A connected value chain, rather than a single technology, defines the carbon capture, utilization, and storage market. CO₂ is captured at an emission source, conditioned, transported, and then either used as a raw material or stored in geological formations such as saline formations and depleted oil and gas reservoirs. Polaris Market Research projects a 24.10% CAGR from 2026 to 2034, and the capture segment led with a 63.80% share in 2025 because it is the mandatory first step in the carbon chain.

Why Heavy Industry Relies on CCUS

CCUS plays a vital role in net-zero strategies by curbing CO₂ emissions where switching directly to electricity or alternative fuels is difficult. That makes it especially relevant to hard-to-abate industries such as cement, steel, chemicals, and refining, while allowing industrial activity to continue.

By end use, oil & gas held a 34.50% share in 2025, owing to its infrastructure, technological expertise, and experience handling massive volumes of CO₂. Captured CO₂ can also be used in enhanced oil recovery in suitable fields. The chemical & petrochemical segment is projected to grow at a 25.50% CAGR.

Transport Connects Emitters to Storage

Developing CO₂ transport infrastructure is the step that links capture sites to usage and storage locations. The transportation segment is projected to grow at a 25.20% CAGR because rising industrial capture projects have created the need for extensive new pipeline networks. Pipelines suit large and continuous volumes, while ships serve long-distance and offshore routes.

Shared CO₂ transport infrastructure lets several emission sources connect to storage sites without each project building its own system. The expansion of the Northern Lights network in Norway illustrates the trend, with transport capacity expected to increase from 1.5 million to 5 million tons per year by 2028.

Utilization Creates Commercial Outlets

Growing investment in carbon utilization is opening commercial pathways for captured CO₂, treating it as a feedstock rather than a waste. Uses include chemicals, fuels, building materials, and carbon-based products, which can create potential revenue.

In June 2026, Australia launched its first carbon refinery in New South Wales. Owned by MCI Carbon, it uses CO₂ generated by ammonia manufacturing at Orica, and the pilot can capture 2,500 tons of CO₂ per year to produce concrete, paper, and glass.

Hydrogen Adds Another Demand Anchor

The rise of blue hydrogen offers another opportunity because carbon capture is part of the production process. Blue hydrogen is produced from natural gas, with CO₂ captured and either sequestered or used. Higher demand for low-carbon hydrogen can drive investment in capture and storage infrastructure.

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Measurement Builds Confidence in Storage

Measurement, reporting, and verification is becoming integral to CCUS development as participants seek evidence of how much CO₂ is captured and sequestered. Strong systems can help companies monitor storage efficiency, demonstrate emission reductions, and meet regulatory requirements. As projects grow more complex, standardized methods and digital monitoring solutions are expected to become increasingly important.

Policy Signals and Key Players

Governments continue to back the sector. In February 2026, India announced an outlay of INR 20,000 crore (approximately USD 2.2 billion) over five years in Union Budget 2026–27 to advance CCUS readiness and test beds in sectors such as steel, cement, and refineries.

Key Players

• Aker Solutions ASA
• ATCO EnPower
• Calpine Corporation (Operating as a subsidiary of Constellation Energy)
• Equinor ASA
• Exxon Mobil Corporation
• Fluor Corporation
• Honeywell International Inc.
• JGC Holdings Corporation
• Linde plc
• Mitsubishi Heavy Industries, Ltd.
• Shell plc
• SLB N.V.
• TotalEnergies SE

For buyers and investors, the strongest projects align CO₂ transport infrastructure, carbon utilization outlets, blue hydrogen demand, and measurement, reporting, and verification with the needs of hard-to-abate industries. That alignment is central to how the carbon capture, utilization, and storage market evolves.

Conclusion

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