Dublin, Ireland – The global market for Direct Air Carbon Capture (DACC) technology is poised for significant expansion, projected to reach $5.12 billion by 2029, according to a new report from Research and Markets. The market is currently valued at $3.18 billion in 2025, following a rapid growth from $2.81 billion in 2024, representing a compound annual growth rate (CAGR) of 13%. This growth trajectory is expected to continue, driven by increasing awareness of climate change and the urgent need for mitigation strategies.
The report, titled “Direct Air Carbon Capture Technology Market Report 2025,” identifies several factors contributing to the market’s robust growth. These include stricter carbon regulations being implemented globally, the expansion of carbon credit markets incentivizing carbon capture, rising technology costs that increase the value of efficient solutions, increased industrial adoption of DACC technology, and growing investments in clean technology initiatives. The projected CAGR of 12.6% from 2025 to 2029 underscores the increasing importance of DACC in addressing climate change.
Key trends shaping the DACC market include advancements in energy storage integration to optimize energy consumption, innovations in filtration systems to improve CO2 capture efficiency, improvements in sorbent materials to enhance CO2 binding, the development of cost-effective sorbents and materials to reduce operational expenses, and overall technological advancements in capture efficiency to maximize CO2 removal. These innovations are crucial for making DACC technology more economically viable and scalable.
The growing awareness of climate change mitigation is a primary driver for the DACC market. Escalating frequency and severity of extreme weather events such as hurricanes, wildfires, heatwaves, and floods have highlighted the urgent need to reduce greenhouse gas emissions. The International Energy Agency (IEA) has emphasized the critical role of DACC, projecting a significant scale-up from capturing 0.01 MtCO2 in 2022 to over 85 MtCO2 by 2030, and a substantial 980 MtCO2 by 2050. This underscores the importance of DACC in achieving global climate goals.
Companies in the DACC market are actively developing next-generation carbon capture solutions to enhance efficiency and scalability. These advanced solutions incorporate innovative structured sorbent materials and advanced filtration systems to optimize CO2 removal while minimizing energy consumption. For example, Climeworks AG introduced its Generation 3 DAC technology, doubling CO2 capture capacity per module and reducing energy consumption by 50%. Similarly, Skytree B.V. acquired ReCarbn B.V. to integrate innovative filtration and sorbent circulation technologies into its portfolio, enhancing the efficiency and cost-effectiveness of its carbon capture solutions.
Major players in the direct air carbon capture technology market include Exxon Mobil Corporation, Occidental Petroleum Corporation, GE Vernova, Sunfire GmbH, Climeworks AG, Carbon Clean Solutions Pvt Ltd, Heirloom Carbon Technologies, Carbon Engineering ULC, CarbonCure Technologies Inc, Skytree, CarbonCapture Inc, CarbonFree Chemicals Holdings LLC, Synhelion SA, 1PointFive LLC, Zero Carbon Systems, Soletair Power, LanzaJet, Noya PBC, Sustaera Inc, and Mission Zero Technologies. These companies are driving innovation and competition in the market, contributing to the development of more efficient and cost-effective DACC technologies.
The Research and Markets report provides a comprehensive analysis of the DACC technology market, including regional and country analysis, competitive landscape, company profiles, and key mergers and acquisitions. It also identifies high-potential countries, segments, and strategies for market participants. The report is available at ResearchAndMarkets.com, a leading source for international market research reports and market data.
