🚨The #CDR market surged in 2024—growing 78% with record purchases & deliveries. But behind the numbers, challenges loom: concentrated buyers, slow deliveries & a shifting investment landscape.
Is CDR on track or at risk? A🧵on the key takeaways from @cdr_fyi’s new report: 1/8
Is CDR on track or at risk? A🧵on the key takeaways from @cdr_fyi’s new report: 1/8
2/ Market Expansion: The CDR market expanded by 78% in 2024, with total purchased volume nearing 8 million tonnes. However, these purchases remain concentrated, with 80% coming from just Microsoft, Google, Stripe, and Frontier.
3/ Increased Deliveries: Durable CDR deliveries reached 318.6K tonnes, marking a 120% increase from 2023. Despite this, the delivery-to-booking ratio remains low at 4.4%, which is expected at this developmental stage.
4/ Investment Trends: Equity investments in Durable CDR companies totaled $836M in 2024, a 30% decline from the previous year. However, excluding outlier transactions in 2022 & 2023, both the number and average size of investments have risen.
5/ Buyer Dynamics: The number of unique purchasers grew only 7% and first-time buyers declined 18%. Repeat buyer volume grew 95% and accounted for 91% of purchased volume; new buy volume remained essentially flat compared to 2023, and represented only 9% of purchased volume.
6/ Supplier Landscape: The number of suppliers increased by 16%. However, without an influx of new buyers, the sector risks premature price-driven competition, potentially disadvantaging high-cost but innovative methods.
7/ Future Outlook: The sector's growth in 2024 was largely driven by existing buyers. To sustain momentum, attracting a new wave of purchasers is crucial. While the market is expected to grow in 2025, current demand may not suffice for the number of suppliers aiming to scale.
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