Carbon Dioxide Market Size, Share, CO2 Market Research and Industry Forecast Report 2027 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Carbon Dioxide Market


The global carbon dioxide market size was valued at USD 7.66 billion in 2019 and is expected to expand at a revenue-based CAGR of 3.4% over the forecast period. Increasing application of Carbon Dioxide (CO2) in the Enhanced Oil Recovery (EOR) technology, food and beverages, and medical industry are anticipated to be the major factors driving the growth. The application of CO2 in medical segment is increasingly gaining significance. It finds application in modern medicine to minimize invasive surgeries. In medicinal baths, it induces warm sensations and acts as a vasodilator for the skin by stimulating its heat receptors. In addition, insufflation with carbon dioxide makes it easier to perform endoscopic procedures.

Carbon dioxide is used in numerous applications, such as inert gas in fire-fighting, EOR, carbonation of beverages, and freezing and cooling food products. Increased investments in R&D for advanced technologies in EOR and Carbon Capture and Storage (CCS), have led to an increase in the demand for CO2, which in turn is anticipated to fuel the market growth in the forthcoming years.

The harmful impact of carbon dioxide on the environment has resulted in the formulation of various government regulations globally. These regulations help limit the harmful emission into the atmosphere. For instance, in August 2018, the Central Pollution Control Board (CPCB) revised guidelines for continuous emission monitoring systems to regulate and monitor CO2 discharge across various industries.

Such harmful impact of carbon emissions has encouraged carbon-pricing initiatives in several countries. Thus, different governments and international agencies, such as World Bank, ITEA, and OECD have undertaken numerous initiatives. Carbon pricing allow countries to increase their resource efficiency, develop, and market low-emission goods and services, and helps steer the economy toward a carbon-neutral growth path.

Source Insights

Carbon dioxide is often obtained as a by-product during the production of hydrogen. Various processes are used for the enhanced hydrogen production, such as thermochemical processes (natural gas reforming or steam methane reforming, coal gasification, biomass gasification, biomass-derived liquid reforming, and solar thermochemical hydrogen), electrolytic processes; direct solar water splitting process (photoelectrochemical), and biological processes (microbial biomass conversion and photobiological). Carbon dioxide is produced through numerous raw material sources.

Substitute Natural Gas (SNG) is anticipated to be the fastest growing source over the forecast period. SNG is utilized to obtain carbon dioxide and is subjected to electrolysis with water to again formulate substitute natural gas. This factor of reutilization of the gas is expected to drive the segment growth.

Ethyl alcohol, which is estimated to be the largest feedstock for the production of CO2, is mainly used for food-grade carbon dioxide. The gas is produced during the fermentation process of ethanol generation. Food grade CO2 is mainly used as an agent in chilling, cooling, and freezing.

Application Insights of Carbon Dioxide Market

Food and beverage is anticipated to remain the largest application segment in the forthcoming years. In this end-use industry, food-grade CO2 is mainly used in carbonated beverages, wherein industrial grade is widely used for other applications, such as for maintaining the cryogenic temperature of frozen foods. Food grade carbon dioxide is primarily produced as a by-product in ethanol-based plants. It is also among the fastest-growing application segments for the global market.

The medical segment is also among the fastest-growing application segments. Carbon dioxide is used in surgeries, such as arthroscopy laparoscopy and endoscopy, to stabilize body cavities and to enlarge the surgical surface area. It is also used for maintaining cryotherapy temperatures of approximately -76°C. The consumption of CO2 is high in countries with EOR in oil and gas operations. U.S. is the largest market for carbon dioxide-enhanced oil recovery and over 71 oil and gas projects use CO2 flooding as the cost of producing an extra barrel of oil is more profitable with it.

Regional Insights of Carbon Dioxide Market

North America was estimated to be the dominant regional market in 2019. U.S. and Canada are the major contributing nations. CO2 gas is widely consumed in oil and gas industry for enhanced oil recovery. The gas is injected under intense pressure in oil extraction pipelines, which pushes the oil through these pipelines to the surface of the ground. The use of CO2 gas eases the flow of oil and reduces the viscosity of the extracted oil.

Asia Pacific is likely to be the fastest growing regional market during the forecast period. The increasing consumption of carbon dioxide in the region can be attributed to the expansion of end-user industries requiring CO2 consumption in China. The country is a key consumer of carbon dioxide both globally and in Asia Pacific. Rapidly growing end-use industries such as food and beverage and medical in the developing countries have also resulted in the market growth. China, India, and the Southeast Asian countries have witnessed moderately high industrial growth over the five years, which has led to increased consumption of industrial gas in the region.

The rising oil and gas activities in Middle East and Africa is anticipated to promote the demand for various technologies including EOR and Improved Oil Recovery (IOR), which is projected to propel the market growth over the forecast period. In addition, rising demand for oil and gas across the globe is projected to promote the expansion of the regional industry, which thereby benefits the market growth.

Market Share Insights of Carbon Dioxide Market

The market is consolidated and highly competitive in nature. It is characterized by the presence of a large number of industry participants. Market players majorly focus on R&D activities to develop better technologies. Some of the major market players include Linde AG; Universal Industrial Gases Inc.; Linde AG; INOX Air Products Ltd.; Air Products and Chemical, Inc.; Praxair, Inc.; and Air Liquide.

A few market leaders including Air Products & Chemicals Inc. and Universal Industrial Gases Inc. are vertically integrated. This provides the companies with advantages in terms of procurement of raw material and distribution; henceforth, trying to reach the optimum level for economies of scale. For example, in February 2018, Airgas, Inc. announced to construct a new liquid carbon dioxide plant in Stockton, California, U.S.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Carbon Dioxide Market Research Report

This report forecasts volume and revenue growth at global regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this report, this market research report has segmented the global carbon dioxide market report on the basis source, application, and region:

Source Outlook (Volume, Kilo Tons; Revenue, USD Million, 2019 - 2030)

  
Hydrogen
  
Ethyl Alcohol
  
Ethylene Oxide
  
Substitute Natural Gas
  
Others

Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2019 - 2030)

  
Food & Beverages
  
Oil & Gas
  
Medical
  
Rubber
  
Fire Fighting
  
Others