North America Carbon Capture and Storage Market Size & Outlook, 2024-2032

North America Carbon Capture and Storage Market Size

The North America carbon capture and storage market size was valued at USD 1,860.24 million in 2023 and is projected to reach from USD 2,207.04 million in 2024 to USD 5,370.65 million by 2032, growing at a CAGR of 11.8% during the forecast period (2024-2032).

Key growth drivers include stringent government regulations on carbon emissions, advancements in CCS technologies, and increasing investments from the oil and gas sector. In addition, the market's evolution aligns with global sustainability goals and the region's transition toward cleaner energy.

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Growth Factors

Stringent Environmental Regulations and Carbon Emission Targets

North America has led in combating climate change by implementing robust environmental regulations and carbon reduction initiatives. Policies such as the U.S. Inflation Reduction Act (2022) offer tax credits for CCS projects, significantly enhancing economic feasibility. Additionally, Canada’s Net-Zero Emissions Accountability Act aims to achieve net-zero emissions by 2050, accelerating the adoption of CCS technologies. The industrial sector, responsible for 22% of the region’s emissions, is increasingly leveraging CCS to align with these policies. A report by the International Energy Agency (IEA) highlights North America as a critical contributor to the 44 million tons of CO₂ captured globally in 2024, further underlining the market's growth potential.

Market Restraints

High Capital Expenditure and Operational Costs

While CCS technologies are gaining momentum, the high upfront investment costs for setting up capture, transportation, and storage facilities remain a significant barrier. Projects like the Petra Nova CCS facility in Texas, which cost approximately USD 1 billion, exemplify the financial hurdles. Maintenance and operational costs and limited infrastructure for CO₂ transportation pipelines further challenge scalability. Small and medium enterprises (SMEs) struggle to adopt these technologies, limiting market penetration. A report by the Global CCS Institute estimates that infrastructure expansion will require an additional investment of USD 50 billion by 2032, underscoring the financial constraints.

Key Opportunities

Technological Innovations and Integration with Renewable Energy

Advancements in CCS technology, including AI-driven monitoring systems and catalytic conversion techniques, present significant growth opportunities. Catalytic conversion, expected to grow at a CAGR of 12.1%, enables CO₂ utilization in producing value-added products like synthetic fuels and building materials. Furthermore, integrating CCS with renewable energy projects, such as blue hydrogen production, enhances economic viability. Companies like ExxonMobil and Occidental Petroleum are leading investments in direct air capture (DAC) facilities and renewable-powered CCS plants, setting benchmarks for innovative solutions. According to a 2025 report by the Carbon Removal Alliance, CCS projects linked to renewables could reduce CO₂ emissions by an additional 15% by 2030.

Regional Insights

The market is characterized by strong policy incentives, technological advancements, and industrial collaborations to achieve ambitious carbon neutrality goals. Countries in North America are leading CCS adoption through large-scale projects, leveraging their geological storage capacity, and fostering international partnerships.

The United States is a global leader in CCS, driven by incentives like the 45Q tax credit. Major projects, such as the Petra Nova facility in Texas and the Illinois Industrial Carbon Capture and Storage project, highlight the country’s commitment to industrial decarbonization. ExxonMobil's Houston CCS Hub aims to store up to 100 million tonnes of CO2 annually by 2040.

Canada integrates CCS into its oil and gas sector, with projects like Shell’s Quest in Alberta capturing over 7 million tonnes of CO2 since 2015. The Alberta Carbon Trunk Line, capable of transporting 14.6 million tonnes of CO2 annually, supports EOR and geological storage.

Mexico is exploring CCS to decarbonize its energy sector. The Comisión Federal de Electricidad (CFE) is assessing potential storage sites and integrating CCS in its natural gas plants, with pilot projects planned in Veracruz and Tabasco.

Greenland’s potential for CCS is tied to its abundant geological formations although still in the early stages. Collaboration with Nordic countries aims to establish regional storage hubs, leveraging expertise from Europe.

Bermuda focuses on leveraging CCS for maritime emissions. Collaborations with shipping companies explore integrating carbon capture systems into transatlantic trade routes, contributing to the decarbonization of global supply chains.

Segmentation Analysis

By Technology

Pre-combustion capture dominates the technology segment and is expected to grow at a CAGR of 11.4% over the forecast period. Pre-combustion capture dominates due to its application in large-scale industrial projects, particularly in the oil and gas sector. This technology is highly efficient, capturing CO₂ during the fuel conversion process. In North America, pilot projects in hydrogen production and integrated gasification combined cycle (IGCC) plants drive growth. Companies like Air Products are pioneering pre-combustion capture projects to decarbonize hydrogen production.

By Service

Capture services dominate the segment and are expected to grow at a CAGR of 11.3% during the forecast period. The capture segment, encompassing design, operation, and maintenance services, is pivotal to the market. Firms like Aker Carbon Capture are gaining traction by offering modular solutions tailored for industrial emissions. Growth is fueled by rising demand for customized CCS services in diverse industries such as manufacturing and refining.

By Utilization Technology

Catalytic conversion dominates the utilization technology and is expected to grow at a CAGR of 12.1% over the forecast period. Catalytic conversion's potential to transform CO₂ into sustainable products is a key growth driver. Industries are increasingly adopting this technology to produce methanol, synthetic fuels, and construction materials. Innovations by companies like Carbon Clean and Blue Planet in CO₂-to-concrete technologies are setting benchmarks for utilization.

By End Users

Oil and gas dominate the end-user segment and are expected to grow at a CAGR of 11.2% during the forecast period. The oil and gas sector is leading CCS adoption in North America, leveraging technologies for enhanced oil recovery (EOR) and emissions reduction. ExxonMobil's commitment to invest USD 17 billion in low-carbon solutions by 2027 highlights the segment's potential. Regulatory mandates further support CCS adoption in this sector.

List of key players in North America Carbon Capture and Storage Market

1. Aker Solutions
2. Air Liquide
3. Baker Hughes
4. Dakota Gasification Company
5. Exxon Mobil Corporation
6. Fluor Corporation
7. General Electric

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Analyst Perspective

As per our analyst, the North America carbon capture and storage market is poised for rapid expansion in the coming years. This growth is primarily driven by stringent climate policies, technological advancements, and substantial investments from major industrial players. North America’s focus on decarbonizing hard-to-abate sectors like cement, steel, and energy, combined with increasing utilization of captured CO₂, positions the region as a global leader in CCS innovation. Integration with renewable energy and government incentives further enhances the market’s growth trajectory, ensuring long-term sustainability and profitability.