Direct Air Capture Market: A Billion-Dollar Opportunity by 2034

Report Overview:

The Direct Air Capture market is on a steep growth path, expected to rise from USD 1,007.1 billion in 2024 to an impressive USD 120,811 billion by 2034. This marks an extraordinary compound annual growth rate (CAGR) of 61.4% over the forecast period. North America currently leads the global landscape, contributing 48.3% of the total market share, thanks to its advanced infrastructure, favorable government policies, and robust investment ecosystem.

DAC is gaining attention as a reliable method for removing carbon dioxide directly from the atmosphere, supporting climate neutrality targets worldwide. There are two key technologies solid and liquid DAC but solid DAC is the most widely adopted, holding 58.3% of the market in 2024. Its modular design and energy efficiency make it the top choice for most operators. On the power front, 68.3% of DAC systems run on electricity, reflecting the transition toward cleaner energy sources.

Smaller units, particularly those with fewer than ten CO₂ collectors, are widely used due to their flexibility and lower setup costs. These small-scale setups account for 46.4% of current deployments. The main application remains carbon capture and storage (CCS), making up 82.1% of use cases, while the oil & gas sector leads among end users, with 34.5% of the demand driven by carbon management goals.

Key Takeaways:

The DAC market is forecasted to jump from USD 1,007.1 Bn (2024) to USD 120,811 Bn (2034) at a CAGR of 61.4%.
North America leads the global market with 48.3% share, thanks to strong infrastructure and incentives.
Solid DAC holds the top spot in technology with 58.3% share for its efficiency and scalability.
Electricity-powered DAC systems dominate with 68.3% share, in line with clean energy trends.
Small DAC units (<10 collectors) make up 46.4% of the market, suitable for modular deployments.
CCS applications lead (82.1%), with oil & gas as the largest end-use sector (34.5%).

direct-air-capture-market

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Key Market Segments:

By Technology

Solid-DAC (S-DAC)
Liquid-DAC (L-DAC)
Electrochemical-DAC (E-DAC)
Others

By Energy Source

Electricity
Heat

By Number of Collectors

Less than 10 collectors
More than 10 collectors

By Application

Carbon Capture, and Storage (CCS)
Carbon Capture Utilization and Storage (CCUS)

By End-Use

Oil & Gas
Food and beverage
Automotive
Chemicals
Healthcare
Others

DORT Analysis

Drivers
Rising global commitments to cut carbon emissions are pushing the adoption of DAC technology. Government incentives like the U.S. 45Q tax credit are making projects more financially viable. Continued R&D investment—around USD 4 billion—has helped improve the technology and bring down costs. Solid DAC systems are modular and energy-efficient, making them easier to scale across various sectors.

Opportunities
Captured CO₂ can be reused in several industries like fuels, chemicals, and construction, creating multiple revenue opportunities. Using renewable electricity to power DAC units improves sustainability and carbon savings. Small-scale DAC plants are easier to deploy and expand over time. Policies and carbon credit systems are becoming more supportive, opening new financial opportunities. Partnerships with oil, gas, and industrial firms can speed up commercialization and build large-scale capture networks.

Restraints
High capital and operating costs are a challenge, especially in countries with limited clean energy access. DAC systems consume significant energy, which can raise costs and emissions if not managed properly. Regulatory frameworks for CO₂ storage and utilization are still being developed. Public awareness and trust in large-scale CO₂ storage are still evolving, which could affect adoption rates.

Trends
Solid DAC technology is becoming the go-to choice for most new projects due to lower energy use and flexibility. More DAC facilities are now powered by renewable electricity to improve climate impact. Small, modular DAC units are trending because they’re easier to build and manage. Government policies are shifting from voluntary incentives to mandatory carbon removal goals. Industry players are forming alliances to co-develop infrastructure, share knowledge, and attract investment.

Market Key Players:

Avnos, Inc.
Capture6
Carbon Capture Inc.
Carbon Collect Limited
Carbon Engineering ULC
Carbyon
Global Thermostat
Heirloom Carbon Technologies
Immaterial
Infinitree LLC
Mission Zero Technologies
Mosaic Materials Inc.
Noya PBC
Octavia carbon
RepAir Carbon
Skytree
Soletair Power
Southern Green Gas Limited
Spiritus
Sustaera Inc.
Climeworks AG
Carbon Xtract Corporation
Other Key Players

Conclusion:

The Direct Air Capture market is rapidly moving from experimental to essential, with forecasts predicting growth from USD 1,007.1 billion in 2024 to USD 120,811 billion by 2034. This huge expansion is being driven by climate policies, private investments, and maturing technology. Solid DAC has emerged as the dominant technology due to its energy efficiency and modular setup. Electricity is the preferred energy source, showing the industry’s push toward clean, low-emission operations. Small-scale systems are popular among early adopters for their ease of installation and scalability.

Carbon Capture and Storage (CCS) remains the main application, especially in sectors like oil and gas. North America leads the market, but with global interest rising, other regions are catching up quickly. Challenges remain, especially in terms of cost and infrastructure, but public and private support is strong. As decarbonization efforts continue worldwide, DAC is becoming a central piece in the carbon removal puzzle.