Direct Air Capture Device Market Growing at 76.8% CAGR | Surging Demand in Energy, Food & Greenhouse Applications | Valuates Reports
BANGALORE, India, May 23, 2025 /PRNewswire/ -- Direct Air Capture Device Market is Segmented by Type (Liquid Adsorption, Solid Adsorption), by Application (Food and Beverage, Greenhouse, Energy, Fuel).
The Global Direct Air Capture Device market was valued at USD 25.9 Million in 2024 and is anticipated to reach USD 1340 Million by 2031, witnessing a CAGR of 76.8% during the forecast period 2024-2031.
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Major Factors Driving the Growth of Direct Air Capture Device Market:
The global direct air capture device market is experiencing accelerated growth due to increasing pressure to achieve net-zero targets and offset residual emissions. With the convergence of policy support, technological innovation, and corporate responsibility, DAC devices are becoming central to climate mitigation strategies. Investment in R&D, integration with CCS and renewable energy, and expanding carbon markets are collectively fostering a robust ecosystem for DAC deployment. As adoption spreads across industries and regions, the market is expected to evolve rapidly, with scalability and cost reduction playing pivotal roles in determining future growth trajectories.
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TRENDS INFLUENCING THE GROWTH OF THE DIRECT AIR CAPTURE DEVICE MARKET:
The automotive industry is significantly contributing to the growth of the direct air capture (DAC) device market due to its role as a primary source of carbon emissions. As global regulatory bodies enforce stricter emission norms on vehicle manufacturers, there is a growing demand for innovative carbon offset technologies like DAC systems. Automakers are increasingly investing in carbon removal projects to achieve net-zero emissions and offset the environmental footprint of internal combustion engines. Additionally, the transition towards electric vehicles does not immediately eliminate supply chain emissions, which further fuels the adoption of DAC technologies. These devices are also being integrated into sustainable vehicle lifecycle models, providing a practical pathway for automotive companies to contribute to climate goals while enhancing brand value.
The synergy between Carbon Capture and Storage (CCS) infrastructure and direct air capture (DAC) devices plays a critical role in market expansion. CCS facilities provide a viable end-use solution for the captured CO₂ from DAC systems, enabling long-term geological storage or utilization in industrial processes. The growth of CCS networks in regions like North America and Europe makes it economically feasible to deploy DAC devices at scale, reducing logistical challenges related to CO₂ storage. Additionally, many government-backed CCS projects include DAC as part of integrated carbon management frameworks, leading to increased public and private funding for DAC technologies. As CCS adoption accelerates, it directly enhances the commercial and environmental viability of DAC, positioning it as a key component of decarbonization roadmaps across various industries.
Liquid adsorption is a fundamental mechanism in many DAC devices, and its refinement is driving the broader market growth. This technique leverages specialized solvents to selectively capture CO₂ molecules from ambient air, offering higher efficiency and lower energy requirements compared to other methods. The scalability and modularity of liquid-based DAC systems make them suitable for diverse applications, from industrial settings to urban carbon capture projects. Continuous advancements in solvent chemistry are also improving carbon capture rates and reducing operational costs, making liquid adsorption more attractive to commercial stakeholders. Furthermore, liquid systems integrate seamlessly with downstream carbon utilization processes, enhancing the circular economy potential of DAC technologies and driving investments in this segment.
A surge in corporate pledges to achieve net-zero emissions is boosting demand for DAC devices. Multinational corporations in sectors such as tech, retail, and manufacturing are seeking reliable methods to counterbalance their residual carbon footprints. DAC devices offer a measurable and verifiable solution for carbon removal, which aligns with Environmental, Social, and Governance (ESG) reporting metrics. These commitments are pushing companies to invest in DAC projects or partner with startups and technology providers. As investors and consumers pressure firms to demonstrate environmental accountability, DAC emerges as a preferred tool in long-term sustainability strategies, fueling consistent market demand.
Government incentives and regulatory frameworks are crucial in propelling the DAC device market forward. Policy instruments such as carbon pricing, tax credits, and public funding for negative emission technologies are creating favorable conditions for DAC deployment. For instance, initiatives like the U.S. 45Q tax credit and the EU Innovation Fund specifically support DAC-related projects. These programs reduce financial barriers and encourage pilot projects and commercial-scale implementations. In addition, climate policies increasingly recognize DAC as an essential element of national emission reduction strategies, prompting both private and public sectors to collaborate in deploying scalable DAC solutions.
Industries with hard-to-abate emissions, such as cement, steel, and aviation, are adopting DAC devices to meet decarbonization targets. These sectors often face limited options for direct emission reduction, making DAC a strategic alternative. Co-locating DAC systems near industrial plants allows for localized carbon offsetting and enhances operational sustainability. Moreover, integrating DAC with carbon utilization processes—like synthetic fuel production—opens up additional revenue streams. This industrial application is reinforcing DAC's role in comprehensive decarbonization strategies and generating demand from sectors with high carbon liabilities.
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DIRECT AIR CAPTURE DEVICE MARKET SHARE
The direct air capture device market shows prominent growth across North America, Europe, and parts of Asia-Pacific. North America leads due to strong policy incentives, large-scale pilot projects, and the presence of key market players. Europe follows closely, driven by ambitious climate targets and public-private partnerships promoting carbon removal.
The Asia-Pacific region, particularly countries like Japan and South Korea, is beginning to invest in DAC technologies as part of long-term emission control strategies. Regional market dynamics are also shaped by the availability of renewable energy, CCS infrastructure, and public awareness of climate issues, which influence adoption rates.
Key Companies:
- CarbonCapture Inc
- Carbon Engineering
- Global Thermostat
- Climeworks
- Sustaera
- Heirloom
- Carbfix
- Mission Zero
- AirCapture LLC
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DISCOVER MORE INSIGHTS: EXPLORE SIMILAR REPORTS!
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