Direct Air Capture (DAC or DACCS) Market Size, Share, Growth, and Industry Analysis, By Type (Physical Absorption in Liquid Media & Adsorption on Solid Media), By Application (Synthetic Fuels, Chemicals & Geologic Storage), and Regional Insights and Forecast to 2033

• 

   Request a Free Sample To Get More Information on this Market

DIRECT AIR CAPTURE (DAC OR DACCS) MARKET OVERVIEW

The global direct air capture (DAC or DACCS) market is poised for significant growth, starting at USD 0.07 billion in 2024, climbing to USD 0.11 billion in 2025, and projected to reach USD 4.18 billion by 2033, with a CAGR of 58.33%.

The Direct Air Capture (DAC) or Direct Air Carbon Capture and Storage (DACCS) market is sustainable technologies that capture CO₂ from the atmosphere as a solution to climate change through the reduction of gases contributing to this problem. With the global commitments made to move towards the attainment of net-zero emissions, the market for DAC is expanding at a very fast pace and attracting investment. Leaders in the industry are fully embracing technology as a tool to enhance efficiency and cope with the growing demand, making DAC a feasible option with regards to hard-to-abate emissions. This market should be central to the achievement of environmental goals and has major application prospects in sectors requiring effective carbon management.

COVID-19 IMPACT

"Direct Air Capture (DAC or DACCS) Industry Had a Positive Effect Due to Green recovery during COVID-19 Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Sustainable practices have become more important with the emergence of COVID-19, and as a result, influencers and investors gave more consideration to carbon reduction technologies such as DACs. Though the initial impact of the COVID-19 pandemic affected the supply chain and prompted fluctuating DAC market tendencies, they found growth as governments and corporations focused on the green recovery in the carbon-neutral direction. Bailout measures and policy towards environmentalism provided the much-needed boost needed for DAC technology and its application. This period actually led to the enhancement of the market framework and its future development trend.

LATEST TREND

"Renewable energy integration in DAC boosts market growth and sustainability"

A key trend in the Direct Air Capture (DAC) market is the integration of renewable energy sources to power DAC facilities, significantly reducing operational emissions and enhancing sustainability. Due to increasing pressure on strategies towards achieving carbon neutrality, the scales of cooperation with suppliers of solar and wind energy are gradually increasing within the DAC industry, thus reducing costs and increasing production efficiency. Such a trend concurs with global climate goals and increases the desirability of DAC technology for scale-up. Furthermore, today’s modular DAC units and materials enable scalability within different areas where they operate too.

DIRECT AIR CAPTURE (DAC OR DACCS) MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Physical Absorption in Liquid Media & Adsorption on Solid Media.

• Physical Absorption in Liquid Media: This method involves the selective dissolution of the gas from the air by means of liquid solvents to which CO₂ dissolves as it flows past the solvents. It is commonly used due to its essentially simple technique, even if it needs power to reconstitute the liquid for reuse. Effort has been made in recent years to enhance the efficiency of liquid media absorption with the ultimate goal of bringing the cost down so as to support mass production of DACs.

• Adsorption on Solid Media: Here, employments of several solid sorbents capture the CO₂ gas in the air by chemically interacting with the gas in question. More and more, solid adsorbents are being used because they require less energy to regenerate than liquid-based systems on which they were replaced. Like most other SWRC techniques, this method is scalable, and future studies are continuously being carried out aimed at extending the lifespan of the materials and increasing their capture ability.

By Application

Based on Application, the global market can be categorized into Synthetic Fuels, Chemicals & Geologic Storage

• Synthetic Fuels: Direct Air Capture technology targets CO₂ that can be transformed to synthetic fuels, hence providing renewable energy as opposed to fossil fuels. In this application, a closed carbon loop means that the CO₂ emissions from fuel combustion are recovered and can be used again. Synthetic fuels from CO₂ from DAC are increasingly sought after, especially as the aviation and shipping industries gradually zoom in on sustainable energy.

• Chemicals: The captured CO2 is used in the creation of chemicals such as methanol, urea, and all other manufactures that require carbon-based products. This approach grants a sustainable feedstock for the chemical industry with a decreased dependence on fossil-derived carbon sources. The major factor for the growth of DAC applications in industrial chemical manufacturing is the burgeoning demand for environmentally sustainable chemicals.

• Geologic Storage: In geologic storage, the captured CO₂ from the atmosphere is stored in reservoirs that are deep in the earth to help reduce the atmospheric concentrations of the CO₂. It is critical for negative emissions, unlike other potential methods based on capturing and storing CO2, as it removes the compound from the environment. Geologic storage has steadily been receiving the attention it deserves, more so as countries and companies come up with carbon neutrality solutions.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Decarbonization efforts drive market growth in DAC technology for CO₂"

The process of decarbonization is expected to take shape across the globe, popularizing the idea of net zero and is also the reason for keen interest in DAC technology as a tool necessary for capturing CO₂ in the atmosphere. Governments & corporations are finally getting their act together to address the ‘climate change scourge’ through targets & more targets, thus increasing the demand for DAC as one of the direct techniques of accomplishing the mission. Such a trend is most evident in industries where decarbonization is difficult, for example, in heavy industries and aviation.

