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The carbon dioxide market is estimated to grow at a CAGR of 4.32% between 2022 and 2027. The size of the market is forecast to increase by USD 1,916.46 million. The growth of the market depends on several factors, including carbon dioxide market depends on several factors, including the rising demand from the oil and gas industry, the increasing number of applications in food and beverages, and advancements in carbon capturing and storage technologies.
This report extensively covers market segmentation by application (enhanced oil recovery, food and beverages, precipitated calcium carbonate, and others), production area (combustion and biological), and geography (APAC, North America, Europe, Middle East, and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The report categorizes the global carbon dioxide market as part of the global industrial gases market under the global chemicals market. The global industrial gases market covers a variety of categories including basic chemicals, speciality chemicals, petrochemicals, industrial gases, and polymers. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rising demand from the oil and gas industry is notably driving the carbon dioxide market growth, although factors such as the high manufacturing cost may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. Although there was a decrease in demand for carbon dioxide during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Carbon Dioxide Market Driver
The rising demand from the oil and gas industry is notably driving the carbon dioxide market growth. The oil and gas industry is a key end-user in the global carbon dioxide market. carbon dioxide (CO2) is mainly used for enhancing oil recovery in the oil and gas industry as it is miscible with crude oil and is more cost-effective than other similar miscible fluids. CO2 is poured into the spaces and crevices in rocks to extract the crude oil. Though other similar miscible solvents can be used to pump oil from underground reservoirs, the cost involved is high as they are derivatives of crude oil.
The use of CO2 is increasing considerably in the oil and gas industry. The oil and gas industry has been registering significant stagnation since the decline in oil prices in 2020. Major vendors have reduced their expenses, and the key unprofitable projects have been shelved. As a result, there is a supply-demand imbalance in the oil and gas industry. The increased use of nitrogen and CO2 in oil recovery projects along with the high demand for low-sulfur diesel and gasoline, where these gases are used for the sulfur separation process, will foster the growth of the global carbon dioxide market during the forecast period.
Key Carbon Dioxide Market Trend
Carboxytherapy treatment is the primary trend driving the carbon dioxide market growth. Carboxytherapy is a non-surgical cosmetic medicine treatment. This therapy is done by injecting CO2 into the skin to improve the texture of the facial skin and open the skin pores to destroy the fat cells. A liquid form of CO2 and dry ice is used as an agent to remove unwanted skin, thereby increasing the demand for CO2 globally.
The CO2 laser also has various other applications, such as wound closing and destruction of abnormal tissues occurring in oral cavities. Though the technique has existed for many years, CO2 therapy (CDT) or carboxytherapy has recently gained traction in many cosmetic indications, including facial rejuvenation. Rising demand for cosmetic surgical techniques that use CO2 instead of Botox and skin fillers will increase the demand for carbon dioxide during the forecast period.
Key Carbon Dioxide Market Challenge
High manufacturing cost is the major challenge impeding the carbon dioxide market growth. Although CO2 is abundant in nature, the setting up of air separation plants for producing this gas requires heavy investments. Factors such as the volatility in raw material prices, the rising cost of products, and the mode of packaging reduce the profit margins of vendors, thereby posing a threat to medium and small vendors. The separation of carbon dioxide from atmospheric gases is an energy-intensive process and results in the separation of nitrogen, hydrogen, and oxygen.
Vendors are shifting to tonnage distribution for maximum utilization of the existing capacities and are focusing on offering large volumes of industrial gases and reducing their variable costs. Tonnage distribution causes demand lag, but vendors are unable to maintain a balanced mix of distribution to ensure maximum consumer reach. Factors such as variations in energy prices, rising labour costs, and other expenses pose a threat to carbon dioxide vendors. Such factors are expected to hamper the growth of the global carbon dioxide market during the forecast period.
Key Carbon Dioxide Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Carbon Dioxide Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market
Taiyo Nippon Sanso Corp. - The company offers carbon dioxide for steel and non-ferrous metal refining, glass, ceramics, cement, paper, and other materials under its gas business segment as key offerings. Through this segment, the company also provides oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene, gas-related equipment, and speciality gases in Japan. Additionally, it provides electronics-related equipment and installation, semiconductor manufacturing equipment, cutting and welding equipment, welding materials, plants, and machinery in the country.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the enhanced oil recovery segment will be significant during the forecast period. Carbon dioxide is used for enhancing oil recovery when the production of oil slows down in oilfields. This can happen for various reasons, such as a pressure drop in the oilfield, which stops the oil from moving to the production well, or the presence of thick oil in reservoirs, which restricts their flow. Many studies show that this process of injecting carbon dioxide for enhanced oil recovery can help in reducing the CO2 present in the environment, basically called carbon-negative oil. Such initiatives will increase the adoption of carbon dioxide in enhancing oil recovery.
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The enhanced oil recovery segment showed a gradual increase in the market share with USD 4,477.41 million in 2017 and continued to grow by 2021. In oil recovery applications, compressed carbon dioxide 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, carbon dioxide is injected at several injection wells. After the injection of carbon dioxide, 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 into the production wells.
The growth of this segment is primarily attributed to the increasing adoption of carbon dioxide, which is driven by an increase in the global demand for the carbon dioxide industry.
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APAC is projected to contribute 61% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In APAC, the use of carbon dioxide is increasing, primarily in food processing and beverage carbonation applications. In China and India, the surge in the use of carbon dioxide in food processing and beverage carbonation can be attributed to the ever-rising population and the thriving food industry. For example, China is one of the largest markets for carbon dioxide use globally, owing to the large number of food exports from the country, which require carbon dioxide for preservation.
According to the World Bank, food exports from China increased from 7.6% of the total exported merchandise to 9.1% from 2010 to 2021, which is increasing the demand for carbon dioxide. Hence, the abovementioned factors are expected to drive the growth of the regional carbon dioxide market during the forecast period.
In 2020 and 2021, the COVID-19 pandemic negatively affected the carbon dioxide market in APAC. Moreover, the restrictions on trade activities during H1 2020 negatively impacted the supply chain in the regional carbon dioxide market, which affected its growth negatively. However, the resumption of end-user industries, including oil and gas, food and beverage, chemical, and others following the initiation of large-scale COVID-19 vaccination programs in the second half of 2021 helped the market recover in 2021 and 2022. Such factors are expected to drive the growth of the regional carbon dioxide market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by type, product, distribution channel, and region.
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Carbon Dioxide Market Scope |
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Report Coverage |
Details |
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Page number |
164 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.32% |
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Market growth 2023-2027 |
$ 1,916.46 million |
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Market structure |
Fragmented |
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YoY growth (%) |
3.24 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 61% |
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Key countries |
US, China, India, Japan, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Acail Gas, Air Products and Chemicals Inc., Axcel Gases, Bosco India, Buzwair Group, Ellenbarrie Industrial Gases Ltd., Gulf Cryo Holding CSC, India Glycols Ltd., Kanoria Chemicals and Industries, Linde Plc, Messer SE and Co. KGaA, Mitsubishi Heavy Industries Ltd., Salasar Carbonics Pvt. Ltd., Sicgil India Ltd., SOL Spa, Sri Venkateswara Carbonic Gases, Steelman Gases Pvt. Ltd., Strandmollen AS, Taiyo Nippon Sanso Corp., and Universal Industrial Gases Inc. |
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Market dynamics |
Parent market analysis, 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 forecast period |
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Customization purview |
If our 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Production Area
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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