India Carbon Capture Storage Market Research Report By Technology (Post-Combustion Capture, Pre-Combustion Capture, Oxy-Fuel Combustion, Direct Air Capture), By Application (Power Generation, Industrial Processes, Natural Gas Processing, Transport and Storage), By End Use (Energy Sector, Manufacturing Sector, Chemical Sector, Healthcare Sector) and By Method (Bioenergy with Carbon Capture and Storage, Mineralization, Enhanced Oil Recovery, Aquifer Storage)- Forecast to 2035

India Carbon Capture Storage Market Overview

As per MRFR analysis, the India Carbon Capture Storage Market Size was estimated at 333 (USD Million) in 2023.The India Carbon Capture Storage Market Industry is expected to grow from 388.2(USD Million) in 2024 to 2,350 (USD Million) by 2035. The India Carbon Capture Storage Market CAGR (growth rate) is expected to be around 17.786% during the forecast period (2025 - 2035)

Key India Carbon Capture Storage Market Trends Highlighted

The India Carbon Capture Storage market is growing quickly since the nation is dedicated to lowering greenhouse gas emissions as part of its environmental objectives. The Indian government has made projects that improve energy security and sustainability a top priority. This has led to more attention being paid to technology that collects and stores carbon emissions. This is part of a larger trend across countries to use greener energy sources. For example, India wants to attain net-zero emissions by 2070, which directly promotes improvements in carbon capture technology. Recent trends show that the public and commercial sectors are working together more and more to put money into research and development for carbon capture technologies.

Power generating and cement manufacturers, two of India's biggest carbon polluters, are looking into new ways to use carbon capture in their businesses. Also, more people are learning about investments that help the environment, which makes it easier to get money and other resources for carbon capture initiatives. This gives firms who concentrate on sustainability and carbon control solutions new chances. Also, technology is quickly improving in the areas of carbon capture usage and storage, making operations more efficient and less expensive. As India adopts these new technologies, more companies are entering the market. This makes the market more competitive, and working together may help everyone learn and work more efficiently.

In general, these factors show that the India Carbon Capture Storage market is affected not just by rules and regulations but also by a mix of public awareness, technical advancement, and industrial cooperation to fight climate change.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

India Carbon Capture Storage Market Drivers

Government Initiatives and Policy Support

The Indian government has been increasingly vocal about its commitment to reducing carbon emissions and combating climate change. It aims to reduce the carbon intensity of its economy by 33-35 percent from 2005 levels by 2030, as stated in its Nationally Determined Contributions (NDCs). This aggressive stance bolsters the India Carbon Capture Storage Market Industry, as policies supporting carbon capture technologies are expected to lead to significant investments in infrastructure.Established organizations like the Energy Research Institute (TERI) and the Indian Ministry of Environment, Forest and Climate Change are instrumental in driving these initiatives. 

By 2021, the Indian government allocated substantial funds for the Research and Development (R&D) of clean energy technologies, including carbon capture, indicating an estimated increase of 20 percent in investments in this sector over the last two years. This robust government backing legitimizes carbon capture initiatives, ensuring that technologies to capture and store carbon will likely see accelerated adoption across various industries.

Growing Industrialization and Urbanization

India's rapid industrialization and urban growth are significant contributors to increased carbon emissions, necessitating effective solutions like carbon capture storage. According to the Ministry of Urban Development, India is expected to have over 600 million people living in its cities by 2031. As industries expand to meet urban demands, the need for carbon capture technologies becomes even more crucial. The Confederation of Indian Industry (CII) suggests that more than 80 percent of greenhouse gas emissions in India originate from urban areas and industrial activities.

This statistic stresses the necessity for efficient carbon reduction strategies, promoting the adoption of carbon capture technology that can mitigate industrial emissions. With major industries such as cement and steel manufacturing identified as key sources of emissions by the Indian Ministry of Heavy Industries, the market for carbon capture storage is projected to grow alongside industrial advancements.

Impact of Climate Change on Agriculture and Water Resources

The ramifications of climate change are profoundly felt in India, particularly in key sectors such as agriculture and water resources. The Indian Council of Agricultural Research (ICAR) reports that there has been a consistent increase in average temperatures in India by 0.7°C over the past century, resulting in altered rainfall patterns that affect crop yields. Given that agriculture accounts for almost 15 percent of India's Gross Domestic Product (GDP), securing this sector is vital.

Therefore, advancing carbon capture technologies can help in mitigating greenhouse gas emissions, which directly impacts agricultural productivity. The rising urgency to safeguard agricultural resources has led to heightened interest and investment in the India Carbon Capture Storage Market Industry as a part of broader climate resilience strategies.

India Carbon Capture Storage Market Segment Insights

Carbon Capture Storage Market Technology Insights

The Technology segment of the India Carbon Capture Storage Market plays a crucial role in driving the nation's commitment to reducing carbon emissions and addressing climate change. The market is characterized by its diverse technological approaches, including Post-Combustion Capture, Pre-Combustion Capture, Oxy-Fuel Combustion, and Direct Air Capture. Each of these methods is tailored to capture carbon dioxide emissions from various sources effectively. Post-Combustion Capture is particularly significant as it can be retrofitted to existing power plants and industrial facilities, making it an appealing option for many operators looking to decrease their carbon footprints while sustaining operations.

Pre-Combustion Capture focuses on removing carbon dioxide before combustion, thus enhancing the efficiency of energy production and reducing emissions right from the start, which aligns well with India's aim of cleaner energy generation. Oxy-Fuel Combustion, by utilizing pure oxygen instead of air for combustion, not only aids in capturing CO2 more effectively but also can lead to improved energy efficiency, which is a key consideration for the energy-dependent economy of India. Lastly, Direct Air Capture is gaining traction as it offers a novel way to remove CO2 directly from the atmosphere, addressing emissions not only from industrial sources but also providing a solution for residual emissions from hard-to-abate sectors. The demand for these technologies is fueled by both government incentives and a growing recognition of the importance of sustainable practices in achieving climate goals. 

In India, robust policy frameworks and commitments to clean energy are expected to bolster the deployment of various technologies in the Carbon Capture Storage segment. With considerable governmental support, the emphasis is increasingly placed on integrating these technologies within the industrial ecosystem, promoting innovation and growth in the market. The India Carbon Capture Storage Market segmentation is expected to see significant movement as companies explore these technologies that not only help in tackling emissions but also contribute to economic growth. Embracing such innovations can lead India towards a sustainable future, providing an opportunity for industries to enhance their reputations as environmentally responsible entities. 

The evolving landscape of these carbon capture technologies underscores the necessity for collaboration among industries, researchers, and policymakers, ensuring that advancements are seamlessly translated into actionable strategies. Overall, the Technology segment signifies a vital area of focus in the broader carbon capture landscape, driving progress through innovative solutions and strategic investments, addressing both productivity and environmental health.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Carbon Capture Storage Market Application Insights

The Application segment of the India Carbon Capture Storage Market plays a crucial role in addressing the increasing demand for carbon reduction across various sectors. The growth in this segment is largely driven by the need for sustainable practices in Power Generation, where capturing emissions can significantly enhance energy efficiency and compliance with governmental regulations. Industrial Processes also hold a notable position, utilizing carbon capture technologies to reduce their environmental footprint while optimizing productivity. Natural Gas Processing is equally important, given that India aims to increase its reliance on natural gas, necessitating effective emission management strategies.

Furthermore, Transport and Storage solutions are essential for the successful implementation of carbon capture technologies, enabling the safe and efficient transport of captured carbon dioxide to designated storage sites. The importance of these applications in the context of India’s commitment to reducing greenhouse gas emissions reflects a broader trend favoring cleaner technologies, which face challenges such as high initial costs and the need for robust infrastructure. However, there are significant opportunities for growth, particularly as government policies increasingly support investment in carbon capture initiatives, highlighting the crucial role of the Application segment in the India Carbon Capture Storage Market.

Carbon Capture Storage Market End Use Insights

The End Use segment of the India Carbon Capture Storage Market is a critical area poised for growth, driven by several key sectors including Energy, Manufacturing, Chemical, and Healthcare. The Energy Sector plays a vital role as it seeks to reduce emissions from fossil fuel power plants, thereby contributing to national sustainability goals. Manufacturing, with its diverse applications, is focusing on integrating carbon capture technologies to enhance processes and comply with environmental regulations. 

The Chemical Sector is significant due to its dependency on carbon for various production processes, creating opportunities for innovative carbon recycling solutions.In Healthcare, carbon capture is emerging as a method to manage emissions from related facilities, furthering the overall trend of reducing the carbon footprint in diverse areas of operation. Each of these sectors showcases unique challenges and opportunities, with strong support from governmental initiatives aimed at fostering research and development in carbon capture technologies. The increasing recognition of the need for sustainable practices is enhancing the importance of these segments within the broader context of the India Carbon Capture Storage Market.

Carbon Capture Storage Market Method Insights

The India Carbon Capture Storage Market is gaining momentum with various methods demonstrating significant potential in reducing carbon emissions. Among these, Bioenergy with Carbon Capture and Storage (BECCS) holds a pivotal role, integrating energy production with carbon sequestration, thus promoting sustainable energy while addressing climate change. Mineralization is another promising approach, where CO2 is mineralized and stored in solid form, contributing to long-term storage solutions and ensuring safety from atmospheric release. Enhanced Oil Recovery (EOR) utilizes captured carbon dioxide to boost oil extraction, enhancing oil recovery rates while simultaneously storing CO2, which showcases its dual advantage for the energy sector.

Aquifer Storage serves as a valuable method by storing CO2 in geological formations, ensuring that it is safely contained while also exploring potential groundwater benefits. Overall, each method offers unique strengths and aligns well with India's goals towards achieving a low-carbon economy, supporting both industry and environmental sustainability. The robust growth in the sector signifies a crucial opportunity for innovation and technology advancement, ultimately contributing to the broader objectives of reducing greenhouse gas emissions in India.

India Carbon Capture Storage Market Key Players and Competitive Insights

The India Carbon Capture Storage Market is steadily growing as environmental sustainability becomes critical to various industries. As the country grapples with increasing carbon emissions and the urgent need to address climate change, the market for carbon capture and storage (CCS) is gaining traction among energy producers, manufacturers, and policymakers. The competitive landscape is evolving, with several key players and new entrants investing in innovative technologies and infrastructure to capture, store, and utilize carbon emissions. This dynamic environment is characterized by collaborations, substantial investments, and a determination to transition towards a low-carbon economy while meeting energy demands.

Essar Group is a significant player within the India Carbon Capture Storage Market, demonstrating a robust commitment to green initiatives and sustainability solutions. The company has made notable investments in advancing CCS technologies that align with its operational framework, ensuring that its industrial activities reduce their carbon footprint. With a strong presence in various sectors including steel, oil, and gas, Essar Group leverages its industrial expertise and extensive resource network to drive the development of carbon capture technologies. Its strategic focus on sustainable practices and emissions reduction showcases its strength in adapting to the evolving regulatory landscape and societal expectations regarding environmental responsibility.Indian Oil Corporation is another key entity in the India Carbon Capture Storage Market, renowned for its wide-ranging portfolio in the energy sector, including refining, pipeline transportation, and marketing of petroleum products. With the increasing pressure to reduce greenhouse gas emissions, Indian Oil Corporation has been actively exploring and implementing carbon capture initiatives as part of its commitment to sustainability. 

The company offers a variety of products and technologies that contribute to reducing carbon impact. Its robust infrastructure and extensive reach across India empower it to play a significant role in advancing CCS solutions. Furthermore, Indian Oil Corporation has engaged in partnerships and collaborations aimed at promoting innovation in carbon capture, highlighting its proactive approach towards mergers and acquisitions that enable it to enhance its capabilities and strengthen its position within this rapidly growing market in India.

Key Companies in the India Carbon Capture Storage Market Include

• Essar Group


• Indian Oil Corporation


• Siemens


• Bharat Petroleum Corporation


• General Electric


• Shell India


• NTPC


• Acme Cleantech Solutions


• Reliance Industries


• Larsen & Toubro


• Carbon Clean Solutions


• Adani Group


• Birla Carbon


• Tata Power


• Thermax

India Carbon Capture Storage Market Industry Developments

The India Carbon Capture Storage Market has witnessed significant developments in recent months. In August 2023, Essar Group announced its increased focus on carbon capture technologies as part of its commitment to sustainability. Indian Oil Corporation is actively investing in research initiatives to innovate efficient carbon capture solutions. Meanwhile, Siemens has been collaborating with Bharat Petroleum Corporation to improve the carbon management strategies in refining processes. In a notable development, General Electric and Shell India have partnered to enhance carbon capture technologies applicable in natural gas projects. NTPC has announced plans to establish a pilot project aimed at capturing carbon emissions, aligning with India’s climate goals. 

Additionally, in June 2023, Acme Cleantech Solutions signed an agreement with Reliance Industries to explore joint ventures in carbon capture initiatives. The market is positively impacted by the increasing demand for sustainable technologies, with companies like Larsen and Toubro and Carbon Clean Solutions reporting substantial growth in their project portfolios. Notable happenings from 2021-2022 include Tata Power launching its carbon capture initiative in April 2022, demonstrating the strong movement towards enhancing carbon management across various sectors in India.

India Carbon Capture Storage Market Segmentation Insights

Carbon Capture Storage Market Technology Outlook

• Post-Combustion Capture


• Pre-Combustion Capture


• Oxy-Fuel Combustion


• Direct Air Capture

Carbon Capture Storage Market Application Outlook

• Power Generation


• Industrial Processes


• Natural Gas Processing


• Transport and Storage

Carbon Capture Storage Market End Use Outlook

• Energy Sector


• Manufacturing Sector


• Chemical Sector


• Healthcare Sector

Carbon Capture Storage Market Method Outlook

• Bioenergy with Carbon Capture and Storage


• Mineralization


• Enhanced Oil Recovery


• Aquifer Storage

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	333.0(USD Million)
MARKET SIZE 2024	388.2(USD Million)
MARKET SIZE 2035	2350.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	17.786% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	Essar Group, Indian Oil Corporation, Siemens, Bharat Petroleum Corporation, General Electric, Shell India, NTPC, Acme Cleantech Solutions, Reliance Industries, Larsen & Toubro, Carbon Clean Solutions, Adani Group, Birla Carbon, Tata Power, Thermax
SEGMENTS COVERED	Technology, Application, End Use, Method
KEY MARKET OPPORTUNITIES	Government policy support initiatives, Growing industrial emission regulations, Increasing investment in clean technologies, Expanding energy sector efficiency, Rising public awareness and demand
KEY MARKET DYNAMICS	Government regulations and incentives, Increasing industrial CO2 emissions, Technological advancements in capture, Investment in renewable energy, Growing environmental awareness among consumers
COUNTRIES COVERED	India