Report Description

A recent market intelligence report that is published by Data Insights Partner on Direct Air Capture Market makes an offering of in-depth analysis of segments and sub-segments in the regional and international. The research study also emphasizes on the impact of restraints, drivers, and macro indicators on the regional and world Direct Air Capture Market over the short as well as long period of time. A detailed presentation of forecast, trends, and dollar values of international Direct Air Capture Market is offered.

Market Insights:

In accordance with the report, the Direct Air Capture Market is projected to expand at a CAGR of 62.4% over the period of forecast.  The global Direct Air Capture Market was valued at USD 28.4 Mn in 2022 and is expected to reach USD 462.2 Mn in 2031, growing with a significant CAGR rate during the forecast period.

Direct Air Capture (DAC) is a technology and process designed to capture carbon dioxide (CO2) directly from the ambient air. It involves the use of specialized equipment and chemical reactions to remove CO2 molecules from the atmosphere, regardless of their source. DAC is considered a form of carbon capture and removal technology that aims to mitigate climate change by reducing the concentration of CO2, a major greenhouse gas, in the atmosphere. There is increasing interest and investment in DAC technologies as part of global efforts to address climate change. Governments, private companies, and research institutions were exploring and investing in DAC projects to help achieve carbon neutrality and reduce greenhouse gas emissions. One of the significant challenges for DAC is the high cost associated with capturing CO2 directly from the atmosphere. This cost is significantly higher compared to other carbon capture methods applied to point sources such as power plants. The growth of the DAC market is influenced by government policies, incentives, and regulations aimed at reducing carbon emissions. Supportive policies, such as carbon pricing or subsidies for carbon removal technologies, could impact the growth and adoption of DAC.

Regional Insights:

North America, particularly the United States and Canada, showed strong interest in carbon capture and removal technologies, including DAC. Both countries had research initiatives, pilot projects, and investments in DAC technology development. The presence of established energy and engineering sectors in these countries contributed to the exploration of DAC for various applications, such as enhanced oil recovery and utilization in industrial processes.  Additionally, more public funding can be used to deploy the DAC. Funding for DAC was announced by the American Department of Energy in March 2022 (USD 22 million) and March 2022 (USD 24 million). Additionally, the USD 1 trillion Infrastructure Investment and Jobs Act, passed in August 2022, contained money for the CCUS in the amount of USD 9 billion. This calls for financing to build four DAC hubs. There have been several proposals to increase the value of the 45Q tax credit, one of which is in the 2022 budget plan and would offer USD 85 per tonne of CO2 captured and stored from various industrial uses and USD 120 per tonne for direct air collection and storage.

European countries were also actively engaged in the DAC market. The European Union's commitment to ambitious climate goals, including carbon neutrality by 2050, provided a strong driver for the adoption of DAC technologies. Several European countries invested in research and development, and various startups were working on DAC solutions. Additionally, the EU's Emissions Trading System and carbon pricing mechanisms could potentially create incentives for the deployment of DAC. Climeworks, a firm based in Switzerland, was the first to construct a direct air carbon capture facility. By 2025, the company wants to have reduced 1% of the world's CO2 emissions. The business inaugurated the first direct air capture facility in Zurich, Switzerland, in 2017. The facility has the ability to yearly capture 900 metric tons of carbon. The greenhouse where the plants were housed grew more quickly as a result of the carbon dioxide that was trapped. In order to permanently store CO2 underground as minerals in basalt rock formations, the business established its second facility in Iceland that same year in partnership with Reykjavik Energy.

Countries in the Asia-Pacific region were showing growing interest in DAC, although the market might have been at a comparatively nascent stage. The region's significant carbon emissions and vulnerability to climate change impacts could stimulate the adoption of DAC as part of climate mitigation strategies. Some countries, such as Japan and South Korea, were known for their advancements in technology and might contribute to DAC research and development.

Countries in this region, particularly those rich in oil and gas resources, could potentially find applications for DAC in enhanced oil recovery processes. These countries often had the necessary geological formations for CO2 storage. However, the extent of DAC development might depend on local environmental policies, economic conditions, and geopolitical factors. These nations, which often faced climate-related challenges, could find DAC useful for both emissions reduction and potential carbon utilization applications.

Direct Air Capture Market News:

·       June 2020: FLSmidth & Co. AS sold three system packages to Gold Fields Limited for the Salares Norte project in Chile, resulting in a contract with a Gold fields project in Chile. For the first seven years of operation, the plant is anticipated to produce 286,000 ounces of gold and 2.6 million ounces of silver on average every year. The three fully functional process islands that make up the massive Downstream Gold product line project are a refinery, an AARLelution circuit, and a Merrill Crowe.

·       In April 2020, Bruker Corporation introduced the S2PUMA Series 2, a tabletop energy dispersive X-ray fluorescence (EDXRF) spectrometer with HighSense technology that allows throughput to be increased by approximately three times. Its improved features and quicker algorithms result in an evaluation that is about 40% shorter.

Driving Factors of Direct Air Capture Market Growth:

·       Climate Change Mitigation Goals: Increasing global awareness of climate change and the need to reduce greenhouse gas emissions prompted governments, organizations, and industries to seek innovative solutions. DAC offered the potential to achieve negative emissions by directly removing CO2 from the atmosphere, aligning with climate goals and commitments.

·       Carbon Neutrality and Net-Zero Targets: Many countries, companies, and organizations set targets to achieve carbon neutrality or net-zero emissions. DAC is viewed as a valuable tool to offset emissions that are challenging to eliminate through traditional methods, contributing to the achievement of these targets.

·       Advancements in DAC Technology: Research and development efforts led to advancements in DAC technology, making it more efficient and cost-effective over time. Innovations in sorbents, materials, and capture processes improved the feasibility of large-scale DAC implementation.

