Carbon Dioxide market COVID-19 Impact, Trends & Business Statistics By 2030

Posted by Mrudula Karmarkar on August 26th, 2022

The global carbon dioxide market size is expected to reach USD 6.83 billion by 2030, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 7.3% from 2022 to 2030. Increasing usage of carbon dioxide for Enhanced Oil Recovery (EOR), and in the food & beverages and medical industries, is anticipated to fuel the growth of the global market during the forecast period. Depleting oil reserves and increasing dependence of different regions, mainly Asia Pacific, on crude oil imports, have surged the deployment of EOR technology, thereby contributing to the increased demand for Carbon Dioxide (CO2).

Carbon dioxide is an odorless and colorless gas. The gas is a naturally occurring chemical which is usually released by the actions of nature including hot geysers & springs, and volcanoes. Carbon dioxide is soluble in water and is also present in various water bodies including groundwater, ice caps, lakes, seawater and glaciers and rivers.

The gas is considered to be a greenhouse gas among other gases including, methane, ozone, water vapor, and nitrous oxide. Greenhouse gases are responsible for keeping the earth’s atmosphere warm enough to sustain life. Although, excessive accumulation of greenhouse gases in recent years have caused the earth’s atmosphere to heat up and thus has caused global warming. The emission of these gases need to be controlled in order to maintain a favorable and life sustaining ecosystem.

Carbon dioxide has varied applications including, carbonation of beverages, extraction of oil from oil wells, for freezing applications and as an inert gas for firefighting equipment. It is also prominently utilized in various medical applications including, as an insufflation gas for various minimal invasive surgeries including, arthroscopy, endoscopy and laparoscopy. It is also utilized for stimulation of the respiratory tract and cryotherapy. Increasing illnesses coupled with unhealthy lifestyle of people all around the world are anticipated to positively drive the global carbon dioxide market.

Based on source, the ethyl alcohol segment is expected to continue dominating the market from 2022 to 2030. The growth of this segment can be attributed to the high reliability of ethyl alcohol as an easily available long-term source for carbon dioxide, along with its increased commercial value for producing carbon dioxide as a byproduct. The surge in demand for food-grade carbon dioxide across the world during the forecast period is expected to increase the utilization of ethyl alcohol for producing carbon dioxide.

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Among sources, the Substitute Natural Gas (SNG) segment is anticipated to register the fastest CAGR over the forecast period. SNG is utilized to obtain carbon dioxide. It is subjected to electrolysis with water to again formulate substitute natural gas. Thus, the fact that SNG can be reutilized is expected to drive the growth of the segment from 2022 to 2030. Other sources are also expected to contribute significantly to the growing demand for carbon dioxide in various application segments. Constant R&D efforts to carry out cost-effective manufacturing of CO2 from various other sources are anticipated to fuel its production across the world.

Carbon Dioxide Market Report Highlights

  • In terms of revenue, the ethyl alcohol segment accounted for a prominent share of the market in 2021 and is expected to witness steady growth over the forecast period
  • Based on application, the food & beverages segment dominated the market by accounting for a share of more than 35.0% in 2021 in terms of revenue
  • North America accounted for a share of 51.0% in terms of revenue in 2021, while the market in Asia Pacific is projected to grow at the highest CAGR of 7.6% in terms of revenue from 2022 to 2030
  • Various strategic initiatives by the key players have led to the growth of the global market. For instance, in August 2022, Air Products and Chemicals, Inc. acquired the gasification business unit of General Electric Company to expand its synthesis gas solutions product offerings, strengthen its position and build, and own and operate gasification projects worldwide

Based on application, the market has been segmented into food & beverages, oil & gas, medical, rubber, firefighting, and others. Food & beverages is the largest segment of the market. It is anticipated to be the fastest-growing application segment from 2022 to 2030. Food-grade carbon dioxide is mostly used in carbonated beverages while industrial-grade carbon dioxide is widely used for preserving the cryogenic temperature of frozen products. Increasing consumption of carbon dioxide in medical applications and its surging demand for EOR also contribute to the market growth. The expansion of the industrial sector in North America is anticipated to fuel the demand for carbon dioxide in the region.

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

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Mrudula Karmarkar

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Mrudula Karmarkar
Joined: March 30th, 2020
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