Carbon Dioxide Market Size (2023-2028):

The Global Carbon Dioxide Market is expected to grow with a CAGR of 7.2% during the forecast period 2023-2028.

Market Overview:

Carbon dioxide (CO2) is a chemical compound composed of one carbon atom and two oxygen atoms, with the molecular formula CO2. It is a colorless, odorless gas that is naturally present in the Earth's atmosphere as a trace gas. Carbon dioxide is produced by various natural processes such as respiration, volcanic activity, and the carbon cycle, as well as human activities such as the burning of fossil fuels, deforestation, and industrial processes. It is a greenhouse gas, which means it contributes to the trapping of heat in the Earth's atmosphere and is a major driver of climate change. Carbon dioxide is also used in a variety of industrial applications, including carbonation of beverages, refrigeration, and as a fire suppressant.

Market Drivers:

The demand for carbon dioxide in the industrial sector is driven by the growth of industries such as food and beverage production, medical applications, and refrigeration. Carbon dioxide is used as a refrigerant, in the carbonation of beverages, and as a processing aid in food production. The demand for carbon dioxide is closely tied to the growth of these industries, and the increasing demand for products and services that utilize carbon dioxide is expected to drive the growth of the carbon dioxide market in the coming years.

Energy prices are a key driver of the demand for carbon dioxide in the industrial sector. As carbon dioxide is a byproduct of many industrial processes, such as power generation, the profitability of these processes is impacted by energy prices. When energy prices are high, the demand for carbon dioxide may decrease as industries look to reduce costs. Conversely, when energy prices are low, the demand for carbon dioxide may increase as industries increase production and activity. As such, energy prices play an important role in the carbon dioxide market.

Economic growth is a major driver of the carbon dioxide market, as it leads to increased demand for goods and services, which in turn leads to increased industrial activity and carbon dioxide emissions. As economies grow, there is a greater demand for energy and transportation, which are major sources of carbon dioxide emissions. Economic growth also leads to increased consumer spending, which drives the demand for products that require carbon dioxide for production, such as food and beverages. As such, the growth of the global economy is a key driver of the carbon dioxide market.

Market Restraints:

The supply of carbon dioxide is subjected to various factors that can impact its availability and price, which in turn can affect its use in various applications. Weather conditions, transportation disruptions, and plant maintenance are all factors that can lead to supply chain disruptions. These disruptions can result in shortages of carbon dioxide, which can lead to higher prices and reduced availability. This can impact industries that rely on carbon dioxide for production, such as food and beverage, medical, and refrigeration industries, and may force them to look for alternative sources or technologies.

Market Opportunities:

Carbon capture, utilization, and storage (CCUS) technologies present an opportunity to capture carbon dioxide emissions and either reuse them in other applications or store them underground. This can create new markets for carbon dioxide and increase demand in certain applications. CCUS technologies can be applied in a variety of industries, such as power generation, cement production, and steel manufacturing, which represent significant sources of carbon dioxide emissions. The development of CCUS technologies can also contribute to reducing greenhouse gas emissions and mitigating climate change while creating new business opportunities for the carbon dioxide market.

Impact of COVID-19 on the Carbon Dioxide Market:

The COVID-19 pandemic has had a significant impact on the carbon dioxide market. With the widespread lockdowns and restrictions on movement and activity, there has been a reduction in industrial activity, leading to a decrease in the demand for carbon dioxide. This has been particularly pronounced in industries such as food and beverage production and hospitality, which are significant users of carbon dioxide for refrigeration and carbonation. At the same time, the supply chain for carbon dioxide has also been affected by the pandemic, with disruptions in transportation and logistics leading to reduced availability of gas. This has resulted in higher prices for carbon dioxide in some regions. On the other hand, the pandemic has also led to increased demand for medical applications of carbon dioxide, such as in the treatment of respiratory illnesses. This has partially offset the decline in demand from other sectors. Overall, the impact of COVID-19 on the carbon dioxide market has been mixed, with reduced demand in some sectors and increased demand in others.

CARBON DIOXIDE MARKET REPORT COVERAGE:

Market Segmentation:

Carbon Dioxide Market - By Form:

• Liquid

• Gas
• Solid

Gas form of carbon dioxide is the most dominant and widely used in various applications. It is the most commonly used form because it is easier and more cost-effective to produce and transport compared to liquid or solid forms. It is typically produced as a byproduct of various industrial processes and can be captured and purified for use in various applications. The gas form of carbon dioxide is used in applications such as food and beverage production, healthcare, oil and gas recovery, and carbon capture and storage.

Carbon Dioxide Market - By Source:

• Industrial Processes

• Hydrogen Production
• Ethylene Oxide Production
• Fermentation
• Waste Incineration
• Natural Sources

Industrial processes are likely to dominate the largest sources of carbon dioxide emissions, as they include power generation, cement production, and oil and gas refining, which are all energy-intensive processes that produce significant amounts of carbon dioxide.

Carbon Dioxide Market - By Application:

• Food and beverage production

• Medical applications
• Refrigeration
• Oil and gas recovery

Food and beverage production is likely to dominate the largest applications of carbon dioxide, as it is commonly used to carbonate beverages, extend the shelf life of foods, and as a packaging material.

Market Regional Analysis: 

The Global Carbon Dioxide Market Report includes the segmentation of regions:

• North America
• Europe
• Asia-pacific
• Middle-East and Africa
• Latin America

North America is dominating the carbon dioxide market followed by Europe, this is due to the presence of a large number of industrial and manufacturing facilities and efforts to reduce greenhouse gas emissions. In Asia-Pacific, the demand for carbon dioxide is increasing due to the growing population and industrialization, particularly in China and India, with a surge in its use in the food and beverage industry, especially in Japan and South Korea. In the Middle East and Africa, the oil and gas industry is a significant source of carbon dioxide emissions, with increasing demand for enhanced oil recovery and carbon capture technologies. Latin America is also witnessing a rise in demand for carbon dioxide, particularly in the food and beverage industry, with the region home to a growing number of manufacturing and industrial facilities.

Market Key Players:

1. Linde plc
2. Air Products and Chemicals, Inc.
3. Praxair, Inc.
4. Air Liquide S.A.
5. Taiyo Nippon Sanso Corporation
6. Messer Group GmbH
7. Universal Industrial Gases, Inc.
8. Matheson Tri-Gas, Inc.
9. Gulf Cryo Holding C.S.C.
10. The SOL Group Corporation
11. Tri-State Carbonation Service, Inc.
12. ASCO Carbon Dioxide Ltd.
13. Sicgil India Limited
14. AGA (Linde India Limited)
15. Reliant Gases.

Market Key Developments:

• In May 2021, Carbon Clean Solutions, a company that develops carbon capture technologies, announced the completion of a $22 million funding round to expand its operations and develop new technologies for capturing carbon dioxide emissions.
• In June 2021, Linde plc announced plans to build a new carbon dioxide plant in Indiana, USA, to support the growing demand for gas in the food and beverage industry.