Carbon Dioxide Market Size, Share & Trends Analysis Report By Source (Ethyl Alcohol, Ethylene Oxide), By Application (Food & Beverages, Oil & Gas, Medical), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global carbon dioxide market size was valued at USD 3.68 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.3% from 2022 to 2030. Increasing utilization of Carbon Dioxide (CO2) for Enhanced Oil Recovery (EOR) and its surging usage in food & beverages and medical industries are anticipated to fuel the growth of the global market during the forecast period. Depleting oil reserves and increasing dependence of different regions, especially in Asia Pacific, on crude oil imports have increased the deployment of enhanced oil recovery technology, thereby fueling the growth of the market. The U.S. is one of the largest markets for carbon dioxide in the world. The market in this country is projected to grow at a CAGR of 7.2% over the forecast period in terms of revenue. The growth of the market in the U.S. can be attributed to the ongoing industrialization and the flourishing oil & gas industry in the country.

Carbon dioxide gas is widely consumed in the oil & gas industry in the U.S. for enhanced oil recovery. The use of this gas eases the flow of oil and reduces the viscosity of the extracted oil. The carbon dioxide flooding technique is used to enhance the quality of extracted light and heavy oils.

Increased investments in the development of advanced technologies related to enhanced oil recovery and Carbon Capture & Storage (CCS) have surged the demand for carbon dioxide in the U.S. The prevailing trends related to the enhanced oil recovery market in different states of the country suggest a significant rise in the number of carbon dioxide-enhanced oil recovery projects in the U.S. in the coming years. Increasing enhanced oil recovery activities and rising demand for carbon capture & storage in the country are projected to promote the product demand in the U.S. from 2022 to 2030.

The medical industry in the U.S. is anticipated to grow significantly over the forecast period owing to the increasing elderly population and growing health concerns among the masses in the country. The flourishing medical industry in the U.S. is anticipated to favor the market growth in the country as carbon dioxide is used in a wide range of medical applications, including transient respiratory stimulation. It is also used to encourage deep breathing and coughing in patients to treat atelectasis.

Source Insights

The ethyl alcohol segment dominated the market in 2021 by accounting for a market share of about 33% in terms of revenue. The growth of this segment can be attributed to the easy availability of ethyl alcohol as a long-term and reliable source for producing high-commercial value carbon dioxide as a by-product. Moreover, the surged global demand for food-grade carbon dioxide is projected to fuel the production of carbon dioxide from ethyl alcohol in the coming years.

Carbon dioxide is often obtained as a byproduct during hydrogen production. Various processes used for the enhanced hydrogen production include thermochemical processes (natural gas reforming or steam methane reforming and biomass-derived liquid reforming, as well as coal gasification, and biomass gasification); electrolytic processes; direct solar water splitting process (photoelectrochemical); and biological processes (microbial biomass conversion and photobiological conversion). Carbon dioxide is produced through numerous raw materials.

The Substitute Natural Gas (SNG) segment of the market is anticipated to grow at the highest CAGR over the forecast period. Substitute natural gas is utilized to obtain carbon dioxide. It is subjected to electrolysis with water to again formulate substitute natural gas. Thus, the fact that substitute natural gas can be reutilized is expected to drive the growth of the substitute natural gas segment of the market from 2022 to 2030.

Various other sources are also used for generating carbon dioxide used in different applications. The ongoing R&D activities to cost-effectively manufacture carbon dioxide from different sources are also expected to contribute to the growth of the market over the forecast period.

Application Insights

The food & beverages application segment dominated the market in 2021 with a revenue share of about 38%. The growth of this segment can be attributed to the increasing global demand for carbonated drinks. Carbon dioxide is often used in Modified Atmospheric Packaging (MAP) to extend the shelf life of food products. In addition, it is used in cryogenic freezing systems, which offer more temperature flexibility than mechanical refrigeration systems. These factors are also expected to significantly contribute to the consumption of carbon dioxide in food & beverage applications in the foreseeable future.

Carbon dioxide is used in a wide range of applications in the food & beverages industry. In the food industry, it is used in modified atmospheric packaging (MAP) and chilling & freezing applications. Carbon dioxide is also used to control the temperature of food products during their transportation and storage to maintain their quality and increase their shelf life.

The consumption of carbon dioxide in medical applications is increasingly gaining significance worldwide. It is also used for the development of new medicines to minimize invasive surgeries. The carbon dioxide gas is primarily used as an insufflation component for several surgical procedures, including laparoscopy, endoscopy, and arthroscopy. 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 easy to perform endoscopic procedures on patients.

Ongoing innovations and R&D activities worldwide have led to the utilization of carbon dioxide for the production of fuels, chemicals, and building materials. These factors are expected to enhance the consumption of carbon dioxide in a number of applications, including oil & gas, medical, rubber, firefighting, crop growth enhancement, renewable fuel production, etc. over the forecast period. This, in turn, is anticipated to enhance the demand for carbon dioxide across the world in the coming years.

Medical-grade carbon dioxide is used as a pure gas or mixed with other gases to form specialized mixtures for various purposes including anesthesia, breathing stimulation, and equipment sterilization. It is also used for minimally invasive surgeries, including endoscopy, arthroscopy, and laparoscopy, as an insufflation gas, where CO2 helps expand and stabilize the operating areas for better visibility. It is also used for local anesthesia and in transient respiratory stimulation applications.

The presence of a large number of high-end hospitals and medical facilities in developed countries and the increase in the number of healthcare facilities in developing countries are contributing to the growth of the medical segment. The medical industry is anticipated to grow over the forecast period owing to the increasing old age population and growing health concerns among the people due to the ongoing COVID-19 crisis. These factors are expected to boost the utilization of carbon dioxide in the medical application segment in the forecast period.

Regional Insights

North America dominated the global carbon dioxide market in 2021 by accounting for the largest revenue share of over 50% of the market. The expansion of the industrial sector in North America is anticipated to fuel the market growth in the region. The flourishing healthcare industry in the countries of North America is anticipated to promote the usage of carbon dioxide in surgeries to stabilize body cavities and enlarge the surgical surface areas. The surging consumption of carbon dioxide in different applications is anticipated to further propel its demand over the forecast period.

In terms of revenue, Asia Pacific accounted for the second-largest revenue share in 2021. The region is a key consumer of carbon dioxide in the world. Food & beverages is the leading application segment in Asia Pacific. The growing usage of carbon dioxide in food products and beverages is also contributing to its increased production in the region. The ongoing industrialization in Asia Pacific has promoted the usage of firefighting equipment in the region to avoid industrial hazards. Equipment such as fire extinguishers use carbon dioxide to extinguish the flames.

Key Companies & Market Share Insights

Top market players such as Linde plc and Matheson Tri-Gas, Inc. have adopted sustainable sourcing strategies after considering the long-term opportunities and current regulatory scenario. Companies are now focusing on delivering long-term value to shareholders to grow and sustain in the market. The key players emphasize building robust and low-risk strategies that will ensure a significant profit margin and build a strong foundation for their shareholders. The companies are more focused on strategically producing industrial gases with advanced sourcing-automation production processes owing to increased demand from end-users for balancing the demand-supply scenario. Moreover, ascending demand for Carbon Capture Storage (CCS) has encouraged the market players to focus on the development of such technologies to control carbon emissions. Some prominent players in the global carbon dioxide market include:

• Acail Gás 

• Air Liquide

• Air Products and Chemicals, Inc.

• Greco Gas Inc.

• Linde AG

• Messer Group

• Sicgil India Limited

• SOL Group

• Strandmøllen A/S

• Taiyo Nippon Sanso Corporation

Carbon Dioxide Market Report Scope

Segments Covered in the Report

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities for each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the global carbon dioxide market report based on source, application, and region:

• Source Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Hydrogen

  • Ethyl Alcohol

  • Ethylene Oxide

  • Substitute Natural Gas

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Food & Beverages

  • Oil & Gas

  • Medical

  • Rubber

  • Firefighting

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia