Market Trends of Carbon Management System Industry
The Oil and Gas Industry to Witness Growth
- The oil and gas industry is expected to contribute significantly to market growth. As one of the largest and most carbon-intensive industries worldwide, it is facing increased pressure to reduce its carbon footprint and transition toward a more sustainable future.
- Digital technologies could benefit scope 1 and 2 emissions as oil firms set more challenging targets for emissions reduction. Tracking harmful methane emissions from oil wells and pipelines is crucial, and machine learning helps refine energy use more efficiently. Drones, sensors, satellite, and camera data are also vital.
- Several companies are working on mitigating the carbon dioxide emissions of industrial operations and accelerating the transition to net zero. For instance, AVEVA is working closely with Aker Carbon Capture, which designs and builds facilities for companies in carbon-intensive industries, such as cement, steel, and oil and gas.
- Due to growing investor demand to reduce greenhouse gas emissions, more digital companies are releasing software that oil and gas producers may use to assess their carbon emissions. In July 2024, California Resources Corporation introduced the completion of the all-stock combination with Aera Energy LLC (Aera). This transformational deal creates significant scale and asset durability to meet California’s growing energy needs and expands its leading carbon management platform to help the state meet its ambitious climate goals.
Understand The Key Trends Shaping This Market
Download PDF
North America Accounts for Largest Market Share
- The launch of several Carbon Management Programmes in North America represents a significant step toward making Airport Carbon Accreditation the global standard for airport carbon management. At the initiative's launch ceremony, Seattle-Tacoma International Airport received certification for the first time in North America.
- Several government initiatives regarding net-zero emissions are anticipated to fuel demand in the market. In response to the government’s goal of net-zero emissions by 2050, the Department of Energy (DOE) in the United States launched the Carbon Negative Shot, an all-hands-on-deck call for innovation in CO2 removal pathways that will capture carbon dioxide from the atmosphere and store it at gigaton scales for less than USD 100/net tonne of carbon dioxide-equivalent.
- Market demand is also increasing due to government measures to reduce energy emissions from several outdated public buildings. For instance, thanks to a contract signed by the US General Services Administration with IBM Corporation, the 50 most energy-intensive buildings owned by the state and federal governments will have efficient and smart building technology installed.
- According to the Energy Information Administration (EIA), US energy-related CO2 emissions decreased slightly in 2023 compared to 2022. Although emissions decreased across many economic industries, more than 80% of US energy-related CO2 emissions reductions in 2023 occurred in the electric power industry. These reductions were caused largely by reduced coal-fired electricity generation, as natural gas and solar power made up a larger portion of the generation mix. Therefore, the government's focus on reducing carbon emissions generated by the energy industry is likely to support the market demand positively in the coming years.
Get Analysis on Important Geographic Markets
Download PDF
