What Fueled The Previous Growth In The Direct Air Capture Market?
The direct air capture market has seen considerable growth due to a variety of factors.
• The size of the direct air capture market has seen rapid expansion in the past few years. Expectations state that it will expand from a value of $0.07 billion in 2024 to $0.11 billion in 2025, with a compound annual growth rate (CAGR) of 65.9%.
The extraordinary growth experienced during the historic era can be ascribed to factors such as concerns over climate change, the support of policies and regulations, corporate sustainability drives, the implementation of carbon pricing mechanisms, heightened public consciousness and support, as well as global cooperation and partnerships.
How Does the Forecast Look for the Direct Air Capture Market?
The direct air capture market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for direct air capture is predicted to undergo massive expansion in the following years. It is estimated that it will amplify to $0.69 billion in 2029, with a compound annual growth rate (CAGR) of 56.7%.
The surge in the estimated period can be credited to objectives for net-zero emissions, markets for carbon eradication, the combining of carbon utilization, climate robustness and modification, financial interest and endorsement, harmonization of policies, and global teamwork. Foreseen trends for this period contain the application of DAC as a counter-emission technology, partnerships between DAC firms and industrial facilities, integration with carbon exploitation initiatives, an upsurge in demand for sustainable fuels and supplies, progression in DAC effectiveness, creation of scalable and modular arrangements, broadening implementation in industrial sectors, and innovation in DAC technology.
What Are The Leading Drivers Of Growth In The Direct Air Capture Market?
Heightened concern about environmental issues like greenhouse gas emissions is anticipated to spur the expansion of the direct air capture market. Greenhouse gas emissions pertain to the discharge of climate-affecting gases like carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) into the atmosphere, which results in the trapping of heat and thereby contributes to global warming. Primarily, these emissions have burgeoned due to industrialization, deforestation, transportation, and agriculture practices. A potential solution to mitigating these emissions is the direct air capture technology, which seizes CO2 straight from the atmosphere. For example, data from the US Energy Information Administration, a US governmental body, revealed an increase in CO2 emissions from 35.72 billion metric tons in 2021 to 38.50 billion metric tons in 2022, as recorded in June 2024. Thus, escalated environmental apprehensions over greenhouse gas emissions are fueling the growth of the direct air capture market.
How Are The Segments Defined Within The Global Direct Air Capture Market?
The direct air capture market covered in this report is segmented –
1) By Product: Absorption-Based Direct Air Capture (SDAC), Adsorption-Based Direct Air Capture (DAC), Membrane-Based Direct Air Capture (DAC), Cryogenic-Based Direct Air Capture (DAC)
2) By Scale: Pilot-Scale, Demonstration-Scale, Commercial-Scale
3) By Source: Electricity, Heat
4) By Application: Carbon Capture, And Storage (CCS), Carbon Capture, Utilization And Storage (CCUS)
5) By End- Use: Oil And Gas, Food And Beverage, Automotive, Chemicals, Healthcare, Other End-Uses
Subsegments:
1) By Absorption-Based Direct Air Capture (SDAC): Chemical Absorption, Physical Absorption
2) By Adsorption-Based Direct Air Capture (DAC): Solid Adsorbent, Liquid Adsorbent
3) By Membrane-Based Direct Air Capture (DAC): Polymeric Membranes, Inorganic Membranes
4) By Cryogenic-Based Direct Air Capture (DAC): Low-Temperature Adsorption, Cryogenic Distillation
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Which Emerging Market Trends Are Altering The Direct Air Capture Industry?
Leading firms in the direct air capture market are intensifying their efforts to launch innovative systems, such as the hybrid direct air capture system, as a way to gain a competitive advantage. A hybrid direct air capture (DAC) system is a technology that integrates multiple strategies or methods to extract carbon dioxide (CO2) straight from the atmosphere. For instance, in November 2023, Avnos, Inc., a US-based energy firm, unveiled the first-ever hybrid direct air capture system (HDAC) in collaboration with Southern California Gas Company, a US-based utility provider. The HDAC technology extracts CO2 from the atmosphere and generates water using electricity. The pilot program is designed to illustrate how the system could be expanded to a scale 1,000% larger than its current size. The HDAC technology is a mixed version of direct air capture that incorporates a two-phase system to eliminate water vapor before capturing CO2 from the dehydrated air stream. It then compresses the CO2 for transportation, storage, or use, and it transforms the water vapor back into liquid water for reuse.
Who Are the Key Players In The Direct Air Capture Market?
Major companies operating in the direct air capture market are:
• Mosaic Materials Inc.
• Sunfire GmbH
• National Energy Technology Laboratory
• Climeworks AG
• Carbon Clean Solutions Limited
• Carbon Engineering Ltd.
• Heirloom Carbon Technologies Inc.
• Oak Ridge National Laboratory
• Skytree Technologies AS
• CarbonCapture Inc.
• Immaterial Inc.
• Global Thermostat Inc.
• Spiritus Systems
• Synhelion AG
• Infinitree Inc.
• Avnos Inc.
• Noya PBC
• RepAir LLC
• MISSION ZERO TECHNOLOGIES Inc.
• Carbyon Inc.
• Sustaera Inc.
• Southern Green Gas Limited
• Octavia CarbonInc.
• Capture6 Inc.
What Is The Most Dominant Region In The Direct Air Capture Market?
North America was the largest region in the direct air capture market in 2024. The regions covered in the direct air capture market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
