Table of Contents
Introduction
The global carbon dioxide market is on a trajectory for substantial growth, projected to increase from USD 10.8 billion in 2023 to around USD 18.3 billion by 2033, at a compound annual growth rate (CAGR) of 5.4%. This growth is fueled by the versatile applications of carbon dioxide across various industries, including food and beverages, medicine, and oil and gas, among others.
Key growth drivers for this market include its critical role in the food and beverage industry, where it is used for carbonation of drinks and preservation, and in the medical sector for procedures like minimally invasive surgeries and manufacturing sterile medical supplies. The demand in the oil and gas industry, particularly for enhanced oil recovery techniques, also significantly contributes to the market’s expansion.
However, the market faces challenges such as the complex logistics of CO2 transport, which can be costly and pose environmental risks. The stringent regulatory environment aiming to reduce CO2 emissions also adds pressure on the market dynamics, potentially restricting its growth in certain regions or applications.
Recent developments in technology that improve the capture and utilization of CO2 could offer new opportunities for market growth. Innovations such as advanced filtration and purification methods have enhanced the efficiency and sustainability of CO2 usage across various applications.
Air Liquide announced a major investment plan of up to $850 million to establish a low-carbon oxygen production facility in the Americas. This project aims to support ExxonMobil’s low-carbon hydrogen project in Baytown, Texas, potentially increasing oxygen production capacity by 50% in the area.
Key Takeaways
- The global carbon dioxide market size is expected to be worth around USD 18.3 billion by 2033, from USD 10.8 billion in 2023, growing at a CAGR of 5.4% during the forecast period from 2023 to 2033.
- In 2023, Ethyl alcohol led the carbon dioxide market, grabbing over 34.5% share. Its strong foothold was propelled by its widespread availability and efficient extraction methods.
- Gases dominated the market due to flexibility across industries. Liquids followed, favored for storage and precise applications. Solids showed potential for niche applications.
- In 2023, the Food & Beverage sector led the carbon dioxide market, claiming over 53% of the share due to its extensive use in carbonation for soft drinks and preservation in food packaging.
- North America dominates (43% market share), driven by industrial and healthcare sectors. Asia Pacific follows suit due to increased beverage and food production.
Carbon Dioxide Statistics
Global Carbon Dioxide Emissions Overview
- In 2022, global CO2 emissions reached a record high of 36.8 billion tonnes, marking a 0.9% increase from the previous year.
- Coal remains the largest source of CO2 emissions globally, contributing nearly 15.5 billion tonnes in 2022 alone, with a growth rate of 1.6% from the previous year.
- Since the Industrial Revolution began around 200 years ago, atmospheric CO2 levels have increased by approximately 50%, significantly impacting global temperatures and climate change.
- In 2023, the combined emissions from China, the U.S., India, Russia, and Japan accounted for approximately 49.8% of global emissions.
- Compared to the year 2000, global CO2 emissions have increased by about 52%, highlighting a significant rise in fossil fuel consumption over two decades.
Top Global CO2 Emitters Analysis
- In 2023, per capita emissions were highest in the United States at 13.83 tonnes, followed by Russia at 14.45 tonnes, and China at 9.24 tonnes.
- China’s carbon dioxide emissions were 15% higher than those of all other developed economies combined, as of 2023.
- Russia is the fourth-largest contributor to CO2 emissions in the world, emitting 1,652 million metric tons in 2022.
- Japan is the fifth-largest producer of CO2 emissions, with 1,054 million metric tons in 2021.
- Today, the world’s top three emitters – China, the United States, and India – account for around 50% of global CO2 emissions, and the world’s top 20 emitters account for 80%.
Emerging Trends
- Advancements in Carbon Capture and Decarbonization: Industries are increasingly focusing on reducing their environmental impact, evidenced by significant investments in carbon capture and storage (CCS) technology. Companies like Air Liquide are at the forefront, enhancing their capabilities to capture CO2 directly from industrial processes and repurpose it, aiming for a greener operational footprint.
- Increased Demand for Carbon Dioxide Removal (CDR): As environmental policies evolve, there is a noticeable surge in demand for CDR technologies. This market expansion is influenced by both voluntary and potentially mandatory compliance markets, where the quality of carbon credits and proactive government policies play pivotal roles in shaping the demand.
- Surge in Clean Energy Solutions: The deployment of technologies such as solar panels, wind turbines, and electric vehicles is accelerating, significantly affecting CO2 emissions. These technologies are essential for reducing global reliance on fossil fuels and curbing the rise in atmospheric CO2 levels, thereby mitigating potential climate change impacts.
- Challenges in Voluntary Carbon Markets: Despite growth, voluntary carbon markets (VCMs) are facing hurdles like regulatory uncertainty and fragmentation. These markets are essential for balancing emissions through carbon credits but require clearer regulations and robust quality standards to maintain market integrity and effectiveness.
- Implementation of Carbon Pricing Strategies: There is a growing trend towards adopting carbon pricing mechanisms, such as carbon taxes and emissions trading systems. These strategies have proven effective in generating revenue and motivating significant emission reductions across various industries, contributing to global carbon management efforts.
Use Cases
- Enhanced Oil Recovery (EOR): Carbon dioxide is used to increase the extraction of crude oil from oil fields. By injecting CO2 under high pressure into oil reservoirs, it helps push the oil through pipes to the surface, making the extraction process more efficient.
- Beverage Carbonation: CO2 is essential in the beverage industry, particularly for carbonating drinks. From soft drinks to beer, carbon dioxide is forced under pressure into water to create the fizziness that characterizes carbonated beverages.
- Fire Suppression: Carbon dioxide is widely used in fire extinguishers, especially for electrical fires and fires involving liquids like oils and solvents. CO2 extinguishes fire by displacing oxygen, effectively smothering the flames.
- In Medical Use: In surgeries, particularly laparoscopic and endoscopic procedures like colonoscopies, CO2 is used to inflate the abdomen, which increases the visibility and space for surgeons to operate more effectively.
- Refrigeration and Cooling: Known as dry ice in its solid form, carbon dioxide is used to keep perishables cool during transport. It’s also used in cooling processes during the production of certain foods and beverages, like in winemaking to cool grapes rapidly to prevent fermentation.
Major Challenges
- Scalability of Removal Technologies: Technologies such as Direct Air Capture (DAC) face significant scaling challenges. Capturing CO2 directly from the atmosphere requires processing vast volumes of air, making it energy-intensive and technically demanding. The largest DAC plants currently operational remove a fraction of what is needed to significantly impact global emissions levels.
- Energy Requirements: The energy needed for DAC is substantial. Effective operation of these technologies on a large scale could require a significant portion of current global electricity production, especially if relying on clean energy sources to ensure the process itself does not emit excess CO2.
- Economic Viability: The cost of removing a single ton of CO2 through DAC technologies is currently much higher than most climate models assume. Market prices for carbon removal can be exorbitant, making widespread adoption and operation economically challenging.
- Location Constraints: Finding suitable locations for carbon capture facilities involves several factors, including access to clean energy sources, appropriate geological formations for CO2 storage, and favorable weather conditions. These requirements limit where DAC facilities can feasibly operate.
- Climate Policy and Market Support: Effective management of CO2 also requires robust support from policy frameworks and climate finance. Without strong policy incentives and financial backing, the development and deployment of carbon management technologies might not keep pace with the rising emissions.
Market Growth Opportunities
- Growth in the Food and Beverage Sector: The increasing consumption of carbonated drinks coupled with the rising use of CO2 in food storage and packaging is fueling market expansion. This trend is especially pronounced in regions experiencing population growth and rising levels of disposable income, which in turn stimulate higher consumption rates.
- Advancements in Enhanced Oil Recovery (EOR): CO2 plays a vital role in enhanced oil recovery techniques, helping to boost oil extraction rates. This sector is particularly poised for growth in oil-abundant regions that are capitalizing on advanced extraction methods to optimize production.
- Applications in the Healthcare Industry: In the medical field, CO2 is instrumental for procedures like laparoscopic surgery, where it is used to expand and stabilize body cavities, improving visibility and accuracy during operations. The expanding global healthcare sector is likely to drive further demand for CO2.
- Adoption of CCUS Technologies: The adoption of Carbon Capture, Utilization, and Storage (CCUS) technologies is on the rise as these methods help capture CO2 emissions from industrial activities for storage or conversion into usable products. With a strong focus on climate change mitigation, investments in CCUS technologies are anticipated to increase significantly.
- Development of Carbon Markets: The market for carbon dioxide removal is expanding through both voluntary and regulatory compliance markets. With increasing commitments to carbon neutrality by governments and corporations, the demand for carbon credits, including those from direct air capture of CO2, is expected to grow markedly.
Key Players Analysis
- Avail Gás specializes in the supply and management of carbon dioxide for industrial uses, ensuring a steady provision tailored to customer needs. Their operations focus on efficient handling and delivery of CO2 for various applications.
- Air Liquide demonstrates extensive experience in carbon dioxide management, including capture, purification, and liquefaction, as well as storage and transport. They focus on reducing carbon emissions and supporting low-carbon transitions across industries, also offering CO2 upgrading services.
- Air Products and Chemicals, Inc. plays a significant role in the carbon dioxide sector by focusing on the safe production and distribution of CO2 for various industrial applications, including food and beverage, oil recovery, and chemical processing.
- Greco Gas Inc. specializes in providing carbon dioxide solutions across Western Pennsylvania, supporting industries from beverage carbonation to welding with reliable CO2 supply and management.
- Linde AG is actively engaged in the carbon dioxide sector through comprehensive solutions that include carbon capture, utilization, and sequestration technologies. Their expertise extends to CO2 purification, liquefaction, and compression, addressing various industrial needs while promoting environmental sustainability across multiple sectors.
- Messer Group excels in the carbon dioxide sector by producing and recycling CO2 through innovative technologies, supporting diverse industries like food, beverages, and manufacturing. They focus on sustainability by minimizing carbon emissions and enhancing resource efficiency.
- SOL Group engages in the production and management of carbon dioxide for sectors like healthcare, environmental technologies, and food preservation, emphasizing eco-friendly practices.
- Strandmøllen A/S specializes in the production of sustainable and biogenic CO2, offering a variety of delivery options and focusing on supply security and quality.
- Sicgil India Limited is a prominent provider in the carbon dioxide sector, offering CO2 solutions for beverage carbonation, firefighting, and refrigeration. They ensure high-quality supply and services aligned with industry standards.
Conclusion
The carbon dioxide market is set to grow due to its increasing use in industries like food and beverage, medical, and oil recovery, alongside advancements in carbon capture and storage technologies. This growth reflects the ongoing need to balance industrial uses with environmental sustainability efforts.
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