Global Direct Air Capture Market Size, Share, And Business Benefits By Technology(Solid-DAC (S-DAC), Liquid-DAC (L-DAC), Electrochemical-DAC (E-DAC)), By 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 Industry(Oil & Gas, Food and beverage, Automotive, Chemicals, Healthcare, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034

Report Overview

The global Direct Air Capture Market size is expected to be worth around USD 11,786.3 Million by 2034, from USD 103.4 Million in 2024, growing at a CAGR of 60.6% during the forecast period from 2025 to 2034.

Direct Air Capture (DAC) technologies represent a critical solution for mitigating climate change by extracting carbon dioxide (CO2) directly from the atmosphere, regardless of emission source location. This contrasts with traditional carbon capture, which typically occurs at the point of emission, such as in industrial facilities like steel plants. The captured CO2 can either be permanently sequestered in deep geological formations or repurposed for various applications, including the production of synthetic fuels.

The growing market for DAC technologies is driven by several key factors. First, increasingly stringent government regulations and a heightened focus on environmental sustainability are accelerating demand for solutions that enable carbon reduction. A critical element of this trend is the global push toward achieving net-zero emissions by 2050. Over 140 nations, including major carbon-emitting countries such as China, the United States, and India, have committed to meeting this ambitious goal.

Furthermore, innovations in CO2 utilization—particularly in the production of synthetic fuels—could drive down the cost of DAC solutions while creating new markets. Initial commercial ventures exploring the use of air-captured CO2 for synthetic aviation fuels, in combination with hydrogen, underscore the potential of these fuels to play a pivotal role in decarbonizing hard-to-abate sectors such as aviation.

In addition to technological advancements, supportive government policies are further accelerating the deployment of DAC systems. Carbon pricing mechanisms, such as carbon taxes and cap-and-trade programs, are enhancing the attractiveness of DAC as a viable solution for industries aiming to offset their emissions. Furthermore, governments are introducing subsidies, grants, and tax incentives—such as the 45Q tax credit in the United States—to encourage investment in DAC technologies and support their commercialization as part of broader decarbonization strategies.

Key Takeaways

• Direct Air Capture Market size is expected to be worth around USD 11,786.3 Million by 2034, from USD 103.4 Million in 2024, growing at a CAGR of 60.6%
• Solid-DAC (S-DAC) held a dominant market position, capturing more than a 58.30% share
• Electricity held a dominant market position in the Direct Air Capture (DAC) sector, capturing more than a 68.30% share.
• less than 10 collectors held a dominant market position in the Direct Air Capture (DAC) market, capturing more than a 46.40% share.
• Carbon Capture and Storage (CCS) held a dominant market position, capturing more than a 82.10% share.
• Oil & Gas sector held a dominant market position in the Direct Air Capture (DAC) market, capturing more than a 34.50% share.
• North America dominated the Direct Air Capture (DAC) market, accounting for 48.30% of the global share, valued at approximately $486.3 million.
• In 2024, the U.S. government announced a $3.5 billion investment in DAC projects through the Inflation Reduction Act.

By Technology Analysis

In 2024, Solid-DAC (S-DAC) held a dominant market position, capturing more than a 58.30% share of the Direct Air Capture (DAC) market. This technology is favored for its efficiency and lower energy requirements compared to other methods. Solid-DAC uses solid sorbents to capture atmospheric CO2, which can then be released for storage or use through a heating process. The growing interest in reducing carbon footprints and increasing regulatory support for sustainable practices are key drivers behind the solid segment’s success.

Moving on to Liquid-DAC (L-DAC), this segment utilizes a liquid solvent to absorb CO2 directly from the air. Although it held a smaller market share in 2024, it is appreciated for its scalability and the potential for integration with existing industrial facilities. Companies and research institutions are exploring ways to enhance the solvent’s efficiency and reduce the overall energy consumption of the process.

The Electrochemical-DAC (E-DAC) is another innovative segment that uses electrochemical reactions to remove CO2 from the air. In 2024, E-DAC was emerging as a promising technology, particularly for its lower energy requirements and the potential to be powered by renewable energy sources. This technology is still in the developmental stage but shows significant potential for growth, especially in regions with high renewable energy penetration.

By Energy Source Analysis

In 2024, Electricity held a dominant market position in the Direct Air Capture (DAC) sector, capturing more than a 68.30% share. This dominance is largely due to the widespread availability and increasing affordability of renewable energy sources, which make electrically driven DAC systems both practical and sustainable. These systems, which primarily use electricity to power the entire process of capturing and releasing CO2, benefit from the ongoing global shift towards renewable energy, reducing operational costs and enhancing environmental appeal.

Heat as an energy source for DAC technologies also plays a critical role, particularly in processes where thermal reactions are required to release captured CO2 from absorbents. In 2025, while it holds a smaller share compared to electricity, the use of heat is essential in systems where high temperatures are necessary to regenerate sorbents. Heat can be derived from waste heat sources or integrated with industrial processes, offering a way to improve energy efficiency and reduce the overall carbon footprint of the technology.

