Carbon Dioxide Removal Market Size Growth - By Product (Biochar, Direct Air Capture (DAC), Enhanced/Carbon Mineralization, Ocean Alkalinization, BECCS, Microalgae), By Application (Technology Sector, Finance Sector), and By Region: Statistics Reports, Supply & Demand Analysis, Global Opportunity 2025-2032

Global Market Synopsis, Forecast, Trend, and Growth Up To 2032

The Carbon Dioxide Removal Market size was valued at US$ 844.78 Mn in 2025, it is estimated to grow at a CAGR of 15.55% from 2025 to 2032 and reach US$ 2,223.66 Mn by the end of 2032. The growing awareness of reducing the emission of CO2 all over the world is fueling the carbon dioxide removal industry.

Market Overview

The carbon dioxide removal market has been booming with the advancements being made in the chemical sector. This industry mainly concerns itself with solutions for removing CO2 from the environment using both natural and artificial methods. The CDR strategy is mainly integrated into most climate policies because of the role played by carbon dioxide as a primary element in climate change. CDR has many methods that are mainly applied on land or in aquatic systems.

The prevalent methods on land are afforestation, reforestation, and other agricultural practices. Ocean alkalinity enhancement, ocean fertilization, wetland restoration, and some blue carbon approaches occur in aquatic systems. There are many products for the CDR process, but mostly are Biochar, Direct Air Capture (DAC), Enhanced/Carbon Mineralization, Ocean Alkalinization, BECCS, Microalgae, and some others. CDR is applicable mainly to the technology and finance sectors. This industry is sure to expand exponentially with growth in chemical industries.

Factors for Carbon Dioxide Removal Market Growth

The rapidly burgeoning innovations in the chemical industry would strengthen the carbon dioxide removal market.

Growing efforts from the government side to reduce CO2 is one of the imperative aspects pushing the market forward.

Increasing demand for clean air in the world has led to the blossoming of this market.

Growth in investments from both public and private sector industries in developing the carbon dioxide removal industry have propelled the market.

Increasing awareness regarding a clean environment amongst the people is one factor that hails growth up to some extent in the market.

Boosting growth in market reforestation adoption is being done in various parts of the world.

An increasing number of DAC plants across several countries is responsible for increment of growth in the market.

Research and development activities undertaken regarding CDR methodologies that are currently going on, will have a positive impact on carbon dioxide removal market growth.

Top Key Players

Some of the major players functioning in the carbon dioxide removal industry include:

• Climeworks

• Global Thermostat
• Carbon Engineering Ltd.
• Arca
• Cella Mineral Storage Inc.
• Bussme Energy AB
• Carbofex Ltd.
• Oregon Biochar Solutions
• Wakefield BioChar
• Novocarbo GmbH
• Carbicrete
• Neustark Ag
• Ebb Carbon
• CarbonCure Technologies Inc.
• CarbonFree
• Carbfix hf.
• HEIMDAL
• Blue Planet Systems
• Pacific Biochar Benefit
• Charm Industrial

Segment Analysis

Product Segment

The direct air capture segment accounted for the highest market share in 2024. Expansion in this segment generally increases due to increased developments globally in the chemical sector. Moreover, the growing awareness of reducing emissions of CO2 raises the growth of the market coupled with the emergence of electrochemical processes. Furthermore, elevated government investment in the direct air capture segment in research and development propels the growth of the market.

Besides that, various advantages of DAC like CO2 reduction, carbon recycling, smaller footprint, negative emissions, etc. are expected to witness an impetus push in the growth of the market for carbon dioxide removal. Moreover, the companies CRD are announcing a range of direct air capture and storage (DAC S) plants across the world which is expected to fuel the growth of the market.

Application Segment

The most prominent market share captured in 2024 by the technology sector segment is expected to outperform others in the market in the coming years of the forecast period. The growth trend of this segment is generally associated with the increasing number of research projects on C02 removal. Further, the growth prospects of the carbon dioxide removal market will be augmented with the rising technological advancements in the C02 removal technologies, along with the various EOR projects booming in developed nations like the U.S., Canada, Russia, Oman, Saudi Arabia, and more.

