Direct Air Capture (DAC) Market Size, Share and Trend Analysis, By Technology (Solid, Liquid, Electrochemical, Membrane-based, Others), By Energy Source (Electricity, Heat), By Deployment (Offshore, Onshore), By Application (Carbon Capture & Storage, Carbon Capture, Utilization & Storage), By Industry Vertical, and By Region, Forecast 2025-2032

Direct Air Capture (DAC) Market Overview and Key Insights:

The global direct air capture (DAC) market size reached USD 74.8 million in 2024 and is expected to register a revenue CAGR of 57.5% during the forecast period. Rapid deployment of direct air capture (DAC) to neutralize carbon emissions and support global climate targets is driving revenue growth in the market.

Governments across countries are significantly emphasizing carbon capture technologies to reduce emissions by supporting the transition toward sustainability. According to the United Nations (UN), global emissions must be cut by 45% by 2030 and reach net zero by 2050. As of June 2024, 107 countries account for roughly 82% of worldwide greenhouse gas emissions.

Market Drivers:

Growing DAC project commissioning and supportive government policies are accelerating market revenue growth of the direct air capture (DAC) market. DAC technologies are highly deployed to remove CO2 directly from the atmosphere for storage or utilization. According to the International Energy Agency (IEA), currently 27 DAC plants operate across Europe, North America, Japan, and the Middle East.

This DAC plant captures approximately 0.01 Mt CO2 annually. DAC technologies integrate with existing CO₂ transport/storage infrastructure, and supply high-purity CO2 for industrial reuse. In addition, favorable government policies are propelling market revenue growth through grants, tax credits, and subsidies. These policies are attracting new players, which, in turn, are contributing to the overall Total Addressable Market (TAM).

For instance, the United States is providing a 45Q tax credit of up to USD 180/t for permanent storage under the 2022 Inflation Reduction Act, USD 3.5 billion, and a USD 35 million carbon removal purchase pilot. Moreover, Canada proposed a 60% investment tax credit for DAC equipment and is developing an offset protocol under its Greenhouse Gas Offset Credit System. The UK’s Net Zero Strategy targets 5 Mt removals by 2030 and 80 Mt by 2050. In response, the U.K. government is providing USD 25 billion under CCUS funding.

Market Opportunity:

The growing demand for CO2 removal in the aviation industry is fueling significant market opportunities. According to the International Air Transport Association (IATA), aviation accounts for 3% of global carbon emissions. Globally, around 80% of CO2 emissions are generated by flights exceeding 1,500 km. As a result, airlines are turning to high-integrity carbon removal solutions, such as direct air capture (DAC), to neutralize residual emissions.

Major airline operators are partnering with DAC companies to advance direct air capture as a critical pathway toward the industry’s net-zero target. For instance, on 17^th March 2022, Airbus collaborated with 1PointFive to integrate direct air capture-based carbon removal solutions into the aviation sector. Also, on 23^rd September 2024, British Airways has agreed to purchase approximately USD 12.01 million worth of carbon removal credits.

Technological Trends:

Advancements in solid sorbent and liquid solvent efficiency are emerging as a major trend in the direct air capture (DAC) market. DAC technology captures carbon dioxide (CO2) directly from the atmosphere. Solid sorbents with higher CO2 adsorption capacity and lower regeneration energy requirements enable more compact and cost-effective modular systems.

The liquid solvent focuses on optimizing chemical compositions and process configurations to reduce energy consumption during CO2 stripping and minimize solvent degradation. These efficiency gains directly translate into lower operational costs and a reduced energy footprint. This makes DAC a more commercially viable and environmentally impactful solution for achieving net-zero emissions.

Restraints & Challenges:

High energy consumption remains a significant challenge in the direct air capture (DAC) market. According to research, direct air capture (DAC) technology consumes between 200 kWh and 2,200 kWh of energy per ton of CO2 captured. This high energy demand increases operational costs and also impacts the overall environmental benefits. As a result, reducing energy consumption is critical in making DAC commercially viable and environmentally sustainable.

