U.S. 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

U.S. Carbon Dioxide Market Outlook (2022-2032)

Valuation of the U.S. carbon dioxide market stands at US$ 381.4 million in 2022. The market is predicted to surge ahead at 6.7% CAGR to reach US$ 732.9 million by the end of 2032.

Owing to the widespread application of carbon dioxide in several end-use industries such as oil & gas, chemicals, food & beverages, etc., carbon dioxide market demand is only set to increase rapidly over the years ahead. Along with this, rising investments being undertaken by prominent carbon dioxide manufacturers will mitigate the demand-supply gap.

U.S. Consumption Analysis of Carbon Dioxide (2017-2021) Vs. Market Growth Forecasts (2022-2032)

Carbon dioxide (CO2) is an odorless and colorless gas that is present naturally in the atmosphere. Carbon dioxide is a greenhouse gas that is vital for the Earth’s ecosystem. It is recovered from flue gases, from limekilns, and as a by-product from the preparation of hydrogen for the synthesis of ammonia.

Carbon dioxide is broadly used in a variety of applications across several industries. Demand for carbon dioxide is primarily dominated by the oil & gas industry for enhanced oil recovery and the food & beverage industry for food processing and carbonated drinks. It’s also used in fire extinguishers and is a constituent of medical gases as it promotes exhalation.

• Short Term (2022 Q2 to 2025): Use of carbon dioxide for use across end-use industries likely to propel short-term market growth.
• Medium Term (2025-2028): Rising investments in the development of advanced technologies for enhanced oil recovery to drive demand for carbon dioxide in the United States.
• Long Term (2028-2032): Technological innovation and development trends in the carbon dioxide market to support demand growth in the long term.

A historic growth rate of 4.7% was witnessed between 2017 and 2032. According to the detailed analysis done by Fact.MR, a market research and competitive intelligence provider, the U.S. carbon dioxide market is projected to expand at 6.7% CAGR during the assessment period (2022-2032).

The above image reveals analysis by end-use industry and region in a nutshell. The oil & gas industry, under end use, dominated the market with 33.9% share in 2021.

Why is Carbon Dioxide Usage Increasing across the United States?

“Rising Consumption of Carbon Dioxide for EOR in Oil & Gas Industry”

Over the last few years, carbon dioxide is being injected into oil reservoirs for the recovery of additional oil.

• The oil & gas industry has accounted for bulk demand for carbon dioxide for enhanced oil recovery for the last 35 years, according to the American Petroleum Institute.

The market is developing experience in transporting and injecting carbon dioxide for enhanced oil recovery (EOR). Thus, the technology developed for EOR is extensive owing to constantly evolving technology and regulatory requirements.

Use of carbon dioxide in oil recovery is beneficial for the environment. While sustained use of naturally occurring carbon dioxide is critical to current development, since it represents more than 90% of the CO2 that is available, great volumes of commercially available carbon dioxide captured from power plants and industrial sources have the potential to produce billions of additional barrels of trapped oil & gas.

Captured CO2 also has the added environmental benefit of not being released into the atmosphere. After EOR activities are finished, the carbon dioxide that is used in oil recovery is permanently sequestered in old oil formations.

“Burgeoning CO2 Demand to Be Witnessed from Chemical Industry”

Augmented output of the chemical industry is propelling the demand for carbon dioxide in various applications. Carbon dioxide is used in multiple synthesis processes; for instance, in creating a modified atmosphere during the reaction, for the logistics and transportation of chemical and allied products, as a feedstock and for cryogenic applications in the chemical industry, etc.

Market players are investing in the industry due to diverse applications of CO2. For instance, players are netting CO2 from waste sources and power plants using catalysts to make polypropylene carbonate. The plastic can then be used for adhesives, coatings, packaging, and foams, and can replace other plastics that are currently made from oil.

As a result, companies are moving towards commercial processes. Another investment involves advancing processes to make polyurethane foam using carbon dioxide.

