Carbon Dioxide Market to Grow by USD 2.12 Billion (2024-2028), Rising Demand in Oil & Gas Industry Boosts the Market, Report on How AI Is Redefining Market Landscape - Technavio

NEW YORK, Feb. 7, 2025 /PRNewswire/ -- Report with market evolution powered by AI - The global carbon dioxide market size is estimated to grow by USD 2.12 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  4.48%  during the forecast period. Rising demand for co2 in oil and gas industry is driving market growth, with a trend towards increase in r and d activities for new applications. However, high manufacturing cost of industrial co2  poses a challenge. Key market players include 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.

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Market Driver

Carbon Dioxide (CO2) is a colorless, odorless gas that plays a significant role in various industries and natural processes. In the medical field, CO2 is used as an insufflation component in laparoscopy, endoscopy, and arthroscopy procedures for circulation, oxygenation, and wound healing. The oil & gas industry produces CO2 as a byproduct of natural gas and oil extraction, contributing to global carbon emissions and climate change. Leading companies like Air Liquide, ExxonMobil, Global Thermostat, ACAIL Gas, and others are exploring innovative uses for CO2, such as hydrogen production, carbon recycling, and renewable materials. CO2 is also used in the beverage industry for carbonation in soft drinks, beer, and sparkling wine, and as a coolant and preservative in food production. However, excessive CO2 emissions have adverse impacts on humans and the environment. The Paris Agreement aims to reduce greenhouse gas emissions, including CO2, to mitigate the effects of global climate change. The gas industry is also exploring enhanced oil recovery techniques using CO2 in underground oil reservoirs. CO2 is naturally produced during respiration, volcanic activity, and fermentation processes such as alcoholic fermentation. It is also used as a cooling agent, foaming agent in whipped cream and ice cream, and in CO2 fire extinguishers. Industry releases, product literatures, industry journals, and government websites provide valuable information on CO2 trends and applications. Companies like Red Bull use CO2 for flavor stability and acidity in their beverages, while Climeworks plants capture and store CO2 for use in industrial processes. CXOs in the gas industry are focusing on carbonation of beverages and therapeutic procedures such as carboxytherapy for skin treatments. In conclusion, CO2 is a versatile gas with numerous applications in various industries and natural processes. However, it is essential to manage CO2 emissions responsibly to mitigate the adverse impacts on humans and the environment. Companies are exploring innovative uses for CO2 while adhering to regulatory requirements and industry best practices. 

Major vendors in the Carbon Dioxide (CO2) market are expanding their research and development (R&D) efforts to discover new applications for CO2, which could become significant consumers in the future. R&D in the CO2 industry focuses on innovative technologies and methods for producing CO2. Notably, CO2 is generated as a by-product during sugar fermentation and bioethanol production, and it finds applications in the alcohol industry and industrial processes. In the energy sector, R&D in enhanced oil recovery techniques extensively utilizes CO2, driving the growth of the global CO2 market over the forecast period. 

