Global Onboard Carbon Capture System Market Industry Analysis, 2025-2035
The onboard carbon capture system market encompasses technologies and solutions directly integrated into maritime vessels for capturing CO2 emissions at the source, aligning with international maritime decarbonization goals. By capturing carbon emissions on ships, these systems help vessel operators comply with IMO regulations and corporate sustainability commitments. The market is driven by advances in post-combustion capture, regulatory pressures, and innovations in marine engineering. Key applications include commercial vessels, oil tankers, container ships, and industrial ships, leveraging both absorption and membrane separation technologies for maximum efficiency. The industry features a competitive vendor landscape, with major players expanding R&D investments and strategic collaborations to scale deployment. With a rising focus on sustainability and the global push toward net-zero emissions, the onboard carbon capture systems market is poised for robust growth through 2035.
Latest Market Dynamics
Key Drivers
Stringent maritime emission regulations imposed by the International Maritime Organization (IMO), pushing shipping companies to invest in carbon capture solutions. In 2024, Wärtsilä partnered with Solvang to deploy large-scale onboard carbon capture trials on commercial vessels.
Growing adoption of green shipping practices and ESG compliance among leading logistics operators. For example, in June 2024, Maersk Mc-Kinney Moller Center accelerated their pilot projects involving chemical-looping carbon capture technologies onboard various container ships.
Key Trends
Rapid technological innovation, such as advancements in membrane separation and hybrid systems for increased efficiency and reduced operational costs. In July 2024, Value Maritime announced commercial rollouts of its next-gen membrane capture systems.
Collaborative development between technology vendors and shipping operators to expedite the market readiness of customizable onboard carbon capture modules. TECO 2030, in August 2024, entered joint ventures for modular CCUS integration with global shipyards.
Key Opportunities
Emergence of retrofitting services for existing fleets, as operators seek cost-effective decarbonization without needing new vessels. Mitsubishi Heavy Industries launched new retrofit kits for onboard carbon capture in July 2024.
Expansion in APAC and Middle Eastern markets where shipping activity abounds and regulatory incentives are increasing. In June 2024, Alfa Laval secured contracts to outfit bulk carriers in Singapore and UAE with advanced carbon capture systems.
Key Challenges
High initial capital expenditure and operational complexity hamper mass adoption, especially for small and medium shipowners. Hitachi Zosen, in July 2024, reported project delays owing to installation and integration technicalities.
Uncertainties in long-term carbon disposal and storage infrastructure, with some ports lacking offloading and sequestration facilities. Shell, in August 2024, highlighted regulatory delays affecting its ship carbon offload projects in Europe.
Key Restraints
Limited global availability of carbon storage networks and complicated permitting processes slow market adoption. DNV’s June 2024 study estimates only 30% of major ports have sufficient offloading infrastructure.
Technical limitations for certain vessel types with space and design constraints, making installation of large capture systems challenging. MAN Energy Solutions noted, in July 2024, reduced feasibility for small-size vessels.
In 2025, post-combustion solutions dominate the global onboard carbon capture system market due to their efficacy in retrofitting existing fleets and compatibility with current marine engine designs. Post-combustion capture technologies contribute 44% of the market, followed by pre-combustion systems at 26%, and oxy-fuel combustion at 20%. Hybrid systems and direct air capture technologies constitute the remaining share. The robust demand for post-combustion systems is driven by mature technology, regulatory incentivization, and accelerated collaboration between technology firms and fleet operators. As climate regulations become more stringent, these solutions are increasingly preferred for both new installations and retrofits.
By application, commercial vessels lead the adoption of onboard carbon capture systems, accounting for 35% market share in 2025. Container ships follow closely at 29%, largely owing to the scale of global shipping and their high emissions profile. Oil tankers and industrial ships represent smaller shares. The adoption is strongly influenced by regulatory targets for emission reduction in major shipping lanes and increased pressure from global shippers and cargo owners to demonstrate sustainability credentials. As large commercial vessel operators focus on compliance and decarbonization, this segment will continue setting the pace for widespread adoption of onboard carbon capture solutions.
Global Onboard Carbon Capture System Market Revenue (2020-2035)
Between 2020 and 2035, the global onboard carbon capture system market is projected to grow significantly, reflecting rising regulatory compliance, green shipping initiatives, and technological advancements. From an estimated revenue of $310 million in 2021, the market will surge to around $2.65 billion by 2035. Growth is accelerated by widespread retrofitting of commercial and container ships as well as newbuild deployment, particularly in Asia, Europe, and North America. As onboard carbon capture matures operationally and drops in cost, annual revenues will witness double-digit growth through 2030, followed by a steady trajectory as solutions reach scale.
Year-over-year growth in the onboard carbon capture system market exhibits a rapid ascent from 2021 through 2030, peaking at 18% around 2027. The initial stages are fueled by regulatory deadlines, technology maturation, and early-mover investments by major shipowners. After 2030, the YOY growth rates moderate, reflecting maturity in core markets and incremental retrofit demand. The sustained expansion signals ongoing industry commitment to maritime decarbonization strategies and increased acceptance of onboard carbon capture as a viable compliance pathway.
In 2025, the Asia-Pacific region commands the largest share of the onboard carbon capture systems market, representing 42% due to substantial shipbuilding activity and stringent emission mandates in countries such as China, Japan, and South Korea. Europe follows with a 28% share, driven by robust regulatory enforcement and government incentives. North America accounts for 17%, as the region faces increasing regulatory scrutiny and participates in decarbonizing global shipping lanes. As APAC ramps up technology adoption and regulatory compliance, its lead is expected to widen through the forecast period.
The market for onboard carbon capture systems in 2025 is relatively fragmented but features notable leaders. Wärtsilä captures 17% market share owing to its comprehensive portfolio and strong global partnerships. Mitsubishi Heavy Industries holds 14% following recent successes in both newbuilds and retrofits; Carbon Clean is next with a 10% share, reflecting its strong R&D pipeline and commercial deployments. These companies benefit from ongoing projects, strategic alliances, and early technology validation, positioning them at the forefront of this rapidly evolving sector.
Commercial shipping companies are the largest buyers in the onboard carbon capture system market, accounting for 38% of demand in 2025, as they strive to comply with global emission reduction mandates. Charter operators represent 25% of the market, followed by government and defense entities at 13%. The dominance of commercial buyers is driven by the need to future-proof fleets and meet customer sustainability requirements. As regulatory and societal pressure intensifies, a growing segment of buyers is expected among regional fleet operators and specialized cargo handlers.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
690
Regions
North America, Europe, Asia-Pacific, South America, Middle East, Africa
Segments
By Type (Post-combustion, Pre-combustion, Oxy-fuel Combustion, Hybrid Systems, Direct Air Capture, Others); By Application (Commercial Vessels, Industrial Ships, Oil Tankers, Container Ships, Bulk Carriers, Others)
June 2024: Wärtsilä and Solvang commence full-scale onboard carbon capture trials on commercial LNG carriers, marking one of the largest shipboard demonstrations.
July 2024: TECO 2030 secures a strategic partnership with Kongsberg Maritime for modular integration of carbon capture units in retrofit applications.
July 2024: Mitsubishi Heavy Industries unveils a new retrofit kit tailored for small-to-mid size commercial vessels targeting APAC and European operators.
August 2024: Value Maritime rolls out its second-generation membrane carbon capture modules with enhanced energy efficiency for bulk carriers.
August 2024: Shell reports progress in developing port infrastructure for shipboard carbon offloading in North Sea terminals, collaborating with local authorities.
Frequently Asked Questions
About the Author
Ankita R
Lead Industry Analyst
Ankita R is a Lead Industry Analyst specializing in market research, industry analysis, and business consulting across Automotive & Transportation. Ankita R brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Ankita R has helped organizations translate data into actionable growth strategies.
