The global Carbon Capture and Utilisation (CCU) market is projected to grow from $4.90 billion in 2025 to $8.06 billion by 2031, according to a new report from QY Research. This represents a compound annual growth rate of 7.5%. The growth is driven by stricter emissions targets, increased investment in industrial decarbonization, and the expansion of carbon credit mechanisms that reward captured CO2 used as a feedstock for fuels, chemicals, and building materials. CCU technologies capture CO2 from industrial sources or directly from the air and convert it into commercial products, distinguishing it from carbon capture and storage (CCS) which focuses on permanent underground sequestration. Key applications include enhanced oil recovery, synthetic fuel production, and manufacturing of construction materials. The report notes that hard-to-abate industries like cement and steel are turning to CCU as a pathway to reduce process emissions that cannot be eliminated through electrification alone. Regional analysis shows North America and Europe as mature markets with strong policy support, while Asia-Pacific is expected to be the fastest growing region due to rapid industrial expansion in China, India, and Southeast Asia. The report also highlights that government carbon pricing systems and tax incentives are improving project economics, making CCU more commercially viable.
