Europe Carbon Dioxide Market Analysis By Production Method (Combustion & Biological) By Delivery Method (Centralized & OnSite) By End-Use Industry and By Region – Global Market Insights 2022 to 2032

Europe Carbon Dioxide Market Outlook 2022-2032)

The Europe carbon dioxide market is estimated to increase from a valuation of US$ 383.6 million in 2022 to US$ 772.4 million by 2032-end, expanding at 7.2% CAGR over the decade.

The market is predicted to generate US$ 388.8 million in terms of absolute dollar opportunity during the forecast years (2022-2032).

High use of carbon dioxide for applications in end-use industries for performing therapies, surgeries, freezing, fire extinguishers, etc., is propelling market growth. Along with this, the development of novel technologies by manufacturers to capture carbon dioxide will also propel carbon dioxide market growth over the coming years.

Europe Carbon Dioxide Consumption Analysis (2017-2021) Vs Market Estimations (2022-2032)

Carbon dioxide is a widely used gas across industries. It is majorly produced through air distillation and absorption through a chemical reaction. It is an inflammable gas, and hence, widely used in fire extinguishers. Carbon dioxide is also used as a cryogenic fluid and dry ice for low-temperature applications.

Carbon dioxide is mainly used in two forms - gas and liquid. It is used in different end-use industries such as oil & gas, food & beverages, paper & pulp, healthcare, chemicals, and others, and is transported by trucks, pipelines, cylinders, and also through onside modes.

• Short Term (2022 Q2 to 2025): Different end-use industries making high use of carbon dioxide will propel short-term market growth.
• Medium Term (2025-2028): Greater investments in developing advanced technologies for oil recovery to propel the demand for carbon dioxide in the European market.
• Long Term (2028-2032): Product innovation and development trends to support long-term demand growth.

The European carbon dioxide market registered a historic growth rate of 5.1% between 2017 and 2021. According to detailed analysis by Fact.MR, a market research and competitive intelligence provider, the market is predicted to register 7.2% CAGR during the assessment period (2022-2032).

The above picture represents market share analysis by end-use industry and country. The food & beverages industry accounted for 49.5% market share in 2021.

How is the European Market for Carbon Dioxide Being Driven?

“Rising Demand for CO2 for High-technical & Healthcare Applications”

The European market is witnessing rising demand for carbon dioxide for use in several applications in the healthcare and medical sector. Governments are taking measures to reduce the operating costs of medical treatment. As a result, the healthcare industry is undergoing vast infrastructural changes.

Carbon dioxide is also used for applications in respiratory, cryogenic, and technical applications in the healthcare industry, which is likely to support market expansion in Europe.

Carbon dioxide is used in medical gas mixtures as a carbogen to be a permanent gas supplied in cylinders filled with high pressure. It is a medical gas mixture of 5% medical CO2 in medical oxygen. It is also used in cryogenic therapy to perform endoscopic and gynecologic examinations, surgeries, etc. requiring high-purity argon.

Market growth in Europe is likely to accelerate owing to the wide application area of carbon dioxide in the healthcare industry.

“High Demand for Food Products and Packaged Food & Beverages with Modified Atmosphere Packaging”

Changing food habits and rising number of fast-food chains are expected to create high demand for carbon dioxide gas to be used in the food industry.

Demand for food & beverages is anticipated to register attractive growth, driving the need for food to be packaged and transported in modified atmospheres and sourced from distant locations.

Industrial gases find significant use for application in the food & beverage industry that is highly driven by growing carbonated drink demand in the market.

The use of liquid carbon dioxide for pre- or post-cooling applications or cryogenic freezing is likely to enhance the refrigeration value of food products, dominating the application of carbon dioxide in the market as compared to liquid nitrogen. Rising usage of carbon dioxide in food applications will drive significant growth of the market over the coming years.

Which Major Roadblock Do Carbon Dioxide Manufacturers Face?

“High Transportation Cost of Carbon Dioxide”

Transporting CO2 across long distances is not a viable option. The cost of transporting carbon dioxide mainly depends on gas pipelines, which distribute large volumes of carbon dioxide to consumers, with the distribution costs of cylinder gases being much higher.

Both liquid tans and high-pressure cylinders require skilled manpower owing to safety issues. As such, optimizing the use and maintaining gas pipelines and cylinders to transport CO2 is one of the biggest challenges for carbon dioxide suppliers, which is expected to hamper market growth to some extent over the coming years.

Country-wise Insights

Which country accounts for more enhanced demand for the Carbon Dioxide Market?

The Germany carbon dioxide market and Russia carbon dioxide market are leading Europe with 26.1% and 19.6% shares, respectively. These two markets are predicted to surge ahead at 8.6% and 8.1% CAGRs over the decade.

Growth of the chemical industry and high use of carbon dioxide as an inert gas in chemical processes are supporting market growth. Also, rising production and consumption of oil & gas have led to augmented demand for carbon dioxide to be injected into oil reservoirs for the recovery of additional oil.

Furthermore, application of carbon dioxide in the food & beverage industry to control atmospheric storage and preserve food and other applications, such as freezing, chilling, etc., will support country-level market growth over the coming years.

Category-wise Insights

Why is Centralized Delivery of Carbon Dioxide More Preferred in Europe?

The European carbon dioxide market, under delivery mode, is segmented into centralized and onsite.

The centralized delivery mode holds 54.2% share in the market. The segment is predicted to rise at 7.7% CAGR over the assessment period, with pipelines, trucks, and cylinders taking center stage. The transportation of carbon dioxide by pipelines is set to gain immense traction over the coming years.

The onsite delivery mode of carbon dioxide holds 45.8% share in the market and is projected to rise at the rate of 11.5% through 2032.

Will the European F&B Sector Continue Leading Demand for Carbon Dioxide Market?

The European market for carbon dioxide, under end-use industry, is segmented into food & beverages, metal manufacturing, pulp & paper, oil & gas, healthcare, chemicals, and other industries.

Amongst them, the food & beverage industry holds a dominant market share of 49.5%. The segment is predicted to expand rapidly at 8.1% CAGR through 2032.

The next leading segments - oil & gas industry and metal manufacturing - hold 11.9% and 11.5% shares, respectively in the European market. These segments are poised to evolve at 5.1% and 6.3% CAGRs over the next ten years.

Rising consumption of carbon dioxide in food & beverage, metal manufacturing & fabrication, oil & gas, etc., is supporting demand growth. Furthermore, manufacturers are looking out for ways to remove carbon dioxide from the air and use it for commercial benefits.

Competitive Landscape

Prominent manufacturers of carbon dioxide in Europe are investing in the research and development of better technologies to augment product output. They are undertaking marketing strategies such as organic and inorganic growth strategies, expansion activities, and acquisitions, along with novel technology development and achieving superior operational efficiency to maintain their market presence.

For instance :

• Air Liquide entered into a joint venture with Gippsland Basin in 2021. The joint venture is between Esso Australia Resources Pty Ltd. and BHP Petroleum Pty Ltd. to construct a new facility delivering CO2 to industries in Australia.
• Messer Group GmbH acquired Linde AG’s gas business in North America in 2019, along with the business activities of Praxair in South America.

Fact.MR has provided detailed information about the price points of key manufacturers of carbon dioxide market positioned across Europe, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Key Segments in Europe Carbon Dioxide Industry Research

• Europe Carbon Dioxide Market by Production Method :

  • Combustion
  • Biological

• Europe Carbon Dioxide Market by Delivery Mode :

  • Centralized
    • Pipelines
    • Trucks/Bulk
    • Cylinders
  • Onsite

• Europe Carbon Dioxide Market by End-use Industry :

  • Metal Manufacturing & Fabrication
  • Food & Beverages
  • Pulp & Paper
  • Oil & Gas
  • Healthcare
  • Chemicals
  • Other Industrial Uses

• Europe Carbon Dioxide Market by Country :

  • Germany
  • Italy
  • France
  • Spain
  • U.K.
  • Russia
  • BENELUX
  • Rest of Europe