CCUS Absorption Market Size, Share, By Absorption Type (Chemical Absorption and Physical Absorption), End-Use (Oil & Gas, Power Generation, Chemical & Petrochemical, Cement, and Iron & Steel), and Region - Trends, Analysis, and Forecast till 2034

• By 2034, the CCUS absorption market size is expected to be USD 11.6 billion.
• The market was worth USD 1.4 billion by 2024.
• The market is expanding at a CAGR of 26.1% during the forecast period.  

CCUS Absorption is a complicated process that is initiated by the capture of carbon dioxide from sources of emission. Commonly applied in most cases, flue gases will be passed through a liquid solvent, usually an amine solution, generally of the monoethanolamide kind, MEA. When flue gas bubbles through the solvent, the CO2 molecules shall be held, which is chemically bonded by the amine groups that separate them from other gases. This process takes place in an absorption column where the temperature and pressure conditions are maintained to maximize the capture efficiency of CO2. Increasing implementation of environmental regulations to augment market growth.

Key Takeaways:

• North America is expected to dominate the market. The region’s growth is attributed to the increasing number of investments in the U.S.
• Asia Pacific is expected to experience rapid growth in the region due to the increasing implementation of CCUS in the region.

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Climate Change and Environmental Regulations to Boost Market Growth

• The rising global concern about climate change and strengthening environmental regulations make CCUS key in decarbonization strategies. Tightening emission limits by governments at different levels, besides carbon pricing mechanisms, encourages industries to decrease carbon emissions through CCUS measures. These regulatory pressures are imposing enormous investment in research, development, and deployment-related activities associated with CCUS, backed by rising public awareness about climate change.

Energy Security and Diversification to Drive Market Growth

• CCUS can help ensure energy security by making continued fossil fuel use compatible with low carbon intensity. Further, it will help develop a low-carbon energy mix that includes hydrogen and other synthetic fuels derived from captured CO2. CCUS also offers improved power system efficiency and flexibility by facilitating variable renewables integration into the generation mix. CCUS captures and stores CO2 to balance fluctuations in renewable generation and provides grid reliability.

Restraints:

High Capital and Operating Costs May Hamper Market Growth

• CCUS technology requires substantial upfront investments in capturing, transporting, and storing CO2. Moreover, the operational costs of the process, based on energy consumption and maintenance, can run into large sums. The high-cost acts as a significant barrier to full-scale diffusion into applications, especially in smaller industrial plants. This will call for a combination of strategies to meet this challenge. First of all, technical development needs to continue to reduce the capital and operating costs of CCUS systems. Government policies and incentives can also significantly contribute to offering tax breaks, subsidies, and other financial support mechanisms in CCUS projects. Innovative business models, such as carbon capture and storage as a service, will involve sharing the financial burden and associated risk among multiple stakeholders.

Opportunities:

Market Expansion and Job Creation to Create Future Opportunities in the Market

• CCUS will grow tremendously with the surging global demand for carbon reduction solutions. As stricter targets are put in place for climate change by countries and businesses globally, so is the market for CCUS technologies and services. This growth creates a vast opportunity running through the value chain from technology development and engineering to project management, operations, and maintenance. In employment, CCUS has high potential in various industries, such as manufacturing, construction engineering, and research. Innovation and entrepreneurship through new CCUS technologies and business models are expected to be harnessed to spur economic growth and develop high-value jobs.

The CCUS absorption market is divided into absorption type, end-use, and region. 

Absorption Type Insights:

Based on absorption type, the market is bifurcated into chemical absorption and physical absorption. The chemical absorption segment is expected to hold the dominant CCUS absorption market share. The segment’s growth is attributed to its efficiency favoring the industries related to cement manufacturing and power generation.

End-Use Insights:

By end-use, the market is segmented into oil & gas, power generation, chemical & petrochemical, cement, and iron & steel. The oil & gas segment is expected to lead the market during the forecast period. The growth is attributed to the surging regulatory pressures and increasing need for sustainable operations.

Regional Insights:

By geography, the market is studied across North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

• North America: The deployment of CCUS is highest in this region, which is supported by strong government support, better technological development, and major investments in the United States. This is also one of the major reasons that this region has a well-developed oil and gas industry.

Asia Pacific: The region has been undergoing rapid industrialization, which demands more energy, increasing CCUS implementation in the region. Considerable investments in CCUS by countries, including China, Japan, and South Korea will help attain carbon neutrality while reducing industrial emissions.

CCUS Absorption Market Report Scope:

Segmentation:

By Absorption Type:

• Chemical Absorption
• Physical Absorption

By End-Use:

• Oil & Gas
• Power Generation
• Chemical & Petrochemical
• Cement
• Iron & Steel

By Region:

North America

• U.S.
• Canada

Europe

• Germany
• U.K.
• France
• Russia
• Italy
• Rest of Europe

Asia Pacific

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

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• Israel
• South Africa
• Rest of Middle East & Africa

The key competitors operating in the CCUS absorption in the market include ExxonMobil Corporation, Honeywell International Inc., Euinor, and Fluor Corporation, among others. These key players are adopting new product launches to strengthen their position in the market.

List of Key Players in the Market:

• ExxonMobil Corporation
• Equinor ASA
• Honeywell International Inc.
• Fluor Corporation
• Mitsubishi Heavy Industries Ltd.
• Royal Dutch Shell Pic
• TotalEnergies SE
• BASF SE
• JGC Holdings Corporation
• Schlumberger Ltd.
• Aker Solutions
• Siemens AG
• Hitachi Ltd.
• General Electric
• Chevron lon Clean Energy

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In February 2024, Veolia launched a site feasibility study ahead of a pilot project to capture carbon emissions from the combustion of non-recyclable biogenic waste in the U.K. energy recovery facilities (ERFs). The initiative aims to manufacture green fuels by capturing, extracting, and purifying CO2. Veolia stated that the process might produce synthetic green end products, such as kerosene, methanol, and specialty chemical compounds. Engineered by Veolia's in-house design teams, the system employs Advanced Amine technology to collect carbon emissions from the combustion of non-recyclable biogenic waste, which accounts for approximately 60% of the carbon dioxide emissions generated during the incineration process.

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