The finance sector segment is expected to be the largest-growing segment during the forecast period. The primary driving force for the segment is the rising demand for a low-carbon economy and a sustainable future across the globe. Additionally, the growing role of financial institutions toward climate change, along with supporting pricing, inter-temporal accounting, risk management, and cross-border investments for attaining net zero emission, is expected to boost the growth of the carbon dioxide removal market.

Market Scope

Carbon Dioxide Removal Market Dynamics

Driver

The investment and funding in the CDR sector increase

The CDR industry is now being visibly rendered due to the increase in CO2 emission globally. This sector has received investments from public and private sectors along with funding from several governmental organizations, venture capitalists, and others. These investments and funds are mainly deployed in the research and development activities for carbon removal technologies as well as CDR technology-related technologies. In this regard, increased investments from various industries are expected to enhance the carbon dioxide removal market growth.

Restraint

Carbon dioxide removal involves high cost and environmental issues

Carbon dioxide removal has witnessed a drastic surge in its usage in recent periods. Despite the many overt advantages that carbon dioxide removal has, this industry is plagued by a number of problems. First, an enormous amount is needed to set up a plant for CO2 removal mainly because raw materials prices and labor wages have skyrocketed within a very short period. Second, the construction sites of DAC centers and their environment are adversely affected by the emission of CO2. Therefore, increased cost of an entity for a CO2 removal plant, in addition to causing harmful impacts on the environment may restrain the carbon dioxide removal market growth during the forecast period.

Opportunity

Increasing use of blue carbon and microalgae in CDR

Carbon dioxide removal industry is gaining fast pace with evolution in chemical sciences along with its associate fields. Recently, the uptake applications of blue carbon and microalgae are in focus as they are highly abundant for being suitable enough to remove carbon dioxides from the atmosphere. Blue carbon assists in the removal of carbon dioxides through the mode of photosynthesis in seaweed or coastal plants or even in phytoplankton, while microalgae gets its application in the mode of absorbing excessive carbon dioxides from the atmosphere. Therefore, the growing use of microalgae and blue carbon for carbon dioxide removal is expected to provide adequate expansion opportunities for carbon dioxide removal market participants in the next few years.

Regional Outlook

In the year 2024, North America captured the highest carbon dioxide removal market share and is anticipated to continue with the same trend throughout the forecast period. The growth of this region is mainly driven by the increasing government initiatives in countries such as the U.S., Canada, Mexico, and others to strengthen the chemical industry. The increasing investment from the public and private sectors for developing CO2 removal technologies drive market growth.

This segment is predominantly driven by an ever-growing demand for a carbonfree environment in this region. Moreover, the growing initiatives of public and private sector entities toward building up the CDR industry are driving the growth of the market. The increasing number of research institutions are conducting research and development on CO2 removal technologies within countries such as China, India, Japan, South Korea, and others, in turn, is expected to drive the growth of the market in this region. Increasing investment by several chemical companies to maintain carbon neutrality is also driving the growth of the carbon dioxide removal market.

Recent Developments

• In May 2024, Climeworks inaugurated the world's largest operating direct air capture (DAC) facility in Iceland. The inauguration is intended to release excess CO2 released from the atmosphere.
• In May 2024, CarbiCrete partnered with 3Degrees. This partnership is undertaken to extract carbon dioxide from the atmosphere to ensure that the future is sustainable and the environment is free from emissions.
• On 2 April 2024, Drax Group Plc announced a partnership with C-Zero. The deal is related to the lowering of CO2 in the environment.
• In February 2024, Equatic announced its intention to construct the biggest ocean-based carbon removal factory in the world in Singapore. According to this announcement, the company will remove 109,500 tons of CO2 and generate 3,600 tons of hydrogen that are carbon negative in a year beginning from 2026.

Segments Included in the Report

By Product

• Biochar
• Direct Air Capture (DAC)
• Enhanced/Carbon Mineralization
• Ocean Alkalinization
• BECCS
• Microalgae

By Application

• Technology Sector
• Finance Sector

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa