Industrial Carbon Dioxide Market

Industrial Carbon Dioxide Market Study by Natural Gas, Ammonia Plants, Ethanol Plants, and Production Wells for Ammonia Synthesis, Carbonation, Shielding & Inert Gas, and Dry Ice from 2024 to 2034

Analysis of Industrial Carbon Dioxide Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Industrial Carbon Dioxide Market Outlook (2024 to 2034)

The global industrial carbon dioxide market size is estimated to be valued at US$ 5.35 billion in 2024 and has been forecasted to expand at a CAGR of 3.1% to reach US$ 7.26 billion by the end of 2034. Demand for industrial carbon dioxide is constantly rising as the beverage industry significantly uses it for carbonated drinks. Industrial carbon dioxide is odorless with a somewhat pungent acidic taste.

Carbon dioxide (Co2) is formed by combustion and by biological processes including decomposition of organic material. In the refrigerator, carbon dioxide is used in solid and liquid form for cooling purposes. It is also used as an inert gas in chemical processes including storage of carbon powder.

As the demand for refrigerators increases, the need for carbon dioxide is projected to rise in tandem over the coming years. Carbon dioxide is relatively non-toxic compared to other industrial gases giving it a positive edge in the market, and expanding its sales in various industrial sectors.

Key Market Growth Drivers

  • Carbon dioxide extinguishes fire by displacing oxygen and is extensively used in fire extinguishers, proving highly effective in saving lives for years. Sales are projected to increase steadily as people prioritize safety.
  • CO2 is also crucial in the bakery industry, where it is used in baking powder to help cake batter rise by generating yeast. The popularity of such cakes, driven by taste and preference, has boosted CO2 sales.
  • The market is projected to grow at a steady pace as the demand for CO2 increases in the metal industry, where it is used to enhance the hardness of casting molds. Suppliers are expected to double their profits by establishing a presence among metal industry players.
  • In the construction industry, CO2 is widely used as a shielding gas in MIG/MAG welding, protecting the weld puddle against oxidation. CO2 is a significant component in the industry, and its sales are expected to be in alignment with the expansion of the construction sector.
  • Carbon dioxide is commonly used as an insufflation gas in minimally invasive surgeries, including endoscopy and arthroscopy, to enlarge and stabilize body cavities for better visibility. As the number of surgeries increases, so does the demand for CO2 in the pharmaceutical industry.
  • CO2 has also established itself in the petroleum industry, where it is used in oil wells for extraction and maintaining pressure within formations. The long-standing reliance on oil as a primary fuel source has driven up the demand for industrial carbon dioxide.
  • In recent years, industrial CO2 has become increasingly important in the rubber and plastic industry, helping reduce product contamination and improve environmental safety. This has created new sales opportunities for CO2 suppliers, contributing to the expansion of the industrial carbon dioxide market size.
Report Attribute Detail
Industrial Co2 Market Size (2024E) US$ 5.35 Billion
Forecasted Market Value (2034F) US$ 7.26 Billion
Global Market Growth Rate (2024 to 2034) 3.1% CAGR
Canada Market Growth Rate (2024 to 2034) 3.6% CAGR
China Market Value (2034F) US$ 1.53 Billion
North America Market Share (2024E) 28.6%
East Asia Market Share (2034F) 38.4%
Key Companies Profiled Linde Plc; Air Products and Chemicals Inc.; Air Liquide; Sicgil India Limited; Matheson Tri-Gas Inc.; Universal Industrial Gases Inc.; The Messer Group GmbH; Taiyo Nippon Sanso.

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Which Industrial Carbon Dioxide Market Trends Must Manufacturers Exploit?

“Rising Use of CO2-Derived Synthetic Fuels”

Carbon dioxide-derived synthetic fuels encompass a wide range of products that can be manufactured using carbon dioxide as a feedstock. These include well-known and widely used products such as methanol, methane, and syngas, which serve as fuels or as precursors to producing carbon monoxide. In addition, CO2-derived fuels can be transformed into gasoline, diesel, and aviation fuel, all compatible with existing infrastructure. It is often more cost-effective and practical to use current infrastructure for these fuels than to transport and store power and hydrogen.

Most carbon dioxide-based fuels are used in transportation (e.g., methanol and gasoline), but certain fuels, such as methane, have multiple applications in power generation, heating, and industry. These fuels are particularly valuable in sectors like aviation, where carbon-containing fuels are projected to continue to be essential due to the challenges of using non-carbon energy carriers such as hydrogen or electricity. Consequently, the demand for carbon dioxide-based fuels is projected to grow across various industry sectors over the forecast period.

“Growth of Food & Beverage Industry Generating Opportunities for Suppliers”

The global food and beverage industry is expanding at a significant pace, owing to evolving consumer preferences, technological advancements, and lifestyle and demographic changes. This industry encompasses a wide array of products, from fresh and packaged foods to beverages, and is crucial to both the global economy and daily life.

Customers are increasingly looking for healthier, convenient, and sustainable food and beverage options. This has led to demand for organic, natural, additive-free products addressing specific dietary requirements. Increased urbanization has resulted in dependence on packaged and processed foods. As more people live in cities, the adoption of convenient and ready-to-eat food and beverages is projected to gain traction.

What is a Threat to Industrial Carbon Dioxide Market Growth?

“High Cost of Production and Transportation”

Due to the high production costs, the industrial carbon dioxide market faces several barriers, including capture, liquefaction, and transportation challenges. Carbon dioxide can be transported in solid, liquid, or gaseous forms via pipelines, motor vehicles, trains, and ships.

