Carbon Dioxide (CO2) Market Report

Carbon Dioxide (CO2) Market Analysis By Sources (Hydrogen, Ethyl Alcohol, Ethylene Oxide, Substitute Natural Gas), By Application (Food & Beverages, Oil & Gas, Medical, Rubber, Fire Fighting), Competitive Landscape, And Segment Forecasts, 2018 - 2025

  • Published Date: Feb, 2017
  • Base Year for Estimate: 2016
  • Report ID: GVR-1-68038-403-1
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 156

Industry Insights

The global carbon dioxide market size was valued at USD 6.0 billion in 2015 and is expected to grow at a CAGR of 3.7% over the next nine years. Development in enhanced oil recovery (EOR) technology mostly in North American and the Middle East & Africa region is anticipated to drive the industry growth over the forecast period.

CO2 is an odorless and colorless gas, which is present naturally in the atmosphere. The gas is a greenhouse gas, which is vital for the earth’s ecosystem. It traps heat and helps to keep the earth’s atmosphere warm. CO2 is also used in various minimal invasive surgeries including arthroscopy, endoscopy and laparoscopy, as an insufflations gas. These applications have led to an increase in the demand for carbon dioxide and are projected to drive the market growth over the forecast period.

U.S. carbon dioxide market revenue by application, 2014 - 2025 (USD Million)

U.S. carbon dioxide market

Carbon dioxide is used in various applications such as inert gas in fire-fighting, freezing & cooling food products, extraction of oil and carbonation of beverages. The growth in these applications is projected to positively drive the market from 2016 to 2025.

The huge investment in R&D for advanced technologies in enhanced oil recovery (EOR) and carbon capture & storage (CCS), have led to an increase in the demand for CO2. EOR technology aids in extracting large amount of resources from oil and gas reserves in a short span of time. CCS technology is used for capturing and storing CO2 which is later utilized for industrial purposes.

The harmful impact of carbon dioxide on the environment has resulted in formulation of various government regulations globally. These regulations are helpful for limiting the harmful emission into the atmosphere. Some of these agencies are Environmental Protection Agency (EPA), Food and Drug Administration (FDA), Central Pollution Control Board (CPCB), and Council of Europe (CoE).

Source Insights

Substitute natural gas (SNG) is anticipated to show the highest growth rate among the sources segment over the forecast period. SNG is utilized to obtain carbon dioxide, and is subjected to electrolysis with water to again formulate substitute natural gas. This factor of reutilization of the gas is expected to drive the substitute natural gas segment over the forecast period.

Hydrogen source segment is anticipated to show a moderate growth rate over the forecast period. The low cost and easy availability of calcium carbonate & hydrochloric acid, which are generally utilized for the production of carbon dioxide, and the hassle free processes involved are anticipated to drive hydrogen segment over the forecast period.

Application Insights

Oil & gas application had the highest market share in 2015 and is projected to have a moderate growth rate from 2016 to 2025. Increasing number of aged wells, and rising demand for CO2 in extraction of resources for natural oil & gas reserves is expected to drive the CO2 demand in oil & gas segment.

Firefighting application is projected to have a moderate growth rate over the forecast period. Carbon dioxide, when discharged into the atmosphere forms dry ice since it is heavier than air. Owing to this property, the gas is utilized for firefighting applications. The gas reduces the oxygen content in the atmosphere which is essential for flames, and eventually extinguishes the fire.

Food & beverages application emerged as one of the fastest growing segment in 2015. Varied applications of carbon dioxide in food & beverages such as use of CO2 as a cryogenic agent for freezing purposes, and for carbonation of beverages, are expected to fuel this application segment growth over the forecast period.

Regional Insights

North America dominated carbon dioxide market in 2015 and is expected to retain its lead in the year 2025. Region is anticipated to dominate the market over the forecast period owing to growth in industrialization and usage of CO2 across various end use industries.

The Middle East & Africa is slated to emerge as the fastest growing market over the next nine years, owing to the increasing investments in oil & gas industry. Asia Pacific region is expected to see a moderate growth rate over the forecast period. Region is projected to witness an increased demand in carbon dioxide from food & beverages sector, especially from the emerging economies including China and India.

Global carbon dioxide market share by region, 2015 (USD Million)

Global carbon dioxide market

Competitive Insights

The market is highly consolidated and competitive in nature. In addition, it is characterized by the presence of a large number of industry participants. Market players are majorly focusing on R&D activities to develop better technologies. Some of the major companies present in the market are Linde AG, Universal Industrial Gases Inc., Linde AG, INOX Air Products Ltd., Continental Carbonic Products, Inc., Cosmo Engineering Co. Ltd., Air Products and Chemical, Inc., Praxair, Inc., and Air Liquide.

The industry is characterized by a high level of integration between raw material providers, manufacturers and end-use industries. Companies including Universal Industrial Gases, Inc. and Air Products & Chemicals Inc. have forward integrated their operations by procuring the raw materials and producing the carbon dioxide. Such integration allows companies to save costs and thus reduce the time required for production.

Report Scope



Base year for estimation


Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation

Revenue in USD Million, Volume in Kilotons & CAGR from 2016 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Country scope

U.S., Canada, Mexico, UK, France, Germany, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, Saudi Arabia, UAE

Report coverage

Revenue forecast, competitive landscape, growth factors and trends

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Segments covered in the report

This report forecasts revenue growth and provides an analysis on the 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 on the basis 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

      • UK

      • Germany

      • France

      • Italy

      • Spain

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Central & South America

      • Brazil

      • Argentina

    • Middle East and Africa

      • Saudi Arabia

      • UAE

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