Energy Source Segment Insights and Analysis:

Based on the Energy Source, the Direct Air Capture (DAC) Market is segmented into electricity-powered DAC, and heat-powered DAC.

The Electricity-powered DAC will be sub-segmented into the areas of Solar photovoltaic (PV), Wind power, Hydropower, and Geothermal electricity.

The electricity-powered DAC segment accounts for the highest revenue share in 2024 and is expected to register a growth rate of 60.1% by 2032. Integration with evolving energy infrastructures and efficiency gains in system design. Electrical energy allows precise control over thermal management and process optimization, which directly enhances the overall energy efficiency of DAC units.

Innovations in heat exchange and air handling technologies are designed for electricity-powered DAC systems. Furthermore, advancements in renewable electrochemical DAC technologies, which are majorly electricity-driven, which as a result are contributing to energy efficiency and scalability. For instance, on January 9th, 2025, Origis Energy secured financing of USD 415 million to provide zero-emission solar power for the direct air capture (DAC) facility.

Application Segment Insights and Analysis:

Based on the application, the direct air capture (DAC) Market is segmented into Carbon Capture & Storage (CCS), and Carbon Capture, Utilization & Storage (CCUS).

The carbon capture & storage (CCS) segment registered a substantial revenue share in 2024. The carbon capture & storage (CCS) technologies have improved operational efficiencies by optimizing CO2 compression workflows by reducing energy penalties that traditionally impact carbon capture unit economics.

Also, the enhancements in monitoring and verification technologies are unlocking access to incentives and carbon credits, which in turn are driving profitability for carbon capture & storage (CCS) DAC projects. Several companies are getting significant funds, which are further propelling revenue share.

For instance, on 17^th May 2025, 1PointFive has entered into an agreement with XRG to explore a joint venture focused on developing a large-scale carbon capture facility in Texas, U.S. XRG is evaluating a potential USD 500 million investment in the proposed DAC plant, which aims to capture 500,000 tons of CO2 annually from the atmosphere.

Industry Vertical Segment Insights and Analysis:

Based on the Industry Vertical, the Direct Air Capture (DAC) Market is segmented into Oil & Gas, Chemicals, Industrial Manufacturing, Transportation, Data Centres, Food & Beverage, and Others.

Data Centres segment is expected to register significant revenue growth by 2032. Rapid demand for carbon credits, primarily to address carbon footprint and meet sustainability goals data centres propelling revenue expansion. Operating a data centre consumes a lot of energy, and electricity is derived from fossil fuels, which greatly adds to CO2 emissions. Buying carbon credits data centre offsets emissions by funding projects that cut greenhouse gas emissions, like renewable energy projects and reforestation projects.

Major global technology companies that are significantly deploying DAC technologies are anticipated to accelerate revenue share over the forecast period. For instance, on 11^th September 2024, Google entered into a significant agreement with Holocene focused on extracting carbon dioxide from the air. Under this USD 10 million contract, the goal is to capture and securely sequester 100,000 tons of CO2 permanently. Also, on July 8^th, 2025, Microsoft announced it has begun utilizing waste heat from its data centres to power direct air capture (DAC) technology.

Geographical Outlook:

The Direct Air Capture (DAC) Market is strategically segmented by geography to provide a comprehensive understanding of regional market dynamics. Discover demand analysis, emerging trends, and growth opportunities shaping market performance across different regions and countries.

North America Direct Air Capture (DAC) Market:

North America registered a significant market share in the direct air capture market. Rising demand for DAC to support the mission of net zero emission by 2050 is propelling is adoption of the DAC in the United States. Pollution levels across the U.S. are rising due to increasing industrial emissions, urbanization, and transportation-related greenhouse gases.

According to the U.S. Environmental Protection Agency (EPA), in 2023, the United States emitted roughly 66 million tons of pollutants into the atmosphere, predominantly driving ozone and particulate matter formation, acid deposition, and visibility degradation.

