Visiongain has published a new report entitled Direct Air Capture (DAC) Market Report 2025–2035 (Including Impact of U.S. Trade Tariffs): Forecasts by Capture Capacity (Small/Medium-Scale (1,000–100,000 tCO₂/year), Large-Scale (>100,000 tCO₂/year)), by Business Model (DAC-as-a-Service, Integrated DAC + Utilisation, Partnerships with Oil & Gas), by Energy Source (Renewable Energy Powered DAC, Waste Heat/Industrial Heat Integration, Fossil Fuel-Powered DAC with CCS, Hybrid Systems), by Technology Type (Liquid Solvent-Based DAC, Solid Sorbent-Based DAC, Hybrid/Membrane-Based DAC, Emerging Electrochemical DAC, Other), by Utilisation Pathway (Carbon Sequestration & Storage (CCS), Carbon Utilisation in Fuels, Carbon Utilisation in Chemicals, Carbon Utilisation in Building Materials, Carbon Utilisation in Agriculture, Other) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.

The global direct air capture (DAC) market is estimated at US$130.8 million in 2025 and is projected to grow at a CAGR of 54.4% during the forecast period 2025-2035.

Impact of US Trade Tariffs on the Global Direct Air Capture (DAC) Market   

The imposition of U.S. tariffs on low-carbon technologies, including direct air capture (DAC) equipment, components, and associated infrastructure, is poised to have significant implications for the global direct air capture market. As the United States is one of the largest investors, innovators, and early adopters of DAC technologies, any changes to trade policy can ripple across supply chains, investment flows, and deployment timelines worldwide. Tariffs on imported DAC materials such as sorbents, membranes, reactors, or renewable-powered infrastructure components could increase production costs, slow project execution, and impact the competitiveness of DAC solutions relative to other carbon removal approaches. Conversely, protectionist policies might incentivize domestic manufacturing, boost local supply chains, and attract new investments into U.S.-based DAC production hubs. The resulting market response will largely depend on the tariff intensity, duration, and the extent of global collaboration shaping whether the industry experiences a rapid rebound, a delayed recovery, or a prolonged stagnation.

Corporate AMCs and Long-Dated Offtakes De-Risk Early Capacity

The emergence of very large, investment-grade buyers has accelerated commercialization. Frontier—founded by Stripe, Alphabet, Shopify, Meta and McKinsey—committed over $1 billion to durable removals through 2030 and has continued to contract DAC volumes in 2024–2025, providing price discovery and delivery discipline across a diversified portfolio. These commitments sit alongside landmark offtakes like Microsoft’s purchase of 500,000 t of DAC removals from 1PointFive’s STRATOS plant in Texas and a separate up-to-315,000 t agreement with Heirloom—precisely the sort of multi-year demand visibility that unlocks debt and lowers the cost of capital for first plants. (Frontier)

The buyer base is broadening beyond big tech. Frontier consortia members and other corporates have been adding multi-million-dollar pre-purchases and offtakes to crowd in earlier-stage suppliers, with public dashboards now tracking contracted tons and delivery status. As registry infrastructure matures (see below), these offtakes are increasingly issued and retired against high-integrity standards, which reduces reputational risk for buyers and supports repeat purchasing programs tied to net-zero pledges.

How will this Report Benefit you?

Visiongain’s 407-page report provides 126 tables and 181 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the direct air capture (DAC) market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for direct air capture (DAC). Get financial analysis of the overall market and different segments including capture capacity, business model, energy source, technology type, and utilization pathway, and capture higher market share. We believe that there are strong opportunities in this fast-growing direct air capture (DAC) market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.

What are the Current Market Drivers?

Mega-Projects, Hubs and Brownfield Know-How Are Scaling Steel in the Ground

The hardware is getting bigger and more modular. Climeworks switched on “Mammoth” in Iceland in May 2024, designed for up to 36,000 t/yr and paired with Carbfix’s in-situ mineralization storage in basalt; it’s a ten-fold step-up from Orca and a visible waypoint on the company’s megaton-by-2030 roadmap. In the U.S., Occidental’s 1PointFive is building STRATOS in Texas—designed for up to 500,000 t/yr and slated to enter commercial service in 2025—while also progressing a South Texas DAC hub on King Ranch lands that could scale to multi-Mt/yr with DOE hub support. These platforms aggregate capture modules, low-carbon energy, and storage permits into “bankable districts” that can host successive capacity phases.

Technology supply chains are consolidating in ways that compress execution risk. Occidental completed its $1.1 billion acquisition of Carbon Engineering in late 2023, vertically integrating solvent/sorbent know-how with downstream storage and CO₂ management, while Heirloom has moved from debuting the first U.S. commercial DAC facility in 2023 to announcing Louisiana projects totaling ~320,000 t/yr. These moves—alongside Singapore-style hub logistics for jet fuel markets—create repeatable templates and procurement leverage for fans, sorbents, heat integration and MRV equipment across multiple sites.

MRV Standards and Registries Are Converging on “High-Integrity”

Buyers and lenders demanded credible measurement, reporting and verification (MRV); the market is responding. Puro.earth’s 2024 update to its Geologically Stored Carbon methodology formalized requirements for DAC+Storage and BECCS removals and aligned with ICVCM Core Carbon Principles, while new protocols are extending into DAC-with-ocean-storage consultations. In parallel, Isometric has published a DAC protocol and built a registry and verification workflow (Certify) now selected by developers such as Deep Sky for first credit issuances in 2025. This standardization reduces delivery risk, improves auditability and enables portfolio-level purchasing at scale.

Policy and private standards are reinforcing each other. The EU’s CRCF is defining quality criteria and registries at the public level, while private registries are racing to operationalize durable, additional and precisely metered ton with transparent data rooms. As these rails mature, they will support blended finance—public support layered with private offtakes—because every party can ascribe comparable, verified climate impact to each delivered ton.

Where are the Market Opportunities?

SAF and E-Fuels Demand Creates a Premium Outlet for DAC CO₂

Aviation policy is becoming an offtake engine. ReFuelEU Aviation imposes a rising SAF mandate from 2025 and a synthetic e-fuels sub-target beginning in 2030, aligning perfectly with DAC-derived CO₂ as a carbon source for power-to-liquids kerosene. The EU also moved in June 2025 to subsidize hundreds of millions of liters of SAF purchases, including higher support for e-fuels, which narrows the “green premium” at the wingtip and sharpens the incentive to build e-fuel capacity near major hubs. Developers that co-site DAC, electrolyzers and Fischer-Tropsch synthesis around low-carbon power and airport logistics can monetize both removal credits and drop-in jet fuel sales. 

North American policy complements this. The U.S. 45Z clean fuel production credit rewards low-CI fuels (including synthetic aviation fuel that meets CI thresholds), creating a second revenue leg for DAC-to-e-kerosene projects alongside 45Q on captured CO₂. Structuring plants to qualify under both frameworks—while meeting rigorous MRV—can transform e-fuel projects from science projects into financeable energy assets.

Hub-and-Spoke Models with Dedicated Storage Unlock Multi-Mt Clusters

The South Texas DAC Hub concept exemplifies how access to subsurface pore space and storage permits can anchor multi-million-tonne districts, with STRATOS as the first capture anchor and King Ranch acreage offering vast saline capacity. Hub designs centralize compression, pipelines, monitoring and MRV for multiple capture suppliers, lowering unit costs and standardizing contracts. This mirrors the logic of LNG and hydrogen hubs: once the enabling midstream and storage exist, each new capture module faces far less integration risk and can scale faster on copy-exact designs.

Public co-funding and private capital are already converging on these models. DOE’s conditional awards and BlackRock’s earlier investment in 1PointFive signal appetite to finance enabling infrastructure; as more hubs reach mechanical completion and demonstrate injection performance, debt capacity should expand and cost of capital should compress for later phases. That dynamic creates an opportunity for investors to target “infrastructure-like” returns rather than venture-style risk.

Competitive Landscape

The major players operating in the direct air capture (DAC) market are AirCapture LLC, Avnos, Inc., Carbon Collect Limited, Carbon Engineering Ltd, CarbonCapture Inc., Climeworks AG, Heirloom Carbon Technologies, LanzaTech Global Inc, Mission Zero Technologies, NOYA PBC, Prometheus Fuels Inc., Repair Carbon, SKYTREE, Soletair Power, Zero Carbon Systems, These major players operating in this market have adopted various strategies comprising M&A, collaborations, investment in R&D, regional business expansion, partnerships, and new product launch.

Recent Developments

• 14-Oct-25, Carbyon, Paebbl, SeaO2, and Skytree form the Dutch DAC/DOC Coalition to advocate for “Circular CO₂” in EU climate policy. The group calls for recognition and incentives for DAC and DOC technologies that close the carbon loop by removing and reusing atmospheric and oceanic CO₂.
• 19-Sep-25, Schneider Electric and Climeworks signed a multi-year offtake agreement to remove 31,000 tons of CO₂ by 2039. This is Schneider Electric’s first high-durability carbon removal purchase and includes collaboration on DAC cost-reduction technologies.
• 13-Aug-25, Mission Zero launched its third direct air capture plant, marking its first international deployment. The solar-powered facility can recover up to 250 tonnes of CO₂ annually. Previous plants were built with the University of Sheffield and the UK Department for Energy Security and Net Zero.
• 28-Jul-25, Sponsored by the Saudi Ministry of Energy and KAPSARC, Climeworks launched a DAC testing unit in Riyadh, demonstrating the technology’s performance in hot, arid climates and showcasing adaptability beyond traditional cold environments.
• 02-Jul-25, Climeworks raised US$162 million in equity funding the largest carbon removal investment of 2025 bringing its total funding to over US$1 billion. The funds will support technology advancement, cost reduction, and scaling of DAC projects worldwide.

Notes for Editors

If you are interested in a more detailed overview of this report, please send an e-mail to contactus@visiongain.com or call +44 207 336 6100.

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