Green Carbon Market Expected to Reach $32.9 Million by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Green Carbon Market," The green carbon market is expected to value at $16.8 million in 2025, and is estimated to reach $32.9 million by 2031, growing at a CAGR of 11.9% from 2025 to 2031. 

Green/bio-based carbon is termed as the carbon can be produced from biomass through pyrolysis and hydrothermal carbonization. Moreover, it is stored in the biosphere, taken up from the atmosphere by plants through the process of photosynthesis. Green carbon ecosystems, such as those in natural forests, play a key role in impacting the levels of greenhouse gas concentrations in the atmosphere.

The green carbon is under pilot phase and is expected to commercialize in the global market by 2025. Several key companies such as Mitsui Chemicals, Inc., TEIJIN LIMITED, Charm Industrial, Drax, Clean Energy Systems, and others are constantly engaged in R&D activities to produce highly efficient green carbon at reduced prices.

Furthermore, government agencies such as European Union (EU), the United States Environmental Protection Agency (US EPA), and others are promoting the development of green carbon. For instance, European Union has launched a program in 2020 named as Green Carbon 2020 to promote the utilization of green carbon for sustainable economy and to attract investments in the field. This factor has fuelled R&D activities in the green carbon sector.

One of the greatest advantages of green carbon is that it can be manufactured from renewable sources such as biomass, and others. The common feedstocks used for the production of green carbon are renewable biomass, and others. These are easily available in almost every geographical region across the globe. Hence, the crude oil price fluctuation in the global market does not affect the growth of the green carbon industry.

Moreover, rise in release of toxic chemicals and gases from industries, transport vehicles, and others have surged the level of greenhouse gases. This factor has led governments of various countries to put more emphasis on cutting greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere. For instance, the Paris agreement promises to reduce the greenhouse gases by 45% by 2030 and reach net zero emissions by 2050.

Green carbon/bio-based carbon is derived from sustainable sources such as biomass, and others that has negative or minimal impact on the environment if released directly to the atmosphere. This is the key green carbon market trend and may surge the utilization of green carbon for energy generation, storage, and other applications; thus, boosting the market growth.

However, high formulation costs and requirement of skilled workforce in manufacturing green carbon may restrain the growth of the green carbon market during the forecast period.

On the contrary, companies are moving toward sustainable and eco-friendly alternatives for developing and strengthening their brand image with rise in environmental concerns among consumers. For instance, leading companies, such Mitsui Chemicals, Inc., Drax, Clean Energy Systems, and others focus on the use of bio-based carbon for energy conversion, storage, and other applications. Thus, increase in CSR activities of the companies is projected to fuel the green carbon and promote the investor’s interest toward the green/bio-based carbon industry.

The green carbon market analysis is segmented on the basis of source, application, and region. By source, the market is segregated into biomass and environmental. The biomass segment is expected to dominate the global market, in terms of revenue in 2025. Governments of various economies have put more emphasis on promotion and utilization of bio-based energy sources. This event may further aid the demand for biomass-derived carbon among various end-use sectors; thus, fuelling the market growth 

By application, the market is divided into supercapacitor, fuel cell, lithium-ion batteries, and others. The lithium-ion batteries application segment is expected to dominate the global market, in terms of revenue in 2025 with 57.5% share in the global market. Advancements in R&D activities and rise in adoption of lithium-ion batteries in various end use sectors owing to the high efficiency of lithium-ion batteries is projected to augment the demand for green carbon-based anode materials. This factor is projected to further aid the green carbon market growth during the forecast period.

Region wise, the green carbon market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Europe green carbon market size is projected to grow at the highest CAGR during the forecast period and is expected to account for a major market share in 2025, Germany is the most promising country-level market in the region with increased production of biomass.

According to a report published by Germany Bioenergy in 2021, around 55% of renewable energy is obtained from biomass. This may ease the green carbon producers for raw material availability in the European region. Also, the region has a strong presence of key regulatory bodies such as the European Union Regulatory Commission, European Chemicals Agency (ECHA), Environmental Protection Agency, and others that are constantly engaged in reducing global carbon footprints and promote the use of green/bio-based carbon in several end use sectors. This factor may surge the popularity of green carbon across various end use sectors; thus, boosting the market growth. 

Key players occupying the green carbon market share include Mitsui Chemicals, Inc., TEIJIN LIMITED, Charm Industrial, Drax, and Clean Energy Systems. Moreover, it also provides other key raw material suppliers such as Vatenfall AB, Orsted A/S, Alstorm, Enviva, Clean Energy Systems, Babcock And Wilcox Enterprises, Inc.

Key findings of the study

• By source, the biomass segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 11.9% from 2025 to 2031.
• By application, the lithium-ion batteries segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 12.1% from 2025 to 2031.
• By region, Europe will garner the highest share of more than 40.0% in 2025, in terms of revenue, growing at a CAGR of 12.6%.