Carbon Capture Utilization Chemicals Market

Carbon Capture Utilization Chemicals Market Size

The global carbon capture utilization chemicals market was valued at USD 58.5 billion in 2024. The market is expected to grow from USD 67.3 billion in 2025 to USD 476.3 billion in 2034, at a CAGR of 20.5%, according to latest report published by Global Market Insights Inc.

• Global brands and original equipment manufacturers (OEMs) are increasingly looking for low-carbon and carbon negative materials to meet their corporate net-zero goals, and decarbonization goals in their supply chains. The transportation sector has made CO2-derived polyols used in vehicle interior components to address this need. Additionally, many OEMs are increasingly creating procurement targets for low-carbon materials. The construction sector has also begun CO2-cured concrete and CO2-derived aggregates, and green building programs provide credits for the usage of carbon negative materials in construction.
  
• The primary market driver is the increase in net-zero goals and decarbonization commitments across chemicals, materials, and downstream sectors, which is estimated to contribute a 25% impact on CAGR. The chemicals sector alone is responsible for an approximate 5% of CO2 that needs to be captured by 2030 in IEA's net-zero Emissions scenario. Of this, ammonia, methanol, and high-value chemicals account for 45%, 28%, and 27% of primary chemical emissions, respectively. There are over 270 publicly announced carbon management projects across the U.S. value chain in recent times due to federal investment.
  
• Increased supportive policies, including carbon pricing, tax credits, and regulatory mandates, are improving CCU project economics with an approximate 20% impact on CAGR. The United States Inflation Reduction Act raised the Section 45Q tax credit from USD 60 to USD 85 per metric ton for CO2 captured and utilized from commercial and power facilities and the One Big Beautiful Bill Act of 2025 grants the same credit rates for utilization and storage.
  
• The European Union ReFuelEU Aviation mandate stipulates a blending of 2% sustainable aviation fuel (SAF) starting from 2025, increasing to 70% by 2050, including synthetic fuel sub-mandates of 35% by 2050. The FuelEU Maritime regulation has set greenhouse gas intensity reduction targets of 80% by 2050 for maritime transport.
  
• Fast-paced innovation across catalysis, electrolysis systems, and process integration is already driving cost and performance reductions, with new catalyst materials - including single-atom catalysts, metal-organic frameworks, and nanostructured electrodes - demonstrating increased selectivity, activity, and stability for CO2 conversion. Solid oxide electrolysis cells have exceeded 4 A/cm² for CO2-to-CO conversion, allowing for more compact reactor design and lowering capital costs.
  

Carbon Capture Utilization Chemicals Market Trends

• The market is experiencing a blockbuster transition from pilot and demonstration projects to commercial-scale production plants. For example, the first large-scale e-methanol plant began production in January 2024, which constitutes a significant milestone in the commercial availability of CO2-to-chemicals. There are many other projects that advanced to Final Investment Decision (FID) status in 2024 for a total announced capacity of more than 10 million tons per year of CO2 utilization across diverse chemical pathways making use of these technologies.
  
• Commercial-scale gas fermentation plants are converting industrial off-gases and captured CO2 to ethanol and sustainable aviation fuel (SAF) with production capacities on the order of 50,000 to 150,000 tons per year. Electrochemical CO2 reduction processes have evolved from laboratory-scale demonstration units producing milligrams per hour to pilot-scale facilities producing kilograms per day of format, CO and ethylene. Mineralization and carbonation processes have undergone commercial deployment in building materials as numerous facilities have begun producing CO2-cured concrete products on an industrial scale.
  
• The robust integration of Carbon Capture and Utilization with renewable hydrogen production, industrial point-source CO2 capture, and bioenergy systems is generating synergistic opportunities for deployment of these systems. The integration of green hydrogen, produced from electrolysis of water using renewable electricity, with capture biogenic CO2 from fermentation, anaerobic digestion, and biomass combustion affords the possibility of carbon-negative chemical production.
  
• Existing BECCU (bioenergy with carbon capturing and utilization) systems are being deployed at bioethanol production facilities, biogas upgrading facilities, and biomass power stations to capture high purity CO2 streams for conversion to chemical and fuels. When captured biogenic CO2 is used with renewable hydrogen to produce synthetic methane, methanol, dimethyl ether, and synthetic hydrocarbons, these fuels have a net-negative carbon intensity, even when accounting for lifecycle emissions.
  