As a result, DAC technology has a prominent role in capturing toxic particles and reducing atmospheric carbon levels, by supporting the country’s long-term climate objectives. the U.S. Department of Energy (DOE), funding several projects to accelerate the commercialization and large-scale deployment of Direct Air Capture (DAC) facilities through the Regional DAC Hubs program.

On 19^th December 2024, the U.S. DOE Office of Clean Energy Demonstrations (OCED) announced the opening of applications for up to USD 1.8 billion in funding to support the design, construction, and operation of mid-to-large-scale commercial direct air capture facilities.

The DOE, along with multiple private companies, is funding several key projects in 2024 that are anticipated to drive revenue growth throughout the forecast period. For instance, a Major key competitor in the market, On October 23rd 2024, Climeworks, collaborates with CapturePoint Solutions on Project Cypress for Southwest carbon dioxide storage.

On 23^rd October 2024, the project has secured over USD 50 million from and an additional USD 51 million in private investment. Also, on 5^th December 2024, Mitsubishi Corporation announced a major investment of USD 150 million in Heirloom Carbon Technologies, Inc.

Asia Pacific Direct Air Capture (DAC) Market:

Asia Pacific registered the highest market share, and this region is expected to register the fastest revenue growth of 67.3% by 2032. The Asia Pacific region is an industrial powerhouse with a rapidly growing population. This region is currently facing significant health hazards with hindering economic growth, harming the environment, and reducing agricultural productivity.

According to the Asian Development Bank (ADB), more than 2.3 billion people in the region are exposed to air pollution levels several times higher than the WHO’s recommended safe limits. The average PM10 level in Asia is 75 µg/m3, with 96% of cities at risk. The average PM2.5 level is 40 µg/m3, with 98% of cities at risk.

The launch of new projects and the commissioning of installation initiatives across countries in the Asia Pacific are driving significant revenue growth in the market. On 10^th June 2025, Japanese electronics manufacturer Epson is developing a compact carbon capture unit comparable in size to a standard office printer, and the product is anticipated to launch in 2028.

Also, major investments have substantially contributed to the revenue growth of the market. For instance, on 5^th July 2022, an Australian-developed prototype for carbon capture and storage has secured a USD 700,000 contract to remove CO₂ through Direct Air Capture (DAC) technology.

Major countries such as China, Japan, South Korea, and Australia are expanding offshore and marine infrastructure. According to the United Nations Conference on Trade and Development (UNCTAD), Asia handles around 63% of global container trade. DAC systems can be integrated into neutralize emissions from shipping fuel combustion and offshore oil and gas operations.

Competitors are collaborating with shipping companies to meet emission compliance. For instance, on 7^th May 2025, Climeworks has partnered with NYK Group to deliver three long-term carbon removal solutions aimed at offsetting a portion of the shipping company’s residual emissions by 2028.

Europe Direct Air Capture (DAC) Market:

Europe is expected to register a substantial growth rate by 2032. Government support in setting up Carbon Capture, Utilization & Storage (CCUS) projects is supporting revenue growth in this region. The European Union (EU) is funding several DAC projects to support climate neutrality goals and store atmospheric CO₂ across member states.

According to the International Energy Agency (IEA), the European Union has allocated around USD 1.5 billion to Carbon Capture, Utilization, and Storage (CCUS) initiatives through its latest Innovation Fund round. In addition, around USD 500 million in funds have been allocated to CO₂ transport and storage projects under the Connecting Europe Facility program.

Moreover, Germany’s parliament has authorized USD 109.07 billion for climate and energy transition projects. In order to support this objective, major companies are getting significant funding. For instance, on 10^th September 2024, Ucaneo secured USD 7.44 million in seed funding to advance direct air capture (DAC) technology.

