Direct Air Capture Market Size, Share, Growth, Report 2025 to 2034

Direct Air Capture Market Size and Growth Factors 2025 to 2034

The global direct air capture market size was valued at USD 62.52 million in 2024 and is expected to be worth around USD 1,954.16 million by 2034, growing at a compound annual growth rate (CAGR) of 49.5% over the forecast period from 2025 to 2034.

The direct air capture sector is now developing as a result of increasing focus on net-zero pledges, integration of renewable energy, and sustainable growth of industries by governments and companies. DAC systems are vital for a wide array of sectors, including carbon-neutral and renewable fuel and electricity production, enhanced oil recovery (EOR), carbonated drinks, construction and healthcare industries which are looking towards sustainable systems and carbon footprint reduction as well as long-term energy resilience. Some of the most important factors are relentless rural migration, stricter global climate obligations, and increasing funding for decarbonization innovation. At the same time, improved sorbent materials, scalable chemical processes, and ongoing cost-reduction efforts are advancing the environmental and commercial value of DAC systems.

What is direct air capture?

Direct air capture (DAC) is a removal technology which extracts carbon dioxide from the atmosphere. DAC functions using chemical solvents or solid sorbents which capture CO2 from the surrounding air. The captured CO2 can be stored permanently in deep geological formations which removes the CO2 from the carbon cycle. Repurposing is also possible in industries like synthetic fuels, building materials, and beverages. DAC differs from traditional carbon capture methods and is more flexible as it does not capture emissions from a specific location but rather extracts it from the open air. The CO2 removal flexibility DAC offers makes it more versatile and effective to combat emissions.

Direct Air Capture Market Report Highlights

• By Region, North America led with 48.3% market share in 2024, driven by strong policy support, major DAC projects, and abundant geological sites for CO2 storage, making it the dominant region globally.
• By Technology, Solid-DAC uses solid sorbents to capture CO2 efficiently. In 2024, it held 58.3% market share due to its modular design, ambient-temperature operation, and ease of scaling for industrial applications.
• By Energy Source, Electricity-driven DAC powers fans and electrochemical systems to capture CO2. In 2024, it led with a 68.3% share, supported by renewable energy integration, operational flexibility, and growing decarbonization efforts.
• By Number of Collectors, less than 10 collector systems are used for pilot or demonstration projects. In 2024, they dominated with a 56.4% share due to lower capital costs, modularity, and easier deployment in diverse settings.
• By Application, carbon capture and storage (CCS) stores captured CO2 underground for long-term sequestration. In 2024, it led the market because of regulatory support, high sequestration capacity, and suitability for industrial-scale deployment.
• By End-Use, the oil and gas sector use DAC CO2 for enhanced oil recovery and emission reduction. In 2024, it was the largest end-use due to economic incentives, infrastructure compatibility, and sustainability pressures.

Direct Air Capture Market Trends

• Growing Commercialization and Investment Momentum: A major development in direct air capture is the movement from pilot projects to commercial ones. Companies are no longer testing the waters; they are now in partnerships and revenue-generating models. Market activity such as offtake agreements and funding rounds in July 2025 marked, what some experts believe, is the turning point from hype to real action in DAC. Peak investment into scaling technologies and new carbon removal contracts from multiple companies marked a critical juncture in DAC's maturity.
• Coupling with Renewable Energy Sources: DAC systems are now being integrated with renewable sources to further cut operational emissions and fossil fuel dependence. The broader climate goals provide a DAC aligned structure. The announcement of the first wind-powered DAC park in West Texas in May 2025 named, Project Concho, which will fully be powered by wind farms, is a tremendous breakthrough. The immediate target of the project, capturing 50,000 tCO2, and even greater aspirations later are the goals exemplifying the new strategies DAC is now adopting.

Report Scope

Direct Air Capture Market Dynamics

Market Drivers

• Government funding and policy support: Direct government support in funding and regulations remains one of the strongest drivers. Policies create both financial motivation and market signals to incentivize adoption. As of July 2025, the U.S. Department of Energy had set aside $0.0035 billion to create four DAC hubs under the Bipartisan Infrastructure Law. These hubs were intended to capture at least one million tonnes of CO2 annually to help scale large facilities and create confidence in the technology.
• Regional innovation and new entrants: A new peripheral driver is the emergence of local innovation specific to regions. Multi-national and local start-ups in developing regions are testing DAC with new low-cost energy sources. In July 2025, Kenyan start-up Octavia Carbon announced the construction of a prototype system that was geothermal powered and was capturing approximately 10 tCO2 annually. In addition, the company signed $0.003 billion in carbon credit contracts and announced plans for a 1,000-ton plant, illustrating regional adaptation driving DAC technology in emerging markets.