• Connecting with existing industrial clusters is allowing for optimization of infrastructure usage, lowering costs. Existing CO2 pipeline networks can be accessed to avoid the infrastructure cost of building dedicated to carbon. A common hydrogen production facility and CO2 storage is expected to create economies of scale and lower capital costs per-unit. Industrial symbiosis among refineries, chemical plants, steel mills, cement facilities, and power stations is expected to create a more efficient supply chain for CO2 to use for chemical production.
  

Carbon Capture Utilization Chemicals Market Analysis

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Based on product type, the market is segmented into alcohols & platform chemicals, polymers & plastics, olefins & hydrocarbons, syngas & intermediates, building materials & aggregates, and specialty & other chemicals. Alcohols & platform chemicals dominated the market with an approximate market share of 28% in 2024 and is expected to grow with a CAGR of 23% by 2034.

• This projection is based on the availability of methanol and ethanol manufactured from captured carbon dioxide (CO2). Methanol production from CO2 and renewable hydrogen-based renewable feedstock has been developed to commercialization, and multiple facilities are in production in Europe and Asia producing renewable methanol as chemical feedstock for fuel applications.
  
• Improved Cu/ZnO-based catalysts for catalytic hydrogenation processes have demonstrated selectivity for methanol exceeding 99%, and in combination with low-cost renewable electricity, production costs are approaching parity with conventional methods of production. Gas fermentation technologies for both ethanol production from industrial off-gases and captured CO2 have been recently commercialized, generating reasonable growing production capacities of 50,000 to 150,000 tons per year.
  
• The polymers & plastics segment consisted of 18% of the market share in 2024 and had the highest predicted CAGR of 25.5% through 2034, which indicates strong commercial traction related to CO2-based polyols and polycarbonates. Covestro AG has achieved commercial-scale production of polyols composed of up to 20% CO2 as a component for polyurethane foams used in automotive, furniture, and construction applications. The commercialization has occurred in multiple facilities, with a cumulative production of polyols based upon CO2 as the equivalent of over 100,000 tons.
  

Based on technology, the market is segmented into electrochemical conversion, catalytic hydrogenation, gas fermentation & biological conversion, thermochemical conversion, mineralization & carbonation, and direct chemical synthesis. Catalytic hydrogenation dominated the market with an approximate market share of 32% in 2024 and is expected to grow with a CAGR of 22.5% by 2034.

• The commercial feasibility of catalytic hydrogenation technology is supported by well-established catalysts, process design frameworks, and successful commercialization. New Cu/ZnO/Al2O3 methanol synthesis catalysts are beginning to demonstrate above 99% selectivity and space-time yields on par with conventional methanol synthesis technology. Cobalt and iron-based Fischer-Tropsch catalysts can convert syngas generated from CO2 into synthetic hydrocarbons with product distribution controlled by varying temperature and pressure.
  
• Mineralization & Carbonation technology captured 22% market share in 2024 and was projected to grow at a 23.5% CAGR. This growth is largely driven by concrete curing, aggregate production, and mineral carbonation applications. This technology allows for the permanent sequestration of CO2 with minimal energy investment and uses abundant mineral feedstocks, which primarily consist of calcium and magnesium silicates.

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Based on end use industry, the carbon capture utilization chemicals market is segmented into automotive, construction & building, packaging, chemicals & petrochemicals, aviation, healthcare, agriculture, and electronics & consumer goods. Chemicals & petrochemicals held the largest market share of 24% in 2024.

• The chemicals and petrochemicals end-use sector is growing at the rate of 22% (CAGR) due to the demand for CO2-derived methanol, ethylene, and chemical intermediates to use in downstream chemical production. The chemical sector is expected to account for close to 5% of CO2 that needs to be captured by 2030 as stated in the International Energy Agency (IEA) Net Zero Emissions Scenario (2021). As a feedstock for formaldehyde, acetic acid, methyl methacrylate, olefins, and gasoline blending, methanol can create a range of applications in the market.
  
• The construction and building industry held a 20% market share in 2024 with the highest (CAGR) of 25% primarily driven by the applications of CO2-cured concrete, carbonated aggregates, and low-carbon cement. In addition, public and private infrastructure investments across North America, Europe, and Asia Pacific regions include more specifications for low-carbon materials are likely to drive demand.

