Direct Air Capture Market Size, Share, and Industry Analysis By Technology (Solid DAC, Liquid DAC, Electrochemical DAC, and Others), By Energy Source (Electricity and Heat), By Application (Carbon Capture and Storage, Carbon Capture, Utilization, and Storage), By End-user (Chemicals, Oil & Gas, and Others), and Regional Forecast, 2026-2034

The global direct air capture market size was valued at USD 160.86 billion in 2025. The market is projected to grow from USD 260.96 billion in 2026 to USD 12518.36 billion by 2034, exhibiting a CAGR of 62.23% during the forecast period.

The global direct air capture market is growing courtesy of government and corporate investments. Direct Air Capture (DAC) market rapidly stimulating through this emerging understanding of commercial viability for industries in an active removal of CO₂ from the atmosphere and in grappling with climate change issues. Some of the driving factors for the market are advancements in carbon capture technologies, government incentives, and corporate commitments to sustainability. Massive investments in DAC installations can be coupled with multiple spin-off projects for carbon storage and utilization, thereby enhancing adoption.

• According to the Global CCS Institute, in the Americas, there are 260 DAC facilities in development as of 2024.

The market has become robust due to rising climate regulations and carbon neutrality goals. Carbon reduction policies designed by governments and international agencies promote industry uptake of Direct Air Capture (DAC) technologies. Corporate commitments to net zero and carbon pricing mechanisms generate major demand for scalable carbon removal solutions. Further investments in DAC infrastructure are incentivized through tax credits and subsidies.

Direct Air Capture Market Driver

Advancements in Carbon Capture Technology and Cost Reduction

There is constant advancement in absorbent materials, filtration processes, and energy-efficient means of capturing, adding to the commercial viability of the whole concept of DAC. Coupling these systems with renewable sources has cut down their operational costs and increased sustainability. With further economies of scale, DAC technology is expected to exhibit better commercial competitiveness in the upcoming years.

Direct Air Capture Market Restraint

Energy-Intensive Processes May Hamper Industry Growth

The operational costs increase with high energy consumption, making it financially unaffordable to use this technology on a large scale. If fossil fuels are utilized in the process, they might nullify some carbon removal benefits, making the overall efficiency of this method poorer. To mitigate this, renewable energy integration with DAC systems such as solar and wind should happen for the sustainability and cost efficiency purposes.

Direct Air Capture Market Opportunity

Integration with Renewable Energy to Create New Opportunities

The carbon footprint of the capture process would thus be reduced and be made more environmentally viable by coupling DAC to solar, wind, or geothermal energy. Further improvements in financial viability of renewable-powered DAC would also be gained from incentives and carbon credits. Since render and renewable applications continue to decline in price, the coupling of DAC to such systems will also speed-up the scalability and global adoption of DAC.

• The United States Environmental Protection Agency (EPA) reported a total of 5,222 million metric tons of CO₂ emissions in 2022.

Segmentation

Key Insights

The report covers the following key insights:

• Growing DAC Facilities, By Key Countries
• Drivers, Restraints, Trends, and Opportunities
• Carbon Emissions, By Key Countries
• Consolidated SWOT Analysis of Key Players
• Key Industry Developments (Mergers, Acquisitions, Partnerships)

Analysis by Technology

By technology, the market is divided into solid DAC, liquid DAC, electrochemical DAC, and others.

Every solid-state version of DAC will use solid materials, like MOFs or amine moiety-containing materials, and work on CO₂ uptake from air. This market is also expected to grow steadily because of the fact that solid forms of DAC consume less energy than liquid forms, gain in efficiency from solid sorbents, and investments go further into defining solid carbon capture technologies.

Liquid DAC captures carbon dioxide through a liquid solvent which usually consists of a hydroxide base solution that chemically interacts and binds with the compound before being retrieved. Thus, this domain is likely to acquire a substantial market share because of its efficient capture, scalability for large operations, and solvent regeneration developments that will eventually lead to further cost-effective techniques.

Analysis by Energy Source

Based on energy source, the market is subdivided into electricity, and heat.

Carbon dioxide capture and regeneration processes can be powered from renewable energy or grid electricity in an electrically driven DAC system. The segment is expected to grow significantly with the increasing availability of renewable power sources-solar and wind-to reduce operational costs while increasing sustainable options.

