Carbon Dioxide Market Size, Share & Trends Analysis Report By Source (Hydrogen, Ethyl Alcohol, Ethylene Oxide, Substitute Natural Gas), By Application (Food & Beverages, Oil & Gas, Medical), And Segment Forecasts, 2019 - 2025

Industry Insights

The global carbon dioxide market size was valued at USD 7.4 billion in 2018 and is expected to register a CAGR of 3.4% over the forecast period. Increasing application of carbon dioxide (CO₂₎ in enhanced oil recovery (EOR) in the oil and gas sector is expected to be a major driving factor for the global market.

The application of CO₂ in the medical industry is increasingly gaining significance, as the gas finds application in modern medicine to minimize invasive surgeries. In medicinal baths, it induces warm sensations and acts as a vasodilator for the skin by stimulating its heat receptors. In addition, insufflation with carbon dioxide makes it easier to perform endoscopic procedures.

In the U.S. market, production of CO₂ by ethyl alcohol was the largest segment in 2018 with revenue of USD 672.0 million. However, CO₂ productionby substitute natural gas is anticipated to be the fastest growing segment in the country and is projected to register a CAGR of 3.7% over the forecast period.

The detrimental impact of CO₂ on the environment has resulted in formation of various government regulations by various countries to limit harmful emissions into the atmosphere. For instance, in August 2018, the Central Pollution Control Board (CPCB) of India revised guidelines for continuous emission monitoring system to regulate and monitor greenhouse gas discharge across various industries.

Such harmful impact of carbon emissions has encouraged carbon-pricing initiatives in several countries. Thus, different governments and international agencies such as World Bank, ITEA, and OECD have undertaken numerous initiatives. Carbon pricing emissions allow countries to increase their resource efficiency, develop, and market low-emission goods and services and steers the economy towards a carbon-neutral growth path.

Source Insights

Ethyl alcohol, which is estimated to be the largest feedstock for the production of CO_2, is mainly used for synthesis of food-grade carbon dioxide. The gas is produced during the fermentation process of ethanol generation. Food-grade carbon dioxideis majorly utilized as an agent in chilling, cooling, and freezing processes.

Substitute natural gas (SNG) is anticipated to exhibit the highest growth rate in the global carbon dioxide market over the forecast period. SNG is used to obtain CO₂ and is subjected to electrolysis with water to formulate substitute natural gas again. This factor of reutilization of the gas is expected to drive the substitute natural gas segment over the forecast period.

Application Insights

Food and beverages formed the largest application segment while accounting for over 36.0% of the global demand in 2018. Food-grade CO₂ is mainly used in carbonated beverages, whereas industrial grade is widely used for other applications such as maintaining the cryogenic temperature of frozen foods. Food-grade carbon dioxide is primarily produced as a by-product in ethanol-based plants. The food and beverages segment is also among the fastest-growing application segments in the global industry.

The medical segment is also estimated to witness steady growth in the global CO₂ market, registering a volume-based CAGR of 3.4% from 2019 to 2025. Carbon dioxide is used in surgeries, such as arthroscopy laparoscopy and endoscopy, to stabilize body cavities, and enlarge the surgical surface area. It is also used to maintain the cryotherapy temperatures of approximately -76 degrees Celsius.

Regional Insights

North America is the dominant consumer of carbon dioxide, with an estimated market worth exceeding USD 2.9 billion in 2018, driven significantly by U.S. and Canada. CO₂ is widely consumed in the oil and gas industry in the region for enhanced oil recovery (EOR) operations. The gas is injected under intense pressure in oil extraction pipelines, which pushes the oil through these pipelines to the ground surface. The use of CO₂ eases the flow of oil and reduces the viscosity of the extracted oil.

Asia Pacific is likely to be the fastest growing regional market. Increasing consumption of CO₂ in Asia Pacific can be attributed to the growth and expansion of key end-use industries, especially in nations such as China, South Korea, India, and Australia. China is a key consumer of carbon dioxide, both in Asia Pacific as well as globally.

Rapidly growing end-use industries such as food and beverage and medical in developing countries of the region have also resulted in its significant growth. China, India, and several Southeast Asian countries have witnessed moderately high industrial growth over the past decade, which has led to increased consumption of the industrial gas.

Carbon Dioxide Market Share Insights

The market is consolidated and highly competitive in nature. In addition, it is characterized by the presence of a large number of industry participants. Market players majorly focus on R&D activities to develop better technologies. Some of the major players involved in manufacturing, bottling, and distribution of the gas are Linde AG; Universal Industrial Gases Inc.; INOX Air Products Ltd.; Air Products and Chemical, Inc.; Praxair, Inc.; and Air Liquide.

Some of the market leaders, such as Air Products & Chemicals Inc. and Universal Industrial Gases Inc. are vertically integrated. This provides companies with advantages in terms of procurement of raw material and distribution, thereby enabling them to reach optimum levels to achieve economies of scale. For instance, in February 2018, Airgas, Inc. announced its plan to construct a new liquid CO₂ plant in Stockton, California, U.S.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the global carbon dioxide market report on the basis of source, application, and region:

• Source Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Hydrogen

  • Ethyl alcohol

  • Ethylene oxide

  • Substitute natural gas

  • Others

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Food & beverages

  • Oil & gas

  • Medical

  • Rubber

  • Fire fighting

  • Others

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • Italy

    • France

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East and Africa

    • Saudi Arabia

    • UAE