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The North America carbon capture utilization chemicals industry is growing rapidly on the global level with a market share of 28% in 2024.

• North America is primarily supported by the Inflation Reduction Act's expanded 45Q tax credit and the Infrastructure Investment and Jobs Act, which has committed USD 12.1 billion for carbon management demonstrations. More than 270 carbon management projects have been announced in the U.S., with about 200 million tons per year of capture capacity.
  

Europe carbon capture utilization chemicals market held substantial market share in the industry with revenue of USD 18.7 billion in 2024 and is anticipated to show lucrative growth over the forecast period.

• In 2024, Europe accounted for the largest market share at 32%, with several significant climate policies again supporting the market including the EU Green Deal; Carbon Border Adjustment Mechanism; and Industrial Carbon Management Strategy, which is aiming for 50 million tons per year of CO2 storage capacity by 2030. The European Commission is also pursuing an Industrial Carbon Management Strategy which would allow CO2 to be a traded commodity by 2040, with an annual goal of 280 million tons capture.
  

The Asia Pacific carbon capture utilization chemicals market is anticipated to grow at a CAGR of 26% during the analysis timeframe.

• Asia Pacific represented 27% of the market share in 2024. The primary deployers in this region are China, India, and South Korea. China is commissioning four new capture facilities in 2023, and it has issued 70 National Standards covering carbon footprints and CCUS. Japan's Green Innovation Fund pledged USD 3.9 billion over ten years to support e-chemicals, e-fuels, and mineral carbonation technologies.
  

Latin America carbon capture utilization chemicals market accounted for 7% market share in 2024 and is anticipated to show significant growth over the forecast period.

• Latin America is poised to witness further advancement and uptake of Carbon Capture Utilization (CCU) chemicals, particularly in Brazil and Chile where the emphasis on sustainable mining through the introduction of sustainable agriculture is driving investments. Brazil's focus on green ammonia for fertilization and the potential utilizations of ethanol-based biorefineries incorporating CCU create potential localized demand. Additionally, collaborative efforts in the region through alliances such as the Latin American Energy Organization (OLADE) are facilitating CCU pilot projects initiated by public funding and partnerships.
  

Middle East & Africa carbon capture utilization chemicals accounted for 6% market share in 2024 and is anticipated to show lucrative growth over the forecast period.

• Middle East & Africa (MEA) are witnessing growth in CCU adoption aligned with decarbonization goals within its oil & gas sector. Countries such as Saudi Arabia and the UAE are embedding CCU into topline petrochemical clusters supported by sovereign wealth, and frameworks such as Saudi Vision 2030 are in place. South Africa is leading CCU applications in synthetic fuels and cement production in part due to local emission targets but also due to climate finance mechanisms utilizing external funds.
  

Carbon Capture Utilization Chemicals Market

The global carbon capture utilization chemicals industry exhibits a moderate level of concentration. The top five market players are expected to capture nearly 28% of the market share in 2024, while the remaining 72% is composed of several regional and specialty technology companies. This competitive structure reflects the range of technology pathways, end-use applications, and regional market dynamics present in the CCU chemicals market.

• Covestro AG: Covestro AG is the commercial leader in CO2-based polyols with production plants located in Germany and China. The company uses up to 20% CO2 in polyols for polyurethane foam applications. Covestro remains the clear leader in the market evidenced by its recent USD 15 million expansion of CO2 polyol production capacity at its Dormagen site, and its new USD 1 billion commitment to circular economy-focused projects continuing through 2030. Covestro sells CO2-based polyols into automotive, furniture, and construction markets globally.
  
• BASF SE: BASF SE, the largest chemical producer globally, is incorporating carbon capture and utilization within its global production network. The company's OASE blue technology for post-combustion CO2 capture will be utilized at its Antwerp site, through the Kairos@C project, with a primary target of capturing 100,000 tons of CO2 a year.
  
• LanzaTech Global Inc.: LanzaTech Global Inc. has commercial-scale gas fermentation facilities that produce ethanol and sustainable aviation fuel (SAF) from industrial off-gases and capture CO2. The production of SAF using LanzaTech's CircularAir platform utilizes captured carbon and is currently for sale Asia, with additional development projects globally. LanzaTech has received funds from the UK government in addition to teaming up with Wagner Australia for commercial waste gas processing and from NTPC India to utilize gas from a steel mill as the feedstock for the conversion technology. LanzaTech's technology has been in commercial operation for multiple years, substantiating reliability and scalability.
  
