The Global Direct Air Capture Market Size accounted for USD 70.2 Million in 2023 and is estimated to achieve a market size of USD 4,731.7 Million by 2032 growing at a CAGR of 59.9% from 2024 to 2032.

Direct Air Capture Market Highlights

• The global direct air capture market is projected to reach USD 4,731.7 million by 2032, growing at a CAGR of 59.9% from 2024 to 2032
• According to the IEA, 27 DAC plants worldwide currently capture over 0.01 million tons of CO2 annually, with plans for at least 130 large DAC plants capable of capturing over 1,000 tons of CO2 per year
• The North America direct air capture market was valued at approximately USD 32.9 million in 2023
• The Asia-Pacific direct air capture market is expected to grow at a CAGR exceeding 62% from 2024 to 2032
• In 2023, the solid DAC technology sub-segment accounted for 57% of the market share
• The electricity source sub-segment generated 61% of the market share in 2023
• The carbon capture and storage (CCS) application sub-segment dominated in 2023, contributing 76% of the market share
• Strengthened climate policies and tax incentives supporting direct air capture development is the direct air capture market trend that fuels the industry demand 

Direct air capture (DAC) is a technology designed to remove carbon dioxide (CO2) directly from the atmosphere. It uses chemical processes to capture CO2, which is then stored underground or utilized in products like fuels or building materials. DAC systems typically rely on large-scale industrial processes to filter CO2 from ambient air. This technology plays a crucial role in efforts to mitigate climate change by reducing the overall concentration of greenhouse gases in the atmosphere.

Department of Energy (DOE) announced the Carbon Negative Shot in November 2021 to help foster the development of the developing yet vital carbon dioxide removal industry. By 2032, this all-hands-on-deck approach to carbon dioxide removal innovation intends to accomplish carbon dioxide removal that is economical (<$100 per tonne averaged across paths), durable (100+ years), and on a gigatonne scale. This initiative highlights the growing commitment to scalable solutions for climate change, which directly supports the growth of the DAC market by encouraging innovation and investment in carbon removal technologies.

Global Direct Air Capture Market Dynamics

Market Drivers

• Increasing global focus on carbon neutrality and climate change mitigation
• Government incentives and policies supporting carbon capture technologies
• Growing demand for carbon credits and offset programs

Market Restraints

• High operational and installation costs of DAC systems
• Energy consumption concerns and sustainability of large-scale operations
• Limited availability of CO2 storage sites for long-term sequestration

Market Opportunities

• Technological advancements in DAC efficiency and cost reduction
• Partnerships with industries for CO2 utilization in manufacturing and chemicals
• Expanding carbon credit markets and environmental compliance regulations

Direct Air Capture Market Report Coverage

Market	Direct Air Capture Market
Direct Air Capture Market Size 2022	USD 70.2 Million
Direct Air Capture Market Forecast 2032	USD 4,731.7 Million
Direct Air Capture Market CAGR During 2023 - 2032	59.9%
Direct Air Capture Market Analysis Period	2020 - 2032
Direct Air Capture Market Base Year	2023
Direct Air Capture Market Forecast Data	2024 - 2032
Segments Covered	By Technology, By Source, By Application, By End-Use Industry, And By Geography
Regional Scope	North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Key Companies Profiled	Infinitree Llc, Carbyon, Carbon Engineering Ulc, Climeworks, Carbon Capture Inc., Heirloom Carbon Technologies, Carbon Collect Limited, Capture6, Noya Pbc, Sustaera Inc., Prometheus Fuels, Mission Zero Technologies, Soletair Power, and Avnos, Inc.
Report Coverage	Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Covid-19 Analysis, Regulation Analysis

Direct Air Capture Market Insights

As nations commit to reducing carbon emissions and achieving net-zero targets, there is a growing emphasis on innovative solutions like DAC to capture and store CO2 which drives direct air capture (DAC) market growth. For instance, according to Welcome to the United Nations, as of June 2024, 107 nations, accounting for over 82% of global greenhouse gas emissions, had made net-zero pledges, either through legislation, a policy document such as a national climate action plan or a long-term strategy, or a declaration by a high-level government official. More than 9,000 businesses, over 1000 towns, over 1000 educational institutions, and over 600 financial institutions have joined the Race to Zero, promising to take aggressive, urgent action to reduce global emissions by half by 2030. This trend is pushing industries and governments to invest in scalable technologies. The urgency to address climate change boosts the demand for direct air capture technologies as a vital tool for carbon removal.

Despite the potential environmental benefits, DAC systems require significant upfront investment in infrastructure, technology, and maintenance. The high capital costs of building large-scale DAC plants hinder widespread adoption. This financial burden makes it challenging for many companies and countries to implement DAC solutions at a global scale.

Ongoing research and development in DAC technologies aim to improve efficiency and reduce costs, making it more accessible for industries. Innovations in materials, energy use, and system design can dramatically lower operational expenses. According to the International Energy Agency, in the IEA Net Zero Emissions by 2050 Scenario, direct air capture technologies absorb more than 85 Mt of CO2 in 2030 and over 980 MtCO2 in 2050, necessitating a significant and expedited scaling-up from nearly 0.01 MtCO2 today. Currently, 18 direct air capture facilities are operational in Canada, Europe, and the United States. As these technologies evolve, DAC will become more economically viable and scalable.

With growing pressure on companies to meet environmental standards, DAC can offer a pathway to earn carbon credits by removing CO2 from the atmosphere. Increasing government regulations and carbon pricing mechanisms provide an economic incentive for businesses to invest in DAC. For instance, the United States has implemented a number of policies and programs to assist DAC, including the 45Q tax credit and the California Low Carbon Fuel Standard. The 2022 Inflation Reduction Act broadens and extends the 45Q tax credit up to USD 180/t CO2 permanently stored. In August 2023, the United States gave USD 1.2 billion in funding to two large-scale DAC hubs (Project Cypress in Louisiana and the South Texas DAC Hub in Texas) and approximately 20 additional projects to support earlier stages of project development for future DAC hubs. This growing direct air capture (DAC) market for carbon credits enhances the business case for DAC deployment.

Direct Air Capture Market Segmentation

The worldwide market for direct air capture is split based on technology, source, application, end-use industry, and geography.

Direct Air Capture Market By Technology

• Electrochemical DAC
• Liquid DAC
• Solid DAC

According to the direct air capture industry analysis, solid direct air capture technology dominates industry due to its efficient and scalable design. It uses solid sorbents, which absorb CO2 from the air, making it easier to capture and release the gas when needed. This approach typically requires less energy compared to liquid-based systems, offering a more sustainable solution. Solid DAC systems are also more versatile and can be deployed in a variety of environments, driving their widespread adoption for large-scale carbon removal.

Direct Air Capture Market By Source

• Electricity
• Heat

According to the direct air capture industry analysis, electricity is the dominant energy source in industry due to its efficiency and flexibility in powering DAC systems. Using electricity, often derived from renewable sources like wind or solar, allows for lower carbon emissions in the capture process. This reliance on electricity helps reduce the environmental impact of DAC operations, aligning with global sustainability goals. Moreover, electricity-driven systems are more scalable and adaptable, making them a key driver of large-scale CO2 removal.

Direct Air Capture Market By Application

• Carbon Capture, and Storage (CCS)
• Carbon Capture, Utilization and Storage (CCUS)

According to the direct air capture market forecast, carbon capture and storage (CCS) market dominates industry as it provides an effective method for storing the captured CO2 over the long term. After CO2 is extracted from the air by DAC systems, CCS involves transporting and injecting the gas into underground geological formations for permanent storage. This combination enhances the scalability and permanence of carbon removal efforts, making CCS a critical component in reducing atmospheric CO2 levels. Its widespread use supports climate mitigation strategies by ensuring captured carbon is not released back into the environment.

Direct Air Capture Market By End-Use Industry

• Oil and Gas
• Chemicals
• Food and Beverage
• Healthcare
• Automotive
• Others

According to the direct air capture market forecast, the oil and gas sector is expected to grow in market during the forecast years due to its increasing interest in carbon management technologies. Oil and gas companies are investing in DAC to reduce their carbon footprints and meet sustainability goals, particularly through enhanced oil recovery (EOR) techniques. By using captured CO2 for EOR, these companies can generate additional revenue while contributing to carbon reduction efforts. This growing integration of DAC with oil and gas operations is anticipated to drive direct air capture (DAC) market expansion and technological advancements.

Direct Air Capture Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Direct Air Capture Market Regional Analysis

For several reasons, North America dominates the direct air capture (DAC) market due to substantial investments in carbon removal technologies and strong government support for climate action. For instance, in September 2023, Canada unveiled its carbon management policy, which focuses on DAC. In terms of funding, the 2022 federal budget suggested a 60% investment tax credit for CCUS projects that invest in DACS equipment between 2022 and 2030. Since 2022, Environment and Climate Change Canada (ECCC) has been developing an offset methodology for DAC as part of the Greenhouse Gas Offset Credit System. The U.S. leads the region with several large-scale DAC projects, backed by policies like tax credits and grants. This positions North America as a hub for innovation, attracting both private and public sector funding.

Asia-Pacific is growing rapidly in the DAC market as countries like Japan, China, and India focus on reducing their carbon emissions and improving environmental sustainability. For instance, according to Ministry of Coal, India plans to reduce total carbon emissions by one billion tons by 2030. With increasing government initiatives, technological advancements, and a rising demand for clean energy, the region is becoming a key player in DAC deployment. For instance, in January 2023, Japan established a CCUS roadmap with the goal of capturing between 6 and 12 Mt CO2 every year by 2030, including from DAC. The growing industrial base and need for emissions reduction are fueling the expansion of DAC technologies in Asia-Pacific.

Direct Air Capture Market Players

Some of the top direct air capture companies offered in our report include Infinitree Llc, Carbyon, Carbon Engineering Ulc, Climeworks, Carbon Capture Inc., Heirloom Carbon Technologies, Carbon Collect Limited, Capture6, Noya Pbc, Sustaera Inc., Prometheus Fuels, Mission Zero Technologies, Soletair Power, and Avnos, Inc.

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