"Government incentives and policies drive market growth in DAC technology"

This is especially encouraging as governments are ramping up their support of the DAC market through incentives, subsidies, and carbon credits. New policies that relate to carbon and sustainability have made the DAC projects more financially feasible and attractive to investors. This mechanism constitutes a core support from the regulatory front that is pivotal to amplify the adoption of DAC technology besides reducing general operating costs and resulting Direct Air Capture (DAC) market growth.

Restraining Factor

"High costs hinder market growth in DAC, requiring improvements and support"

The high implementation and operating costs are one of the factors that will likely slow down the Direct Air Capture (DAC) market. DAC systems are energetically intensive and require a substantial amount of investment in the infrastructure, which means that the technology is costly compared to a number of other carbon capture and storage technologies. They contribute to high costs, which hinder widespread adoption of Biogas by other farmers and industries, and this can only be brought down by further technology improvements or more policy support incentives.

Opportunity

"Growing demand for carbon credits drives market growth in DAC"

The expanded adoption of DAC services is also an opportunity because it addresses the current higher demand for carbon offset credits. As more industries plan for carbon neutrality, DAC systems can effectively cater for supply of negative emissions when dealing with difficult-to-abate CO₂ emissions. Such growing demand, along with the emergence of the regulatory framework, may automatically create the necessary conditions for the investment and scaling of the DAC technologies. The characteristic of turning carbon removal into commodities will make DAC more cost-effective for broader applications.

Challenge

"High energy consumption challenges market growth in DAC without affordable energy"

One of the key issues the Direct Air Capture (DAC) market has met is the high energy consumption that the process entails to capture and filter CO₂. The requirement for clean energy to power DAC systems increases the cost of operations as well as challenges the feasibility of scaling. Furthermore, efforts to attain good energy sources continue to be important in ensuring that DAC technology brings reasonable returns. Although the application of the DAC system is potentially applicable across the globe, this may not be achievable if energy is not affordable.

• 

   Request a Free Sample To Get Analysis on Major Geographic Market

DIRECT AIR CAPTURE (DAC OR DACCS) MARKET REGIONAL INSIGHTS

• North America

"North America's market growth in DAC driven by support and investment"

North America has a higher market share of Direct Air Capture (DAC) owing to increased political support, innovation, and adequate investment from the government and private entities. The United States is central to this process since the United State Direct Air Capture (DAC) or DACCS market enjoys federal backing in the form of tax credits or capital grants to support carbon removal schemes. Large corporations across the region are increasingly committing to DAC technology to help drive advanced carbon capture solutions across North America. This is further underscored by the fact that the region holds enormous renewable energy generation and generation connection potential.

• Europe

"Europe’s climate policies and investments drive market growth"

Europe holds remarkable DAC market share due to favorable climate policies such as the European Green Deal and very low carbon targets. This area is now using and planning further investment in DAC technologies that will enable it to meet its own goals of net zero by 2050. Some of the European countries that show a higher level of readiness to engage in the DAC pilot projects and geologic storage involve Iceland, Norway, and many others. Further, Europe’s concentration towards innovation and financing for carbon removal services contributes to the market in terms of growth and opportunity.

• Asia

"Asia's emerging investment in DAC drives market growth for carbon solutions"

While the DAC market globally remains nascent, Asia is slowly emerging as an investor in climate change solutions and carbon technologies. The Conditional Anonymous Contribution, or DAC, is being studied by countries such as Japan and South Korea as they work to achieve carbon neutrality by 2050. New industrial areas and urban development in the region make it even more necessary to identify large-scale carbon capture solutions.

KEY INDUSTRY PLAYERS

"Key investments and innovation drive market growth in DAC technology"

There is disruption by significant stakeholders in the field of DAC market with key investments in the technologies as well as business model. Current players in the CO2 capture industry such as Climeworks and Carbon Engineering are developing DAC systems, enhancing the feasibility of these technologies. The innovation they have come up with together with the governments and private sectors can easily sum up that the DAC solution is workable in the reduction of carbon.

List of Top Direct Air Capture (DAC or DACCS) Companies

• Prometheus Fuels (US)
• Carbon Collect Limited (Ireland)
• Opus 12 (US)
• Newlight (US)
• C2CNT (Canada)

KEY INDUSTRY DEVELOPMENT

October 2024: Pearson, a leading education company, reported a 5% increase in underlying sales for the third quarter, attributing this growth to the successful integration of AI-powered study tools within its higher education products. These AI tools, utilized by over 5 million students and incorporated into more than 90 titles during the back-to-school period, have significantly enhanced student engagement and learning outcomes. CEO Omar Abbosh highlighted the accelerating deployment of AI technology as a key driver of these commercial benefits, underscoring Pearson's commitment to leveraging AI to improve educational experiences.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential Applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.