Carbon Dioxide Market Forecast: Projected Growth and Key Insights for 2024 and Beyond Now

The global carbon dioxide market size was estimated at USD 10.94 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 5.0% from 2024 to 2030. This is attributed to its growing application in enhanced oil recovery (EOR) due to the depleting oil reserves and 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.

Gather more insights about the market drivers, restrains and growth of the Global Carbon Dioxide Market

Applications Insights

Food & Beverages segment dominated with the highest revenue share of over 50.0% in 2023 owing to its increasing usage for cryogenic freezing, which offers wide flexibility in terms of temperature as compared to mechanical refrigeration. Cryogenic cooling and freezing with CO2 is 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.

Source Insights

Ethyl alcohol dominated the market with the highest revenue share of over 33.0% in 2023. This is attributed to its easy availability as a long term and reliable source for the production of CO2. Moreover, increasing global demand for food-grade CO2 is further projected to fuel the 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, combustion of ethanol also leads to the release of CO2 and water vapor. CO2obtained 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 includes biological processes, thermochemical processes and electrolytic processes.

Form Insights

Liquid segment dominated the market with the highest revenue share in 2023. This is attributed to wide use of the product in food & beverages sector for freezing and carbonation. Further, the fuels derived using the product is being increasingly utilized in the transportation industry and power generation sectors. SPIC, Linde Plc, and Air Liquide are some of the key producers of liquid CO2.

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Oil Spill Management Market: The global oil spill management market size was valued at USD 148.14 billion in 2023 and is projected to grow at a CAGR of 3.2% from 2024 to 2030.

Automotive Refinish Coating Market: The global automotive refinished coating market size was valued at USD 12.10 billion in 2023 and is projected to grow at a CAGR of 6.8% from 2024 to 2030.

Regional Insights

North America region dominated the product market with the highest revenue share of over 42% in 2023. This is attributed to the expansion of 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.

Key Companies & Market Share Insights

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

In December 2023, Air Liquide announced that it will build one of Europe’s largest carbon capture & storage unit 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.

Key Carbon Dioxide Companies: