Carbon Sequestration Services Market Size, Share, Growth Analysis, By Capture Technology(Pre-Combustion, Industrial Process), By Application(Power Generation, Oil & Gas) - Industry Forecast 2024-2031

Carbon Sequestration Services Market size was valued at USD 3.10 Billion in 2021 and is expected to grow from USD 3.30 Billion in 2022 to USD 5.09 Billion by 2030, at a CAGR of 6.4% during the forecast period (2023-2030).

The introduction of Carbon Capture & Storage (CCS) technology is a result of the rise in awareness about the damaging effects of carbon emissions on the environment, thereby serving as a key growth factor. On account of the possibility of carbon capture and storage technology to serve as a large-scale solution for attaining the high CO2 emission reduction objectives and climate management goals, numerous governments are promoting the implementation of technology through pilot projects across diverse industries. The utilisation of gas injection Enhanced Oil Recovery (EOR) techniques is expected to increase as offshore oil and gas exploration and production operations are predicted to increase with technological advancements. Crude oil extraction involves the use of carbon dioxide. The maturing and depleting oil reservoirs will be the driving force behind the deployment of gas injection EOR techniques for both onshore and offshore wells.

The rising demand for CO2 for EOR activities in the oil & gas industry is projected to augment the growth of the forecast period. Due to the presence of numerous high-capacity CCS plants in this area as well as the growing use of CO2 in EOR processes, the U.S. is predicted to dominate the global sector in 2022. However, according to the BP Statistical Review of World Energy 2022, worldwide oil output increased by about 1.21% in 2021 compared to 2020, reaching 4,221.40 million metric tonnes. This trend is also anticipated to continue in 2022 and 2023. In addition, market analysts predict that oil output would increase significantly throughout the forecast period and follow pre-pandemic growth tendencies.

US Carbon Sequestration Services Market is poised to grow at sustainable CAGR for the next forecast year.