·       Increasing Investment and Funding: Growing interest in addressing climate change drove investments from both public and private sectors into DAC research and development. Funding from governments, venture capital, and philanthropic organizations supported the scaling up of DAC projects.

·       Carbon Pricing and Regulatory Support: The implementation of carbon pricing mechanisms and supportive regulatory frameworks in various regions created economic incentives for the adoption of DAC. Policies that recognized the value of negative emissions further bolstered the market.

·       Global Partnerships and Collaboration: Governments, research institutions, and private companies formed partnerships to accelerate DAC research, development, and deployment. Collaborative efforts helped share knowledge, pool resources, and address challenges collectively.

·       Public Awareness and Support: Growing public concern about climate change increased demand for innovative solutions. Support from communities and consumers could drive governments and industries to invest in DAC technologies.

Challenges and Future Outlook:

·       One of the most significant challenges for DAC was its high cost compared to other carbon capture methods. The energy-intensive nature of capturing CO2 directly from ambient air made the process expensive, limiting its scalability and widespread adoption. This factor is expected to hinder the market growth in coming years

·       AC faced regulatory challenges related to carbon accounting, certification, and market mechanisms. The establishment of standards for measuring, verifying, and valuing negative emissions was essential. The acceptance of DAC as a legitimate and ethical solution for addressing climate change was not uniform. Concerns about potential unintended consequences and the displacement of other mitigation efforts needed to be addressed.

Market Trends:

·       Research and development efforts were leading to advancements in DAC technologies. Improved sorbents, more efficient capture processes, and innovative engineering solutions were being developed to enhance the efficiency and cost-effectiveness of DAC systems.   

·       As climate policies and regulations evolved, some jurisdictions were recognizing the importance of negative emissions technologies like DAC. Supportive policies, incentives, and carbon pricing mechanisms could drive investments and growth in the DAC market.

·       The growing awareness of climate change and environmental issues among the general public was driving interest in innovative solutions like DAC. Public support could lead to increased funding and investments in the sector.

·       The DAC market is witnessing the emergence of startups focused on developing and commercializing novel DAC technologies. These startups are driving competition and innovation within the sector.

Key Segments:

Direct Air Capture Market research report includes an in-depth coverage of the industry with estimates & forecast from 2023 to 2031, for the following segments:

Direct Air Capture Market, By Number of Collectors, 2023-2031 (USD Million)

·       Less than 10 collectors

·       More than 10 collectors

Direct Air Capture Market, By Types, 2023-2031 (USD Million)

·       Physical Absorption in Liquid Media

·       Adsorption on Solid Media 

Direct Air Capture Market, By Application, 2023-2031 (USD Million)

·       Geologic Storage

·       Synthetic Fuels

·       Chemicals

·       Others 

Companies Profiled:

To enhance their position in the global market, key suppliers/manufacturers are concentrating on business expansion and product innovation. Manufacturers/producers are also working on boosting their manufacturing capacity and product quality to gain a competitive advantage. The following are some of the prominent manufacturers in the worldwide Direct Air Capture Market:

·       C2CNT

·       Carbon Collect Limited

·       Carbon Engineering Ltd.

·       Climeworks AG

·       Global Thermostat LLC

·       Infinitree LLC

·       National Energy Technology Laboratory

·       Newlight

·       Oak Ridge National Laboratory

·       Opus 12

·       Prometheus Fuels

·       Skytree

·       Soletair Power Oy

·       Sunfire GmbH

·       Synhelion SA

Research Methodology:

To compile the detailed study of the global Direct Air Capture Market, a robust research methodology has been adopted that aids in determining the key insights and also evaluates the growth prospects of the Direct Air Capture Market. Comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecast possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. Our research methodology implements a mix of primary as well as secondary research. Our projects are initiated with secondary research, where we refer to a variety of sources including trade databases; government published documents, investor presentations, company annual reports, Industrial papers, and paid databases. To carry out secondary research, the analysts have collected the information through company annual reports, journals, company press releases, and paid databases that were referred to gain and identify better opportunities in the Direct Air Capture Market.

Report Highlights:

The prime objective of the Direct Air Capture Market report is to help the user understand the market in terms of its definition, segmentation, market potential, influential trends, and the challenges that the market is facing with different major regions and more than 30 major countries across the globe. During the report's production, extensive research and analysis were conducted. This research will assist readers in gaining a thorough understanding of the market.

Direct Air Capture Market, By Region, 2023-2031 (USD Million)

·       North America ( United States, Canada, Mexico)

·       Europe (Germany, UK, France, Italy, Russia, Spain, and Rest of Europe)

·       South Asia ( India, Pakistan and Bangladesh)

·       East Asia (China, Japan and South Korea)

·       South East Asia (Indonesia, Thailand, Singapore, Malaysia, Rest of SE Asia)

·       Middle East (Turkey, Saudi Arabia, Iran, UAE, Israel, Iraq, Qatar, Rest of MEA)

·       Africa (Nigeria, South Africa, Egypt, Algeria, Rest of Africa)

·       South America (Brazil, Argentina, Colombia, Chile, and Rest of SA)

·       Oceania (Australia and New Zealand)   

Direct Air Capture Market Report Highlights:

·       Detailed analysis of the parent market

·       Key players' strategies and products supplied in the competitive landscape

·       Market segmentation in depth analysis

·       Market size in terms of volume and value, past, present, and future scenario

·       Potential and specialty areas, as well as geographical regions with promising growth prospects

·       Market players use this information to maintain and expand their market presence, thus it's important to have an unbiased perspective on market performance.

·       Recent advancements and technological trends in the industry