Market Restraints

• Considerable operational and economic expenditure: The most prominent limitation for DAC continues to be the high operational costs and capital funding needed. These costs have resulted in organizational layoffs and underperformance in numerous projects. Climeworks in May 2025 announced it would layoff more than 10% of their employees because of economic headwinds. Their Mammoth plant in Iceland managed to capture a net of 105 t of CO2 since opening and was supposed to capture 36,000 t, indicating how cost burdens make scaling extremely challenging.
• Insufficient COâ‚‚ demand channels for utilization: Even when DAC successfully captures CO2, insufficient demand for the output restricts monetization. In the absence of robust industrial markets for captured carbon, it is not possible to make the utilization of stored carbon monetarily lucrative. In October 2024, some experts noted productivity gaps in DAC utilization stemming from lack of demand. They noted that carbon utilization in fuels and products is not growing at a pace commensurate with the expectations, which is a drag to wider market acceptance and profitability.

Market Challenges

• Scaling and supply chain constraints: Globally, DAC facility scaling is limited by their DAC components supply chain and equipment specialty materials. Construction delays and cost overruns are frequent in the absence of reliable supply chains. Climeworks noted in May 2024 that their expansion efforts were stalled by new global supply chain networks due to the absence of off the shelf components and systems for sorbent technology. Without the ability to industrially scale supply capacity, building DAC facilities at the gigaton scale must contend with repeated cost and speed obstacles.
• Feasibility of technology and reliance on models: The rapid scale-up of DAC technology is hindered by models that incorporate overly optimistic assumptions. Planners that overlook technology reliance are courting a planning distortion that is uninformed. An MIT study in November 2024 argued owing to the assumption of steep cost reductions and rapid deployment, numerous scenarios were exaggerating DAC’s feasibility in the near-term. Relying too heavily on DAC as a primary strategy, the study claimed, would shift attention away from the cuts that must be made to emissions at the source.

Market Opportunities

• Breakthroughs in Low-Energy Capture Techniques: Innovation in technology provides a means to reduce costs associated with DAC and simultaneously its energy intensity. Modern approaches both reduce power requirements and open up pathways for valuable byproducts. As of March 2025, Greenlyte Carbon Technologies received a multimillion-euro award for the construction of ‘first of a kind’ DAC to eMethanol plant in Germany. This plant with a DAC capacity of 1,000 tCO2 per year will showcase the sustainable fuel production model where carbon captured is the main feedstock, thereby proving a sound economic rationale.
• Integration with Electrochemical COâ‚‚ Conversion: The use of DAC with electric methods provides a means to capture and convert CO2 to chemicals and fuels. This approach furthers the value assigned to carbon as well as a carbon circular economy. The Air2Chem project in July 2025 shared the first outcomes of integrating moisture-based DAC and electrolysis for the production of platform chemicals from carbon. This type of cross-sector collaboration showcased the potential of DAC beyond carbon storage and illustrated the contribution it can make towards sustainability.

Direct Air Capture Market Regional Analysis

The direct air capture market is segmented into several key regions: North America, Europe, Asia-Pacific, and LAMEA (Latin America, the Middle East, and Africa). Here’s an in-depth look at each region.

North America is leading the market

• The North America direct air capture market size was valued at USD 30.20 million in 2024 and is forecasted to grow around USD 943.86 million by 2034.

Due to robust government investments and a conducive research environment, North America is emerging as a center for Direct Air Capture development. A noteworthy instance occurred in April 2025, when the U.S. Department of Energy unveiled a pilot Direct Air Capture project in California, which was supported by over USD 1.2 billion in clean energy investments. The project aims to scale up microbial electrolysis systems using agricultural residues as feedstock. This showcases the dual emissions reduction and renewable hydrogen production goals the U.S. is pursuing at a commercial scale.

Europe Market Trends

• The Europe direct air capture market size was estimated at USD 18.19 million in 2024 and is projected to surpass around USD 568.66 million by 2034.

Europe is still the number one region in direct air capture development, and this is mainly due to the climate policies and green fuel incentives. In March 2025, Germany funded a €40 million program for the conversion of agricultural residues to hydrogen through dark fermentation. This is part of the Germany’s national hydrogen strategy which promotes the use of renewable hydrogen in industry and transport. In addition, the program fosters rural development by enabling farmers to earn from waste products.

