The global focus on reducing greenhouse gas emissions is accelerating the adoption of technologies that can help industries lower their carbon footprint. Carbon capture and sequestration (CCS) has emerged as an important solution for managing emissions from sectors where reducing carbon dioxide output through conventional methods can be challenging. Heavy industries such as cement, steel, chemicals, power generation, and oil and gas are increasingly exploring carbon capture technologies as part of their broader decarbonisation strategies.
Carbon capture involves separating carbon dioxide from industrial emissions before it enters the atmosphere. The captured carbon dioxide can then be transported and either utilised in industrial applications or permanently stored in suitable geological formations. As governments and businesses establish more ambitious emissions-reduction targets, investments in carbon capture infrastructure are increasing.
According to Expert Market Research, the global carbon capture and sequestration market reached USD 8.59 Billion in 2025 and is projected to grow at a CAGR of 10.90% between 2026 and 2035, reaching approximately USD 24.17 Billion by 2035. The increasing need to decarbonise energy-intensive industries is expected to remain a major contributor to market expansion.
Rising Need for Industrial Decarbonisation
Heavy industries are among the largest sources of industrial carbon dioxide emissions. Manufacturing processes such as cement production, steelmaking, chemical processing, and refining often require high temperatures and substantial energy consumption. Some emissions are also generated directly through chemical reactions, making complete decarbonisation particularly difficult.
Carbon capture technologies provide an option for addressing these emissions. Instead of relying exclusively on changes to fuels or production processes, companies can capture carbon dioxide directly from industrial facilities.
The increasing pressure on industries to reduce emissions is therefore creating greater interest in CCS projects. Companies are assessing carbon capture as part of long-term strategies designed to comply with environmental regulations while maintaining industrial production.
Cement Industry Creates Significant Opportunities
The cement industry is one of the key sectors where carbon capture can play an important role. Cement production generates carbon dioxide not only from fuel combustion but also from the chemical process involved in producing clinker.
Because process-related emissions cannot be completely eliminated through energy efficiency alone, carbon capture provides an important pathway for reducing the industry’s overall emissions.
Cement manufacturers are increasingly evaluating pilot projects and commercial-scale carbon capture facilities. The development of cost-effective capture systems could help cement producers reduce emissions while continuing to meet global demand for construction materials.
Steel Industry Increasingly Explores CCS
Steel production is another energy-intensive industry with significant decarbonisation requirements. Although alternative production methods such as hydrogen-based processes are being developed, existing steelmaking infrastructure remains widespread.
Carbon capture can potentially be integrated into certain steel production facilities to capture emissions generated during manufacturing. This can provide companies with an additional pathway for reducing the carbon intensity of existing operations.
As demand for low-carbon steel increases from automotive, construction, infrastructure, and other industries, steel producers are exploring different technologies to reduce emissions. Carbon capture is expected to remain part of this broader technology mix.
Role of Oil and Gas Companies
The oil and gas sector is also involved in the development of carbon capture, utilisation, and storage infrastructure. Companies operating in the sector possess experience in subsurface engineering, pipelines, geological storage, and large-scale energy infrastructure, which can support the development of CCS projects.
Carbon dioxide captured from industrial facilities can be transported through dedicated pipelines or other transportation systems to suitable storage locations. Depleted oil and gas reservoirs and deep saline formations are among the geological formations that can potentially be used for permanent storage.
Oil and gas companies are increasingly investing in carbon management technologies as they seek to diversify their businesses and respond to changing energy policies.
Technological Advancements in Carbon Capture
Technological development is improving the efficiency and potential scalability of carbon capture systems. Different approaches are being developed depending on the industrial process and composition of the emissions stream.
Post-combustion capture is one widely considered approach, in which carbon dioxide is separated from exhaust gases after fuel combustion. Pre-combustion capture involves removing carbon dioxide before combustion, while oxy-fuel technologies use oxygen-rich environments to produce exhaust streams with higher concentrations of carbon dioxide.
