Carbon Dioxide (CO2) Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, India, Japan, Germany - Size and Forecast 2024-2028

Carbon Dioxide (CO2) Market Size 2024-2028

The Carbon Dioxide (CO2) Market size is estimated to increase by USD 2.12 billion and grow at a CAGR of 4.48% between 2023 and 2028. Market expansion relies on several factors, notably the heightened need for CO2 in the oil and gas sector, the burgeoning applications across the food and beverage industry, and the advancement of carbon capture and storage technologies. However, challenges persist, including the steep manufacturing expenses associated with industrial CO2, stringent regulations, safety apprehensions concerning its storage and transportation, and the potential adverse impacts of CO2 leakage, impeding market growth. As demand escalates across various industries, particularly in oil and gas and food and beverages, addressing these challenges becomes paramount. Mitigating manufacturing costs through efficiency measures and adhering to rigorous safety protocols are essential steps. Additionally, investing in innovative solutions for carbon capture and storage can help alleviate concerns regarding CO2 leakage, fostering sustainable growth in the market.

What will be the  Carbon Dioxide Market Size During the Forecast Period?

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Market Segmentation by Technology, Application, and Geography 

The report includes a comprehensive outlook on the market offering forecasts for the industry segmented by Technology, which comprises combustion and biological. Additionally, it categorizes Service Application into enhanced oil recovery, food and beverages, precipitated calcium carbonate, and others and covers Geography regions, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.

Technology Analysis

The market share growth by the combustion segment will be significant during the forecast period. The combustion segment in the market is expected to witness significant growth in terms of market share when compared to the biological segment during the forecast period. Basically, combustion is a chemical reaction in which a material combines quickly with oxygen and produces heat.

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The combustion segment was the largest and was valued at USD 4.46 billion in 2018. The initial material is referred to as the fuel, and the fuel can be solid, liquid, or gas (including CO2), although it is commonly a liquid for aeroplane propulsion. During combustion, new chemical compounds are formed by burning the fuel and the oxidizer. These compounds are referred to as exhaust. The majority of this exhaust is caused by chemical reactions between fuel and oxygen when a hydrogen-carbon-based fuel (such as gasoline) burns, water (hydrogen + oxygen), and CO2 (carbon + oxygen) is released into the atmosphere. However, the exhaust might also contain chemical combinations formed by the oxidizer alone. If gasoline is burnt in the air with 21% oxygen and 78% nitrogen, the exhaust may include nitrous oxides (NOX, nitrogen + oxygen). Hence, all these abovementioned features and properties of CO2 are expected to increase the demand for CO2 in the combustion process, which will fuel the growth of the CO2 market during the forecast period.

Application Analysis 

Based on application, the market has been segmented into enhanced oil recovery, food and beverages, precipitated calcium carbonate, and others. The enhanced oil recovery?segment will account for the largest share of this segment.?CO2 is used for enhancing oil recovery when the production of oil slows down in oilfields. In addition, in oil recovery applications, compressed CO2 is injected into an oil reservoir. It acts as a solvent that helps in oil expansion and ensures the easy flow of oil into production wells. For instance, at Weyburn oilfields, CO2 is injected at several injection wells. After the injection of CO2, the wells are injected with water so that the oil can expand and flow easily. The pressure in the reservoir increases and flushes out the oil to production wells. These factors under the enhanced oil recovery segment will drive the growth of the market during the forecast period.

Region Analysis

APAC is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in North America is expected to grow steadily during the forecast period. The US and Canada are the major contributing countries in North America. The growth of the CO2 market in North America can be attributed to the increasing demand for CO2 gas from various end-user industries, such as food and beverages, oil and gas, medical, and other industries. This, in turn, is expected to drive the growth of the regional CO2 market. Additionally, in the medical industry, CO2 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, owing to the increasing elderly population and growing health concerns among the masses in the US. Hence, the increasing enhanced oil recovery activities, the rising elderly population, and growing health concerns are expected to drive the growth of the regional CO2 market during the forecast period.

Market Definition 

CO2 is a non-flammable, odourless, and colourless gas with a mild, pungent acidic taste. For commercial purposes, it is usually obtained from the combustion of petroleum distillates, natural gas, carbon-containing compounds, coal, and other organic materials. The market size is based on the revenues generated by key participants.

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Market Dynamics and Customer Landscape

The market is shaped by leading companies like Linde plc, SOL Group, and Air Liquide, which provide essential gases for various industries. In medical procedures such as laparoscopy, endoscopy, and arthroscopy, carbon dioxide serves as an insufflation component, ensuring optimal visibility and precision. However, concerns over carbon emissions and global climate change have spurred efforts towards carbon capture utilization & storage technologies, with companies like ExxonMobil and Global Thermostat leading innovations in this field. Additionally, carbon dioxide finds application in cryogenic freezing and carboxytherapy, aiding in wound healing and therapeutic treatments. In industries like oil & gas, modified atmospheric packaging (MAP), and controlled atmosphere storage (CAS), the use of liquid CO2 and CO2 gas is integral, highlighting its versatility and significance across diverse sectors.

In the realm of industrial gases, companies like Messer SE & Co, ACAIL Gas, Strandmøllen A / S, Sicgil India Limited, and Greco Gas Inc play pivotal roles in supplying essential gases for various applications. Among these gases, carbon dioxide stands out for its multifaceted utility. It is a byproduct of ethyl alcohol production through alcoholic fermentation and is a key component in hydrogen production processes. Moreover, in the medical field, carbon dioxide is utilized for procedures involving the skin, subcutaneous tissue, and circulation, aiding in oxygenation and therapeutic treatments. Additionally, innovative companies like CarbonCure Technologies harness carbon dioxide for sustainable construction practices, highlighting its versatility and importance across industries.

Key Market Driver

The increasing number of applications in the food and beverages industry is notably driving market growth. CO2 is available in the solid, liquid, and gaseous states. The liquid form is the most used form in the food and beverage industry. CO2 gas is used in MAP. Liquid CO2 is first delivered to the plant site via over-the-road trailers or railcars and then piped into the freezer, blender, and other equipment. The liquid is flashed to snow or a cold gas for the cooling and freezing of the food product. It helps create a short-term anaerobic environment. Globally, CO2 is used for processing all types of meat products and frozen specialties.

Moreover, for preserving freshness and extending the shelf life of packaged food products, MAP technology uses CO2 or a combination of CO2 and inert gases like argon or nitrogen. These gases extend the shelf life and appearance of many packaged food products. Markets that use more CO2 than liquid nitrogen (LIN) contribute to the growth of the global CO2 market during the forecast period.

Significant Market Trends

An increase in R&D activities for new applications is an emerging trend shaping the market growth. Major companies have increased their R&D capabilities for exploring new applications where CO2 can be used in large volumes. The new application segments can emerge as the major consumers of CO2. R&D in the market mainly includes advanced technologies and methods for manufacturing CO2.

Additionally, CO2 is produced as a by-product during the fermentation of sugar and the production of bioethanol. Also, it is used in the alcohol industry and industrial applications. R&D activities in the enhanced oil recovery sector extensively use CO2 and will drive the growth of the market during the forecast period.

Major Market Challenge

The harmful effects of CO2 leakage are a significant challenge hindering market growth. In industrial applications of CO2, there can be chances of leakages in compressed CO2 systems, which can be harmful to public health and the environment. Most of the restaurants, bars, and breweries in the world have on-premises pressurized tanks of CO2. Leakages in these tanks can prove fatal for people. Small leaks in CO2 pipelines can cause hazards.

Moreover, manufacturing facilities in low-lying areas, which is an exception under normal conditions, or the absence of wind or air can lead to the accumulation of CO2 to dangerous levels and can cause potential hazards. Such leaks can be detected quickly and dealt with as the pressure in the pipe will constantly reduce. Such factors are expected to hamper the growth of the CO2 market during the forecast period.

Key Carbon Dioxide Market Companies

Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

Air Liquide SA, - The company offers carbon dioxide such as liquid and gaseous forms and pure and mixed with other gases.

The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Air Liquide SA, Air Products and Chemicals Inc., Axcel Gases, BASF SE, Buzwair Group, Chengdu Taiyu Industrial Gases Co. Ltd., Ellenbarrie Industrial Gases Ltd., Gulf Cryo Holding CSC, Jinhong Gas Co. Ltd., Messer SE and Co. KGaA, Mitsubishi Chemical Group Corp., Pavan Industrial Gases Pvt. Ltd., Praxair Technology Inc., Reliant Gases, Salasar Carbonics Pvt. Ltd., SOL Spa, Steelman Gases Pvt. Ltd., The Linde Group, Universal Industrial Gases Inc., and Westfalen AG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments.

• Technology Outlook 
  • Combustion
  • Biological

• Application Outlook
  • Enhanced oil recovery
  • Food and beverages
  • Precipitated calcium carbonate
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is influenced by various sectors, with significant applications in industries like oil & gas for processes such as carbon capture utilization & storage. Companies like ExxonMobil and Global Thermostat play vital roles in advancing carbon capture technologies. Additionally, CO2 is crucial in modified atmospheric packaging (MAP) and controlled atmosphere storage (CAS) to extend food shelf life. Its role as a cooling agent and preservative enhances food safety, while in the beverage industry, it creates the characteristic fizz in carbonated beverages like beer and sparkling wine. With concerns over global climate change, innovative solutions like direct air capture plants by Climeworks are gaining traction, aligning with goals outlined in the Paris Agreement for achieving net-zero greenhouse gas emissions. In healthcare, CO2 aids in laparoscopic surgery and cryogenic freezing, ensuring procedural efficiency and patient safety.

The market encompasses diverse applications spanning industries such as the oil & gas industry and healthcare. In medical procedures like laparoscopy, endoscopy, and arthroscopy, CO2 is crucial for insufflation, providing visibility and facilitating surgical precision. Additionally, it finds utility in carboxytherapy for therapeutic purposes, aiding in wound healing and minimizing scars. In the beverage sector, CO2 is integral to carbonation processes, imparting fizz to soft drinks and enhancing flavor stability in products like sparkling water and Red Bull. Its role as a foaming agent is evident in culinary applications such as whipped cream and ice cream production. Moreover, CO2 contributes to environmental sustainability through carbon recycling initiatives and serves as a critical component in direct air capture plants, aligning with efforts to mitigate carbon emissions and combat global climate change.

Carbon Dioxide Market Scope
Report Coverage	Details
Page number	166
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 4.48%
Market Growth 2024-2028	USD 2.12 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	4.32
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 50%
Key countries	US, China, India, Japan, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Air Liquide SA, Air Products and Chemicals Inc., Axcel Gases, BASF SE, Buzwair Group, Chengdu Taiyu industrial Gases Co. Ltd., Ellenbarrie Industrial Gases Ltd., Gulf Cryo Holding CSC, Jinhong Gas Co. Ltd., Messer SE and Co. KGaA, Mitsubishi Chemical Group Corp., Pavan Industrial Gases Pvt. Ltd., Praxair Technology Inc., Reliant Gases, Salasar Carbonics Pvt. Ltd., SOL Spa, Steelman Gases Pvt. Ltd., The Linde Group, Universal Industrial Gases Inc., and Westfalen AG
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our Market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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