Dublin, Jan. 31, 2025 (GLOBE NEWSWIRE) — The “Direct Air Capture (DAC) Market – A Global and Regional Analysis: Focus on Market by Application, by End User, by Technology, by Energy Source and Region – Analysis and Forecast, 2024-2034” report has been added to ResearchAndMarkets.com’s offering.
The direct air capture (DAC) market is projected to grow from $4.10 million in 2023 to approximately $11.05 billion by 2034, registering a robust CAGR of 82.68% during the forecast period from 2024 to 2034.
This remarkable growth is fueled by the urgent need to remove atmospheric CO2 to combat climate change, as governments and corporations globally aim for net-zero emissions. Key growth drivers include advancements in DAC technologies, such as solid sorbents and liquid solvents, which significantly improve efficiency and scalability. Moreover, integrating DAC solutions with carbon utilization applications, such as synthetic fuels and enhanced oil recovery (EOR), has been creating new revenue streams for market players.
Despite its potential, the market faces challenges such as high capital and operational costs for DAC plants and the energy-intensive nature of CO2 capture processes. Additionally, limited awareness and infrastructure for carbon storage and utilization hinder widespread deployment. However, the growing involvement of major industrial players, advancements in renewable energy integration, and increased government funding are expected to overcome these barriers.
The direct air capture market represents a transformative solution for achieving climate goals, offering opportunities for industries to offset emissions while contributing to a circular carbon economy. As technology evolves and costs decline, DAC is poised to become a cornerstone of global decarbonization strategies.
The direct air capture market represents a pivotal advancement in climate change mitigation, enabling the removal of CO2 directly from the atmosphere to help achieve global net-zero targets. The market is gaining traction due to increased investments in carbon removal technologies, driven by corporate commitments to sustainability and supportive government policies, such as the U.S. Inflation Reduction Act and the European Green Deal. Key innovations, including low-energy DAC systems, renewable energy integration, and advancements in carbon utilization, are boosting the market viability and scalability.
The market’s growth is further propelled by the rising demand for DAC technology in industries such as synthetic fuels, enhanced oil recovery, and carbon-neutral manufacturing. Challenges such as high costs and energy intensity are being addressed through technological breakthroughs and economies of scale, ensuring long-term market growth. As the world moves toward a circular carbon economy, the direct air capture market is set to play a vital role in mitigating climate change while supporting industrial decarbonization efforts.
Demand Drivers, Limitations, and Opportunities
Market Drivers
The increasing global emphasis on achieving net-zero emission targets is a significant driver for the direct air capture (DAC) market. Governments and corporations worldwide are committing to ambitious climate goals under agreements such as the Paris Accord, creating a growing demand for scalable carbon removal technologies such as DAC. Financial incentives, such as tax credits and subsidies, further accelerate investments in DAC systems. Industries are also adopting DAC as a viable solution to offset hard-to-abate emissions, making it a critical component of global decarbonization strategies.
Market Restraints
The rise of carbon utilization markets, where captured CO2 is repurposed into valuable products such as synthetic fuels, chemicals, and building materials, poses a challenge to the direct air capture market. While utilization adds economic value, it often diverts resources and investment away from permanent CO2 sequestration projects, which are essential for long-term carbon removal. Additionally, technological and infrastructure limitations in scaling CO2 utilization processes can delay the broader adoption of DAC solutions in some regions.
Market Opportunities
The limited availability of CO2 storage infrastructure presents a significant opportunity for growth in the DAC market. As more DAC systems are deployed, the demand for reliable and scalable storage solutions, such as saline aquifers and depleted oil reservoirs, is increasing. Investments in expanding storage infrastructure, coupled with advancements in monitoring and verification technologies, can unlock the full potential of DAC by ensuring the permanent sequestration of captured CO2. This creates opportunities for companies to develop integrated capture and storage ecosystems, addressing a critical carbon removal value chain bottleneck.
Report Scope:
- Product/Innovation Strategy: This report provides a comprehensive product and innovation strategy for the direct air capture market, highlighting opportunities for market entry, technological advancements, and sustainable practices. It offers actionable insights that enable organizations to meet carbon reduction goals and capitalize on the increasing demand for direct air capture across various sectors.
- Growth/Marketing Strategy: This report outlines a robust growth and marketing strategy specifically tailored for the direct air capture market. It emphasizes a targeted approach to identifying niche market segments, establishing competitive advantages, and implementing innovative marketing initiatives to optimize market share and financial performance. By leveraging these strategic recommendations, organizations can strengthen their market presence, exploit emerging opportunities, and drive revenue growth effectively.
- Competitive Strategy: This report formulates a strong competitive strategy designed for the direct air capture market. It assesses key market players, suggests differentiation tactics, and provides guidance for maintaining a competitive edge. By following these strategic directives, companies can effectively position themselves against competitors, ensuring long-term success and profitability in a rapidly evolving market.
Key Market Players and Competition Synopsis
Some of the prominent names in this market are:
- Climeworks
- Carbon Engineering ULC
- Heirloom Carbon Technologies
- Soletair Power
- CarbonCapture Inc.
- Avnos, Inc.
- Skytree
- RepAir
- Carbonyon
- Zero Carbon Systems
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 124 |
| Forecast Period | 2024 – 2034 |
| Estimated Market Value (USD) in 2024 | $26.71 Million |
| Forecasted Market Value (USD) by 2034 | $11050 Million |
| Compound Annual Growth Rate | 82.6% |
| Regions Covered | Global |
Key Topics Covered:
1 Markets
1.1 Trends: Current and Future Impact Assessment
1.1.1 Advancement in Modular and Scalable Designs
1.1.2 Collaboration Between Public and Private Sectors
1.2 Supply Chain Overview
1.3 Research and Development Review
1.4 Regulatory Landscape
1.5 Funding Analysis
1.6 Stakeholder Analysis
1.7 Impact Analysis for Key Global Events
1.8 Market Dynamics Overview
1.8.1 Market Drivers
1.8.1.1 Growing Focus on Achieving Global Net-Zero Emission Targets
1.8.1.2 Technological Advancements and Government Incentives
1.8.1.3 Increased Investment in Carbon Removal Technologies
1.8.2 Market Restraints
1.8.2.1 Limited CO2 Storage Infrastructure
1.8.2.2 High Operational and Capital Costs
1.8.3 Market Opportunities
1.8.3.1 Emergence of Carbon Utilization Markets
1.8.3.2 Integration with Renewable Energy Sources
1.9 Techno-Economic Assessment
1.9.1 Cost Analysis
1.9.2 Breakeven Analysis
1.9.3 Comparative Analysis with Other Technologies
2 Application
2.1 Application Segmentation
2.2 Application Summary
2.3 Direct Air Capture (DAC) (by Application)
2.3.1 Carbon Capture and Storage
2.3.2 Carbon Capture, Utilization, and Storage
2.4 Direct Air Capture (DAC) (by End-User)
2.4.1 Chemicals and Fuels
2.4.2 Carbon Mineralization
2.4.3 Oil and Gas
2.4.4 Others
3 Products
3.1 Product Segmentation
3.2 Product Summary
3.3 Direct Air Capture (DAC) Market (by Technology)
3.3.1 Solid DAC
3.3.2 Liquid DAC
3.3.3 Electrochemical DAC
3.4 Direct Air Capture (DAC) Market (by Energy Source)
3.4.1 Solid DAC
3.4.1.1 Electricity
3.4.1.2 Low Temperature Heat
3.4.2 Liquid DAC
3.4.2.1 Electricity
3.4.2.2 Low Temperature Heat
4 Regions
4.1 Regional Summary
4.2 North America
4.3 Europe
4.4 Rest-of-the-World
5 Markets – Competitive Benchmarking & Company Profiles
5.1 Next Frontiers
5.2 Geographic Assessment
- Climeworks
- Carbon Engineering ULC.
- Heirloom Carbon Technologies
- Soletair Power
- CarbonCapture Inc.
- Avnos, Inc.
- Skytree
- RepAir
- Carbyon
- Zero Carbon Systems
For more information about this report visit https://www.researchandmarkets.com/r/qpiwmq
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- Global Direct Air Capture (DAC) Market
