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The global carbon dioxide (CO2) market size was USD 10.00 Billion in 2019 and is projected to reach USD 12.15 Billion by 2027, exhibiting a CAGR of 2.5% during the forecast period.
CO2 is a colorless gas and is often referred to as the chemical formula CO2. It is a chemical compound consisting of one carbon atom bonded with two oxygen atoms and is 60% denser than dry air. CO2 is present in the earth’s atmosphere in low concentrations and act as a greenhouse gas. This gas is used in various industries for several applications that are usually obtained during the production of hydrogen by steam reforming of natural gas or the production of ethanol by fermentation.
Owing to its properties, CO2 is a versatile compound and has many applications in different forms. It is used as an acidifier in water treatment, inert gas for metalworking and fire suppression, solvent for oil recovery, and freezing applications. Carbon dioxide is regarded as the major contributor to climate change for its part in accelerating global warming. It is produced during the burning of fossil fuels, cement production, and other processes. Attempts to limit the emission by collecting the CO2 from the atmosphere are in progress.
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Adoption of CCS Technology for Co2 Procurement to Encourage Growth
Carbon Capture and Storage (CCS) is a technology used to capture CO2 emissions produced from the burning of fossil fuels for electricity generation, cement manufacturing, and biomass power plant, thereby preventing this gas from entering the atmosphere. This captured carbon dioxide is suitable for use in the oil & gas industry for the application of enhanced oil recovery (EOR). Although CCS is an expensive technology, it helps in minimizing the environmental impact caused by CO2 emissions. This makes it a beneficial technology and will increase its implementation across the globe during the forecast period.
Increasing Use of Carbon Dioxide by Medical and Food & Beverage Industries is Driving the Progression of CO2 Market
In the medical industry, CO2 is used as an insufflation gas in several applications including minimally invasive surgery to stabilize body cavities, cryotherapy, and respiratory stimulation. CO2 is also used for tissue freezing, and tooth sensitivity assessment. The extensive use of CO2 in the rapidly growing medical industry is expected to drive the market. Moreover, CO2 is also used by the food & beverage industry. Carbonation of beverages is done by food-grade CO2, and for freezing of meat & poultry, and other food products industrial grade is used. The rising demand for CO2 from the food & beverage industry will boost the growth of the market.
Transportation Concerns Related to Carbon Dioxide to Impact the Market
A critical challenge hampering the growth of the carbon dioxide market is the concerns related to the transportation of CO2. To transport CO2, pipelines are used, but lack of standards to authenticate the quality of pipelines will hinder the market growth. Transporting CO2 involves high maintenance cost, and the risk of CO2 leaking into the atmosphere, these factors will also hinder the growth of the market. Additionally, protocols such as the Kyoto Protocol which commits the involved countries to limit the emission of greenhouse gases will also be responsible for the decline in the market growth.
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Food & Beverage Segment to Continue Strong Growth during the Forecast Period
Based on the end-use industry, the market is segmented into food & beverage, oil & gas, metal fabrication, medical, and others. Amongst these segments, food & beverage accounts for the major share of the CO2 market. In the food & beverage industry, CO2 is used for carbonation of drinks, freezing poultry and food products, and control of pH level.
Changing lifestyle choices has increased the demand for ready-to-make and frozen foods, thereby increasing carbon dioxide consumption. Additionally, the exponentially increasing population has propelled the demand for food and beverage products, which will support the carbon dioxide market growth.
Furthermore, the oil & gas segment is witnessing growth in the CO2 demand due to its use as a solvent for oil recovery. CO2 is used as a supercritical solvent for enhanced oil recovery and has the potential to increase the output of oil by 15%-20%. The demand for CO2 in the fabrication of metals is also increasing, as CO2 is used for the protection of molten metal from atmospheric contamination during welding processes. Carbon dioxide is also used as a cooling agent during electric arc welding. Hence, the rising metal fabrication industry would drive the demand for CO2.
Asia Pacific Carbon Dioxide Market Size, 2016-2027 (USD Billion)
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The market size in Asia Pacific stood at USD 3.62 Billion in 2019. Asia Pacific is the largest and fastest-growing region owing to high demand from food & beverage, and medical industries. Moreover, China is the largest contributor to the demand for carbon dioxide, which shall further drive the growth of the market in this region.
The market in North America is characterized by a rise in demand for oil recovery applications, thereby promoting the use in the region. The market in Europe is to be governed by the usage of CO2 for carbonation of alcoholic and non-alcoholic beverages in the food & beverage industry.
The market in Latin America and the Middle East & Africa is expected to experience substantial growth during the forecast period. The rising oil & gas exploration activities, along with the advancement of oil recovery technologies consuming CO2 will increase the demand for CO2. Therefore, the market in these regions will witness growth during the forecast period.
Key Players Blending Organic and Inorganic Growth Strategies to Maintain Their Dominance in the Market
The competitive landscape of the market depicts a consolidated and competitive market. Key players in the market have invested a considerable amount of resources in research and development of better technologies to improve CO2 output. Superior operational efficiency and novel technology development are the strategies used by the market leaders for their growth.
An Infographic Representation of Carbon Dioxide Market
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The carbon dioxide (CO2) market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading end-use industries.
Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD Billion) and Volume (Mn Ton)
By End-Use Industry
Fortune Business Insights says that the global CO2 market size was USD 10.00 billion in 2019 and is projected to reach USD 12.15 billion by 2027.
In 2019, the market value stood at USD 10.00 billion.
Growing at a CAGR of 2.5%, the market will exhibit steady growth in the forecast period (2020-2027).
The food & beverage segment is expected to be the leading segment in this market during the forecast period.
Increasing use by the medical industry is the factor driving the demand for carbon dioxide.
Asia Pacific held the highest market share in 2019.
Rising demand from oil & gas and medical industries are the factors supporting the growth of CO2 market during the forecast period.
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