Direct Air Capture Market Strategic Policy Recommendations

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Report Overview:

The Direct Air Capture market is projected to grow significantly, reaching an estimated USD 120,811 billion by 2034, up from USD 1,007.1 billion in 2024. This remarkable expansion reflects a CAGR of 61.4% over the forecast period (2025–2034). North America currently leads the global market, commanding a dominant 48.3% share, thanks to its advanced infrastructure, strong policy support, and substantial public and private investment.

DAC technology is gaining traction as a viable tool for large-scale carbon removal, supporting global climate goals and net-zero commitments. The market primarily revolves around two technologies solid and liquid DAC used to extract CO₂ directly from ambient air. Solid-DAC systems, which accounted for 58.3% of the market in 2024, are particularly valued for their modular nature and lower energy consumption. Furthermore, electricity-powered systems make up 68.3% of deployments, aligning with the shift toward clean energy sources.

Smaller-scale plants, particularly those with fewer than ten CO₂ collectors, are growing in popularity due to their lower installation costs and scalability, capturing 46.4% of market installations. Key applications include carbon capture and storage (CCS), which holds 82.1% of usage, especially within the oil & gas sector, which represents 34.5% of the demand.

Key Takeaways:

The DAC market is forecasted to grow from USD 1,007.1 billion (2024) to USD 120,811 billion (2034) at a CAGR of 61.4%.

North America leads the market with 48.3% share, supported by infrastructure and policy incentives.

Solid DAC technology is dominant with 58.3% share, driven by its efficiency and modular structure.

Electricity-powered DAC systems hold 68.3% market share, in line with decarbonization goals.

Small-scale DAC units (<10 collectors) account for 46.4%, enabling faster deployment.

CCS application dominates with 82.1% usage, and oil & gas is the top industry segment at 34.5%.

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Key Market Segments:
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
DORT Analysis

Drivers
Growing global pressure to meet climate targets is pushing industries and governments to invest in carbon removal. Policies like the U.S. 45Q tax credit are offering real financial incentives for DAC project development. Public and private R&D investment estimated at USD 4 billion has made rapid advancements possible. The modular and scalable nature of solid DAC technology lowers the barrier to entry and speeds up deployment.

Opportunities
The ability to repurpose captured CO₂ into fuels, chemicals, and building materials creates valuable commercial use cases. DAC projects that run on clean electricity can appeal to ESG-driven investors. Smaller units allow for flexible deployment across various geographies and industries. Growing interest from the voluntary carbon market opens doors for carbon offset sales. Collaboration with oil, gas, and heavy industries can help scale the technology with large capital inflows.

Restraints
High installation and operational costs remain a key challenge, especially for low-income or emerging markets. The technology is energy-intensive and depends on access to low-carbon electricity to stay environmentally viable. Regulatory uncertainty and lengthy permitting processes can delay projects. Additionally, long-term CO₂ storage and permanence of removal remain under public and scientific scrutiny.

Trends
Solid DAC is emerging as the standard, with growing preference due to performance and scalability. DAC systems increasingly use electricity, often sourced from renewables, to reduce lifecycle emissions. Deployment of smaller-scale units is accelerating as companies look to test, optimize, and scale. Policies are shifting from general incentives to more targeted mandates for carbon removal. Strategic alliances between DAC companies, energy providers, and financial institutions are becoming more common.

Market Key Players:
Avnos, Inc.
Capture6
Carbon Capture Inc.
Carbon Collect Limited
Carbon Engineering ULC
Carbyon
Global Thermostat
Heirloom Carbon Technologies
Immaterial
Infinitree LLC
Mission Zero Technologies
Mosaic Materials Inc.
Noya PBC
Octavia carbon
RepAir Carbon
Skytree
Soletair Power
Southern Green Gas Limited
Spiritus
Sustaera Inc.
Climeworks AG
Carbon Xtract Corporation
Other Key Players

Conclusion:

The Direct Air Capture market is moving from concept to commercial reality at a record pace. With projected growth from USD 1,007.1 billion in 2024 to over USD 120,811 billion by 2034, it’s evident that this technology is not just viable, but essential for long-term climate solutions. Solid DAC systems, electricity-powered operations, and modular units are driving adoption in a variety of industries especially oil & gas.

With North America currently leading the charge, and supportive policies like tax credits already in place, we can expect further expansion in both developed and emerging economies. The potential to repurpose CO₂ into useful products or store it long-term is opening up new revenue streams. However, cost, energy demand, and regulatory clarity will be key areas to watch. As more companies and governments commit to net-zero targets, DAC is set to become a central part of the global decarbonization toolkit.