Carbon Dioxide Market Share, Size, Trends, Industry Analysis Report, By Source (Hydrogen, Ethyl Alcohol, Ethylene Oxide, Substitute Natural Gas, Others); By Application; By Region; Segment Forecast, 2023 - 2032
- Published Date:Oct-2023
- Pages: 116
- Format: PDF
- Report ID: PM1557
- Base Year: 2022
- Historical Data: 2019-2021
Report Outlook
The global carbon dioxide market was valued at USD 9.26 billion in 2022 and is expected to grow at a CAGR of 4.7% during the forecast period.
The carbon dioxide (CO2) market is a rapidly growing sector in the global economy. CO2, a greenhouse gas, is produced through various industrial processes and is a byproduct of burning fossil fuels. While it is primarily associated with climate change and environmental concerns, CO2 has applications in several industries, leading to a market focused on its capture, utilization, and storage.
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The primary driver of the carbon dioxide market is the need to mitigate climate change. Governments and international organizations are implementing policies and regulations to reduce greenhouse gas emissions, including CO2. This has created a demand for technologies and solutions that can capture and store CO2, preventing it from being released into the atmosphere. Carbon capture and storage (CCS) technologies are being developed and implemented in power plants, refineries, and other industrial facilities to curb CO2 emissions.
Moreover, the market has expanded beyond mitigation efforts to include the utilization of captured CO2. Carbon dioxide is utilized in various sectors such as food and beverage, oil and gas, healthcare, and agriculture. In the food and beverage industry, CO2 is used for carbonation in soft drinks and for preserving perishable goods. In the oil and gas industry, it is used for enhanced oil recovery, where CO2 is injected into oil reservoirs to increase production. Additionally, CO2 is utilized in medical applications, such as cryotherapy and medical-grade CO2 production.
The market is expected to witness substantial growth in the coming years. The increasing global focus on sustainability and decarbonization, along with advancements in CCS and CO2 utilization technologies, will drive the demand for CO2-related products and services. Additionally, the emergence of carbon pricing mechanisms and emissions trading schemes in some regions will further stimulate the market.
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The COVID-19 pandemic has significantly impacted the market; industries that contribute to CO2 emissions, such as manufacturing, construction, and transportation, experienced disruptions and reduced activity, leading to decreased CO2 emissions and a temporary decline in demand for CO2-related products and services. The food and beverage industry, a major consumer of CO2 for carbonation and refrigeration, also suffered due to closures, supply chain disruptions, and reduced consumer demand. However, governments' regulatory changes and stimulus packages focused on green recovery and sustainable technologies could positively influence the CO2 market in the long term. The pandemic has increased awareness of the need to address climate change and reduce greenhouse gas emissions, potentially accelerating the adoption of low-carbon technologies and stimulating the CO2 market as economies recover and adjust to the new normal.
Industry Dynamics
Growth Drivers
Environmental regulations and climate change mitigation
The market experiences growth and development driven by environmental regulations, and climate change mitigation efforts play a crucial role. Governments and international bodies have implemented rules and initiatives to combat climate change and reduce greenhouse gas emissions, including CO2. These regulations often set industry emission reduction targets, increasing demand for technologies that capture, store and utilize CO2. Compliance with these regulations and the need to meet emission reduction goals propel the market's growth.
CO2 finds diverse industrial applications across sectors such as food and beverage, oil and gas, healthcare, and agriculture. It is used for carbonation, refrigeration, enhanced oil recovery, medical applications, and crop fertilization. The demand for CO2 in these industries drives the market's growth as they rely on its properties and functionalities.
The growing demand for carbon capture and storage (CCS) technologies contributes to developing the CO2 market. With the increasing focus on reducing CO2 emissions, the demand for CCS technologies rises. These technologies involve capturing CO2 emissions from power plants and industrial facilities, transporting them, and storing them underground. The development and implementation of CCS technologies to mitigate CO2 emissions fuel the growth of the CO2 market as they offer viable solutions for emission reduction.
Additionally, integrating renewable energy sources, such as wind and solar power, into the electricity grid creates new opportunities for CO2 utilization. Excess renewable energy can convert CO2 into valuable products like synthetic fuels, chemicals, and building materials through carbon capture and utilization (CCU). This transition to renewable energy sources drives the growth of CO2 utilization technologies and the corresponding market.
Furthermore, ongoing research and development efforts in CO2 capture, storage, and utilization technologies drive innovation and lead to technological advancements. These advancements improve the efficiency and cost-effectiveness of CO2-related processes, making them more commercially viable. Technological progress and innovation contribute to the growth of the CO2 market by expanding its applications and attracting investment.
Report Segmentation
The market is primarily segmented based on source, application, and region.
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By Source |
By Application |
By Region |
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By Source Analysis
Ethyl alcohol segment is anticipated to hold the largest shares of the market over projected period
Ethyl alcohol is projected to hold the largest share of the market over the forecast period. However, it's important to note that CO2 is emitted as a by-product during the production and combustion of ethyl alcohol. The market growth is expected to be driven by increasing government initiatives supporting worldwide ethanol production. For example, the U.S. government promotes ethanol production methods that are more energy-efficient than conventional fermentation techniques.
In addition, CO2 is obtained from the production process of ethylene oxide, which is formed during methanol synthesis. The growing demand for ethylene oxide in the medical, pharmaceutical, and chemical industries is anticipated to fuel the market's growth. CO2 is an essential chemical commodity used in various consumer products, making its demand a significant factor in market expansion.
By Application Analysis
Food and beverage segment anticipated to hold significant market share over forecast period
The food and beverage segment is expected to hold a significant market share over the forecast period. Due to its diverse applications, CO2 is extensively used to add carbonation to soft drinks and maintain food products' cold temperatures during transportation. It is also widely utilized as a preservative in packaged food products, helping to inhibit the growth of bacteria and extend shelf life.
However, the medical industry is expected to account for the second-largest share of the market. Carbon dioxide is an insufflation gas in medical settings during minimally invasive surgeries such as laparoscopy, arthroscopy, and endoscopy. It is employed to enlarge and stabilize body cavities, providing enhanced visibility of the surgical area. Moreover, CO2 finds applications in cryotherapy and respiratory stimulation during and after anesthesia.
Regional Analysis
North America holds the largest revenue shares of the market in 2022
North America holds the largest market revenue shares and will likely continue its dominance over the forecast period. This can be attributed to its wide-ranging applications in the food and beverage industry and the oil and gas sector. The increased consumption of food and beverages and a rise in consumer spending on conveniently packaged food products drive the region's carbon dioxide demand. Furthermore, numerous oil and gas refineries in North America contribute to the market's growth, as carbon dioxide is extensively used in oil extraction processes.
On the other hand, the Asia Pacific region is projected to exhibit the highest growth rate during the forecast period. The demand for carbon dioxide is notably high across various industries in the region, leading to its rapid growth. Numerous end-use sectors extensively utilize carbon dioxide, driving increased demand in the Asia Pacific.
Market Key Players & Competitive Insight
In the competitive landscape of the CO2 market, companies are vying to establish themselves as leaders in carbon capture, storage, and utilization technologies, aiming to meet the growing demand driven by environmental regulations and emission reduction targets. Established players with innovative solutions and well-established infrastructure hold a competitive edge, while new entrants and startups bring fresh ideas and agility to the market.
Some of the major players operating in the global market include:
- ACAIL Gas
- AGA AB
- Air Liquide
- Air Products & Chemicals, Inc.
- Airgas, Inc.
- Gulf Cryo
- Inox Air Products Ltd.
- Linde AG
- Matheson Tri-Gas, Inc.
- Messer
- National Industrial Gases Company
- Praxair, Inc.
- Sicgil India Ltd.
- SOL Group
- Strandmøllen A/S
- Taiyo Nippon Sanso Corp.
- The BOC Group
- Universal Industrial Gases, Inc.
Recent Developments
- In April 2023, Linde has partnered with ExxonMobil for the off-take of carbon dioxide produced during Linde's clean hydrogen production in Beaumont, Texas.
- In April 2022, Baker Hughes has acquired Mosaic Materials Inc. The acquisition aims to advance and expand Baker Hughes' efforts in developing innovative carbon dioxide (CO2) capture technology to reduce emissions from stationary sources and remove CO2 from the atmosphere.
Carbon Dioxide Market Report Scope
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Report Attributes |
Details |
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Market size value in 2023 |
USD 9.68 billion |
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Revenue forecast in 2032 |
USD 14.66 billion |
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CAGR |
4.7% from 2023 – 2032 |
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Base year |
2022 |
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Historical data |
2019 – 2021 |
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Forecast period |
2023 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2023 to 2032 |
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Segments Covered |
By Source, By Application, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
Explore the landscape of Carbon Dioxide Market in 2024 through detailed market share, size, and revenue growth rate statistics meticulously organized by Polaris Market Research Industry Reports. This expansive analysis goes beyond the present, offering a forward-looking market forecast till 2032, coupled with a perceptive historical overview. Immerse yourself in the depth of this industry analysis by acquiring a complimentary PDF download of the sample report.
FAQ's
The carbon dioxide market report covering key segments are source, application, and region.
Carbon Dioxide Market Size Worth $14.66 Billion By 2032.
The global carbon dioxide market is expected to grow at a CAGR of 4.7% during the forecast period.
North America is leading the global market.
key driving factors in carbon dioxide market are rising demand for carbon capture and utilization technologies.
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