By 2030, the carbon capture, utilization, and storage market are expected to generate $17,835.6 million value, from $2,037.0 million in 2021. The increasing emphasis on lowering carbon emissions, the government plans to achieve carbon neutrality in 2050, and the growing demand for CO2-EOR methods are the main drivers cited for the market's rise.
Startups engaged in the creation of cutting-edge carbon capture technology are receiving funding from investors and venture capital firms. For instance, Despite the COVID-19 epidemic, VC-backed firms got investments totaling over $325 million in 2020, an increase of almost $75 million from the previous year.
Additionally, commercial methods for deploying CCUS systems have shifted away from the development of massive, standalone installations and toward the development of industrial hubs with common CO2 storage and transfer facilities. The installations offer large economies of scale and low commercial risks because of innovative business models that concentrate on transportation and storage services.
Although pre-combustion technology now dominates the industry, post-combustion technology demand is expected to grow significantly over the next several years. The expansion of electricity plants in emerging countries like China and India is responsible for this rise. The most practical way to remove co2 from exhaust gases created while using fossil fuels for electricity generation is through the use of this technology.
Europe is also the second-largest carbon capture, utilization, and storage market in the world. 35% of all projects now under development worldwide are there. The U.K. has launched a $1.23 billion infrastructure fund and plans to construct four CCUS industrial clusters in 2030, each of which would capture 10 Mt of CO2 annually.
However, over the projection period, the APAC carbon capture, utilization, and storage market are anticipated to develop at the quickest rate. This is because most brand-new projects are being developed in developing nations, where pollution is high. There are additional benefits for businesses to locate their projects in APAC due to the region's excellent geology for carbon sequestration.