technology innovation and integrated solutions.
Key Takeaways
The global Carbon Capture And Storage market is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing environmental regulations to curb carbon emissions.
Regional analysis: North America dominates currently due to supportive policies and presence of early commercial projects. Asia Pacific is expected to grow at fastest pace due to rapid industrialization and growing emphasis on emission reductions in China and India. Countries like Norway and Canada also promote CCUS widely.
Key players operating in the Carbon Capture And Storage are Honeywell International Inc., Aker Solutions, Dakota Gasification Company, Exxon Mobil Corporation, Baker Hughes, Air Liquide, Fluor Corporation, General Electric and Halliburton. Players are investing in scaling up technologies and focus on partnerships for integrated carbon management projects.
Read More: https://www.ukwebwire.com/carbon-capture-and-storage-market-growth/
