Carbon Dioxide Removal Market Size to Surpass USD 3,263 Million by 2034

The global carbon dioxide removal market size surpassed USD 838 million in 2024 and is predicted to reach around USD 3,263 million by 2034, registering a CAGR of 14.56% from 2025 to 2034.

Highlights of the Carbon Dioxide Removal Market

• North America dominated the global market in 2024.
• Asia Pacific is anticipated to grow at the fastest rate in the market during the forecast period.
• By product insight, the direct air capture (DAC) segment held a dominant presence in the market in 2024.
• By product insight, the enhanced/carbon mineralization segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
• By application insight, the technology sector segment accounted for a considerable share of the market in 2024.
• By application insight, the finance sector segment is projected to experience the highest growth rate in the market between 2025 and 2034.

Industry Valuation and Growth Rate Projection

The carbon dioxide removal (CDR) market is a swiftly growing sector that aims to reduce or remove CO₂ from the atmosphere through natural and engineering solutions. It holds a place in the emission strategies of a global climate system, where emissions cannot be eliminated by ordinary means of mitigation. These include land-based methods, such as afforestation and soil carbon sequestration, as well as ocean-based and engineered methods, including ocean alkalization and direct air capture. The industry consists of products and technologies such as biochar, enhanced mineralization, and BECCS (bioenergy with carbon capture and storage). The market is stimulating growth as new technologies are being developed, governments have put in place incentives, private and public investors have provided funds, awareness has grown, and DAC plants and reforestation initiatives are being developed.

Carbon Dioxide Removal Market: Stats and Figures

• Approximately 2 billion tons of carbon dioxide (CO2) are removed from the atmosphere annually through Carbon Dioxide Removal (CDR) methods.
• The State of Carbon Dioxide Removal report (2nd Edition, 2024) estimates that 7–9 gigatonnes (Gt) CO2 removal will be required each year by 2050.

How AI Has Benefitted the Market?

AI accelerates CO2 removal by optimization, reducing cost along with the automation of the process.

• Optimized CO₂ Capture and Efficiency: AI fine-tunes parameters to maximize efficiency and minimize energy use.
• Selection of Better Storage Sites: AI is employed in analyzing the geological and environmental data to come up with safe, efficient, and environmentally viable locations for carbon storage.
• Reducing Cost and Automation of the Process: Using AI to deploy optimization reduces operational costs, thereby making CDR technologies more affordable and scalable.
• Real-time Monitoring and Amending System: AI-based CO₂ systems continue to monitor and amend their powers dynamically.
• Faster Development and Circular Economy Support: AI speeds up the innovative process for CO₂-based products and materials.

Industry Leader Announcements

• Charlotte Streck of the University of Potsdam:

“We must rapidly reduce the production of new greenhouse gas emissions worldwide. At the same time, we must also remove and store excess carbon already polluting the atmosphere.”

• Sophia Mendelsohn, Chief Sustainability and Commercial Officer at SAP:

“Investing in quality carbon removals addresses emissions that can’t be eliminated directly.”

Geographical Insights

Which region is leading the charge in the Carbon Dioxide Removal Market?

North America

North America dominated the carbon dioxide removal market in 2024. North America remains the carbon dioxide removal (CDR) market leader by virtue of government action, increased investments in the technologies of carbon removal, and policy frameworks that support carbon capture and storage. The presence of significant industry players engaged in developing new CDR avenues and entering into strategic collaborations further enhances the regional market leadership.

Asia-Pacific

Asia Pacific is expected to witness growth at the fastest CAGR due to growing consciousness of a carbon-less environment and drastically increasing activities from both the public and private sectors. The likes of China, India, Japan, and South Korea lie ahead in research and development for sustainable carbon management. Another factor driving market growth in tandem would be investments of chemical and energy companies in carbon-neutral initiatives. Focus of key regional players on innovative carbon solutions, collaborations, and product development further strengthens the prospects of this market in the region.

Recent Developments in Carbon Dioxide Removal MArket

• In June 2025, Niels Schallenberg is appointed as Group Director Europe & Africa by Fugro, following Erik-Jan Bijvank's resignation to pursue other opportunities.
• In June 2025, Swiss carbon capture specialist Climeworks will remove 37,000 tonnes of CO2 from the atmosphere for SAP, generating 37,000 tonnes of carbon removal credits until 2034.

Competitive Landscape

The market is moderately fragmented with local players like Climeworks, Wakefield BioChar, Cella Mineral Storage Inc., Carbon Engineering Ltd., Global Thermostat, Bussme Energy AB, Carbofex Ltd., Arca, Oregon Biochar Solutions, Novocarbo GmbH, etc., wishing to take the time to edge their presence through investments, partnerships, acquisitions, and mergers. They also invest in product development and competitive pricing. These strategies will promote market growth and lucrative opportunities for market players

• Company Name: Arca
• Year of Incorporation: 1926
• Headquarters: Monterrey, Mexico

Arca Continental's annual revenue for 2024 was Ps. 237,004 million, an increase of 10.9% (8.8% on a currency-neutral basis) compared to the previous year.

• Company Name: Global Thermostat
• Year of Incorporation: 2010
• Headquarters: Commerce City, Colorado