Direct air carbon capture technology is transforming from a $4.1 million market to an $11 billion industry by 2034.
Direct air carbon capture technology is emerging as a major weapon in the fight against climate change. The market is projected to grow from $4.1 million in 2023 to $11.05 billion by 2034, according to a new market analysis report from ResearchAndMarkets.com.
These machines work like giant vacuum cleaners for the atmosphere, filtering out carbon dioxide – the main greenhouse gas causing global warming. After capture, the CO2 can be stored permanently underground or transformed into useful products, offering a powerful tool for reducing greenhouse gases already in our atmosphere.
Direct air carbon capture technology facilities use two primary methods to catch carbon dioxide from the air we breathe. The first method employs solid materials that attract CO2 molecules like a magnet attracts metal. These materials, called solid sorbents, can be reused many times, making the process more cost-effective over time.
The second approach uses special liquid solutions that trap CO2 like a sponge soaks up water. These liquid solvents can capture large amounts of carbon dioxide and are particularly effective at pulling the greenhouse gas from the air, even when CO2 concentrations are very low.
Once captured, companies can either pump the CO2 deep underground into former oil wells and similar geological formations for permanent storage, or use it to create valuable products. These products include synthetic fuels for vehicles and airplanes, materials for building construction, and chemicals used in manufacturing.
While direct air carbon capture technology represents an innovative approach to removing CO2, it’s not the only method available. Natural solutions like reforestation and soil carbon sequestration have been used for years. Trees and plants naturally absorb CO2 through photosynthesis, storing it in their biomass and the soil.
Enhanced weathering, another carbon removal approach, involves spreading crushed minerals over large areas. These minerals naturally react with CO2 in the air, turning it into stable carbonate rocks. Ocean-based methods like seaweed farming and artificial upwelling are also being explored.
However, direct air carbon capture technology offers unique advantages. Unlike forests, which require vast land areas and are vulnerable to fires and disease, DAC facilities have a smaller footprint and provide more reliable, measurable carbon removal. They can also be built near storage sites or where captured CO2 can be used in products.
The DAC industry saw several major advances in 2024. Climeworks, a leading company in the field, announced significant improvements to their technology in June, making it more efficient and easier to build at large scale. This advancement could help meet the growing global demand for carbon removal.
In November, the Canadian government demonstrated its commitment to the technology by investing $5 million in Carbon Engineering ULC. This funding will help develop larger facilities capable of removing more CO2 from the atmosphere.
Japan Airlines joined the movement in December by investing in Heirloom’s DAC technology. This investment is part of the airline’s strategy to eliminate all net emissions by 2050, showing how transportation companies are turning to carbon removal to meet their climate goals.
Several factors are pushing rapid growth in the direct air carbon capture technology market. Governments worldwide have committed to eliminating or offsetting all greenhouse gas emissions in the coming decades, creating strong demand for carbon removal technologies. Many countries now offer financial incentives, tax breaks, and direct funding to companies developing and deploying DAC systems.
Large corporations are also investing heavily in direct air carbon capture technology to fulfill their climate promises. Industries that find it technically difficult to eliminate all emissions, such as aviation, shipping, and manufacturing, see DAC as a crucial tool for balancing out their remaining carbon footprint.
Despite its promise, direct air carbon capture technology faces several hurdles. Building and operating these facilities requires significant financial investment and energy resources. To be truly effective in fighting climate change, this energy must come from clean sources like wind, solar, or nuclear power.
The industry also needs more infrastructure for storing captured carbon dioxide. This creates opportunities for companies to develop new underground storage sites and monitoring systems to ensure the CO2 stays safely contained.
As direct air carbon capture technology becomes more widespread, it could help slow climate change and its effects on weather patterns, agriculture, and coastal flooding. This could protect communities from natural disasters, maintain stable food supplies, and prevent climate-related economic disruptions.
The growing industry is also creating new job opportunities in construction, engineering, facility operations, and technological development. Products made using captured CO2 could give consumers more environmentally friendly choices in fuels, building materials, and everyday items.
Programs like the U.S. Inflation Reduction Act and European Green Deal are providing crucial support through tax incentives and funding for carbon removal projects. These policies aim to make the technology more affordable and encourage widespread adoption.
The European Union has created a Carbon Removal Certification Framework, establishing standards for measuring and verifying carbon removal. These rules help ensure the technology delivers real climate benefits and builds public trust in carbon removal efforts.
The future of direct air carbon capture technology looks promising as costs decrease and efficiency improves. Experts predict that as the technology matures, it will become an increasingly important tool in the global climate action portfolio, working alongside renewable energy, energy efficiency, and natural carbon sinks.
Research continues into new materials and methods that could make the technology even more effective and affordable. As more companies enter the market and scale up operations, the cost per ton of CO2 removed is expected to decrease significantly.