Heat-driven DAC systems draw on thermal energy from industrial waste heat or geothermal sources for driving CO₂ capture and release processes. This segment is expected to become the largest as applications of waste heat become more attractive and integration with industrial processes facilitates lower energy cost and maximization of overall system efficiency.

Analysis by Application

Based on application, the market is divided into carbon capture and storage, carbon capture, utilization, and storage.

Carbon capture and storage (CCS) is the process under which CO2 is collected from direct air capture systems, as a result of which it will be permanently stored underground in geological formations where it cannot leak back up into the atmosphere. This is thought to be the most obvious winner in terms of market segments as regulatory support tightens along with incentives for carbon credits increasing and as large amounts of uptake ramp up by industries seeking net-zero emissions.

Carbon capture refers mainly to removing CO2 from the atmosphere, direct air capture, or from other industrial processes. Sometimes, CO2 is preserved for future storage or applied to various usages. Capturing efficiencies improve continuously and prices drop, while at the same time, carbon use markets expand and are predicted to be significant factors in promoting the further growth of this emerging sector across other industries.

Analysis by End User

Based on end user, the market is divided into chemicals, oil & gas, and others.

Chemical producers use captured CO₂ to manufacture fuels, plastics, and other synthetic materials, thereby giving rise to a circular carbon economy. This sector is expected to grow steadily as industries seek sustainable raw materials and regulatory pressures push the manufacturing processes for chemical production into low-carbon paths.

The oil & gas sector uses captured CO₂ for enhanced oil recovery (EOR) and emissions reduction in refining and processing operations. Investment into carbon capture technology, in conjunction with government incentives and an industry-wide commitment to reducing its carbon footprint, is expected to push this segment into market dominance going forward.

Regional Analysis

Based on geography, the market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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Recently, North America was mentioned as the most promising area in the global direct air capture (DAC) market because of reasonable government support, tax incentives, and corporate sustainability commitments. Also, investments coming from various groups have paved the way to facilitate large-scale deployment of direct air capture technologies. In fact, the U.S. Department of Energy is funding DAC hubs for increased scaling of the technology. The foreseen market shares owned by North America will include incredibly fast rates of growth considering the policies and technological advancements.

Market trends for DAC developed because of carbon neutrality regimes, EU funding, and corporate partnerships based on carbon removal. There are active programs established in Switzerland, the U.K., and Germany that further implement DAC. This whole proposition currently has a firm developmental acceleration, and Europe contributes significantly due to policy and funding opportunities urging carbon utilization and storage along with DAC. The market will further remain strong in Europe, given support in positive regulations and increasing investment in carbon capture solutions.

Direct air capture (DAC) markets are rapidly developing in the Asia-Pacific region, attributable to the decarbonization efforts being pursued by China, Japan, and Australia. The net-zero initiatives are furthering the formal adoption of DAC, with government commitments and rising corporate pledges to promote investment into DAC technologies. Japan and South Korea have expressed interest in DAC primarily for synthesizing fuels and other carbon uses. However, DAC technology remains almost undeveloped in the Asia-Pacific region, but leading economies are anticipated to gradually ramp up investments into it over the next few years, considering the rising demand for energy and climate policies.

Key Players Covered

The report includes the profiles of the following key players:

• Climeworks (Switzerland)
• Carbon Engineering (Canada)
• Global Thermostat (U.S.)
• Heirloom Carbon Technologies (U.S.)
• Soletair Power (Finland)
• CarbonCapture Inc. (U.S.)
• Avnos, Inc. (U.S.)
• Skytree (Netherlands)
• Repair Carbon (U.S.)
• Octavia Carbon (Kenya)

Key Industry Developments

• In February 2025, United Airlines invested in DAC startup Heirloom, securing rights to purchase 500,000 tons of CO₂ for sequestration or sustainable fuel production. 
• In September 2024, Google partnered with Holocene to capture CO₂ at USD 100 per ton, aiming to make carbon removal technologies commercially viable. 
• In August 2023, Occidental acquired Carbon Engineering Ltd. for approximately USD 1.1 billion, aiming to enhance its DAC capabilities.