Advances in solvents, membranes, sorbents, and other separation technologies are helping researchers and companies explore more efficient capture processes. Improvements in equipment design and process integration can also help reduce the energy requirements associated with carbon capture.
Carbon Capture and Storage Infrastructure
Capturing carbon dioxide is only one component of a successful CCS system. Large-scale deployment also requires infrastructure for transportation and storage.
Captured carbon dioxide can be compressed and transported through pipelines, ships, or other specialised systems. The appropriate transportation method depends on the location of the capture facility, storage site, and overall project scale.
Geological storage is a key component of CCS. Carbon dioxide can be injected into deep underground formations that are considered suitable for long-term containment. Extensive assessment and monitoring are required to ensure that storage sites are appropriate and that captured carbon remains securely contained.
The development of shared carbon transportation and storage networks could reduce infrastructure costs and enable multiple industrial facilities to participate in regional CCS projects.
Government Policies and Investments
Government policies are playing an important role in encouraging carbon capture deployment. Many countries are introducing emissions-reduction targets, financial incentives, tax measures, and regulatory frameworks to support investment in carbon management technologies.
Public funding can help reduce the financial risks associated with large-scale CCS projects, particularly during the early stages of market development. Governments are also supporting research and development programmes aimed at improving capture efficiency and reducing costs.
The development of clear regulations for carbon transportation, storage, monitoring, and liability is equally important. Consistent regulatory frameworks can provide companies with greater certainty when planning long-term CCS investments.
Opportunities in Hydrogen and Low-Carbon Fuels
Carbon capture is also connected to the development of low-carbon hydrogen and other alternative fuels. Hydrogen produced from natural gas can be combined with carbon capture technologies to reduce associated emissions.
This approach can support the development of hydrogen infrastructure while renewable hydrogen production continues to expand. Carbon capture can also be applied to industrial processes that generate concentrated carbon dioxide streams.
The growing interest in low-carbon fuels and industrial feedstocks is therefore creating additional opportunities for carbon capture technologies and related infrastructure.
Challenges Facing the Market
Despite strong growth prospects, the carbon capture and sequestration market faces several challenges. The high capital costs associated with capture equipment, transportation networks, and storage infrastructure can make project development financially challenging.
Energy consumption is another important consideration. Some carbon capture processes require significant amounts of energy, which can increase operating costs and potentially affect the overall efficiency of industrial facilities.
The development of transportation and storage infrastructure can also be complex. CCS projects often require coordination between industrial companies, infrastructure providers, governments, regulators, and local communities.
Public acceptance and environmental concerns surrounding carbon storage may also influence project development. Transparent monitoring, robust regulatory systems, and effective communication will be important for building confidence in large-scale CCS projects.
Emerging Market Opportunities
The increasing need for industrial decarbonisation is creating significant opportunities for technology providers, engineering companies, infrastructure developers, and energy businesses. Companies capable of offering efficient capture technologies and integrated carbon management solutions are likely to benefit from rising investment.
Developing regional carbon hubs could provide an efficient approach to deployment. Multiple industrial facilities could share transportation and storage infrastructure, potentially reducing costs and improving project feasibility.
Emerging markets with growing industrial sectors may also represent future opportunities. As these economies expand their manufacturing capacity, incorporating carbon management technologies into new industrial facilities could help reduce future emissions.
Market Outlook
The global carbon capture and sequestration market is expected to experience substantial growth during the forecast period. From USD 8.59 Billion in 2025, the market is projected to expand at a CAGR of 10.90% between 2026 and 2035, reaching approximately USD 24.17 Billion by 2035.
The expansion is expected to be supported by increasing investments in industrial decarbonisation, government initiatives, technological advancements, and the development of carbon transportation and storage infrastructure. Heavy industries are likely to remain among the primary users of carbon capture solutions due to the difficulty of eliminating process-related emissions through other approaches.
As carbon management systems become more efficient and scalable, their applications could expand across additional industrial sectors. The integration of carbon capture with hydrogen production, low-carbon fuels, and carbon utilisation could further broaden the market’s potential.