• Air Liquide S.A.: Air Liquide S.A. is a world-renowned leader in the industrial and health space of gases, technologies, and services, including a substantial focus on hydrogen production and carbon capture. The company has a wide array of technologies named Cryocap that include solutions leveraging post-combustion CO2 capture from many industrial sources. The company's hydrogen strategy and carbon management focus positions it as a key participant in CCU value chains by offering captured CO2, renewable hydrogen, and industrial gases for chemical synthesis.
  
• Avantium N.V.: Avantium N.V. specializes in the creation and commercialization of renewable chemistry technologies, which includes chemical production relying on CO2 as a feedstock. The company's emphasis on chemicals sourced from plants and CO2 clasp together not only with the foundational principles of circular economy systems, but they also prioritize decarbonization goals. Their pilot and demonstration facilities are ramping the latest generation of catalytic processes to transform CO2 into valuable chemical products.
  

Carbon Capture Utilization Chemicals Market Companies

Major players operating in the carbon capture utilization chemicals industry include:

• Air Liquide S.A.
• Aker Carbon Capture ASA
• Avantium N.V.
• BASF SE
• Blue Planet Systems Corporation
• Carbon Clean Solutions Ltd.
• Carbon Recycling International (CRI)
• Carbon Upcycling Technologies Inc.
• CarbonCure Technologies Inc.
• Climeworks AG
• Covestro AG
• Econic Technologies Ltd.
• LanzaTech Global, Inc.
• Liquid Wind AB
• Mitsubishi Chemical Group Corporation
• Novomer Inc.
• SABIC
• SK Innovation Co., Ltd.
• Solidia Technologies, Inc.
• TotalEnergies SE
  

Carbon Capture Utilization Chemicals Industry News

• In November 2024, LanzaTech Global Inc. partnered Wagner Australia for waste gas-to-ethanol production, and with NTPC India for gas to chemicals conversion in its steel mill.
  
• In October 2024, BASF SE 54 MW electrolyzer project at Ludwigshafen, Germany commenced in renewable hydrogen production for CO2 based chemical synthesis. This project is also one of Europe’s biggest electrolyzers to be incorporated into industrial operations.
  
• In September 2024, as part of the NEOM mega-project in Saudi Arabia, CarbonCure Technologies Inc. announced, a collaboration with NEOM to produce Sustainable Concrete, demonstrating international expansion and large scale deployment potential.
  
• In July 2024, Covestro AG made a commitment toward the continued deployment of commercial-scale production with the announcement of a USD 15 million investment to expand the company's CO2 polyol production capabilities at the company's Dormagen, Germany plant.
  

This carbon capture utilization chemicals market research report includes in-depth coverage of the industry, with estimates & forecasts in terms of revenue (USD Billion) and volume (Kilo Tons) from 2025 to 2034, for the following segments:

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Market, By Product Type

• Alcohols & platform chemicals
• Polymers & plastics
• Olefins & hydrocarbons
• Syngas & intermediates
• Building materials & aggregates
• Specialty & other chemicals

Market, By Technology

• Electrochemical conversion
• Catalytic hydrogenation
• Gas fermentation & biological conversion
• Thermochemical conversion
• Mineralization & carbonation
• Direct chemical synthesis

Market, By End Use Industry

• Automotive
  • Interior components
  • Exterior components
  • Under-the-hood applications 
• Construction & building
  • Residential construction
  • Commercial buildings
  • Infrastructure & civil engineering
• Packaging
  • Food & beverage packaging
  • Industrial packaging
  • Consumer goods packaging
• Chemicals & petrochemicals
  • Base chemicals production
  • Specialty chemicals
  • Agrochemicals
• Aviation
  • Commercial aviation
  • Cargo & freight
  • Military & defense
• Healthcare
  • Medical devices
  • Pharmaceutical packaging
  • Hospital & clinical supplies
• Agriculture
  • Crop production
  • Fertilizers & soil amendments
  • Agricultural equipment
• Electronics & consumer goods
  • Consumer electronics
  • Home appliances
  • Sporting goods

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe 
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of Middle East and Africa