Carbon Dioxide Market Size, Share & Segment By Source (Hydrogen, Ethylene Oxide, Ethyl Alcohol, Substitute Natural Gas, and Others), By Form (Solid, Liquid, and Gas), By Application (Food & Beverages, Oil & Gas, Rubber, Medical, Fire Fighting, and Others), And By Region | Global Market Forecast 2024-2032

Carbon Dioxide Market Report Scope & Overview: 

Get More Information on Carbon Dioxide Market - Request Sample Report

The Carbon Dioxide Market was valued at USD 10.82 billion in 2023 and is expected to reach USD 17.13 billion by 2032 and grow at a CAGR of 5.24% over the forecast period 2024-2032. 

The carbon dioxide market is set to keep growing as carbonate consumption keeps on rising, predominantly driven by an increased preference for the use of EOR CO2 is a necessary part of several medical procedures, such as minimally invasive surgeries or medical imaging. World population needs more basic health services, and it is imperative that today’s high-income countries help provide those services. In the coming years, an augmented risk of mortality is expected to develop in many parts of the world, in parallel with an increased demand for CO2. These trends are supported by a growing food-and-beverage sector, general manufacturing activities because of industrialization, and Food food & health manufacturing. Considering, in April 2023, Linde announced that it signed a long-term agreement with ExxonMobil to procure CO2 from Linde’s new green hydrogen production facility that is slated to be built at their Beaumont, Texas site. Growth potential for the carbon dioxide type market might be explained through a need to reduce environmental damage and emissions. To increase carbon dioxide output, this technique is usually used by actors in the crude petroleum industrial sector. In the foreseeable future, the mobilization of power facilities and infrastructure will see the market expand at a rate that has been predicted by the latest research. This has led to a rise in demand for carbon dioxide across the agriculture sector and could include a demand for greenhouse farming along with crop fertilization. With the advancing need for existing applications in the field like its use in medical and oil and gas, the demand for Carbon Dioxide (CO2) in varied end-use sectors with applied sciences will be on the rise. . Carbon dioxide is using different processes as plant growth Phytoplankton is a group of microscopic organisms using carbon dioxide for photosynthesis which shows a rise in demand for this raw material.

Moreover, In July 2024, according to the recent news published in the Middle East Economy, Abu Dhabi’s national oil company (ADNOC) revealed it had saved 6.2 million tonnes of CO2 mainly from its huge investment in solar and nuclear energy, creating what officials described as a race to net zero by mid-century. ADNOC’s 2023 Sustainability Report set the bar by defining comprehensive targets for a decarbonisation pathway including a slight drop in greenhouse gas emissions to 24m/t from 24.1m/t in 2022. The company planned to deliver over 900kT Co2 reductions with the balance anticipated from transport and supplemented by additional technical solutions to ensure a 5% improvement against 2025 business as usual.

Market Dynamics

Drivers

• Rising industrialization and demand across a wide range of sectors.

• Carbon capture and storage (CCS) methods getting more popular.

• A growing rush towards enhanced oil recovery (EOR) technics.

The enhanced oil recovery (EOR) process, if effective, can spawn a new carbon dioxide market by adding significant new recoverable reserves to mature fields at relatively low incremental cost. Carbon dioxide injection as a replacement or supplemental driving fluid that combines with the oil in place as it reduces the oil’s viscosity and expands the sweep efficiency of the reservoirs for improved oil recovery. EOR behaviours could be similarly applied to a variety of leaching and extraction processes where metals have deposited on a substrate. Additionally , as conventional hydrocarbon supplies wind down and must shrink in an environment of either flat , growing or eventually lower demands , EOR behaviours will transition to product lines well suited to effectively compete with bio - based sources of polymers and other advanced materials .

Restraints

• Technologies for carbon capture and storage have high costs.

• Not enough carbon dioxide storage facilities are available.

A significant issue in applying carbon capture and storage is the shortfall of locations where the captured CO 2 can be stored. Ideal storage locations include deep saline formations or depleted oil and gas fields, having particular geological properties capable of having a large storage capacity, while at the same time being impermeable in order to prevent leakage and at the right pressure to pump CO 2 into the storage. Locating and evaluating these types of sites requires a lot of time and a lot of money - a delay that would hamper the development of the CO 2 market and of the overall enterprise of Canon’s involvement in CCS projects.

Opportunities

• Strict rules for the environment to cut down on carbon emissions.

• The development of BECCS (carbon capture and storage) projects for renewable energy.

Renewable energy projects involving carbon dioxide present concrete revenue opportunities from sales of certificates for CO2 capture and sequestration. Bioenergy with carbon capture and storage (BECCS) deposits more CO2 than it releases from the atmosphere by offsetting some emissions through negative emission technology. BECCS can not only curb emissions and decrease the climate impact of industrial processes and biomass burning, but can in essence also attain carbon neutrality by capturing and storing away the carbon dioxide emissions from industrial processes or via biomass combustion.

Challenges

• Investment decisions being influenced by regulatory uncertainty.

• Competition from other methods for reducing greenhouse gases.

