Carbon Dioxide Market

Carbon Dioxide Market Size

The global Carbon Dioxide Market size was valued at USD 10.37 billion in 2022 and is projected to reach USD 15.61 billion by 2030, growing at a CAGR of 5.36% from 2023 to 2030. The carbon dioxide market is influenced by a growing global awareness of the urgent need to tackle climate change and reduce greenhouse gas emissions. The market growth is driven by several factors such as strict environmental regulations, the adoption of carbon capture and storage (CCS) technologies, and the increasing demand for carbon dioxide in various industries. There are numerous growth opportunities in this market, particularly due to the expansion of the food and beverage sector, which relies on CO2 for carbonation and cold-chain logistics.

Moreover, the oil and gas industry is exploring the use of CO2 for enhanced oil recovery (EOR) and carbon sequestration. Furthermore, the medical industry's reliance on CO2 for laparoscopic surgery and respiratory therapies is contributing to the growth of the market. As the world aims to transition to a more sustainable future, the carbon dioxide market is poised to observe further expansion and innovation.

Analyst’s Review 

The carbon dioxide market is projected to experience significant growth over the forecast period. These trends are likely to drive market growth by raising environmental concerns and putting regulatory pressures, leading to a continued focus on carbon capture and utilization technologies. Various industries, including oil and gas, are placing a growing emphasis on reducing carbon emissions. This has resulted in increased adoption of CO2 based enhanced oil recovery (EOR) and carbon capture and storage (CCS) projects.

In addition, the food and beverage industry is expected to see sustained growth, as the demand for carbonated beverages and cold storage solutions continues to rise. Innovations in carbon capture techniques are anticipated to further enhance efficiency and reduce costs in the market. Additionally, there is a shift towards green hydrogen production using CO2 as a feedstock, aligning with the global push towards renewable energy production methods and sustainable practices.

Market Definition

Carbon dioxide (CO2) is a gas that is colorless and odorless. It is composed of one carbon atom and two oxygen atoms. This versatile gas finds applications across various industries. In the food and beverage sector, CO2 is used to add bubbles to beverages and as a preservative for food. The medical industry utilizes CO2 in laparoscopic surgery and as a gas for respiratory treatments. In fire suppression systems, CO2 is used to extinguish fires effectively without leaving any residue. In agriculture, CO2 is employed in greenhouses to enhance the growth of plants.

In the carbon dioxide market, regulatory factors play a significant role, as emissions from different production methods, including industrial processes, are subject to environmental regulations. These regulations aim to reduce greenhouse gas emissions and combat climate change. For instance, the implementation of the Paris Agreement alongside regional goals for reducing emissions, which became effective on November 4, 2016, motivates businesses to utilize carbon capture and storage (CCS) technologies.

Market Dynamics

A significant factor driving the carbon dioxide market growth is the rising emphasis on carbon capture and storage technologies across the world. Governments and industries are actively searching for ways to reduce carbon emissions, and CCS provides a viable solution by capturing CO2 emissions from industrial processes and power generation, thereby preventing them from being released into the atmosphere.

Another important opportunity in the market is the expansion of the food and beverage sector. As consumer preferences continue to evolve, there is an increasing demand for carbonated beverages and efficient cold-chain logistics. This trend opens up avenues for companies involved in the production and distribution of CO2 to meet the needs of this expanding market segment.

On the other hand, a key restraint for the market is the high cost associated with CCS technologies. Implementing CCS can be capital-intensive, which may deter some industries and companies from adopting these solutions.

Another major market challenge is the varying and evolving regulatory landscape. Compliance with emissions reduction regulations and the implementation of CCS technologies can be complex and costly, and companies must navigate a shifting regulatory environment that may require continuous adjustments to their emissions reduction strategies.

Segmentation Analysis

The global carbon dioxide market is segmented based on production method, form, application, and geography.

By Production Method

Based on production method, the market is segmented into industrial capture, combustion, fermentation, cryogenic separation, and others. In 2022, the industrial capture segment emerged as the dominant force in the global carbon dioxide market, commanding a significant market share of 62.12%. The industrial capture segment encompasses industries proactively engaging in the capture and reduction of their carbon dioxide emissions through diverse technologies and processes. The prevalence of carbon capture and reduction initiatives within industrial sectors has played a pivotal role in securing this substantial market share.

By Form

Based on form, the market is trifurcated into solid, liquid, and gas. The solid segment led the global carbon dioxide market in 2022, generating the highest revenue of USD 6.20 billion. The segmental growth underscores the significance of solid forms of carbon dioxide, such as dry ice, in various industries, including food preservation, healthcare, and industrial applications.

By Application

Based on application, the market is categorized into agriculture, oil and gas, food and beverages, firefighting, metal fabrication, medical, and others. The medical segment is poised to witness remarkable growth in the near future, boasting an impressive CAGR of 6.45%. This robust CAGR highlights the increasing significance of carbon dioxide in medical applications, such as its use in minimally invasive surgeries and as a contrast agent in medical imaging. As advancements in medical technology continue to drive innovation, the medical sector is expected to experience substantial expansion, making it the fastest-growing segment in the market.

Carbon Dioxide Market Regional Analysis

Based on regional analysis, the global carbon dioxide market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America emerged as the leading region in the global carbon dioxide market, boasting the highest valuation of USD 3.64 billion in 2022. A well-established industrial foundation and strict environmental regulations is driving market growth in North America. Additionally, a strong emphasis on carbon capture and utilization technologies is boosting market expansion. Notably, the U.S. has witnessed substantial investments in carbon capture initiatives, particularly within the oil and gas sector, which is bolstering North America's market dominance. Moreover, the demand for carbon dioxide in the thriving food and beverage industry in the region continues to remain strong, further solidifying its position in the market.

Asia-Pacific is positioned to be the fastest-growing region in the carbon dioxide market, with the highest projected CAGR of 6.99% through the forecast period. The rapid market growth in Asia Pacific is fueled by the region's ongoing industrialization and urbanization, which has resulted in a significant increase in CO2 emissions. Consequently, there is a growing demand for carbon capture and utilization technologies across industries such as energy, manufacturing, and chemicals.

Competitive Landscape

The global carbon dioxide market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization which could pose new opportunities for the market.

List of Key Companies in Carbon Dioxide Market

• Linde plc
• Air Liquide S.A.
• Praxair, Inc. (now part of Linde plc)
• Air Products and Chemicals, Inc.
• Messer Group GmbH
• Taiyo Nippon Sanso Corporation (part of Nippon Sanso Holdings Corporation)
• Matheson Tri-Gas, Inc.
• SOL Group
• Sasol Limited
• Reliance Industries Limited

Key Industry Developments 

• January 2023 (Partnership): ABB and PACE CCS joined forces to promote the growth of carbon capture and storage (CCS) technologies. The partnership was aimed at accelerating the deployment of CCS solutions, which play a vital role in reducing carbon emissions. By combining their expertise, ABB and PACE CCS seek to drive the adoption of CCS in industries worldwide to combat climate change.
• September 2023 (Expansion): Swiss carbon capture firm, Climeworks, announced its plan to establish a project in Kenya by 2024 to capture carbon dioxide directly from the atmosphere. This initiative aims to reduce greenhouse gas emissions and combat climate change by utilizing innovative technology to extract CO2 from the air.

The Global Carbon Dioxide Market is Segmented as:

By Production Method

• Industrial Capture
• Combustion
• Fermentation
• Cryogenic Separation
• Others

By Form

• Solid
• Liquid
• Gas

By Application

• Agriculture
• Oil and Gas
• Food and Beverages
• Firefighting
• Metal Fabrication
• Medical
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America