US Carbon Dioxide Removal Market Size to Touch USD 934.58 Million by 2034

The US carbon dioxide removal market size was estimated at USD 228.61 million in 2024 and is projected to be worth around USD 934.58 million by 2034, growing at a CAGR of 15.12% from 2025 to 2034.

Highlights of the Carbon Dioxide Removal Market

• 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

Carbon dioxide removal (CDR) is a key business market when the world tries to prevent the effects of climate change. Carbon dioxide removal entails techniques and processes that pull extra carbon dioxide from the atmosphere, including natural and anthropogenic means of removal. Natural ones are reforestation, afforestation, and regenerative agriculture, while engineered methods are direct air capture, maritime alkalinity enhancement, and carbon mineralization. The scientific establishment, environmental urgency, and government support propel growth in the markets. An advancement in chemical engineering has resulted in improvements in CO₂ removal processes. On the other side, growing environmental awareness has further increased demand for CDR solutions. Higher funding and investments coming from both governmental and private bodies are fostering the growth of the market, together with the proliferation of DAC plants and reforestation activities. With the tightening of global climate commitments, the CDR market is expected to become paramount in realizing carbon neutrality.

What Are the Market Trends in the U.S. Carbon Dioxide Removal Market?

The market trends in the U.S. carbon dioxide removal market are defined by rising climate concern, government policies, and corporate sustainability goals.

• Rise of Climate Action: Politicians, companies, and individuals are committed to net-zero emissions.
• Supportive Government Policies: Tax credits, subsidies, and federal grants have been given for carbon removal projects.
• Corporate Sustainability Goals: More companies are upping the use of CDR technologies to boost ESG and net-zero pledges.
• Growing Investments: Increasing in public and private funds of emergent CDR technologies, mainly DAC.
• Innovations: Increased capacity, efficiency, and cost benefits of CDR solutions.

What Are the Major Market Restraints in the U.S. Carbon Dioxide Removal Market?

The growth of the U.S. carbon dioxide removal market is restrained by factors such as high implementation costs, scalability limitations, and low public awareness.

• High Implementation Costs: One large capital expenditure to be made for the construction of the infrastructure for capture, transport, and storage.
• Energy Intensity: Energy requirements for the process, if not provided by clean energy, could counterbalance the good that the environment benefits.
• Scalability Constraints: Land-intensive solutions are physically and ecologically limited.
• Regulatory Uncertainty: The policy framework is on the move, vague at times, inappropriate for a stakeholder trying to make decisions, and hence inappropriate for investments.
• Low Public Awareness: Lack of awareness creates a disincentive for deployment and funding.

What Are the Market Opportunities in the U.S. Carbon Dioxide Removal Market?

The opportunities in the U.S. carbon dioxide removal market are associated with AI-powered optimization, resource allocation and site optimization, and utilization of captured CO2.

• AI-Powered Optimization: Increasing efficacy in DAC, BECCS, and mineralization while cutting down cost.
• Advanced CCS Plants: Carbon capture and emission control at industrial sites.
• Smart Resource Allocation: Choosing the right sites and resources for scaling CDR projects.
• Using Captured CO₂: The use of captured CO₂ for production of commercial products.
• Environment Monitoring: Compliance modeling and environmental monitoring for CDR performance and emissions impact.
• Material Innovation: Expedites the design of new absorbents and catalysts for carbon capture.

Recent Developments in the US Carbon Dioxide Removal Market:

• In May 2025, Occidental and ADNOC are partnering to develop a Direct Air Capture facility in South Texas, with potential investment of up to $500 million.
• In April 2025, CO280 announced a historic offtake agreement with Microsoft for a large-scale carbon dioxide removal project, acquiring 3.685 million tonnes of CDR over 12 years.