Carbon Dioxide Industry Overview
The global carbon dioxide market size is expected to reach USD 6.83 billion by 2030, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 7.3% from 2022 to 2030. Increasing usage of carbon dioxide for Enhanced Oil Recovery (EOR), and in the food beverages and medical industries, is anticipated to fuel the growth of the global market during the forecast period. Depleting oil reserves and increasing dependence of different regions, mainly Asia Pacific, on crude oil imports, have surged the deployment of EOR technology, thereby contributing to the increased demand for Carbon Dioxide (CO2).
Carbon Dioxide Market Segmentation
Grand View Research has segmented the global carbon dioxide market based on source, application, and region:
Based on the Source Insights, the market is segmented into Hydrogen, Ethyl Alcohol, Ethylene Oxide, Substitute Natural Gas and Others.
- The ethyl alcohol segment dominated the market in 2021 by accounting for a market share of about 33% in terms of revenue. The growth of this segment can be attributed to the easy availability of ethyl alcohol as a long-term and reliable source for producing high-commercial value carbon dioxide as a by-product.
- Carbon dioxide is often obtained as a byproduct during hydrogen production. Various processes used for the enhanced hydrogen production include thermochemical processes (natural gas reforming or steam methane reforming and biomass-derived liquid reforming, as well as coal gasification, and biomass gasification); electrolytic processes; direct solar water splitting process (photoelectrochemical); and biological processes (microbial biomass conversion and photobiological conversion). Carbon dioxide is produced through numerous raw materials.
- The Substitute Natural Gas (SNG) segment of the market is anticipated to grow at the highest CAGR over the forecast period. Substitute natural gas is utilized to obtain carbon dioxide. It is subjected to electrolysis with water to again formulate substitute natural gas. Thus, the fact that substitute natural gas can be reutilized is expected to drive the growth of the substitute natural gas segment of the market from 2022 to 2030.
- Various other sources are also used for generating carbon dioxide used in different applications. The ongoing RD activities to cost-effectively manufacture carbon dioxide from different sources are also expected to contribute to the growth of the market over the forecast period.
Based on the Application Insights, the market is segmented into Food Beverages, Oil Gas, Medical, Rubber Firefighting and Others.
- The food beverages application segment dominated the market in 2021 with a revenue share of about 38%. The growth of this segment can be attributed to the increasing global demand for carbonated drinks. Carbon dioxide is often used in Modified Atmospheric Packaging (MAP) to extend the shelf life of food products.
- Carbon dioxide is used in a wide range of applications in the food beverages industry. In the food industry, it is used in modified atmospheric packaging (MAP) and chilling freezing applications.
- The consumption of carbon dioxide in medical applications is increasingly gaining significance worldwide. It is also used for the development of new medicines to minimize invasive surgeries. The carbon dioxide gas is primarily used as an insufflation component for several surgical procedures, including laparoscopy, endoscopy, and arthroscopy.
- Ongoing innovations and RD activities worldwide have led to the utilization of carbon dioxide for the production of fuels, chemicals, and building materials. These factors are expected to enhance the consumption of carbon dioxide in a number of applications, including oil gas, medical, rubber, firefighting, crop growth enhancement, renewable fuel production, etc. over the forecast period.
- Medical-grade carbon dioxide is used as a pure gas or mixed with other gases to form specialized mixtures for various purposes including anesthesia, breathing stimulation, and equipment sterilization.
- The presence of a large number of high-end hospitals and medical facilities in developed countries and the increase in the number of healthcare facilities in developing countries are contributing to the growth of the medical segment.
Carbon Dioxide Regional Outlook
- North America
- Asia Pacific
- Central South America
- Middle East Africa
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