Carbon Capture Market Set to Hit $13.53 Billion by 2031

DELRAY BEACH, Fla.: The global carbon capture, utilization and storage market will grow from $5.67 billion in 2026 to $13.53 billion by 2031, a compound annual growth rate of 19%, according to a forecast from research firm MarketsandMarkets released Sept. 24 through PR Newswire.

At that pace the market would be about 2.4 times its current size in five years. The figures come from a paid report, and they are the firm's projection, not a count of projects already financed.

Oil and Gas Still Dominates Demand

The report shows how concentrated CCUS spending remains. Oil and gas held 75.6% of the market by value in 2025. Chemicals and petrochemicals ranked third among end users, supported by the concentrated CO2 streams from refineries, ethylene plants and ammonia facilities.

By service, capture accounted for 57.5% of the market in 2025, the largest share. By technology, the firm said chemical looping led in value. It also said point-source capture accounts for more than 60% of operational capacity, while enhanced oil recovery and synthetic fuels are adding demand for captured carbon.

That mix matters for anyone reading the headline number as a climate indicator. Much of today's market is tied to oil and gas operations, including using CO2 to push more oil out of the ground.

Europe Is Growing Fastest

MarketsandMarkets expects Europe to record the highest regional growth rate, 19.5% a year. It points to the EU Green Deal, carbon pricing under the Emissions Trading System and public funding. Shared transport and storage hubs are central to that, including the Northern Lights project in Norway and the Porthos project in the Netherlands.

The firm ties demand for capture services to rising carbon prices, fiscal incentives and the spread of commercial-scale projects.

Northern Lights is a concrete example. In April 2025, Shell, Equinor and TotalEnergies announced a $714 million investment to expand it, lifting CO2 storage capacity from 1.5 million to 5 million tons a year.

The Companies and the Money

The report names Equinor, Shell, ExxonMobil, Fluor and TotalEnergies as the leading players, alongside Linde, Mitsubishi Heavy Industries, Schlumberger, Aker Solutions and Honeywell. Among startups it highlights Carbon Clean, Tandem Technical and C-Capture.

ExxonMobil's place on that list sits alongside a debate over how much big oil companies should spend on low-carbon projects. TradeFlock reported that Exxon directors defended a smaller low-carbon budget to shareholders this autumn.

Public money is part of the picture. The U.S. Department of Energy made $96 million available for point-source capture at natural gas plants and industrial sites. Venture funding is smaller: the firm counted more than 15 deals in early 2026 worth $178 million, which it said signals a shift toward smaller rounds.

Deals continue too. In March 2026, Svante acquired Carbon Alpha Corporation for an undisclosed sum to add project development and storage capabilities.

Reading a Market Forecast

A five-year forecast from a firm that sells the full report should be read as one estimate among many. The useful parts are the structural facts: capture dominates spending, oil and gas dominates demand and Europe leads on policy support.

Similar research covers other parts of the decarbonization supply chain. A Mordor Intelligence study, for example, projected the recycled carbon fiber market reaching $427 million by 2031. Whether CCUS reaches $13.53 billion will depend on carbon prices, government support and how many announced storage hubs actually start injecting CO2.