Carbon Dioxide Market Size, Share & Trends Analysis Report By Source (Hydrogen, Ethyl Alcohol, Ethylene Oxide), By Application (Food & Beverage, Oil & Gas), By Region, And Segment Forecasts, 2025 - 2030

Carbon Dioxide Market Size & Trends

The global carbon dioxide market size was estimated at USD 10,718.18 million in 2024 and is projected to grow at a CAGR of 5.1% from 2025 to 2030. The increasing application of carbon dioxide (CO2) in enhanced oil recovery (EOR) is primarily driven by depleting oil reserves and a heavy reliance on crude oil imports, especially in Asia. In addition, the demand from growing end-use industries, such as food and beverages and medical sectors, is expected to boost the CO2 market during the forecast period. In the U.S., one of the world's leading markets for CO2, revenue is projected to grow at a compound annual growth rate of 4.8% in the coming years. This growth can be attributed to rising industrialization and the country's expanding oil and gas industry.

The use of CO2 in the medical field is becoming increasingly important worldwide. CO2 gas is primarily employed as an insufflation agent in various surgical procedures, including arthroscopy, endoscopy, and laparoscopy. It helps inflate and stabilize cavities within the human body, improving the visibility of the surgical area. In addition, CO2 is utilized during surgeries to enhance blood flow to the brain and assist with respiration. For medical applications, CO2 is supplied with specially designed chromium-plated steel cylinders equipped with valves.

The harmful effects of carbon emissions in the atmosphere are significant contributors to global climate change. While countries worldwide have invested heavily in reducing carbon pollution by introducing innovations in Carbon Capture and Storage (CCS) technology and implementing carbon pricing in some areas, many nations still need to achieve their climate goals.

Carbon capture, utilization, and storage (CCUS) is a technology designed to lower emissions from various industries, including steel production, power generation, refining, iron production, cement manufacturing, and petrochemicals. Carbon sequestration technologies encompass capturing, transporting, storing, and utilizing carbon emissions.

Drivers, Opportunities & Restraints

The market is primarily driven by the increasing use of carbon dioxide in gas-based enhanced oil recovery (EOR). Depleting oil reserves coupled with heavy dependence on crude oil imports, mainly in the Asia Pacific, have led to the growth of EOR technology. With an increase in the demand for crude oil and natural gas, the supply-demand gap is also widening. On the other hand, peak oil theory is also achievable in most regions. The prevalence of the aforementioned factors is expected to drive the global EOR systems over the next few years. Government initiatives for infrastructure development and the advancement of EOR techniques are expected to further strengthen market growth. Governments of Asia Pacific countries such as Indonesia, China, India, and Malaysia have also proposed to provide flexibility and financial incentives in tax regimes to attract multinational companies to invest in the market.

Carbon emissions in the atmosphere are among the major causes of global climate change. Although countries around the world have invested heavily in efforts to curb carbon pollution by introducing innovations in CCS technology and implementing carbon rates in some considered, most of the countries still stand at a serious phase of not achieving the targeted climate goals. Various governments have taken subsequent steps to reduce carbon emissions from the power sector and are making continuous efforts to curb the greenhouse gas emissions from power plants. The provision of the cap-and-trade system, which puts a price on carbon emissions, is stimulating the CCS installations across several industries, such as power generation, chemical processing, oil & gas, iron & steel, and others.

Despite its negative impact on climate change, carbon dioxide can also be utilized in several ways, including as a feedstock for various industrial processes and as a potential fuel source. One approach to understanding these opportunities is to examine the existing research on carbon capture and utilization technologies. Carbon capture technologies have the potential to significantly reduce emissions from industrial processes such as power generation and cement production, while utilization technologies can transform captured carbon into valuable products such as building materials, chemicals, and fuels.

Source Insights

Based on source, the ethyl alcohol compounds segment led the market with the largest revenue share of 33.44% in 2024 and is expected to continue to grow at the fastest CAGR over the forecast period. This is attributed to the easy availability of carbon dioxide (CO2) as a long-term and reliable source. Furthermore, the increasing global demand for food-grade CO2 will drive its production from ethyl alcohol in the coming years. Carbon dioxide is produced as a by-product during the fermentation of ethyl alcohol. In addition, the combustion of ethanol also generates CO2 and water vapor. The CO2 obtained from these processes is mainly used in food and beverage applications, such as chilling, carbonation, freezing, and cooling.

Carbon dioxide is produced as a by-product in the hydrogen production process. Several methods produce enhanced hydrogen, including biological, thermochemical, and electrolytic processes. Carbon dioxide is also generated from various sources and utilized in multiple applications. During the forecast period, ongoing research and development efforts to efficiently generate CO2 from diverse sources are expected to drive market growth. Factors such as supply and demand, production costs, emission regulations, transportation, and competition all influence carbon dioxide prices. When many suppliers offer carbon dioxide for specific applications, prices may decrease due to increased competition.

Application Insights

Based on application, the food & beverage segment led the market with the largest revenue share of 41.32% in 2024. Due to its growing use in cryogenic freezing, this method provides greater flexibility in temperature control compared to mechanical refrigeration. Cryogenic cooling and freezing using CO2 is often favored for bakery, confectionery, meat, and seafood products, as it enhances production capacity, preserves aromas and nutrients more effectively, and maintains the food's natural taste, color, and overall quality. 

CO2 is commonly used in modified atmosphere packaging (MAP) to extend the shelf life of food products. This packaging method creates a controlled environment for various foods, including meat, fruits, salads, and certain bakery items, helping to prevent spoilage and maintain freshness. In addition, CO2 is employed in controlled atmosphere storage (CAS) to manage insects and pests in long-term storage facilities.

Regional Insights

North America carbon dioxide market dominated the largest revenue share of 42.10% in 2024. The expansion of the industrial sector in the North American region is anticipated to fuel market growth. In addition, the oil and gas industry is projected to further promote the market demand on account of the growing enhanced oil recovery processes. The food and beverage industry uses carbon dioxide for food preservation, which is likely to further propel market growth.

U.S. Carbon Dioxide Market Trends

The U.S. carbon dioxide market is expected to be dominated by gas injection technology over the forecast period. The trends of the EOR market in the states suggest significant growth in CO2-EOR projects during the forecast period.

Europe America Carbon Dioxide Market Trends

The Europe carbon dioxide market is the third-largest market in the world. The UK has the largest share, followed by Germany, France, Spain, Italy, and the rest of Europe. Carbon dioxide is mainly used in food and beverages and other applications, including oil and gas, medical, rubber, and firefighting.

Asia Pacific Carbon Dioxide Market Trends

The carbon dioxide market in Asia Pacific is anticipated to grow at the fastest CAGR during the forecast period. The increasing consumption of carbon dioxide in Asia Pacific can be attributed to the growth and expansion of end-user industries for carbon dioxide consumption in China. The country is a key consumer of carbon dioxide both globally and in the Asia Pacific.

Latin America Carbon Dioxide Market Trends

The carbon dioxide market in Latin America is anticipated to grow at a significant CAGR during the forecast period. The expansion of the oil and gas industry due to rising foreign investments coupled with growing government investments is anticipated to promote the CO2 market over the forecast period. In addition, the growth of the healthcare industry in countries such as Brazil and Argentina is projected to further promote the use of CO2 for various medical purposes, which is expected to drive the market growth over the forecast period.

Middle East & Africa Carbon Dioxide Market Trends

The carbon dioxide market in the Middle East & Africa is anticipated to grow at a substantial CAGR during the forecast period. The growing demand for packaged and frozen food owing to the unfavorable climatic conditions in the region is likely to promote the use of refrigeration and cooling, which makes use of carbon dioxide. In addition, the unavailability of agricultural land in the region is further projected to boost the demand for frozen food and grains, which is anticipated to benefit the market growth.

Key Carbon Dioxide Company Insights

Some of the key players operating in the market include Acail Gas, Air Liquide, and Linde AG.

• Air Liquide company’s business divisions include healthcare, electronics, and engineering & construction. The company operates in over 75 countries across the globe, with an employee count of 66,400. It carries out various processes such as carbonation, oxy-combustion, industrial cryogenics, and a few others. Airgas is a subsidiary of Air Liquide which supplies carbon dioxide and dry ice in the U.S. The company operates in over 75 countries across the globe.

• The company specializes in the production of high-pressure gases for several end-use industries, including agriculture, livestock & fisheries, food, construction, pharmaceutical, electronics & telecommunications, and others. The company is a supplier of a range of special gases including argon, nitrogen, carbon dioxide, helium, hydrogen, oxygen, and special gas mixtures. 

Recent Developments

• In December 2023, Air Liquide announced that it would build one of Europe’s largest carbon capture & storage units at its hydrogen production plant in Rotterdam, the Netherlands, utilizing its Cryocap technology. The facility is expected to be operational in 2026.

• In April 2023, Linde signed a long-term agreement with ExxonMobil for off-take of CO2. As per the agreement, ExxonMobil shall transport and store 2.2 million metric tons of CO2 annually from Linde’s hydrogen production plant. 

Carbon Dioxide Report Scope

Global Carbon Dioxide Market Report Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels and analyzes the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global carbon dioxide market report based on the source, application, and region.

• Source Outlook (Revenue, USD Million, Volume, Kil0tons; 2018 - 2030)

  • Hydrogen

  • Ethyl Alcohol

  • Ethylene Oxide

  • Substitute Natural Gas

  • Other Source

• Application Outlook (Revenue, USD Million, Volume, Kil0tons; 2018 - 2030)

  • Food & Beverages

  • Oil & Gas

  • Medical

  • Rubber

  • Firefighting

  • Other Application

• Regional Outlook (Revenue, USD Million, Volume, Kil0tons; 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa