Direct Air Carbon Capture Technology Market: Overview
Direct air carbon capture is a technology that captures CO2 from atmospheric air, and provides it in purified form for use or storage. This technique uses large fans that move ambient air through a filter, using a chemical adsorbent to produce a pure CO2 stream that could be stored. Direct air capture technology has significant effect on global CO2 concentrations.
Direct Air Carbon Capture Technology Market: Trends & Demands
Demand for energy has been increasing rapidly. Large amount of fossil fuels is consumed in various industrial processes such as those in cement, steel, and power generation industries. Combustion of fossil fuels at such a large scale results in the emission of carbon dioxide and other greenhouse gases into the atmosphere. Increase in amount of these gases in the atmosphere has resulted in irreversible phenomenon such as climate change and depletion of ozone. According to the Paris Climate Change Agreement, removal of existing CO2 from the atmosphere is necessary. Aggressive emission reductions are imperative, and large-scale carbon removal is also required. This drives the demand of direct air carbon capture technology. On the other hand side, high cost of direct air carbon capture technology is the major factor that may hamper the market. The cost to capture one metric ton of carbon dioxide ranges from US$ 600 to US$ 800.
Direct Air Carbon Capture Technology Market: Key Segments
The global direct air carbon capture technology market can be segmented based on number of collectors, application, and region. In terms of number of collectors, the market can be bifurcated into less than 10 collectors and more than 10 collectors. The less than 10 collectors segment dominates the market, while the more than 10 collectors segment is expected to expand at a higher CAGR during the forecast period. Based on application, the market can be segregated into enhance oil recovery (EOR), industrial, agriculture, and others. The EOR segment is estimated to expand at a rapid pace during the forecast period. EOR method is broadly being adopted by oil & gas companies to extract oil and gas from mature fields. CO2 is considered to be an excellent displacing agent for EOR techniques.
Direct Air Carbon Capture Technology Market: Regional Outlook
In terms of region, the global direct air carbon capture technology market can be split into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa. Europe dominated the direct air carbon capture technology market in 2017, followed by North America. Implementation of stringent regulations regarding carbon emission is driving the market. Currently, three direct air carbon capture plants are operational in Europe.
Switzerland-based Climeworks is the first company to build the direct air carbon capture plant. The company aims to capture 1% of global CO2 emissions by 2025. In 2017, the company opened the first direct air capture plant in Zurich, Switzerland. The plant is capable of capturing 900 metric tons of carbon annually. The carbon dioxide captured was fed to a greenhouse, which boosted the growth of the plants inside it. In the same year, the company has opened second plant in collaboration with Reykjavik Energy in Iceland to capture CO2 from ambient air and store it permanently underground as minerals in basalt rock formations. In 2018, Climeworks launched its third plant in Troia, Italy. Each year, the plant is expected to capture 150 metric tons of carbon dioxide, which is expected to be converted into methane, a major component of natural gas that is used to power trucks running on green gas. CO2 capture plants are fully automated and controlled via touch screen display. They are suitable for autonomous 24/7 operations.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.