Rising Environmental Concerns And Escalating Greenhouse Gas Emissions Fueling The Growth Of Direct Air Capture Market Emerges as a Core Driver of the Direct Air Capture Market in 2025

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What Is the Expected CAGR for the Direct Air Capture Market Through 2025?
In recent times, the size of the direct air capture market has experienced a dramatic surge. This market is projected to climb from a value of $0.07 billion in 2024 to $0.11 billion in 2025, featuring a compound annual growth rate (CAGR) of 65.0%. This significant expansion during the historical period can be associated with factors such as worry over climate change, policy and regulatory reinforcement, enterprises' initiatives towards sustainability, mechanisms of carbon pricing, rising public consciousness and backing, as well as international collaboration and alliances.

What's the Projected Size of the Global Direct Air Capture Market by 2029?
Expectations are high for the direct air capture market size to experience profound growth in the forthcoming years. It is projected to inflate to $0.68 billion by 2029, with a Compound Annual Growth Rate (CAGR) of 56.5%. The surge during the forecast period can be associated with objectives for net-zero emissions, developing carbon removal markets, assimilation with carbon utilization, climate robustness and adaption, investor attraction and funding, policy synergy and worldwide collaboration. Notable future trends involve the use of DAC as a negative emissions solution, partnerships between DAC firms and industrial plants, amalgamation with carbon utilization initiatives, rising demand for eco-friendly fuels and materials, enhancements in DAC efficiency, creation of scalable and modular systems, broadening of deployment in industrial sectors, and innovation in DAC technology.

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Top Growth Drivers in the Direct Air Capture Industry: What's Accelerating the Market?
The surge in environmental issues, notably the emission of greenhouse gases, is predicted to drive expansion in the direct air capture market in the future. The term greenhouse gas emissions refers to the discharge of gases like carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) into our environment, which traps heat and results in global warming. The primary contributors to this increase are industrial pursuits, deforestation, transportation, and agriculture. Direct air capture technology serves as a potential solution to curtail greenhouse gas emissions since it captures CO2 directly from the air. As per the US Energy Information Administration, a US governmental body, in June 2024, CO2 emissions had risen from 35.72 billion metric tons in 2021 to 38.50 billion metric tons in 2022. Consequently, the surge in environmental challenges, particularly greenhouse gas emissions, is fuelling the expansion of the direct air capture market.

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What Trends Will Shape the Direct Air Capture Market Through 2029 and Beyond?
Leading businesses in the direct air capture market are sharpening their competitive edge by focusing on the introduction of cutting-edge systems like the hybrid direct air capture system. A hybrid direct air capture (DAC) system combines multiple methods to directly capture carbon dioxide (CO2) from the atmosphere. For example, Avnos, Inc., an energy company based in the US, unveiled the first hybrid direct air capture system (HDAC) in November 2023, in collaboration with Southern California Gas Company, an American utility company. This HDAC technology, which uses electricity to generate water and remove CO2 from the air, aims to demonstrate a potential capacity increase of up to 1,000% from the current version in the pilot project. The HDAC technology, a hybrid version of direct air capture, features a two-stage system which decarboxylates the dry air stream, compresses the CO2 for transport, storage or use, and converts water vapor into reusable liquid water.

What Are the Main Segments in the Direct Air Capture Market?
The direct air capturemarket covered in this report is segmented -

1) By Product: Absorption-Based Direct Air Capture (SDAC), Adsorption-Based Direct Air Capture (DAC), Membrane-Based Direct Air Capture (DAC), Cryogenic-Based Direct Air Capture (DAC)
2) By Scale: Pilot-Scale, Demonstration-Scale, Commercial-Scale
3) By Source: Electricity, Heat
4) By Application: Carbon Capture, And Storage (CCS), Carbon Capture, Utilization And Storage (CCUS)
5) By End- Use: Oil And Gas, Food And Beverage, Automotive, Chemicals, Healthcare, Other End-Uses

Subsegments:
1) By Absorption-Based Direct Air Capture (SDAC): Chemical Absorption, Physical Absorption
2) By Adsorption-Based Direct Air Capture (DAC): Solid Adsorbent, Liquid Adsorbent
3) By Membrane-Based Direct Air Capture (DAC): Polymeric Membranes, Inorganic Membranes
4) By Cryogenic-Based Direct Air Capture (DAC): Low-Temperature Adsorption, Cryogenic Distillation

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Which Top Companies are Driving Growth in the Direct Air Capture Market?
Major companies operating in the direct air capture market are Mosaic Materials Inc., Sunfire GmbH, National Energy Technology Laboratory, Climeworks AG, Carbon Clean Solutions Limited, Carbon Engineering Ltd., Heirloom Carbon Technologies Inc., Oak Ridge National Laboratory, Skytree Technologies AS, CarbonCapture Inc., Immaterial Inc., Global Thermostat Inc., Spiritus Systems, Synhelion AG, Infinitree Inc., Avnos Inc., Noya PBC, RepAir LLC, MISSION ZERO TECHNOLOGIES Inc., Carbyon Inc., Sustaera Inc., Southern Green Gas Limited, Octavia Carbon, Inc., Capture6 Inc.

Which Regions Will Dominate the Direct Air Capture Market Through 2029?
North America was the largest region in the direct air capture market in 2024. The regions covered in the direct air capture market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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