Carbon Removal Technology Market Outlook: US$2.17 Billion Opportunity at 14.59% CAGR, Driven by DAC, BECCS & Durable CDR Solutions

The global carbon removal technology market was valued at US$733.77 million in 2024 and is projected to reach US$2,176.82 million by 2034, growing at a compound annual growth rate CAGR of 14.59% during the forecast period from 2025 to 2034. according to DataM Intelligence.

United States: Recent Industry Developments
✅ In January 2026, 1PointFive (Occidental subsidiary) announced an agreement with Bain & Company for 9,000 metric tons of DAC carbon removal credits over three years from the STRATOS facility in Texas, advancing large-scale DAC deployment.
✅ In September 2025, 1PointFive signed a carbon removal credit agreement with NYK (Nippon Yusen Kabushiki Kaisha) for DAC credits from STRATOS, supporting maritime decarbonization.
✅ In July 2025, 1PointFive announced a carbon removal credit agreement with Palo Alto Networks, supplying durable CDR credits to address residual emissions.

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Japan: Recent Industry Developments
✅ In 2024-2025, Japan continued partnerships with industry leaders to scale carbon removal-based circular economy projects, emphasizing DAC, BECCS, and mineralization under national decarbonization goals.
✅ Ongoing advancements in policy support for carbon removal technologies, with collaborations aligning to net-zero targets and integration into industrial and energy sectors.
✅ Focus on adopting durable CDR solutions, including potential offtake agreements with global DAC providers like 1PointFive for aviation and shipping sectors.

Asia-Pacific: Recent Industry Developments
✅ In 2025, China expanded large-scale CCUS pilot projects across power generation and industrial clusters, incorporating carbon removal pathways to support dual-carbon goals.
✅ In India, infrastructure investments under Smart Cities Mission (7,555 projects completed by May 2025 worth US$151.0 billion) boosted demand for carbon removal in industrial and urban development.
✅ Regional growth in biochar, enhanced mineralization, and nature-based solutions, driven by government policies and industrial decarbonization needs.

Mergers & Acquisitions
✅ Ongoing joint ventures and strategic alliances in the sector, with players like CarbonCure forming partnerships for carbon removal credit supply.
✅ Focus on collaborations rather than traditional M&A, including alliances between DAC innovators and corporates for scaling projects and credit offtake.

Technological Partnerships
✅ Climeworks and partners expanded DAC innovation centers and pilots, including evaluations in hot/arid climates (e.g., Saudi Arabia).
✅ 1PointFive (Occidental) formed multiple offtake partnerships with companies like Bain & Company, NYK, and Palo Alto Networks for STRATOS DAC credits.
✅ Collaborations in BECCS and biochar, such as Charm Industrial's bio-oil injection projects supported by corporate and government alliances.

New Product/Service Launch
✅ In June 2025, NALCO launched the CCS-90 carbon capture system for power generation facilities, offering enhanced efficiency and scalability for carbon removal integration.
✅ Climeworks advanced Generation-3 DAC technology pilots and innovation centers for improved performance and cost reduction.
✅ Graphyte launched novel biomass carbon removal pilots, expanding accessible CDR pathways.

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Technological Advancements in the Market
✅ Breakthroughs in DAC scaling, with facilities like STRATOS progressing toward commercial operation and removing up to 500,000 tonnes CO2 annually.
✅ Advancements in BECCS, biochar, enhanced mineralization, and ocean-based methods, achieving higher capture efficiencies and lower costs.
✅ Integration of MRV (Monitoring, Reporting, Verification) systems and circular economy applications, reusing captured CO2 in fuels, materials, and products.

Funding Raised by Companies
✅ Climeworks raised US$162 million in Series E funding to scale Generation-3 DAC and expand carbon removal portfolio.
✅ U.S. DOE historical allocations (e.g., $1.2 billion for DAC hubs) continued influencing 2025 momentum; Canada committed over CAD 9 billion to clean energy and carbon capture.
✅ Corporate offtake agreements driving investment, with billions in commitments for durable CDR projects globally.

Market Dynamics & Key Insights
✅ Surging demand for durable carbon removal to meet net-zero goals, driven by corporate commitments, government incentives (e.g., U.S. IRA tax credits), and carbon credit markets.
✅ Industrial processes dominate applications, with power generation, heavy industry, and transportation seeking solutions for hard-to-abate emissions.
✅ Asia-Pacific leads in revenue share due to rapid industrialization in China and India; North America fastest-growing with policy support and innovation in DAC.
✅ Emphasis on scalability, cost reduction, and integration of technical (DAC, BECCS) with nature-based solutions to address atmospheric CO2 removal needs.

Segmentation
By Technology
The Direct Air Capture (DAC) segment is rapidly growing, driven by commercial-scale facilities and corporate offtake agreements for durable removal.
Bioenergy with Carbon Capture & Storage (BECCS) holds significant share for biogenic CO2 removal.
Other segments include Biochar, Enhanced Mineralisation / Carbon Mineralisation, Ocean-based Removal, Afforestation & Reforestation.
By Application
The Industrial Processes segment accounts for the largest share, driven by decarbonization in heavy industries like cement, steel, and power.
Agriculture & Land Use, Direct Air / Environmental Services, Carbon Credit & Trading Markets also contribute significantly.
By Storage
Geological Storage dominates for permanent sequestration in DAC and CCUS projects.
Terrestrial Storage, Ocean Storage, Mineral Storage.
By Project Scale
Technical Removal Projects (e.g., DAC hubs) vs. Nature-Based and Hybrid Projects.

Regional Analysis
Asia-Pacific leads the global carbon removal technology market with the largest share in 2024, fueled by industrial growth, infrastructure development, and policies in China, India, and Japan.
North America is the fastest-growing region, supported by U.S. incentives (e.g., Inflation Reduction Act tax credits up to $85/ton), DAC advancements, and corporate commitments.
Europe holds strong position with regulatory frameworks and innovation in mineralization and BECCS.
South America, Middle East & Africa show emerging growth through resource potential and pledges.

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Competitive Landscape
Key players include Climeworks, CarbonCure, Carbon Clean (commanding 35-40% share), Global Thermostat, Blue Planet, Charm Industrial, Solidia Technologies, Graphyte, 1PointFive (Occidental), and others. The market is moderately concentrated, with competition driven by government support, scalability, and partnerships for CDR credit supply.

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