Region-wise Insights

Which Regions of the U.S. Account for Higher Carbon Dioxide Demand?

“CO2 Suppliers to Enjoy Higher Demand from West U.S. & South-West U.S.”

The West U.S. carbon dioxide market and South-West U.S. carbon dioxide market hold 31.2% and 26.5% shares, respectively, in the overall market. These two markets in the United States are predicted to expand rapidly at 7.1% and 6.7% CAGRs during the forecast years.

Growth of the chemical industry is leading to the greater use of carbon dioxide as an inert gas in chemical processes. Rising production and consumption of oil and gas have increased the demand for carbon dioxide as it is injected into oil reservoirs for the recovery of additional oil.

Moreover, the food & beverage sector in these regions is placing augmented demand for carbon dioxide to control atmospheric storage and preserve food & beverages, and also for other food processing applications such as chilling, freezing, etc., which will support the regional market growth of carbon dioxide over the coming years.

Category-wise Insights

Which Delivery Mode of CO2 is Popular across the United States?

“Centralized Delivery Mode Maintaining Dominance Over Onsite Delivery of CO2”

Under the delivery mode segment, the market is segmented into centralized carbon dioxide delivery and onsite carbon dioxide delivery.

The centralized delivery mode holds a major market share of 62.8% and is projected to increase at 7.2% CAGR on the back of most of the transportation of carbon dioxide done by bulk/truck delivery mode, while carbon dioxide transportation by pipelines is set to gain traction over the coming years.

However, the onsite segment holds 37.2% market share and is predicted to rise 6% CAGR over the decade.

Which CO2 Application Accounts for Most Revenue of Market Players?

“Centralized Delivery Mode Maintaining Dominance Over Onsite Delivery of CO2”

The U.S. carbon dioxide market, under the application segment, is segmented into metal manufacturing & fabrication, food & beverages, pulp & paper, chemicals, oil & gas, healthcare, and other industries.

Amongst them, the oil & gas industry accounts for the largest market share of 33.9% and is predicted to expand at 6.9% CAGR during the forecast years of 2022-2032.

Other noteworthy segments are the food & beverage and chemical sectors, which hold 31.7% and 11.2% share in the overall market, respectively. These segments are predicted to expand at 7.3% and 5.6% CAGRs throughout the studied years.

The country is registering high market growth owing to the growing consumption of carbon dioxide in food & beverage, oil & gas, metal manufacturing & fabrication, and other industries. Rising levels of carbon dioxide in the atmosphere, global warming, and accelerating climate change are some of the key reasons for the rising awareness of using carbon dioxide in several end-use industries.

Besides removing carbon dioxide from the air, manufacturers are using it for their commercial benefits. Carbon dioxide production and transportation are some of the key problems faced by industrialists. The cost of generation and supplying carbon dioxide is also quite high.

Competitive Landscape

Companies in the United States carbon dioxide market are opting for investments in research and development to introduce cost-effective carbon dioxide transportation systems.

Market players are resorting to acquisitions & collaborations and expanding geographically to offer novel products to their consumers.

For instance :

• Linde Plc expanded its agreement with Celanese Corporation in 2022 to provide decarbonization solutions. The company is a chemical and specialty material manufacturer and will now supply hydrogen and carbon dioxide to the United States.
• Air Products and Chemicals Inc. announced the acquisition of ACP Europe SA (ACP) in 2019. The company is an independent carbon dioxide business in Europe. This acquisition will allow the company to serve current customers and pursue opportunities in industrial gas.

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

Segmentation of U.S. Carbon Dioxide Industry Survey

• U.S. Carbon Dioxide Market by Production Method :

  • Combustion
  • Biological

• U.S. Carbon Dioxide Market by Delivery Mode :

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

• U.S. Carbon Dioxide Market by End-use Industry :

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

• U.S. Carbon Dioxide Market by Region :

  • West U.S.
  • South-West U.S.
  • Mid-West U.S.
  • North-East U.S.
  • South-East U.S.