Increasing prevalence of carbon offsetting and removal initiatives is expected to drive market expansion shortly at a CAGR of 62.00% during the forecast period 2024 to 2032

Market Research Future (MRFR) has published a cooked research report on the “Direct Air Capture Market” that contains information from 2019 to 2032. The direct air capture market is estimated to register a CAGR of 62.00% during the forecast period of 2024 to 2032.

MRFR recognizes the following companies as the key players in the global direct air capture market— Climeworks (Switzerland), Carbon Engineering ULC. (Canada), Global thermostat (US), Heirloom Carbon Technologies (US), Soletair Power (Finland), CarbonCapture Inc (US), Avnos, Inc. (US), Noya PBC (US), Skytree (Netherlands) and RepAir (Israel).

Direct Air Capture Market Highlights

The global direct air capture market is accounted to register a CAGR of 62.00% during the forecast period and is estimated to reach USD 3.27 billion by 2032.

The expansion of the direct air capture market is propelled by an increasing urgency to address climate change through innovative approaches, with a focus on reducing the effects of greenhouse gas emissions.

Browse In-depth Details [Table of Content, List of Figures, List of Tables] of Direct Air Capture Market Research Report

Segment Analysis

The global direct air capture market has been segmented based on Technology, Application, and Source.

Based on Technology, the market is segmented into Solid-DAC (S-DAC), Liquid-DAC (L-DAC), and Electrochemical-DAC (E-DAC). The Solid-DAC (S-DAC) segment was attributed to holding the largest market share in 2023. Solid-DAC (S-DAC) boasts a modular and stackable design, resulting in lower initial deployment costs and facilitating gradual expansion, thereby enhancing its adaptability across various applications. Unlike traditional carbon capture processes, S-DAC does not require water, making it particularly suitable for deployment in arid regions where water scarcity is a pressing issue. Consequently, it is anticipated to dominate the technology segment of the direct air capture market.

Based on the Application, the Direct Air Capture Market has been segmented into Carbon Capture and Storage (CCS), and Carbon Capture, Utilization and Storage (CCUS). The Carbon Capture and Storage (CCS) segment was expected to hold the largest market share in 2023. The expansion is driven by the adoption of carbon mineralization, a process that entails the permanent sequestration of carbon dioxide by transforming it into a solid mineral form, typically a carbonate, via a chemical reaction with certain types of rocks.

Based on the Source, the Direct Air Capture Market has been segmented into Electricity and Heat. The Electricity segment was expected to hold the largest market share in 2023. The dominance of this sector is driven by the abundant availability and seamless integration of electric power sources with DAC systems. Electricity plays a crucial role in powering the diverse components of DAC technologies, including fans, pumps, and capture systems, thus serving as a fundamental resource for the entire process.

Regional Analysis

The global Direct Air Capture Market, based on region, has been divided into North America, Europe, Asia-Pacific, and Rest of the World. North America consists of the US and Canada. The Europe Direct Air Capture Market comprises Germany, France, the UK, Italy, Spain, and the rest of Europe. The Direct Air Capture Market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World's Direct Air Capture Market comprises the Middle East, Africa, and Latin America.

The largest market share for the Direct Air Capture Market was maintained by the North American regional sector. The support of the US Department of Energy, particularly through initiatives like the Regional Direct Air Capture (DAC) Hubs program, has been instrumental. This program aims to establish four regional direct air capture hubs across the country. Additionally, policy frameworks such as the 45 Q tax credit and California's Low Carbon Fuel Standard have been implemented to incentivize DAC deployment. The regional direct air capture market is witnessing growth, fueled by the presence of leading solution providers like Global Thermostat (US) and Carbon Engineering ULC. (Canada), and Heirloom Carbon Technologies (US). In 2021, the US Congress allocated $3.5 billion for direct air capture and storage, marking the largest single government investment in this technology to date.

Moreover, the Europe market has been persistently growing over the forecast period. The region's leading position in the industry can be credited to various factors, such as substantial advancements in technology and substantial investments from both public and private sectors. Additionally, Europe demonstrates a strong commitment to addressing climate change. The European Commission has set ambitious targets, aiming to store up to 50 million metric tons of CO2 annually by 2030, including through direct air capture (DAC). There is a notable uptick in the development and utilization of DAC systems across the region, driven by supportive governmental initiatives, increased awareness of carbon capture, and the presence of a well-established entrepreneurial ecosystem.

The Asia Pacific region is anticipated to undergo substantial growth due to increased industrialization, urbanization, and higher energy consumption. With these economies expanding, there's a pressing need to address carbon emissions, leading to a rising demand for DAC systems. According to data from the Global Carbon Project, India experienced a 5.1% growth in per capita emissions in 2022, reaching 2 tonnes. India ranked as the third-largest CO2 emitter globally, contributing 8% of the world's total emissions, following China (31%) and the US (14%). India's total emissions are estimated to have risen by 8.2% (with a range of 6.7% to 9.7%) over 2022, with increases observed in emissions from coal (9.5%), oil (5.3%), natural gas (5.6%), and cement (8.8%).

Furthermore, the rest of the world's direct air capture market is divided into the Middle East, Africa, and Latin America. In the Middle East, Africa, and Latin America, governments, industries, and local communities are increasingly recognizing the pressing need to tackle climate change. With the observable impacts of rising temperatures, shifting weather patterns, and environmental degradation, there's a growing consensus on the necessity for effective measures to mitigate greenhouse gas emissions. This includes the adoption of carbon removal technologies like direct air capture (DAC). For instance, Brazil, as of March 2022, reaffirmed its commitment to reducing greenhouse gas emissions by 37% by 2025 and by 50% by 2030 compared to 2005 levels, highlighting the region's dedication to climate action.

Key Findings of the Study

• The global direct air capture market is expected to reach USD 3.27 billion by 2032, at a CAGR of 62.00% during the forecast period.


• The Asia-Pacific region accounted for the fastest-growing global market due to technological innovation, particularly in clean energy and environmental technologies.


• Based on technology, the Solid-DAC (S-DAC) segment was attributed to holding the largest market in 2023, with an approximate market share of 55–60%.


• Climeworks (Switzerland), Carbon Engineering ULC. (Canada), Global thermostat (US), Heirloom Carbon Technologies (US), Soletair Power (Finland), CarbonCapture Inc (US), Avnos, Inc. (US), Noya PBC (US), Skytree (Netherlands) and RepAir (Israel) are the key market players.