The carbon capture and storage (CCS) market is forecast to reach $31.7 billion (£24bn) in the next five years.
Climate change obligations along with carbon emission standards are to drive the US and European market to $3.6 billion (£2.7bn) and $1.2 billion (0.9bn) respectively, according to a new report.
It states global CO2 emissions from fossil fuels are estimated to rise by 11% in the near future, with biofuels contributing a major share towards the increase in energy use, especially in the transportation sector.
The ongoing dominant role of fossil fuels in energy generation and the commitment of industrial stakeholders in curbing emissions are said to lead to nations adopting CCS technology across the globe.
Pre-combustion capture was believed to be the largest revenue generating segment last year, with a share of 62% of the total market, the report adds.
That is expected to fall by 2021 due to the emergence of other technologies.
While the US and Europe are poised to see the fastest growth, China was the largest market in the Asia Pacific region last year and is expected to reach $1.5 billion (£1.1bn) by 2021.
Research and consulting firm IndustryARC states: “Growing awareness regarding the environmental impact of carbon emissions will have a positive impact on the carbon capture and storage market. However the significant investment required for these projects will hinder the adoption of this technology in the short term.”