The Global Carbon Dioxide Market was valued at USD 8.1 Bn in 2020 and is expected to reach USD 11.6 Bn by 2027, with a growing CAGR of 5.3% during the forecast period.
Carbon Dioxide is a chemical compound that consists of a Carbon atom along with two Oxygen atoms. It is soluble, colourless, and non-flammable gas when exposed at normal pressure and temperature. CO2 is believed to be an important heat-trapping greenhouse gas (GHG) that is released due to human activities like burning fossil fuels and others. Natural sources of carbon dioxide include hot springs, volcanoes, groundwater, geysers, lakes and rivers, glaciers, ice caps, seawater among others. However, the sources for industrial production of CO2 include ethyl alcohol, hydrogen, substitute natural gas, and ethylene oxide among others.
The carbon dioxide market is accounted to boost at a significant pace in the forecast period. This growth is majorly owing to the myriad benefits and high abundance of carbon dioxide (CO2) in comparison to other industrial gases. Owing to its unique properties, carbon dioxide is considered a versatile compound that offers a range of applications in liquid, solid and gaseous forms. It is used as an acidifier in water treatment and beverage applications, enhanced oil recovery (EOR), inert gas in firefighting, cooling & freezing of food products, and other industrial use. Therefore, an increased adoption in several end-use applications is expected to create a higher product demand and expected to fuel the carbon dioxide market growth in the coming years.
Moreover, a growing environmental concern along with extensive research and development (R&D) activities are expected to influence the carbon dioxide market demand. The increasing R&D investments have led to the creation of advanced technologies such as Carbon Capture & Storage (CCS), thus providing growth opportunities in the market. According to the Center for Climate and Energy Solutions, Carbon capture and storage technologies can capture over 90% of CO2 emissions from industrial facilities and power plants. Further, the growing environmental concern due to the negative impact of CO2 in the environment has led to the formulation of several government regulations and has encouraged nations to adopt carbon-pricing initiatives. Thereby, more than 40 economies across the globe including Canada, the United States, Mexico, France, Germany, Italy, China, Japan, and Australia among many others have opted for CCS to limit their carbon footprint. Hence, the increasing adoption of these advanced technologies is expected to bring a boom in the carbon dioxide industry.
The unique insights provided by this report also include the following:
Based on the source, the ethyl alcohol segment dominated the carbon dioxide market across the globe owing to a high demand especially from the beverage industry
Based on the source, the carbon dioxide industry is segmented as ethyl alcohol, hydrogen, substitute natural gas, ethylene oxide, and others. Among these, the ethyl alcohol source segment dominated the carbon dioxide market across the globe. Ethyl alcohol is also known as ethanol is obtained by a biological process that converts sugar such as fructose, glucose, and sucrose into carbon dioxide and alcohol. Ethyl alcohol is majorly preferred for producing food-grade CO2 as it provides a high purity level of carbon dioxide. The carbon dioxide obtained, bubbles through the liquid and disappears into the air. Additionally, in confined spaces, the CO2 dissolves in the liquid and makes it fizzy. Owing to this property, the CO2 obtained from ethanol experiences a high demand especially from the beverage industry which in turn is proliferating the carbon dioxide industry growth.
Based on the application, the food & beverages segment accounted for the largest share in the carbon dioxide market due to the implementation of cryogenic technology in high-quality food processing applications
Based on application, the carbon dioxide market is fragmented into food & beverages, medical, electronics, oil & gas, firefighting, rubber, and others. Among these, the food & beverages segment accounted for the largest share in the market across the globe. This growth is majorly attributed to the implementation of cryogenic technology in high-quality food processing applications which is driven by the rising need for food safety and preservation. A few major challenges faced by the food & beverage industry include product shrinkage, loss and toughening of tenderness, low product shelf life, dehydration and drip loss, and microbial activity. Cryogenic technology uses carbon dioxide and helps in overcoming these challenges by facilitating fast freezing and cooling processes. Therefore, the technology has a wide application in several food-related industries like confectionery, bakery, seafood, and meat. Hence, the increasing application of cryogenic technology is pegged to garner significant demand in the carbon dioxide market over the forecast period.
Based on region, Asia-Pacific is expected to be the fastest-growing market in the Carbon Dioxide market across the globe due to increasing product demand from several end-user industries
Based on region, the global carbon dioxide market is divided into North America, Asia-Pacific, Latin America, the Middle East and Africa, and Europe. Among these, Asia-Pacific is expected to be the fastest-growing market in the carbon dioxide market across the globe. This high share owing to the expansion and growth of end-user industries in the region, such as medical, food & beverages, rubber. Further, the rapidly expanding oil & gas industry in the region is another major factor driving the growth in carbon dioxide in the region. In terms of announced and planned offshore oil & gas projects, the Asia-Pacific region has 103 projects oil & gas projects that are projected to start during 2021-2025. Therefore, increasing demands from the above-mentioned end-use industries are expected to drive carbon dioxide industry growth in the region.
The report also provides an in-depth analysis of Carbon Dioxide market dynamics such as drivers, restraints opportunities, and challenges
Note: Challenges along with in-depth market dynamics analysis is mentioned in the report.
The Covid-19 pandemic has severely impacted several major economies across the globe such as India, China, the U.S., and the U.K. among many others resulting in the imposition of lockdown and strict social distancing norms by these nations. The entire lockdown situation in these economies left a major hit on several industries including oil and gas, food & beverages, consumer electronics, and others that largely consume carbon dioxide. Owing to the closure of commercial activities and stringent containment measures, the carbon dioxide market suffered a major decline in product demand during the first half of 2020 from several end-use industries. However, during the second half of the pandemic when many major countries started withdrawing the lockdown restrictions and these end-use industries started picking up pace again leading to a surge in the product demand in the carbon dioxide market.
The report also provides an in-depth analysis of key trends in Carbon Dioxide market
The report also provides in-depth analysis of recent news developments and investments in the Carbon Dioxide industry
The key players operating in the carbon dioxide industry are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.