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, 2023 - 2030

Report Overview

The global carbon dioxide market size was valued at USD 10.27 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.2% from 2023 to 2030. This is attributed to its rising utilization in enhanced oil recovery (EOR) owing to the depleting oil reserves coupled with heavy dependence on crude oil imports, mainly in the Asia Pacific. Moreover, growing end-use industries like food & beverages and medical are expected to boost the carbon dioxide (CO2) industry during the forecast period. The U.S. is one of the most prominent markets for CO2 in the world, growing at a CAGR of 4.9% in terms of revenue in the upcoming years. The growth of the CO2 industry in the U.S. is attributed to increasing industrialization and the flourishing oil and gas industry in the country.

As per the U.S. Energy Information Administration U.S. dry natural gas production in 2022 was ~1.29 trillion cubic feet, greater than in 2021 owing to higher prices for natural gas & increase in demand, especially for exports.

The application of CO2 in the medical segment is increasingly gaining significance across the globe. The CO2 gas is primarily used as an insufflation component for several surgical procedures including laparoscopy, endoscopy, and arthroscopy. It is used to inflate and stabilize the cavities in the human body, thereby ensuring better visibility of the surgical area.

Moreover, CO2 is also used in surgeries for increasing the blood flow to the brain and aids respiration. For medical purposes, CO2 is supplied through uniquely manufactured steel cylinders that are chromium-plated and include valves.

Moreover, the detrimental effects of carbon emissions in the atmosphere are among the major cause of global climate change. Although countries around the world have invested heavily to curb carbon pollution by introducing innovations in CCS (Carbon Capture & Storage) technology and implementing carbon rates in some countries. However, most countries remain considerably short of meeting the targeted climate goals.

Carbon capture utilization & storage (CCUS) is the technology capable of lowering emissions from a wide range of industries such as power generation, steel, iron, refining, petrochemicals, and cement manufacturing. The carbon sequestration technologies include capture, transport, storage, and utilization.

Source Insights

The Ethyl alcohol segment dominated the market with the highest revenue share of 33.5% in 2022. This is attributed to its easy availability as a long-term and reliable source to produce CO2. Moreover, increasing global demand for food-grade CO2 is further projected to fuel CO2 production from ethyl alcohol in the coming years.

Carbon dioxide is obtained as a by-product in the production of ethyl alcohol through alcoholic fermentation. In addition, the combustion of ethanol also leads to the release of CO2 and water vapor. CO2 obtained from these processes is primarily used for food & beverage applications such as carbonation and as a chilling, cooling, & freezing agent.

Carbon dioxide is also obtained as a by-product during the production process of hydrogen. Different processes involved in the production of enhanced hydrogen include biological processes, thermochemical processes, and electrolytic processes.

Carbon dioxide is also produced from several other sources used in various processes. During the forecast period, the ongoing R&D efforts to efficiently manufacture CO2 from various sources are anticipated to boost market growth.

Applications Insights

The food & beverage segment dominated with the highest revenue share of 50.0% in 2022 due to increased usage for cryogenic freezing, which offers wide flexibility in terms of temperature as compared to mechanical refrigeration. Cryogenic cooling and freezing with CO2 are commonly preferred for bakery, confectionary, meat, and seafood products as it offers increased production capacity, better preservation of aromas and nutrients, and efficient conservation of natural taste, color, and food quality.

CO2 is often used in modified atmospheric packaging (MAP) to extend the shelf life of food products. This type of packaging uses a controlled environment for certain foods, such as meat, fruits, salads, and some bakery products, to prevent spoilage and to preserve the freshness of the food products. CO2 is also used for controlled atmosphere storage (CAS), which is used to control insects and pests in long-term storage facilities.

Moreover, the oil & gas industry exhibits the large-scale use of CO2 for upstream well servicing applications such as hydraulic fracturing and enhanced oil recovery (EOR) applications such as miscible oil displacement. EOR techniques are used in the oil & gas industry to improve oil recovery rates and to prolong the operating life of mature oil fields. The use of the EOR-CO2 technique increases oil extraction by 30% to 60% as compared to the use of natural gas injection or water pressure injection.  

Application Insights

Food & beverage is among the leading application segment in the Asia Pacific. The growing emphasis on food & beverage has also led to the increased production of CO2. For example, in March 2020, The Coca-Cola Company announced its plans to invest USD 200 million to expand its business activities in Bangladesh. The company plans to increase its bottling capacity and streamline its supply chains to cater to the growing demand for carbonated beverages in South and Southeast Asia. Moreover, the CO2 industry in the Philippines is growing at a higher pace owing to the increasing demand for carbonated beverages in the country.

Food & beverage is the largest end-use segment for the carbon dioxide market in Saudi Arabia. The country’s soft drinks sector accounts for approximately two-thirds of the Gulf Cooperation Council (GCC) region’s soft drinks segment. CO2 is largely used in carbonated drinks. The consumption of carbonated drinks has steadily increased in the country owing to the increased spending by consumers and eventually boosting the Saudi Arabia carbon dioxide industry demand.

Regional Insights

North America region dominated the product market with the highest revenue share of 42.1% in 2022. This is attributed to the expansion of the industrial sector in the region. Moreover, the growing healthcare industry across the countries of North America is likely to promote the use of CO2 for various purposes such as in surgeries to stabilize body cavities and enlarge the surgical surface area.

In terms of revenue, Asia Pacific accounted for the second-largest revenue share in 2022. This is attributable to the significant industrial development in countries like China. As per the State Council People’s Republic of China, the country’s production sustained its industrial production growth, as the industrial output went up by 3.6% year on year in 2022. Moreover, the country is a key consumer of CO2 both globally and in the Asia Pacific.

Key Companies & Market Share Insights

Major market players such as Matheson Tri-Gas, Inc & Linde plc have adopted sustainable sourcing strategies after considering the current regulatory scenario & the long-term opportunities. Moreover, major companies are following expansion strategies to increase the market share of the company.

In February 2022, Dan-Unity CO2& Aker Carbon Capture agreed to investigate carbon dioxide transportation by sea. Aker Carbon Capture is developing a full carbon capture, utilization, and storage (CCUS) value chain, including CO2 maritime transport. 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

Global Carbon Dioxide Market Report Segmentation

This report forecasts volume & revenue growth at global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of 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, 2018 - 2030)

  • Hydrogen

  • Ethyl Alcohol

  • Ethylene Oxide

  • Substitute Natural Gas

  • Others

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

  • Food & Beverages

  • Oil & Gas

  • Medical

  • Rubber

  • Firefighting

  • Others

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • UAE

    • Saudi Arabia