Carbon Dioxide Market Expected to Reach $148.2 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Carbon Dioxide Market," The carbon dioxide market was valued at $79.0 billion in 2020, and is estimated to reach $148.2 billion by 2032, growing at a CAGR of 5.8% from 2023 to 2032.

Introduction

Carbon dioxide (CO2) is a chemical compound made up of one carbon atom and two oxygen atoms. It is a naturally occurring gas that is present in the Earth's atmosphere, and is also produced through various human activities, such as burning fossil fuels and deforestation. CO2 can be captured from industrial processes and power plants and stored underground in geological formations, a process known as carbon capture and storage (CCS), to reduce greenhouse gas emissions.

Carbon dioxide can be used in modified atmosphere packaging (MAP), where the oxygen level is reduced and replaced with a mixture of CO2 and nitrogen to further extend shelf life and maintain the quality of the food. CO2 is also used as a refrigerant in food processing and storage, particularly for frozen foods and ice cream. CO2 is an effective refrigerant and can maintain very low temperatures, making it useful for preserving food quality and reducing the risk of bacterial growth.

Carbon dioxide (CO2) is commonly used in enhanced oil recovery (EOR) to increase the amount of oil that can be extracted from oil reservoirs. EOR techniques are used when traditional oil recovery methods, such as primary and secondary recovery, have been exhausted and additional oil remains in the reservoir. CO2 EOR can be a sustainable method of oil recovery, as the CO2 that is injected into the reservoir can be sourced from industrial processes or captured from power plants and can help to reduce greenhouse gas emissions.

Market Dynamics

Rise in use of carbon dioxide in healthcare industry drives the growth of carbon dioxide market. Carbon dioxide (CO2) has become integral to various medical procedures, spanning diagnostics, therapy, and surgery. Particularly in laparoscopic surgery, a minimally invasive technique, CO2 is employed to expand the abdomen, enhancing surgical visibility and maneuverability without posing explosion risks. Carboxytherapy, involving CO2 injection into skin or subcutaneous tissue, is utilized to bolster circulation, oxygenation, and wound healing while minimizing scar visibility. Additionally, CO2 is utilized in anesthesia alongside oxygen and nitrous oxide to sustain respiratory function, crucial for preventing breathing complications during surgery. Notably, the healthcare industry's growing reliance on CO2 is projected to propel its market growth in the foreseeable future.

Surge in carbon recycling for renewable materials and energy supply provide lucrative opportunities to the market. Carbon recycling is gaining momentum as a crucial strategy to address climate change and foster a sustainable, circular economy. It involves repurposing carbon-based materials instead of disposing of them as waste. This approach not only reduces greenhouse gas emissions but also contributes to the development of renewable materials and energy sources. Carbon capture and utilization (CCU) is another key component, wherein CO2 emissions from industrial processes are captured and utilized to produce chemicals, fuels, and other materials. This not only mitigates the carbon footprint of industries but also generates new revenue streams and products. The growing availability of renewable energy, such as wind and solar power, further enhances the feasibility of producing renewable products through CCU technologies.

Segments Overview

The carbon dioxide market is segmented into form, application, and region. On the basis of form, the market is categorized into solid, liquid, and gas. On the basis of application, the market is divided into agriculture, metal fabrication, food and beverages, oil and gas, medical, firefighting, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

Based on form liquid is the fastest-growing segment to the market. Liquid CO2 is commonly used to carbonate soft drinks, beer, and sparkling water. When released from pressure, the liquid CO2 turns into gas, creating the bubbles in the drink. Liquid CO2 is used in fire extinguishers as a non-conductive and non-corrosive agent. It works by displacing oxygen and cooling the fire, effectively suppressing it.

Region Analysis

Based on region Asia-Pacific dominated the carbon dioxide market. As the world's largest emitter of CO2, China's emissions primarily come from its heavy reliance on coal for electricity generation, industrial production, and transportation. However, China has also been investing heavily in renewable energy and implementing policies to reduce emissions.

India is the third-largest emitter of CO2 globally, with emissions primarily stemming from coal-fired power plants, industrial activity, and transportation. India is also investing in renewable energy sources to diversify its energy mix and reduce emissions.

The major players operating in the carbon dioxide market include ACAIL GÁS, Buzwair Industrial Gases Factories, Dubai Industrial Gases, Gulf Cryo, India Glycols Limited, Linde PLC, Messer Group, SOL Group, Axcel Gases, PAVAN INDUSTRIAL GASES PVT. LTD., Coregas, and Air Liquide.

Key Findings of the Study

• By form, gas segment dominated accounting for more than half of the market share.
• By application, food and beverage is the most lucrative accounting for one third of the market share.
• Region wise, Asia-Pacific dominated and fastest growing region representing the CAGR of 6.1%.