Asia-Pacific Market Trends

• The Asia-Pacific direct air capture market size was accounted for USD 9.63 million in 2024 and is expected to hit around USD 300.94 million by 2034.

Asia-Pacific is advancing direct air capture adoption with major industrial projects, especially in China. In August 2025, a Direct Air Capture industrial park in Shandong Province was launched with an investment of over USD 2 billion. The project combines algae cultivation with hybrid biological and chemical secondary hydrogen production methods. The industrial center illustrates China’s efforts to control coal consumption and dominate the global hydrogen industry.

Direct Air Capture Market Share, By Region, 2024 (%)

LAMEA Market Trends

• The LAMEA direct air capture market was valued at USD 4.50 million in 2024 and is anticipated to reach around USD 140.70 million by 2034.

Proactive linked direct air capture adoption with renewable energy projects in the LAMEA region. In July 2025, Brazil’s state of Ceará launched a direct air capture facility at Wind Farm 3, which was financed to the tune of USD 600 million. The initiative harnesses microbial processes, seeking to combine abundant renewable electricity with hydrogen generation. It marks the first large-scale integration of direct air capture with wind energy in Latin America.

Direct Air Capture Market Segmental Analysis

Technology Analysis

Solid-DAC (S-DAC): Solid-DAC technologies employ solid sorbents, like amine-coated filters and other porous materials, to extract CO2 from the air. CO2 can then be recovered for storage or utilization after undergoing temperature or pressure changes. In August 2025, researchers showcased the reversible CO2 capture and moisture-swing sorbent capabilities that perform better under certain humidity conditions. This development further enhances the dependable efficiency of solid-DAC technologies in real-world applications.

Liquid-DAC (L-DAC): Liquid amine and alkali solutions can also serve as chemical solvents to capture CO2 from the air, which can then be concentrated and released. In July 2025, industry articles reported that liquid absorption systems benefited from lower first-of-a-kind costs, which in turn, buoyed the overall cost. Thus, making L-DAC appealing for commercial operations that prioritize flexible and scalable systems.

Electrochemical-DAC (E-DAC): Electrochemical-DAC merges CO2 capture with its electrochemical conversion; thus, using electricity to capture the gas and transform it into fuel or chemicals. In July 2025, the Air2Chem project reported efficient results with DAC-integrated moisture electrolytic systems for platform chemical production. This enhanced the attractiveness of integrated E-DAC systems as the processes of capture and utilization could be consolidated into one integrated system.

Others: This includes new or emerging DAC methods that do not fit into solid, liquid, or electrochemical categories. In April 2025, Occidental acquired Holocene, which employs chemical looping - a hybrid method that uses cyclical reactions to capture CO2. Such methods demonstrate creativity beyond traditional DAC methods and pave new avenues for scalable CO2 removal.

Energy Source Analysis

Electric Power: Electricity-driven DAC utilizes various electrical energy sources to drive fans, pumps, or other electrochemical processes to capture CO2. In July 2025, Climeworks received $162 million to further refine the efficiency of electricity-operated DAC systems. This investment enables further development at their Mammoth facility in Iceland which showcases the commercial and technological maturity of electricity-driven DAC system.

Direct Air Capture Market Share, By Energy Source, 2024 (%)

Thermal energy: Heat-driven DAC uses lower-grade or waste thermal energy to regenerate the sorbents that capture CO2. In August 2025, Climeworks’ Mammoth facility utilizes Icelandic geothermal heat for DAC operations. This approach enhances energy efficiency, lowers electricity dependence, and supports continuous CO2 capture for subsequent storage or utilization.

Number of Collectors Analysis

Fewer than 10 collectors: Small-scale DAC installations tend to be less than 10 collector modules. These are usually for pilot or demonstration purposes. Heirloom’s pilot DAC plant in California with limited collector numbers was capturing 1,000 tCO2 per year in November 2023. This showcased small-scale DAC systems and refined operational data for future scaling.

Direct Air Capture Market Share, By Number of Collectors, 2024 (%)

More than 10 collectors: Large-scale DAC facilities employ more than 10 collectors to boost CO2 capture and throughput. Climeworks’ Mammoth facility in Iceland started capturing 36,000 tCO2 per year in May 2024. This marked the high-capacity DAC implementation and industrial-scale CO2 removal with DAC.

Application Analysis

Carbon Capture and Storage (CCS): CCS strives to store captured carbon dioxide, CO2, permanently, typically underground and without any form of utilization or repurposing. Studies conducted in July 2025 indicated that DAC-derived CO2 was being prepared for geological storage. Industries seeking carbon neutrality without product utilization are able to achieve reliable long-term carbon sequestration.

Direct Air Capture Market Share, By Application, 2024 (%)

Carbon Capture Utilization and Storage (CCUS): Combining CO2 utilization in products or fuels with storage of the remaining CO2 forms CCUS. In June 2025, Project Concho in West Texas was announced as a wind-powered DAC hub capturing CO2 for both storage and utilization, exemplifying carbon capture utilization and storage. This project blends CCS with commercial applications, demonstrating integrated approaches to maximization of value from carbon capture.

End User Analysis

Oil & Gas: The captured CO2 can either be used in the enhanced oil recovery or stored permanently to counter the emission. In April 2025, Occidental planned to include a Stratos DAC contract plant in Texas to capture up to 500,000 tCO2 a year, part of which would be utilized in its oil and gas activities but also in corporate net zero emissions. This demonstrates the strategic position of DAC in terms of energy sector.

Food and Beverage: The CO2 captured is used as a raw material in carbonation and preservation of food and beverages. Removal credits associated with CO2 removal supplied by companies such as Climeworks would in July 2025 be used to enable carbon-neutral production by beverage producers. This illustrates the way in which DAC can assists industries in reducing their life cycle emissions in the face of consumer and government sustainability demands designed to support the global fight against climate change.

Automotive: DAC-derived CO2 can be turned into synthetic automobile fuel. In July 2025, the UK-based Carbon Neutral Fuels was funded to progress a DAC-to-fuel project generating sustainable fuels to be used in automobiles and aircraft. It indicates the decarbonization potential of DAC-derived fuels in the transport sector.

Chemicals: CO 2 that is taken captive is converted into industrial chemical production. In July 2025, the Air2Chem project was able to convert DAC-derived CO2 into platform chemicals through electrochemical conversion. This suggests that industrial opportunities involving large quantities of chemicals be made available as a potential end-use of captured CO2.

Healthcare: DAC-generated CO 2 may find application in medical or pharmaceutical manufacturing of processes where pure CO2 is needed. In July 2025, customers in Climeworks vast variety of industries, including medical applications, enjoyed access to high-quality produced CO2 to use in specialised applications. This shows a trend towards a new market segment of DAC other than energy and industrial utilization.

Others: Additional DAC end-uses are building materials, mineralization and agriculture. In August 2025, Climeworks and Carbfix were able to mineralize captured CO2 to rock in Iceland. This offers a different end-use solution in the construction and other industries, which demonstrates creative solutions to use captured carbon.

Direct Air Capture Market Top Companies

• Climeworks
• Carbon Engineering ULC.
• Global thermostat
• Heirloom Carbon Technologies
• Soletair Power
• CarbonCapture Inc
• Avnos, Inc.
• Noya PBC
• Skytree
• RepAir

Recent Developments

• In February 2024, Avnos, a Los Angeles–based startup, has raised $0.036 billion led by NextEra Energy Resources to advance its hybrid direct air capture (DAC) system, which uniquely removes both CO2 and water from the atmosphere while using less energy than traditional methods. Combining support from major energy and aviation players, Avnos is piloting its technology in California and expanding to more sites, aiming to complement renewable energy projects and address decarbonization in hard-to-abate sectors. As DAC technologies remain expensive and controversial, Avnos' innovatively electrified, water-producing approach positions it as a notable contributor to scaling up carbon removal while participating in several federally-backed DAC hub projects.
• In May 2024, Clime works started operations at Mammoth in Iceland, now the world’s largest direct air capture and storage (DAC+S) plant, with a design capacity to remove up to 36,000 tons of CO2 annually - ten times the size of its predecessor, Orca. Powered by Icelandic geothermal energy and utilizing modular collector containers, Mammoth captures CO2 from the air and permanently stores it underground as stone, verified by third parties. This milestone positions Climeworks to rapidly scale toward megaton capacity by 2030 and gigaton by 2050, supporting the company’s expansion in the U.S. and globally as a leader in high-quality carbon removal.

Market Segmentation

By Technology

• Solid-DAC (S-DAC)
• Liquid-DAC (L-DAC)
• Electrochemical-DAC (E-DAC)
• Others

By Energy Source

• Electricity
• Heat

By Number of Collectors

• Less than 10 Collectors
• More than 10 Collectors

By Application

• Carbon Capture and Storage (CCS)
• Carbon Capture Utilization and Storage (CCUS)

By End-Use

• Oil & Gas
• Food and beverage
• Automotive
• Chemicals
• Healthcare
• Others

By Region

• North America
• APAC
• Europe
• LAMEA