Direct Air Capture (DAC or DACCS) Market Size, Trends, Share, Growth, and Opportunity Forecast, 2024 - 2031 Global Industry Analysis By Technology (Chemical Absorption, Physical Adsorption, Membrane Separation), By End-Use Industry (Oil & Gas, Food & Beverages, Healthcare, Others), By Application (Carbon Capture, Carbon Storage, Carbon Utilization), and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

The Global Direct Air Capture (DAC or DACCS) Market was valued at USD 28.9 Million in 2023 and is anticipated to reach a value of USD 2,343 Million by 2031 expanding at a CAGR of 73.3% between 2024 and 2031.

There are new technologies that fall under DAC (Direct Air Capture) or DACCS (Direct Air Carbon Capture and Storage) that focus on the problem of climate change that can be solved by the removal of a major culprit, CO2. Carbon capture has usually focused on emissions, while DAC technology is a little different as they remove the CO2 from the air; thus, this makes it more flexible and can be used in many areas. Therefore, it makes sure that DAC has the unavoidable role of bringing a world of net zero emissions into reality as well as dealing with global warming. DAC is a fairly new market that is equally positioned to take advantage of the growing world concerns about climate change through the continuous enhancement of governmental and corporate efforts for net zero CO2 emissions in the modern world. Tendencies, connected with DAC in recent years, make both solutions even more effective and less expensive, and a considerable number of organizations worldwide are developing their own at present. Some of the captured carbon can be injected back into the ground, can be commercialized, or can be used in the production of fuels, chemicals, and building materials, some of which are carbon; hence, DAC has potential for generating revenue, which in turn plays an important role in the economic aspect.

Direct Air Capture (DAC or DACCS) Market Major Driving Forces

Climate Change Mitigation Efforts: There is a greater interest in decarbonizing society as well as the need to adopt DAC as one of the solutions in afforestation the world to meet net-zero targets.

Governmental Regulations and Incentives: Legal requirement, carbon price policies, and all such fiscal policies, which are being sought by governments to encourage investment on carbon capture and storage technology supports investment in DAC projects.

Corporate Sustainability Commitments: The soaring corporate responsibility towards the environment and desires to reduce carbon footprints due to investor imperatives and shifting consumer trends further propel the use of DAC.

Technological Advancements: The constant innovation of newer DAC types, along with improvements in capturing efficiency, cost optimization and the scalability of the systems improve the feasibility and viability of DAC work for commercial use. 

Direct Air Capture (DAC or DACCS) Market Key Opportunities

Expansion of Carbon Offset Markets: There is increased demand for carbon offsets as consumers seek to balance their emissions, opening up the possibility for DAC projects to monetize captured CO2 through sale in voluntary and compliance carbon markets.

Integration with Carbon Utilization Technologies: Captive CO2 users, being industries that use captured CO2 in the production of fuels, chemicals, and construction materials, represent potential markets for DAC since it can may monetize its captured CO2 by using it for industrial applications.

Deployment in Carbon-Intensive Industries: Direct draw for DAC in carbon industrial sectors Since direct reductions in emissions are difficult to achieve in certain industries such as cement, steel, and manufacturing, targeting those industries presents further opportunities for achieving emissions and carbon neutrality.

Direct Air Capture (DAC or DACCS) Market Key Trends

·         Growing demand for carbon removal solutions to achieve net-zero emissions targets.

·         Increasing investments in DAC technology development and deployment.

·         Integration of DAC with carbon utilization technologies for product development.

·         Emergence of carbon offset markets driving revenue opportunities for DAC projects.

·         Expansion of government funding and subsidies for carbon capture and storage projects.

·         Rising adoption of DAC in carbon-intensive industries for emissions reduction.

·         Collaborations between DAC developers and renewable energy projects.

·         Focus on research and development to enhance DAC efficiency and scalability.

·         Shift towards international carbon removal initiatives and collaborations.

·         Development of carbon capture infrastructure to support DAC deployment.

Region-wise Market Insights

North America accounted for the largest market share at 87.2% in 2023 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 76.3% between 2024 and 2031.

North America absolutely dominates the global direct air capture market. It benefits from a favorable policy landscape, meaning investments in clean energy and carbon capture technologies as well as an emphasis on climate change policies. The current countries extending their dominance in the market are the United States and Canada, following the increased number of DAC projects and government encouragement for the same. In Europe, there is a higher level of stringency in climate change targets set than that of the EU standard, hence the implementation of this technology as part of policy measures towards carbon neutrality. Contemporary examples include developed economies such as Norway, the United Kingdom, and Switzerland, in which policies such as government funding, carbon pricing, and collaborations with stakeholders are channeling the deployment of DAC. The European Union’s strict climate change strategies set out under the recent European Green Deal and other legislation continue to drive market growth for the DAC industry in the region. Currently, the Asia-Pacific region shows the highest interest in the development and implementation of DAC technology due to the rapidly increasing industrialization and urbanization processes observed in the region and changes in the level of environmental awareness. Currently, Chinese, Japanese, and South Korean policymakers are interested in investing in the research and development of DAC in order to mitigate air pollution and carbon emissions, which can be compatible with economic growth. Also, the electric power sector in the developed Southeast Asian countries and the growing emerging markets in the region offer potential for DAC investment alongside efforts from local governments for grid infrastructure upgrades to support a move to renewable energy sources and address climate change.

Market Competition Landscape

The Direct Air Capture, or DAC, industry is generally at a nascent stage but is growing at a considerable rate, and several MCs and players are gearing up to settle their positions within the commercial and innovative spectrum. At present, the DAC technique is in its early stages, and only four companies, Carbon Engineering from Canada, Climeworks from Switzerland, Global Thermostat from the United States of America, and Carbon Clean Solutions from India, have expertise in this area, thus striving hard to make DAC a commercial technique. These industry leaders have taken important steps to develop DAC technology and have particularly worked at enhancing the efficiency of the capture process, the reduction of energy consumption, and, of course, the general costs. They have also partnered with governments, organizations, research institutions, and corporate bodies for the purpose of enhancing and deploying DAC systems. Prominent players in the market include:

·         Carbon Engineering

·         Climeworks

·         Global Thermostat

·         Carbon Clean Solutions

·         Charm Industrial

·         Prometheus Fuels

·         Carbon Upcycling Technologies

·         Carbon Engineering Ltd.

·         Climeworks AG

·         Global Thermostat LLC

·         Carbon Clean Solutions Limited

·         Charm Industrial Inc.

·         Prometheus Fuels Inc.

·         Carbon Upcycling Technologies Inc.

·         Climeworks Holding AG