Competition Analysis:

The Direct Air Capture (DAC) Market is characterized by numerous players, with major players competing across segments and regions. The list of major players included in the Direct Air Capture Market report are:

• Linde PLC
• Climeworks AG
• Carbon Engineering ULC
• Zero Carbon Systems
• Heirloom Carbon Technologies
• CarbonCapture Inc.
• ZeoDAC, Inc.
• Soletair Power
• Parallel Carbon Limited
• Prometheus Fuels
• Aircapture 
• Shanghai DODGEN Chemical Technology Co., Ltd.
• AspiraDAC Pty Ltd
• DACMA GmbH
• Ucaneo Biotech GmbH
• 1PointFive, LLC 

Strategic Developments in the Direct Air Capture (DAC) Market:

• On 5^th August 2025, Climeworks installed its first Direct Air Capture (DAC) unit in Riyadh, inaugurated by the Saudi Minister of Energy. This milestone reflects Saudi Arabia’s strong commitment to advancing Circular Carbon Economy (CCE) technologies, with a particular focus on DAC. The project aims to assess the technology’s ability to remove CO₂ from the atmosphere in hot, arid environments, highlighting its adaptability beyond the cooler climates, such as Iceland, where Climeworks traditionally operates.
• On 6^th June 2025, Aircapture received USD 50 million in a Series A funding round to expand the deployment of its Direct Air Capture (DAC) systems, designed to capture and repurpose CO₂ at industrial facilities. Recently, the company, in partnership with 44.01, received a USD 1 million award through the XPRIZE Carbon Removal competition for a DAC initiative in the UAE.

Key Advantages for Stakeholders:

Navistrat Analytics’ industry report provides an in-depth quantitative analysis of various market segments, historical and current trends, market forecasts, and dynamics within the global market. The historical years covered in this report are 2022 to 2023, with 2024 serving as the base year for market size calculations. The forecast period extends from 2025 to 2032.

The report includes an executive summary and a comprehensive overview of market drivers, restraints, opportunities, and challenges (DROC), along with insights into regulatory standards. It features detailed analyses such as PORTER’s Five Forces, SWOT, and PESTLE, as well as assessments of technological trends and the competitive landscape.

PORTER’s Five Forces analysis helps stakeholders evaluate the impact of new entrants, competitive rivalry, supplier power, buyer power, and substitution threats, enabling them to assess the level of competition and the attractiveness of the global market. The competitive landscape provides stakeholders with a clear understanding of the current market positions of key players, offering valuable insights into their competitive environment.

Scope And Key Highlights of The Direct Air Capture Market Report:

The Direct Air Capture Market report offers a detailed analysis of market size, including historical revenue (in USD Million) data for 2022-2023 and revenue forecasts for 2025-2032 across the following segments:

• Technology Outlook (Revenue, USD Million; 2022-2032)
  • Solid-DAC
  • Liquid-DAC
  • Electrochemical-DAC
  • Membrane-based DAC
  • Others

• Energy Source Outlook (Revenue, USD Million; 2022-2032)
  • Electricity-powered DAC
    • Solar photovoltaic (PV)
    • Wind power
    • Hydropower
    • Geothermal electricity
  • Heat-powered DAC
    • District heating systems
    • Renewable heat
    • Fossil fuel heat
    • Hybrid heat

• Deployment Outlook (Revenue, USD Million; 2022-2032)
  • Offshore
  • Onshore

• Application Outlook (Revenue, USD Million; 2022-2032)
  • Carbon Capture & Storage (CCS)
  • Carbon Capture, Utilization & Storage (CCUS)

• Industry Vertical Outlook (Revenue, USD Million; 2022-2032)
  • Oil & Gas
  • Chemicals
  • Industrial Manufacturing
  • Transportation
    • Aviation
    • Maritime
  • Data Centers
  • Food & Beverage
  • Others

• Regional Outlook (Revenue, USD Million; 2022-2032)
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Benelux
    • Nordic Countries
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Oceania
    • ASEAN Countries
    • Rest of APAC
  • Latin America
    • Brazil
    • Rest of LATAM
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Israel
    • Turkey
    • Rest of MEA

Frequently Asked Questions (FAQ) About the Direct Air Capture Market Report