By Number of Collectors

In 2024, systems with less than 10 collectors held a dominant market position in the Direct Air Capture (DAC) market, capturing more than a 46.40% share. This segment primarily includes smaller-scale installations that are suitable for modular expansion, making them attractive for pilot projects and smaller operations. The flexibility and lower initial investment associated with these systems have driven their adoption in various sectors looking to mitigate their carbon footprint without massive infrastructural changes.

Conversely, systems with more than 10 collectors, while holding a smaller market share in 2024, are pivotal for large-scale carbon capture initiatives. These larger systems are often integrated into industrial sites or paired with substantial renewable energy projects to offset significant amounts of CO2. The year 2025 is seeing an increase in interest and investment in these larger systems as technology advances and as financial and regulatory incentives for large-scale carbon management improve.

By Application

In 2024, Carbon Capture and Storage (CCS) held a dominant market position, capturing more than a 82.10% share. This segment leads due to its critical role in reducing CO2 emissions by capturing carbon dioxide and storing it underground in geological formations. The prominence of CCS is underscored by its potential to significantly mitigate the impact of industrial emissions on climate change.

Its high market share reflects widespread recognition of the necessity for large-scale carbon removal strategies to achieve global climate targets. The CCS technology has been bolstered by governmental policies and incentives aimed at reducing carbon footprints, making it a preferred choice for industries aiming to comply with environmental regulations.

Meanwhile, Carbon Capture, Utilization, and Storage (CCUS) is emerging as a key player in the Direct Air Capture market. Although it holds a smaller share compared to CCS, its importance is growing. CCUS not only captures and stores CO2 but also repurposes it for use in various industries, including the production of synthetic fuels, chemicals, and building materials.

By End-Use Industry

In 2024, the Oil & Gas sector held a dominant market position in the Direct Air Capture (DAC) market, capturing more than a 34.50% share. This significant uptake is largely due to the industry’s need to reduce its carbon footprint and comply with increasing environmental regulations. DAC technologies in this sector are often used to capture CO2 for utilization in enhanced oil recovery processes or for permanent underground storage, aligning with sustainability goals.

The Food and Beverage industry also integrates DAC technologies, particularly for carbonation and preserving the freshness of products. Although a smaller segment in 2024, it demonstrates growing interest due to the need to innovate in sustainable production practices.

The Automotive sector is exploring DAC technologies to offset emissions from manufacturing processes and throughout the supply chain. In 2025, this sector continues to invest in DAC as part of broader efforts to achieve carbon neutrality, reflecting a commitment to environmental responsibility.

In the Chemicals industry, DAC is used to provide a pure CO2 stream for various chemical synthesis processes. The ability to capture and reuse CO2 directly from the air is becoming an integral part of sustainable chemical production, supporting circular economy initiatives.

Healthcare, although a niche market for DAC, uses captured CO2 in various applications, including pharmaceutical manufacturing and research. As of 2025, the use of DAC in healthcare is seen as a promising area for development, driven by the sector’s stringent control requirements and environmental policies.

Key Market Segments

By Technology

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

By 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 Industry

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

Drivers

Growing Demand for Sustainable Practices in the Food Industry

One of the major driving factors for the Direct Air Capture (DAC) market is the increasing demand for sustainable and eco-friendly practices in the food industry. As global awareness about climate change intensifies, food organizations are under mounting pressure to reduce their carbon footprint and adopt greener technologies. DAC offers a promising solution by capturing atmospheric CO2, which can be utilized in various food processing and preservation techniques.

According to a report by the Food and Agriculture Organization of the United Nations (FAO), the food sector accounts for approximately 26% of global greenhouse gas emissions. This high percentage underscores the critical need for technologies like DAC that can effectively reduce CO2 levels in the atmosphere. The FAO emphasizes the role of innovative technologies in meeting the sustainability challenges of the food industry, suggesting that DAC could play a significant part in this transformation.

Government initiatives further support the integration of DAC technology within the food industry. For example, the European Union’s Green Deal aims to make Europe the first climate-neutral continent by 2050, with specific targets for reducing emissions in all sectors, including agriculture and food production. Such policies are driving investment and development in DAC technologies, making them more accessible and cost-effective for food organizations.

Restraints

High Initial Costs and Energy Requirements

One significant restraining factor for the adoption of Direct Air Capture (DAC) technology, particularly within the food industry, is the high initial costs and substantial energy requirements associated with setting up and operating DAC systems. These financial and resource barriers can deter food organizations from implementing DAC technology, despite its potential environmental benefits.

The implementation of DAC technology requires substantial upfront investment in specialized equipment and infrastructure. This financial burden can be particularly challenging for food organizations that operate on thin profit margins. For instance, small and medium-sized enterprises (SMEs) in the food sector might find the cost prohibitive, limiting the technology’s adoption to larger corporations with more financial flexibility.

Government initiatives and policies play a crucial role in addressing these challenges. For example, various subsidies and financial incentives are needed to make DAC more accessible and affordable for food organizations. Programs that support research and development in energy-efficient DAC technologies could also help reduce the overall energy consumption of these systems, making them more viable for widespread use.

Trusted sources and industry leaders in sustainability advocate for more supportive policies and innovations that can bridge the gap between current technological limitations and the practical needs of the food industry. By fostering a regulatory and technological environment that supports the adoption of DAC, governments and industry leaders can help mitigate these restraining factors.

Opportunity

Integration of Direct Air Capture with Circular Economy Models

One major growth opportunity for Direct Air Capture (DAC) technology lies in its potential integration with circular economy models, especially within the food industry. Circular economy strategies focus on reducing waste, reusing resources, and minimizing environmental impact. By combining DAC with these models, companies can achieve sustainable carbon management while also creating economic value.

The food industry, in particular, stands to benefit significantly from such integration. Many food companies are already pursuing circular economy practices, such as reducing waste, improving energy efficiency, and recycling byproducts. For instance, major players like Nestlé and Unilever have committed to reducing their greenhouse gas emissions as part of their broader sustainability strategies. Nestlé has set a target to achieve net-zero emissions by 2050 and is working towards a more sustainable supply chain. In 2020, Nestlé reported that they had reduced their carbon footprint by 7.5% compared to 2018 levels, aiming to make further progress with a variety of climate-conscious innovations (Nestlé Annual Report 2020).

DAC technology offers a solution for companies like these by enabling them to capture carbon emissions directly from the air and potentially reuse or store the captured CO2 for long-term sequestration or conversion into useful byproducts. For example, captured CO2 can be used to carbonate beverages or as a raw material in the production of sustainable packaging materials. This not only helps to offset the carbon emissions generated during production but also aligns with the growing consumer demand for products that contribute to environmental sustainability.

Trends

Increasing Adoption of DAC for Carbon Neutrality in the Food Industry

A significant trend in the Direct Air Capture (DAC) market is the increasing adoption of DAC technologies by food organizations as part of their broader efforts to achieve carbon neutrality. With sustainability becoming a core business strategy, food companies are turning to innovative solutions like DAC to offset their carbon emissions and meet global climate goals. This shift is fueled by the growing pressure from consumers, regulators, and environmental organizations for businesses to act on climate change.

In recent years, major food corporations have been setting ambitious carbon reduction targets. For instance, Nestlé, one of the world’s largest food and beverage companies, committed to achieving net-zero emissions by 2050. This includes not just reducing emissions across their supply chains but also utilizing carbon removal technologies like DAC. In their sustainability report, Nestlé highlighted the need for advanced carbon capture and storage (CCS) solutions, signaling an opportunity for DAC technology to play a key role in their future climate strategies.

Government initiatives and international climate agreements are also reinforcing this trend. For example, the European Union has introduced the European Green Deal, which aims to make the continent the first climate-neutral region by 2050. This includes large-scale funding for carbon capture technologies, including DAC. In fact, the EU has already invested in several DAC pilot projects, with the goal of scaling up these technologies in the coming years. Such government backing is crucial in driving down costs and making DAC more accessible for companies, especially those in the food and beverage sector.

several food companies are already experimenting with DAC technologies. One notable example is the California-based startup, Carbon Clean Solutions, which is working on developing cost-effective DAC units for agricultural businesses, including food production facilities. By integrating DAC into their operations, these businesses aim to capture CO2 emissions generated during food processing, ultimately contributing to a more sustainable supply chain.

Geopolitical Impact Analysis

Geopolitical dynamics significantly influence the Direct Air Capture (DAC) market, reflecting intricate interactions between international policies, regional disputes, and strategic partnerships. Presently, several key geopolitical factors shape the trajectory of the DAC market, impacting investment trends, supply chain operations, and market dynamics.

Firstly, escalating tensions among major economies, particularly the United States and China, have repercussions on the DAC market. Trade disputes, tariffs, and technology transfer restrictions affect cost structures and supply chain reliability for DAC technologies. China’s dominance in DAC technology and its access to critical materials like sorbents and catalysts play a pivotal role in shaping market dynamics.

Moreover, the global focus on climate change mitigation and carbon reduction drives demand for DAC solutions. Nations prioritize energy security and sustainability, leading to increased investment in carbon capture technologies. This geopolitical shift towards clean energy and emission reduction strategies influences the adoption of DAC technologies worldwide.

Additionally, geopolitical events, such as regional conflicts and sanctions, highlight supply chain vulnerabilities. Instances like political instability in key sorbent-producing regions or sanctions on countries with significant DAC infrastructure can disrupt supply chains and affect market stability.

Report Scope