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The Singapore carbon dioxide market size was valued at USD 98.6 million in 2022 and is projected to grow from USD 103.5 million in 2023 to USD 139.8 million by 2030, exhibiting a CAGR of 4.4% during the forecast period.
Carbon dioxide (CO2) is a colorless, odorless, and naturally occurring gas composed of one carbon atom bonded with two oxygen atoms. It is 60% denser than dry air and exists in low concentrations in the Earth's atmosphere, functioning as a greenhouse gas. This gas finds use across various industries for multiple applications, often as a byproduct of processes such as the production of hydrogen through natural gas steam reforming or ethanol production via fermentation. Due to its versatile properties, it has numerous applications in various forms.
Massive Disruption in Supply Chain Halted Production Activities During Pandemic
Due to the economic recession and disruptions across various industries, there was a significant decrease in the demand for CO2, particularly in sectors such as hospitality, food & beverages, and events, which are major consumers of the gas. This resulted in a short-term contraction in the overall size of Singapore's market.
However, the pandemic highlighted the importance of sustainability and environmentally responsible practices. Many companies in Singapore and worldwide began exploring carbon capture and utilization technology, creating long-term growth opportunities in the market. With industries and governments increasingly focused on reducing CO2 emissions and addressing global warming, there has been renewed interest in cleaner CO2 sources, such as carbon capture from industrial processes. As businesses and industries prioritize ecological responsibility, this shift toward sustainability and the adoption of greener technologies is likely to positively impact the market in the post-pandemic era.
Growing Demand from the Food and Beverage Industry is Expected to Drive Market Growth
The beverage and food processing industry significantly consumes carbon dioxide, contributing to stable demand in Singapore due to continued growth and innovation in product offerings.
One primary use in the beverage industry is for carbonation, dissolving into beverages such as carbonated soft drinks (sodas) and sparkling water, creating effervescent bubbles that provide a refreshing quality. The demand for carbonated beverages remains consistently high, ensuring steady product consumption.
Carbon dioxide plays a crucial role in preserving freshness and extending the shelf life of various food products. It's utilized as a modified atmosphere packaging (MAP) gas to displace oxygen in packaging, slowing down the oxidation and deterioration of perishable goods such as meats, fruits, and vegetables.
These factors are attributed to the Singapore carbon dioxide market growth during the forecast period. As consumer preferences evolve and the food and beverage sector expands, this demand is likely to remain robust.
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Rising Need For Carbon Dioxide in the Key Sectors is Expected to Accelerate Market Growth
Singapore boasts a robust industrial base, featuring key sectors such as oil refining, chemicals, and electronics manufacturing, all of which have substantial requirements for carbon dioxide in various processes.
As a major hub for oil refining and petrochemical industries in Southeast Asia, Singapore utilizes CO2 in various applications. This includes its use to enhance oil recovery (EOR) in oil fields, involving the injection of CO2 into reservoirs to increase crude oil yields. Additionally, it plays a role in refining processes, enhancing the quality of petroleum products.
The chemical sector in Singapore covers a broad spectrum, producing a wide range of chemicals and chemical products. CO2 is frequently used in chemical processes, including pH control in water treatment, acting as a solvent, and contributing to the production of chemicals such as urea and sodium bicarbonate. The demand for this product is closely linked to the production of these chemicals.
Furthermore, Singapore's diverse industrial base, spanning oil refining, chemicals, electronics manufacturing, food & beverage processing, and more, drives the demand for CO2 across a wide array of applications. This industrial demand is pivotal in supporting the growth and stability of the market.
Regulatory Challenges May Hinder Market Growth
Stringent environmental regulations and policies concerning carbon emissions can impose limitations on CO2 production and emission, potentially increasing costs for businesses.
Singapore has been actively implementing environmental regulations and policies to combat climate change and reduce greenhouse gas emissions. These regulations include emission standards, carbon pricing mechanisms, and targets for emission reduction. Companies involved in CO2 production and utilization may face stricter compliance requirements, leading to increased costs and operational challenges.
In 2019, Singapore introduced a carbon tax that imposes charges on large greenhouse gas emitters, including CO2. The tax incentivizes businesses to reduce their carbon emissions and can directly impact industries reliant on CO2. Companies subject to the carbon tax may experience higher operating costs, impacting their competitiveness.
Moreover, stringent environmental regulations and policies in Singapore may restrain the market by escalating compliance costs, implementing carbon taxes, and encouraging the adoption of alternative technologies.
Hydrogen Segment is expected to hold a Larger Share Due to Usage in Industrial Application
Based on source, the market is segmented into hydrogen, ammonia, natural gas, ethanol, and others.
In 2022, the hydrogen segment accounted for the largest Singapore carbon dioxide market share. Hydrogen plays a vital role driven by its significant usage in petrochemical and refining processes. The demand for hydrogen is fueled by its use in industrial applications such as hydrocracking and desulfurization, which generates CO2 as a byproduct. Furthermore, the increasing emphasis on hydrogen as a clean energy carrier is shaping its market significance, with ongoing innovations in green and blue hydrogen production methods aligning with sustainability goals. This trend is expected to drive segment growth during the forecast period.
Ammonia emerges as a significant source of carbon dioxide in Singapore due to its use in fertilizer manufacturing and as a precursor in the synthesis of various chemicals, including ammonium nitrate for explosives, refrigerants, and certain pharmaceuticals. The agriculture sector's reliance on ammonia for nitrogen-based fertilizers significantly contributes to its CO2 output, boosting segment growth.
Liquid Segment held the Largest Share Owing to Its Various Application
Based on form, the market is segmented into solid, liquid, and gas. The liquid segment held the largest market share in 2022. The liquid form results from compressing and cooling gaseous CO2. It finds common use in various industries including food and beverage production, chemical manufacturing, and medical applications.
The solid segment is expected to experience substantial growth during the forecast period. Solid CO2, known as dry ice, is commonly used in industries related to refrigeration and freezing, such as food preservation, pharmaceuticals, and transportation.
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Food & Beverages Segment Captured the Largest Share due to Rising Product Demand
In terms of end-use industry, the market is segmented into food & beverages, oil & gas, medical, metal fabrication, wastewater treatment, electronics, chemicals, and others. The food & beverages segment held the largest market share in 2022. It is utilized for carbonating soft drinks, imparting their characteristic fizz, and in food packaging to extend the shelf life of perishable goods.
Moreover, it finds applications in enhanced oil recovery (EOR) to increase oil production from mature fields. In medicine, CO2 is employed in medical-grade gas mixtures, such as in anesthesia, and as a contrast agent in medical imaging.
It serves various roles in metal fabrication processes, primarily as a shielding gas in welding and as a coolant in certain cutting operations. Commonly, it is used as a shielding gas in metal arc welding processes, such as MIG (Metal Inert Gas) welding and MAG (Metal Active Gas) welding.
The market size in Singapore stood at USD 98.6 million in 2022. In Singapore, the market is primarily driven by industries such as food & beverages, manufacturing, and oil & gas, where CO2 is extensively used across various activities. Sustainability initiatives and government regulations aimed at reducing carbon dioxide emissions significantly influence the market. With a focus on green technology and sustainability, Singapore is experiencing growing demand for cleaner CO2 sources such as carbon capture and utilization, indicating a promising market trend.
Key Players are Opting for Eco-Friendly Practices to Reduce Carbon Emissions
Leading companies provide a broad spectrum of CO2 related products and services that cater to diverse industries and applications. These offerings may encompass industrial gases, dry ice, and carbon capture technologies. These companies prioritize sustainability by investing in carbon capture and utilization technologies and adopting eco-friendly practices to minimize carbon emissions. Many players are investing in technological and market developments to enhance production, carbon capturing methods, and diminish emissions.
An Infographic Representation of Singapore Carbon Dioxide Market
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The market research report provides a detailed market analysis, focusing on crucial aspects such as the competitive landscape, supply chain, products, and end-use industries. Furthermore, the report offers insights into market trends and highlights vital industry developments. In addition to the abovementioned factors, the report encompasses various factors contributing to the market's growth in recent years. This report includes historical data and forecasts revenue growth in Singapore while analyzing the industry's latest market dynamics and opportunities.
CAGR of 4.4% from 2023 to 2030
Value (USD Million), Volume (Kiloton)
By End-use Industry
Growing at a CAGR of 4.4%, the market will exhibit steady growth over the forecast period.
Rising demand from various industries is a key factor driving the market.
Linde, Air Liquide, Nippon Sanso Holdings Corporation, Iwatani Corporation, and Air Products and Chemicals, Inc. are the major players in the Singapore market.
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