Transporting carbon dioxide in solid form consumes more energy than other methods, making it impractical. However, pipelines are a highly efficient means of transporting large quantities of carbon dioxide. For pipeline transport, carbon dioxide must be compressed, and liquefying it for shipping requires a substantial amount of electrical energy.

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Country-wise Insights

The market in South Korea is calculated to expand at a CAGR of 6.4% from 2024 to 2034, and the country is projected to occupy an industrial carbon dioxide market share of 16.4% in the East Asia region by 2034.

Why are Manufacturers Looking for Ways to Expand Their Presence in the United States?

“Expansion of Healthcare Sector and Ongoing Research into Diverse CO2 Uses”

Attribute United States
Market Value (2024E) US$ 1.1 Billion
Growth Rate (2024 to 2034) 3.5% CAGR
Projected Value (2034F) US$ 1.55 Billion

The United States market is mature and advancing toward sustainable technologies, driving extensive carbon dioxide use. The expansion of the United States' industrial sector is projected to fuel market growth in North America.

Expansion of the healthcare sector in the nation is expected to boost the use of carbon dioxide in operations to stabilize body cavities and increase operating surface areas. Due to this research and the high-quality applications of carbon dioxide across various industries, the demand for industrial carbon dioxide is projected to rise at a moderate pace during the forecast period.

What is the Reason Behind China Becoming the Epicentre in This Business?

“Growing Demand for Carbonated Food Products and Use of CO2 in Firefighting”

Attribute China
Market Value (2024E) US$ 1.11 Billion
Growth Rate (2024 to 2034) 3.2% CAGR
Projected Value (2034F) US$ 1.53 Billion

In the Asia Pacific region, China is projected to lead the industrial carbon dioxide market by consumption. Because of the high demand for carbonated food products, the region's food and beverages industry is stepping up its use of carbon dioxide. The country's large population and increasing urbanization are driving demand for food and beverages. For industrial firefighting applications, carbon dioxide-based fire extinguishers are the preferred choice due to their low cost, low maintenance, and ease of use.

Category-wise Evaluation

Based on the source through which industrial CO2 is produced, the ethanol plants segment is forecasted to expand at a CAGR of 2.6% from 2024 to 2034.

Which Method is Predominantly Used for CO2 Production?

“Extensive Application of Natural Gas Processing for CO2 Production”

Attribute Natural Gas Processing
Segment Value (2024E) US$ 1.47 Billion
Growth Rate (2024 to 2034) 2.3% CAGR
Projected Value (2034F) US$ 1.84 Billion

Natural gas processing encompasses a range of industrial processes aimed at purifying raw materials by removing contaminants. During this process, CO2 is often produced and subsequently stored for future use. This processing is a common practice across various industries, making it a significant contributor to CO2 production.

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Market Rivalry

To grow and remain competitive, key players in the industrial carbon dioxide market are emphasizing delivering long-term value to shareholders. Major corporations are prioritizing the development of sound, low-risk strategies that are projected to provide a sizable profit margin and give their stockholders a solid foundation, industry players are adapting themselves to the evolving market trends such as the development of CO2 polymers.

  • In 2021, the Dutch government granted approximately 2 billion euros (US$ 2.4 billion) in subsidies to a consortium that includes oil majors Royal Dutch Shell and ExxonMobil, and the project is set to become one of the world's largest carbon capture and storage (CCS) projects at the Rotterdam Port.

Fact.MR provides detailed information about the price points of key manufacturers of industrial carbon dioxide positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Key Segments of Industrial Carbon Dioxide Market Research

  • By Source :

    • Natural Gas Processing
    • Ammonia Plants
    • Ethanol Plants
    • Production Wells
    • Others
  • By Application :

    • EOR
    • Ammonia Synthesis
    • Carbonation
    • Shielding & Inert Gas
    • Dry Ice
  • By End Use :

    • Food & Beverages
    • Oil & Gas
    • Chemicals
    • Building & Construction
    • Medical & Pharmaceuticals
    • Metal Industry
    • Rubber & Plastic
    • Others
  • By Region :

    • North America
    • Latin America
    • Eastern Europe
    • Western Europe
    • East Asia
    • South Asia & Pacific
    • Middle East & Africa

- FAQs -

How big is the industrial carbon dioxide market?

Worldwide sales of industrial carbon dioxide are calculated at US$ 5.35 billion in 2024.

How is the market forecasted to perform through 2034?

The industrial C02 market is forecasted to reach a valuation of US$ 7.26 billion by 2034.

What is the projected compound annual growth rate for the industrial Co2 market?

The market for industrial C02 is approximated to advance at a CAGR of 3.1% from 2024 to 2034.

Which country has a huge market for industrial carbon dioxide?

The market in the United States is set to be valued at US$ 1.1 billion in 2024.

What is the market size of industrial C02 in China?

The Chinese market is estimated at a market value of US$ 1.11 billion in 2024.

What are the projections for the natural gas processing technique?

The natural gas processing segment is projected to be valued at US$ 1.47 billion in 2024.

What is the market share of Japan in East Asia?

Japan accounts for a market share of 30.5% in East Asia in 2024.

What is the market valuation for production wells in the source segment?

The production wells segment is set to be valued at US$ 775.3 million in 2024.

Who are the leading manufacturers of industrial Co2?

Leading market players are Linde Plc, Air Products and Chemicals Inc, and Air Liquide.

- Also of Interest -

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