Direct Air Capture Market

Direct Air Capture Market Size & Share - Future Growth Expectations

The global direct air capture market size is expected to reach USD 1,727 million by 2030 from an estimated USD 62 million in 2023, at a CAGR of 60.9% during the forecast period. The major factors driving the growth of this market include the growing emphasis on net-zero emission, stringent regulations, and favourable government policies.

The direct air capture market has been developing noticeably, propelled by advances in DAC technology, greater awareness of the necessity for carbon removal solutions, and growing concerns about climate change.

  • Efforts to mitigate climate change
  • Carbon Neutral and Net-Zero Goals
  • Policy Support and Incentives
  • Private Sector Investment
  • Technological developments
  • Negative Emissions Credits (NECs) and Carbon Offsetting
  • International Partnerships and Collaboration

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Efforts to mitigate climate change:

  • As the effects of climate change become more evident and global temperatures rise, there is an increasing need to reduce greenhouse gas emissions. By directly extracting carbon dioxide from the environment, direct air capture technology presents a promising way to lower CO2 concentrations and lessen the effects of climate change.

Carbon Neutral and Net-Zero Goals:

  • Ambitious carbon neutrality and net-zero emissions targets have been established by numerous nations, businesses, and organizations in an effort to combat climate change. In order to accomplish these objectives, direct air capture is essential because it offers a way to extract CO2 from the environment and balance emissions from industries like shipping, aviation, and some industrial operations that are challenging to decarbonize.

Policy Support and Incentives:

  • To encourage the development and application of carbon capture and removal technologies, such as direct air capture, governments all over the world are putting policies into place and offering incentives. Financial aid in the form of grants, tax credits, subsidies, and tax breaks lowers the cost of DAC implementation and promotes investment in the technology, which expands the market.

Private Sector Investment:

  • The private sector has made investments in DAC as a result of growing understanding of the commercial risks linked to climate change and the possible financial rewards of carbon removal technologies. To take advantage of the increasing demand for carbon removal solutions and get involved in the developing carbon removal market, venture capital firms, technology businesses, and carbon offset suppliers are investing in DAC startups and projects.

Technological developments:

  • The efficiency and scalability of direct air capture systems have grown thanks to developments in DAC technology, which include enhancements in sorbent materials, reactor design, and process optimization. Modular DAC units, lower-energy capture procedures, and improved CO2 utilization pathways are among the innovations that are bringing down costs and increasing the market potential of DAC technology.

Negative Emissions Credits (NECs) and Carbon Offsetting:

  • Purchasing NECs and using carbon offsetting are two increasingly popular ways for people, businesses, and governments to reduce their carbon footprints. By removing CO2 from the atmosphere, direct air capture projects can produce negative emissions credits. They can also create revenue streams for the developers of DAC projects and offer financial incentives for investing in carbon removal technologies.

International Partnerships and Collaboration:

  • Governments, academic institutions, and industry players working together is spurring innovation and quickening the adoption of direct air capture technologies. To address the technical, economic, and policy challenges associated with DAC deployment, international initiatives like the Global DAC Consortium and the Carbon Capture, Utilization, and Storage (CCUS) collaboration facilitate knowledge sharing, technology transfer, and cooperative research efforts.

In the upcoming years, it is anticipated that the direct air capture market will continue to grow due to a number of factors, including increased efforts to mitigate the effects of climate change, favorable laws and incentives, technological advancements, private sector investment, and international cooperation. Direct air capture is anticipated to become more significant in worldwide efforts to attain carbon neutrality and fight climate change as carbon removal technologies advance and become more affordable.

Direct Air Capture Market Share - Global Industry Landscape

The direct air capture market is characterized by the presence of several key players competing for market share. Some of the leading companies in the direct air capture industry include:

  • Climeworks (Switzerland)
  • Carbon Engineering ULC. (Canada)
  • Global Thermostat (US)
  • Skytree (Netherlands)
  • United Rentals, Inc. (US)

Together with new entrants into the DAC industry, these companies are working to push technological advancements, increase productivity, and reduce expenses in order to make DAC more scalable and economically feasible. The DAC industry is anticipated to grow as the need for carbon removal solutions increases as a result of regulatory pressures and worries about climate change. These major players will probably continue to set the standard for innovation and implementation in this market.

Climeworks (Switzerland)

  • Climeworks, spun off of the research university ETH Zurich, is a leading company in the direct air capture market. The company, along with its partner, Carbfix offers direct air capture and storage technology. Climework’s technology is Solid-DAC technology, which uses renewable energy, energy-from-waste, or other waste heat as energy sources. Climeworks’ captured CO2 have applications in food and beverages, greenhouses, power-to-X and more. Climeworks has a number of direct air capture and storage plants, including its Orca plant. The company claims that its Orca plant is the world’s largest direct air capture and storage plant with an annual capture capacity of 500 tons each.Climeworks has operationalized over 15 facilities since 2009.

Carbon Engineering ULC. (Canada)

  • Carbon Engineering ULC. is a leading company specializing in Direct Air Capture (DAC) technology. The Company’s technology is a Liquid-DAC (L-DAC) type of technology, which involves key unit operations—air contactor, pellet reactor, slaker, and calciner—that collaboratively capture, refine, and compress atmospheric CO2. The company is focused on facilitating two types of plants, namely DAC+S and AIR TO FUELS. In Air to Fuels type of plants, captured CO2 is converted into low-carbon synthetic fuels like gasoline and jet fuel, whereas in DAC+S type of plants, captured CO2 is permanently stored underground in geological formations. The company provides DAC facilities in partnership with its partner 1PointFive. Carbon Engineering’s DAC facility is currently under construction in Texas, US. The facility is expected to start commercial operations from mid-2025.

Global Thermostat (US)

  • Global Thermostat is a US-based carbon removal firm, which uses its patented solid-amine sorbents to capture CO2. The company has a commercial-scale DAC unit operational in Colorado. The company captures CO2 for a diverse range of applications from sequestration to synthetic fuels, building materials, industrial gases, and beyond. The company has a geographical footprint in Europe and Asia Pacific. The company has a state-of-the art facility in Colorado which helps the company to innovate its solutions for deployment at increasingly larger scales. In 2023, the company established Global Thermostat Japan, a joint venture between Global Thermostat and ICMG Co., Ltd. to strengthen its market presence.

Skytree (Netherlands)

  • Skytree is a company that specializes in Direct Air Capture (DAC) technology, which involves removing carbon dioxide (CO2) directly from the atmosphere. DAC technology is gaining attention as a potential tool for mitigating climate change by reducing the concentration of CO2 in the atmosphere. Skytree's Direct Air Capture technology represents a promising approach to addressing climate change by removing CO2 from the atmosphere. As concerns about climate change continue to grow, DAC technologies like Skytree's may play an increasingly important role in global efforts to reduce greenhouse gas emissions and transition to a sustainable low-carbon economy.

Heirloom Carbon Technologies (US)

  • Heirloom Carbon Technologies is a company that specializes in the Direct Air Capture (DAC) method of directly removing carbon dioxide (CO2) from the environment. DAC technology is recognized as a potential tool for mitigating climate change by reducing the concentration of CO2 in the atmosphere. Heirloom Carbon Technologies' Direct Air Capture technology represents a promising approach to addressing climate change by removing CO2 from the atmosphere. As concerns about climate change intensify, DAC technologies like Heirloom Carbon Technologies' may play a crucial role in global efforts to reduce greenhouse gas emissions and mitigate the impacts of climate change.

Related Reports:

Direct Air Capture Market by Technology (Solid-DAC (S-DAC), Liquid-DAC (L-DAC), Electrochemical-DAC (E-DAC)), Source, Application (Carbon Capture and Storage (CCS), Carbon Capture, Utilization, and Storage) Region - Global Forecast to 2030

Direct Air Capture Market Size,  Share & Growth Report
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EP 8933
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