The Global Carbon Dioxide Market was estimated at USD 8.1 Bn in 2020 and is expected to grow with CAGR of 5.3% during the forecast period.
The carbon dioxide market is majorly growing owing to the rising demand for carbon dioxide from the food & beverage industry. The increasing deployment of cryogenic technology by using liquefied carbon dioxide for adding refrigeration value to food products such as poultry, meat, and baked goods among others is offering high growth opportunities to the market. The deployment of cryogenic freezing and cooling by making use of CO2 offers several advantages over conventional systems such as increased conservation of the natural food quality, color and product form, faster cooling, improved production capacity, increased preservation of aromas and nutrients among many others. Owing to these benefits, the carbon dioxide market is expected to experience high product demand from the food & beverage industry. Additionally, increasing demand for packaged foods due to rapid urbanization and a growing population is also contributing to creating a surge in the carbon dioxide market.
Moreover, another major factor driving the growth in the carbon dioxide industry is the rising application of carbon dioxide in the medical industry. Carbon dioxide has a wide application in treating wound closing, cryotherapy, anesthesia, cryopreservation, insufflation gas, destruction of abnormal tissues occurring in oral cavities, surgeries, and related applications. Further, increasing the use of CO2 in cosmetic surgical techniques in place of skin fillers and Botox is also offering growth opportunities in the market. Cosmetic surgical techniques such as carboxytherapy include application from improving skin texture to opening pores and destroying fat cells that are performed by the injection of carbon dioxide into the skin by a trained professional. Therefore, the rising application of the product for medical applications is pegged to garner significant market demand over the forecast period.
In terms of geographic segmentation, North America held the highest revenue share in the carbon dioxide market across the globe. This high share is majorly attributed to the high demand for carbon dioxide from oil & gas and food & beverage industries in the region. Canada and the U.S. have presence of many CO2-based EOR projects, that are driving product demand in the region. Additionally, the rising consumption of packaged food in the region is also creating high product demand for freezing and preservation purposes. Further, favorable policy implementation for the adoption of carbon capture technology in the U.S. is also anticipated to have a positive impact on the carbon dioxide industry growth. In February 2018, Congress in the U.S. expanded and extended financial incentives for investment in various advanced low-carbon technologies. The investment included the FUTURE Act that allows for the first time use of the tax credit for direct air capture (DAC) of carbon dioxide from the atmosphere and converting the captured CO2 into useful products. Such steps are projected to be instrumental in driving the carbon dioxide industry growth in the region.