The carbon dioxide market presents a variety of competitive offerings for greenhouse gas (GHG) emission reduction. Although CCUS is a green way to use CO2, it also competes with any cheaper ways of generating emissions. Only when the emissions of solar and wind power have been directly placed in the source can the entire volume of CO2 removal be reduced. Also, technology to maximize energy efficiency can reduce energy use by more than 500 times, which would diminish the carbon capture this way by that much more as well. The cheapest and cleanest way to supply the necessary energy in the future should benefit from a mechanism established by the competition between CCUS, renewable energy and more efficient energy use.

Market segmentation

By Source

• Hydrogen

• Ethylene Oxide

• Ethyl Alcohol

• Substitute Natural Gas

• Others

In 2023, the ethanol sector was the most prevalent in the market, the dominant gas produced in CO2 capture; alcohol also known as (alcohol) is much used. Fermentation is a by-product of yeast or bacteria in combination with sugar in the presence of oxygen. The food and beverage industries commonly use this process to make beer, wine and bread. As an unwanted byproduct of fermentation, CO2 is usually caught and utilized for carbonating. Of note, another use of non-food-grade ethanol is as a fuel in combustion engines, whose exhaust produces CO2.

By Form

• Solid

• Liquid

• Gas

In 2023, the liquid segment was largest in the Carbon Dioxide Market. Liquid carbon dioxide, a commodity used in many different industries is used in many ways. It is stored in high-pressure vessels rendered as a gas. Liquid carbon dioxide is non-flammable, odorless, and does not present any known hazards to life at atmospheric conditions. This gas is used in many places, such as manufacturing food and beverages for medical purposes.

In addition to the market distribution provided above, gaseous form is forecasted to continue with significant expansion in the global Carbon Dioxide Market. It is an element that is being used extensively across several industrial processes. For instance, it serves as a refrigerant to maintain the cold chain and is often used in cooling applications, as well as for beer and soft drink carbonation in the food and beverage sector.

By Application

• Food & Beverages

• Oil & Gas

• Rubber

• Medical

• Fire Fighting

• Others

Food & Beverages sector accounted for a market share of more than 45 per cent in 2023 due to its crucial role in equipment that carbonates beverages, maintaining the freshness of food, and modified atmospheric environment packaging. Additionally, the use of carbon dioxide in food processing as a processing aid and the growing importance of brewing and winemaking in this revenue stream led this segment to account for over 45% of revenue.

Get Customized Report as per Your Business Requirement - Request For Customized Report

Regional Analysis

North America dominated the largest revenue share of over 41.5% in 2023 in the carbon dioxide market, due to the well-built infrastructure in industries across the continent in the manufacturing, chemicals, and oil & gas sectors, among others, stimulating heavy demand for carbon dioxide across all applications. It is because of these strict environmental laws in North America that industries move into carbon capture and storage technologies, thereby propelling North America's carbon dioxide market. The interest in enhancing oil recovery methods using carbon dioxide again favored the leadership position of the region. Advanced research and development facilities and government support helped North America to lead the global carbon dioxide market.

In 2023, the Asia Pacific held the second position in the CO2 market due to numerous dynamic factors. China and India's rapid industrialization and urbanization not only result in large demand for carbon dioxide from areas like manufacturing, construction and chemical industries, but also the developed food and beverage industry and with the continuous increase in the demand for human consumption of carbonated drinks, food processing and preservation applications in turn driving the carbon dioxide industry. Heavy investment in renewable energy projects and use of carbon capture technologies strengthened large stakes Asia Pacific holds in the carbon dioxide market, thereby propping up its leading role in reinscribed dynamics with markets and sustainability.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of the Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

Key Players:

Air Liquide, Greco Gas Inc., Messer Group, SOL Group, Strandmøllen A/S, Acail Gás, Air Products and Chemicals Inc., Linde AG, Sicgil India Limited, Taiyo Nippon Sanso Corporation, and other Players.

Air Liquide-Company Financial Analysis

Recent Development:

• In February 2024, Air Liquide and Dow renewed their industrial gas supply agreement in Stade, which is one of the largest chemical production sites in Lower Saxony, Germany. According to this agreement, Air Liquide will supply industrial gases based on a long-term contract, and it will carry out nearly 40 million euros of CAPEX to upgrade its facilities, thus improving operating efficiency and reducing CO2 emissions, ultimately addressing the increasing market demand.

• In December 2023, Air Liquide announced plans to build, own, and operate a world-scale carbon capture unit in the industrial hub of Rotterdam, the Netherlands, based on its innovative Cryocap™ technology. The new unit will be installed behind Air Liquide’s hydrogen production plant at the Rotterdam port and will be coupled with Porthos, a large-scale carbon capture and storage infrastructure in Europe that seeks to significantly reduce CO2 emissions in the area.

• In May of 2023, Air Products unveiled plans to build, own and operate two new world-scale carbon monoxide (CO) production facilities in Texas. La Porte and Texas City will manufacture more than 70 million standard cubic feet per day (MMSCFD) of CO collectively and are connected to Air Products' extensive Gulf Coast infrastructure.

• In October 2022, SOL Group completed the construction and commissioning of a new Liquid Food CO2 plant in Wanze, Belgium.