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 Market Challenges

• Carbon Dioxide (CO2) is a colorless, odorless gas that plays a significant role in various industries and natural processes. In industries, CO2 is used as a byproduct in the production of ethyl alcohol through alcoholic fermentation, hydrogen production, and as a cooling agent in food and beverage industries for carbonation and preservation. However, the insufflation component of CO2 in medical procedures like laparoscopy, endoscopy, and arthroscopy poses challenges in managing carbon emissions and their impact on global climate change. The oil & gas industry, particularly natural gas, propane, and compressed CO2 tanks, contributes significantly to CO2 emissions. Air Liquide, ExxonMobil, Global Thermostat, ACAIL Gas, and other industry players are exploring carbon recycling and renewable materials to mitigate adverse impacts on humans and the environment. CO2 is also used in carboxytherapy for skin treatment, circulation, oxygenation, and wound healing. However, excessive use of CO2 can have adverse impacts on the Earth's atmosphere, contributing to greenhouse gases and global warming. The Paris Agreement aims to reduce greenhouse gas emissions, including CO2, to limit global temperature rise. The gas industry is also exploring enhanced oil recovery from underground oil reservoirs using CO2. The challenges of managing CO2 emissions are complex and require collaboration from various stakeholders, including CXOs, trade associations, government websites, and industry releases in journals and product literatures. CO2 is used as a cooling agent in food spoilage, CO2 fire extinguishers, and as a foaming agent in whipped cream, ice cream, and baked goods. CO2 is a byproduct of natural activities like respiration and volcanic activity, and its atmospheric concentration is increasing due to human activities. The beverage industry, particularly carbonated beverages like soft drinks, beer, and sparkling water, uses CO2 for dissolving gas in tiny bubbles, increasing pressure, and maintaining pH level, acidity, flavor stability, and shelf life. CO2 was discovered by Joseph Priestley in 1772 and is used in ice-making machines as a refrigerant. The challenges of managing CO2 emissions require a holistic approach, including reducing carbon emissions, increasing carbon capture and utilization, and promoting renewable energy supply.
• The Carbon Dioxide market involves the production of this gas through air separation, an energy-intensive process that results in the separation of nitrogen, hydrogen, and oxygen. Vendors face challenges such as volatile raw material prices, rising product costs, and packaging expenses, which impact profitability. To maximize capacity utilization, vendors are transitioning to tonnage distribution. The final price of CO2 gas is determined by production, distribution, packaging, and storage costs. These factors, along with the energy-intensive production process, create a complex business environment for CO2 vendors.

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Segment Overview 

This carbon dioxide market report extensively covers market segmentation by  

• Technology
• Combustion
• Biological
• Application
• Enhanced Oil Recovery
• Food And Beverages
• Precipitated Calcium Carbonate
• Others
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America
• Source
• Hydrogen
• Ethyl Alcohol
• Ethylene Oxide
• Substitute Natural Gas
• Others

1.1 Combustion-  The combustion segment in the global CO2 market is projected to experience notable growth in market share compared to the biological segment. Combustion is a chemical reaction where a fuel, such as gasoline, rapidly combines with oxygen to produce heat. This process forms new chemical compounds, referred to as exhaust, primarily consisting of CO2 and water. The high temperature of the exhaust results from the heat generated during combustion. The demand for CO2 in combustion processes is anticipated to drive the growth of the global CO2 market due to the large quantities of CO2 produced during fuel combustion.

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Research Analysis

The Carbon Dioxide (CO2) market is witnessing significant growth due to its extensive applications in various industries, including healthcare and oil & gas. In healthcare, CO2 is used as an insufflation component in medical procedures like laparoscopy, endoscopy, and arthroscopy. These procedures help reduce carbon emissions, contributing to mitigating global climate change. The production of CO2 is primarily derived from the oil & gas industry, ethyl alcohol through alcoholic fermentation, and hydrogen production. CO2 is also used in cryogenic freezing, carboxytherapy, and as a medium for oxygenation and circulation during medical procedures, enhancing skin penetration and promoting wound healing. Liquid CO2 is used in various applications, including food processing, fire extinguishers, and as a refrigerant. CO2 gas is also used in the production of other chemicals and as a raw material in various industries.

Market Research Overview

Carbon Dioxide (CO2) is a colorless, odorless gas that plays a crucial role in global climate change as a greenhouse gas. It is a byproduct of natural activities such as respiration and volcanic activity, as well as human activities like the burning of fossil fuels in the oil & gas industry. CO2 is used in various industries, including the beverage industry for carbonation, and in medical procedures like laparoscopy, endoscopy, and arthroscopy for insufflation and oxygenation. CO2 is also used in cryogenic freezing, cooling agents, and as a preservative in food and beverages. It is produced during alcoholic fermentation and hydrogen production. CO2 is a key component in carbon emissions, and its atmospheric concentration is a major concern for global climate change. The gas is also used in carboxytherapy for skin treatment, and in the production of renewable materials and energy supply. The adverse impacts of CO2 on humans and the environment are a pressing issue, and efforts are being made for carbon recycling and reducing carbon emissions through the Paris Agreement and innovative technologies like the Climeworks plant.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Technology
• Combustion
• Biological
• Application
• Enhanced Oil Recovery
• Food And Beverages
• Precipitated Calcium Carbonate
• Others
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America
• Source
• Hydrogen
• Ethyl Alcohol
• Ethylene Oxide
• Substitute Natural Gas
• Others

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio