Direct Air Capture (DAC) Market

Direct Air Capture (DAC) Market Size and Share:

The global direct air capture (DAC) market size was valued at USD 82.35 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 9,310.14 Million by 2033, exhibiting a CAGR of 63.20% from 2025-2033. North America currently dominates the market, holding a market share of over 44.46% in 2024. The direct air capture (DAC) market share is increasing in the North American region owing to strong government incentives, technological advancements, substantial investments, corporate sustainability commitments, and an expanding carbon credit market supporting DAC adoption.

Many corporations are setting ambitious net-zero goals, requiring them to remove or offset emissions beyond operational reductions. DAC provides a scalable solution for industries that cannot fully eliminate emissions, such as aviation, cement, and steel. Corporate buyers are signing long-term contracts to purchase carbon removal credits, ensuring demand for DAC services. Furthermore, research and development (R&D) efforts are improving DAC efficiency by enhancing sorbents and solvents that capture carbon dioxide (CO₂) more effectively. Innovations in automation, artificial intelligence (AI)-driven process optimization, and renewable energy integration reduce operational costs. These advancements are making DAC more energy-efficient and commercially attractive. Besides this, the voluntary carbon market is expanding, with more companies purchasing carbon removal credits to comply with climate commitments. DAC-generated credits are seen as high-quality, verifiable removal solutions, leading to increasing demand. Standardized credit certification is further strengthening investor confidence.

The United States is a crucial segment in the market because of the growing investment by leading companies in advancing sorbent materials, solvent-based capture methods, and energy-efficient processes for reducing costs and improving scalability. Additionally, substantial federal investments are accelerating the development and deployment of medium and large-scale DAC facilities. This financial support fosters commercialization, advances technological innovation, strengthens carbon removal infrastructure, and enhances economic opportunities in the emerging carbon management sector. For instance, in 2024, the U.S. Department of Energy announced $1.8 billion in funding to support Direct Air Capture (DAC) technology projects. The funding will focus on mid- and large-scale DAC facilities, aiming to capture carbon dioxide and promote commercialization. This initiative will drive innovation, address climate change, and create economic opportunities.

Direct Air Capture (DAC) Market Trends:

Expansion of Carbon Utilization and Storage Infrastructure

The development of carbon utilization and storage infrastructure is driving the direct air capture (DAC) market growth by providing viable pathways for captured CO₂. Emerging applications for captured carbon, such as synthetic fuels, chemicals, and materials, are increasing commercial viability and attracting industry participation. Additionally, the expansion of dedicated carbon storage sites and enhanced oil recovery (EOR) operations is creating additional demand for DAC-based CO₂ supply. Investments in transportation infrastructure, such as CO₂ pipelines and shipping logistics, are improving the efficiency of carbon distribution across various industries. As carbon storage and utilization technologies advance, DAC is becoming an integral part of the broader carbon management ecosystem, facilitating long-term atmospheric CO₂ removal. In 2024, Heimdal Inc. launched Bantam, the largest operational DAC facility in the USA, with a capacity to capture over 5,000 tons of CO₂ annually. Located in Oklahoma, Bantam showcases Heimdal's cost-effective and rapid approach to carbon removal. The facility marks a significant milestone in the growing carbon capture and storage (CCS) sector.

Development of Low-Cost and Energy-Efficient Processes

Improvements in sorbent materials and system designs are reducing energy intensity, making DAC operations more sustainable and scalable. Breakthroughs in low-energy regeneration techniques, such as electrochemical and membrane-based separation, are optimizing capture efficiency while minimizing operational costs. The integration of waste heat, geothermal energy, and other low-carbon energy sources is reducing the dependence on fossil-fuel-based power, further improving DAC’s environmental footprint. Emerging manufacturing techniques are lowering capital expenditure requirements, facilitating large-scale deployment of DAC plants. As cost reduction trends continue, DAC is becoming a more attractive solution for industries and governments seeking scalable carbon removal options. With continued investment in energy optimization and process improvements, DAC is poised to become a commercially competitive tool for carbon mitigation. In 2023, Carbyon announced a breakthrough in Direct Air Capture (DAC) technology with its fast-swing carbon capture process. This innovation significantly reduced energy usage to less than 2,500 kWh/ton, positioning Carbyon to achieve cost-effective carbon removal below $100/ton. The company aimed to scale this technology with low-CAPEX machines and is expanding rapidly with real-world testing.

Community-Led Carbon Removal Initiatives

Governing bodies, communities, and regional development corporations are supporting DAC projects to drive economic growth, create jobs, and contribute to climate action. These initiatives facilitate partnerships between technology providers and local stakeholders, ensuring that DAC deployment aligns with regional sustainability goals. By leveraging local resources, land availability, and community engagement, such projects enable decentralized carbon capture, reducing logistical and infrastructure-related challenges. Additionally, policy support at the municipal and state levels is streamlining regulatory approvals and providing incentives for localized DAC implementation. The emphasis on regional collaboration fosters knowledge-sharing and accelerates the integration of DAC technology into diverse geographic and economic contexts. For example, in 2024, Spiritus announced the launch of its pilot DAC facility on Nambé Pueblo tribal land in New Mexico. The facility, set to begin operations in 2025, will have a carbon removal capacity of 1,000 tons annually and aims to validate Spiritus' innovative technology.

Direct Air Capture (DAC) Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global direct air capture (DAC) market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on technology, energy source, application, and end use.

Analysis by Technology:

• Solid-DAC
• Liquid-DAC
• Electrochemical-DAC
• Others

Solid-DAC stands as the largest component in 2024, holding 57.2% of the market share. Solid-DAC dominates the market due to its high efficiency and lower energy usage compared to other capture methods. This technology uses solid sorbents to capture CO₂ from the air, offering advantages such as better scalability, faster regeneration, and improved cost-effectiveness. Solid sorbents have the potential for higher capture capacities and longer operational lifespans, reducing the need for frequent replacements. Additionally, solid-DAC systems can integrate more seamlessly with renewable energy sources, making them a sustainable solution for large-scale carbon capture. Ongoing advancements in material science are further enhancing the performance of solid sorbents, improving CO₂ capture rates and lowering costs. The adaptability of solid-DAC to both small-scale and industrial applications further contribute to its market dominance, providing a flexible solution for various industries seeking to meet carbon reduction targets. The combination of operational efficiency, scalability, and sustainability positions solid-DAC as a leading technology in the carbon capture market.

Analysis by Energy Source:

• Electricity
• Heat

Electricity leads the market with 57.5% of market share in 2024. Electricity holds the biggest market share attributed to its versatility and integration with renewable energy systems. Many DAC technologies rely on electricity to power key processes, such as CO₂ sorbent regeneration, compression, and transportation. The increasing availability of renewable electricity, particularly from solar and wind, makes it an attractive energy source for DAC operations, aligning with global sustainability goals. Renewable electricity enables DAC systems to operate with a low-carbon footprint, enhancing the overall environmental benefits of carbon capture. Additionally, electricity offers the flexibility to scale operations efficiently, from small modular units to large industrial facilities. With improvements in grid infrastructure and energy storage technologies, electricity-driven DAC systems are becoming more cost-effective and reliable. The ability to integrate with clean energy sources, combined with advancements in energy efficiency, is driving the dominance of electricity as the primary energy source in the DAC market.

Analysis by Application:

• Carbon Capture, and Storage
• Carbon Capture Utilization and Storage

Carbon capture, and storage represent the largest segment, holding 77.5% in 2024. Carbon Capture and Storage (CCS) dominates the market owing to its ability to provide long-term solutions for reducing greenhouse gas emissions. CCS involves capturing CO₂ from industrial processes or the atmosphere and securely storing it underground or in geological formations. This application is vital for sectors that are difficult to decarbonize, such as heavy industries (cement, steel, and chemicals), and power generation. The increasing urgency to meet climate targets has made CCS a crucial tool in achieving net-zero emissions, as it enables large-scale emission reductions while maintaining operational continuity. Additionally, the integration of DAC with CCS provides an effective means for offsetting emissions and addressing climate change. CCS infrastructure, including CO₂ pipelines and storage sites, is growing globally, strengthening its role as a key application. The scalability and permanence of CO₂ sequestration, coupled with governmental support and policy frameworks, are driving CCS’s dominant position in the market.

Analysis by End Use:

• Agriculture
• Chemicals & Fuels
• Carbon Mineralization
• Food & Beverages
• Oil & Gas
• Others

In the agriculture sector, DAC is utilized for carbon mineralization and soil enrichment. Captured CO₂ can be used to enhance soil health by promoting plant growth and boosting agricultural productivity. The use of CO₂ in greenhouse farming also helps create optimal conditions for crop cultivation, increasing yield while reducing the carbon footprint of traditional agricultural practices. Additionally, the application of captured carbon in agricultural fertilizers and soil amendments helps mitigate the effects of soil degradation and enhances soil fertility.

The chemicals and fuels industry is a significant segment in the market, with captured CO₂ being used for the production of synthetic fuels, chemicals, and polymers. DAC can provide a sustainable feedstock for carbon-neutral fuels, including methanol and synthetic natural gas, which can help decarbonize the energy and chemical sectors. Furthermore, captured CO₂ can be used to create carbon-based products, such as plastics, enabling the circular economy.

Carbon mineralization is an emerging end-use application for DAC, where captured CO₂ is converted into stable minerals like carbonates. This process involves naturally occurring reactions that store CO₂ in solid form, providing a long-term and permanent storage solution. Carbon mineralization offers a dual benefit, it sequesters CO₂ and potentially creates valuable by-products, including construction materials like aggregates for concrete. It is expected to play a crucial role in achieving global carbon removal goals by turning captured CO₂ into a valuable commodity.

In the food and beverage industry, captured CO₂ is used extensively for carbonation in soft drinks, beer, and sparkling wines. DAC offers a sustainable method to supply CO₂ for these processes, reducing the carbon footprint of traditional production methods. With increasing demand for eco-friendly manufacturing, using DAC to supply CO₂ ensures that producers align with sustainability targets.

In the oil and gas sector, DAC is primarily used to support enhanced oil recovery (EOR) and reduce emissions associated with oil and gas operations. Captured CO₂ is injected into oil reservoirs to increase pressure and improve oil extraction efficiency. This process not only enhances production but also ensures that CO₂ is permanently sequestered underground. The oil and gas industry is incorporating DAC to meet emissions reduction targets and improve sustainability.

Others include sectors like construction, where captured CO₂ is used in the production of sustainable building materials such as concrete, and in the pharmaceutical industry, where it can be used for specific chemical processes. Additionally, DAC is being explored in the production of algae-based biofuels, where CO₂ serves as a feedstock.

Regional Analysis:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East
• Africa

North America dominates the market, holding a share of 44.6%, due to strong government support, substantial funding, and technological advancements. The region has a well-developed carbon storage infrastructure, with extensive CO₂ pipeline networks and dedicated sequestration sites. Leading research institutions and private companies are driving continuous innovation in capture efficiency and cost reduction. Corporate sustainability commitments and a growing carbon credit market are further boosting adoption. Strategic partnerships between technology providers, energy firms, and policymakers are creating a favorable environment for DAC expansion. In 2024, Dutch carbon capture startup Skytree expanded into North America, opening new offices in Toronto and Nashville. Skytree aimed to capitalize on government incentives for direct air capture (DAC) technologies and has developed carbon capture units for both small-scale and industrial applications. The company planned to scale up its operations and partnerships in industries like vertical farming and food production.

