Carbon Dioxide Market Size, Share & Trends Analysis Report By Source (Ethyl Alcohol, Substitute Natural Gas), By Application (Food & Beverage, Medical), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global carbon dioxide market size was valued at USD 7.80 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.0% from 2021 to 2028. The rise in utilization of carbon dioxide (CO2)in the oil & gas sector for Enhanced Oil Recovery (EOR) technology has been one of the key drivers for the market in countries that are working to enhance production efficiency from oil wells. The CO2 gas has been used for medical applications in form of an insufflation component for several surgical procedures including laparoscopy, endoscopy, and arthroscopy. A shift in focus of governments towards improvement in healthcare facilities owing to the ongoing global COVID-19 pandemic will also support the market growth.

CO2 is used in numerous applications, such as inert gas in firefighting, enhanced Oil recovery (EOR), carbonation of beverages, and freezing & cooling food products. Increased investments in R&D for advanced technologies in EOR and Carbon Capture & Storage (CCS) have led to an increase in the demand for CO2. The harmful impact of carbon dioxide on the environment has resulted in the formulation of various government regulations globally. The rising concerns regarding the harmful impact of carbon emissions have encouraged carbon-pricing initiatives in several countries of the world.

These regulations help limit the emissions into the atmosphere. A rise in carbon emissions has led some countries to opt for CCS to limit their carbon footprint. However, the high cost of CCS technology is among the key restraint for the market. The COVID-19 pandemic has resulted in a dip in the supply of carbon dioxide, which is made from ethyl alcohol manufacturing. According to Renewable Fuels Association, in 2020, ethyl alcohol plants in the U.S. had curbed production due to falling demand for ethanol due to strict lockdown in the country.

Source Insights

The ethyl alcohol source segment accounted for the largest revenue share of over 33% in 2020. Carbon dioxide is obtained as a by-product in the production of ethyl alcohol through alcoholic fermentation. Ethyl alcohol is mainly preferred for food-grade CO2 owing to a high purity level of CO2 obtained from it.

Carbon dioxide captured from hydrogen production has increased significantly owing to the need to curb annual CO2 emissions resulting from hydrogen production using coal and natural gas. Furthermore, initiatives undertaken by the U.S. and several European nations to move towards a hydrogen economy will boost the production of hydrogen coupled with growth in the production of CO2 in the forecast period.

Ethylene oxide is an essential chemical commodity used in various consumer products. It is primarily produced using direct oxidation of ethylene, in which CO2 is generated as a by-product. The growing demand for ethylene oxide from end-use segments, such as chemical, medical, and pharmaceuticals, is expected to drive the segment growth.

Application Insights

Food & beverage emerged as the largest application segment with a revenue share of over 41% in 2020 and will expand at the fastest CAGR from 2021 to 2028. Carbon dioxide is often used in Modified Atmosphere Packaging (MAP) to extend the shelf life of the packaged food products. In addition, it has been majorly utilized in the manufacturing of carbonated beverages. The medical application segment accounted for the second-highest revenue share in 2020.

In the medical sector, CO2 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-degree Celsius. The product demand has been on the rise from the oil & gas sector as well owing to the growing focus of oil-producing countries to enhance oil productivity during the drilling process. Carbon dioxide-based EOR techniques are used in the oil & gas industry to improve oil recovery rates and to prolong the operating life of mature oil fields.

Regional Insights

North America accounted for the largest revenue share of more than 41% in 2020. Carbon dioxide is widely consumed in the food & beverage and oil & gas sectors in the region. In addition, the U.S. and Canada have a presence of a large number of CO2-based EOR projects, which would drive the product demand in the region. In Europe, major product demand is from the food & beverage, medical, rubber, and firefighting application segments.

The strong presence of a large number of food & beverage manufacturing companies and the use of CO2 in the packaging sector products will boost the market growth in the region. Asia Pacific is expected to be the fastest-growing regional market from 2021 to 2028. The rise in demand for CO2 in the Asia Pacific can be attributed to the growth and expansion of end-user industries, such as food & beverages, medical, and rubber.

Key Companies & Market Share Insights

The market is consolidated due to the presence of a few major vendors, which account for a dominating share in the global CO2 market. Market players majorly focus on merger & acquisition activities to enhance their industry share. For instance, In March 2019, Air Products, Inc. completed the acquisition of ACP Europe SA, which is the largest independent CO2 manufacturer and supplier in Continental Europe. This acquisition has aided Air Products, Inc. to enhance its market share, distribution capability, and geographical presence. Some of the prominent players in the global carbon dioxide market include:

• Linde plc

• Air Liquide

• Air Products, Inc.

• Messer

• Taiyo Nippon Sanso Corp.

Carbon Dioxide Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. 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, 2016 - 2028)

  • Hydrogen

  • Ethyl Alcohol

  • Ethylene Oxide

  • Substitute Natural Gas

  • Others

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2016 - 2028)

  • Food & beverages

  • Oil & Gas

  • Medical

  • Rubber

  • Fire Fighting

  • Others

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2016 - 2028)

  • 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