Key Regional Takeaways:

United States Direct Air Capture (DAC) Market Analysis

In North America, the market portion held by the United States was 87.50%. The United States is an essential part of the market due to strong government incentives, private sector investments, and advanced carbon management infrastructure. Federal funding, tax credits, and policy support are accelerating commercial-scale DAC deployment. The country has a well-established research ecosystem, fostering continuous technological advancements. Expanding carbon storage networks and dedicated sequestration sites enhance the feasibility of large-scale projects. Corporate commitments to net-zero emissions are driving the demand for DAC-based carbon removal credits. Collaboration between energy companies, technology firms, and policymakers is creating a favorable environment for DAC expansion and integration into national carbon reduction strategies. In 2025, RepAir Carbon partnered with Shell and Mitsubishi to deploy its electrochemical Direct Air Capture (DAC) technology at the Pelican Gulf Coast Carbon Removal DAC hub in Louisiana. The project, backed by a $4.9 million U.S. Department of Energy grant, aims to scale carbon capture efficiency with RepAir’s low-energy, scalable DAC units. The hub will leverage local infrastructure, with the goal of capturing hundreds of kilotons of CO2 annually by 2030.

Europe Direct Air Capture (DAC) Market Analysis

Europe is at the forefront of DAC adoption, driven by stringent climate policies, financial support mechanisms, and a strong focus on carbon neutrality. The region has well-established carbon pricing mechanisms and regulatory frameworks that encourage investment in carbon removal technologies. R&D efforts are accelerating improvements in capture efficiency, cost reduction, and storage solutions. Collaboration between policymakers, corporations, and technology developers is strengthening the market growth. Cross-border carbon storage initiatives and expanding CO₂ pipeline networks support large-scale deployment. The growing venture capital and funding rounds are accelerating the development of innovative DAC technologies, enabling engineering-scale demonstrations, commercial pilot testing, and market expansion for cost-effective carbon removal solutions. In 2024, Carbyon, a direct air capture (DAC) startup based in the Netherlands, raised €15.3M ($16.9M) in Series A funding. The funds will help develop engineering-scale demonstrators, start commercial pilot testing, and prepare for growth. Carbyon's patented DAC technology aims to lower the cost of CO2 capture for sustainable solutions.

Asia Pacific Direct Air Capture (DAC) Market Analysis

Asia Pacific is emerging as a significant market for DAC, supported by government initiatives and corporate sustainability commitments. Countries in the region are investing in carbon capture technologies to meet climate goals and enhance energy security. Advancements in material science and process optimization are making DAC systems more efficient and scalable. Strong industrial partnerships and funding initiatives are fostering technological innovation. Expanding renewable energy infrastructure is enabling the integration of DAC with low-carbon power sources, reducing operational costs. Strategic collaborations between governments, research institutions, and private companies are driving commercialization and market growth in the region. In 2024, China’s CarbonBox DAC technology passed reliability tests, demonstrating its ability to capture over 100 tons of CO₂ annually per module. Developed by Shanghai Jiao Tong University and China Energy Engineering Corporation, it has a total capacity of 600 tons annually and can scale to one million tons. This technology has applications in green fuel production and carbon trading services.

Latin America Direct Air Capture (DAC) Market Analysis

Latin America is gaining traction in the DAC market through increasing government and private sector interest in carbon removal technologies. Countries in the region are leveraging natural carbon sinks alongside engineered solutions to enhance carbon management strategies. Investments in renewable energy are enabling cost-effective DAC deployment by providing access to sustainable power sources. Technological collaborations with international partners are fostering innovation and knowledge exchange. In addition, the rising development of industrial-scale DAC projects is enhancing regional carbon removal capacity, supporting sustainability goals, and creating opportunities for larger deployments in emerging markets. For example, in 2024, DACMA, in collaboration with Repsol, launched the largest DAC project in Brazil, located at the Pontifical Catholic University of Rio Grande do Sul (PUCRS) in Porto Alegre. The facility has an annual carbon capture capacity of 300 tons. This marked the first industrial DAC system in Latin America and a major step in DACMA's expansion plans for larger projects.

Middle East and Africa Direct Air Capture (DAC) Market Analysis

The Middle East and Africa are developing their DAC market through investments in carbon capture infrastructure and sustainability initiatives. Countries in the region are exploring DAC as part of long-term energy transition strategies. Additionally, partnerships with international technology providers are accelerating market entry and innovation. Expanding carbon credit markets and regulatory incentives are enhancing investment opportunities. Besides this, favorable geological conditions are enabling efficient CO₂ sequestration, supporting the expansion of DAC technology and strengthening regional carbon removal initiatives. In 2024, Octavia Carbon, a Kenyan DAC startup, secured $3.9 million in seed funding to scale its carbon removal technology. The company, which began carbon capture in February 2024, aimed to expand its capacity to 1,500 tons per year by 2025. Octavia planned to store captured CO₂ in Kenya's Rift Valley, leveraging the region's ideal geological conditions for carbon sequestration.

Competitive Landscape:

Key players in the market are advancing sorbent and solvent efficiency, optimizing energy use, and scaling modular systems to enhance cost-effectiveness. They are securing funding from governments, venture capital, and corporate partnerships to accelerate commercial deployment. Companies are establishing large-scale DAC facilities, integrating with carbon storage and utilization projects, and forming agreements with industries seeking carbon offsets. Strategic collaborations with energy firms, technology providers, and policymakers are shaping regulatory frameworks and market incentives. Players are also investing in automation, AI-driven process optimization, and renewable energy integration to improve operational efficiency. Expanding supply chains for DAC components and building carbon credit markets are additional priorities to drive adoption and long-term economic viability. In 2024, Skytree announced a strategic partnership with Scanfil to scale up its Direct Air Capture (DAC) technology globally. Scanfil will manufacture Skytree’s Cumulus and Stratus units in the US and Europe, enabling faster product deliveries and meeting the growing demand for cost-effective DAC systems.

The report provides a comprehensive analysis of the competitive landscape in the direct air capture (DAC) market with detailed profiles of all major companies, including:

• Climeworks
• Carbon Engineering ULC
• Global Thermostat (Zero Carbon Systems)
• Heirloom Carbon Technologies
• Soletair Power
• CarbonCapture Inc.
• Avnos, Inc.
• Noya PBC
• Skytree
• Repair Carbon
• Carbyon
• Sustaera Inc.

Latest News and Developments:

• December 2024: Skytree acquired the Dutch DAC startup ReCarbn, integrating its innovative filtration and chemical sorbent technology. The three ReCarbn co-founders will take on leadership roles at Skytree, contributing expertise in R&D, product strategy, and finance. This acquisition strengthened Skytree’s position as a global leader in direct air capture technology.
• October 2024: Carbyon collaborated with four designers to reimagine the aesthetic and functionality of its CO₂ capture machines. The designers aimed to make the machines both efficient and visually appealing, enhancing public perception of direct air capture technology. Their concepts were displayed at Dutch Design Week, running until October 27, 2024.
• August 2024: RepAir Carbon US Inc. and C-Questra launched the EU’s first onshore Direct Air Capture and Storage (DACS) project in Grandpuits, France. The project aimed to remove 100,000 tons of CO₂ annually by 2030, using RepAir’s energy-efficient technology that reduces energy utilization by 70%. This partnership supported France’s carbon capture strategy and sets a new standard for scalable carbon removal in Europe.
• June 2024: RepAir Carbon and EnEarth, a subsidiary of Energean, announced a partnership to launch a Direct Air Capture (DAC) project in Greece. The project, based in Kavala, aimed to capture and store up to 3 million tons of CO₂ annually by 2028, using RepAir’s energy-efficient DAC technology. The project has secured €150 million in funding and supports the Mediterranean’s carbon storage goals.
• February 2024: Deep Sky and Carbyon announced a partnership to pilot Direct Air Capture (DAC) technology in Canada. Carbyon will install two Air Processing Units (APUs) in Québec, each capable of removing 50 tons of CO₂ per year. This collaboration aimed to validate the technology for commercial deployment while leveraging Canada’s renewable energy resources.
• April 2023: Noya announced $11M Series A funding round led by Union Square Ventures and Collaborative Fund to accelerate its Direct Air Capture (DAC) technology. The investment will support Noya's mission to scale carbon removal, with new hires and expanded testing and manufacturing capabilities. Noya has already secured agreements with companies like Shopify to purchase carbon removal credits.

Direct Air Capture (DAC) Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the direct air capture (DAC) market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global direct air capture (DAC) market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the direct air capture (DAC) industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.