The Global Carbon Dioxide Market is projected to grow at a CAGR of 4.87% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The continuous utilization of urea as a nitrogen fertilizer in the agricultural sector globally and clean energy transition trends worldwide are the prime factors driving the carbon dioxide market. The world is witnessing rapid advancements in clean hydrogen & ammonia technologies, aiming to replace conventional oil & gas products in industries emitting high carbon amounts. As a result of this diversification in the use of oil & gas, a significant demand for CO2 for EOR (Enhanced Oil Recovery) methods to enhance oil production from mature fields is likely in the coming years.
Moreover, the emergence of new CO2 application techniques in various industries like chemical & building materials and fuel production has instigated the demand for CCUS (Carbon Capture, Utilization & Storage) technologies, including direct air capture, owing to which governments, private entities, & investors are actively promoting startups involved in CCUS across various sectors and providing them with essential funding & resources. For instance:
Hence, with substantial funding by governments & private entities, more innovative CCUS technologies are likely to surface in order to reduce the carbon footprints of different industries, which, consequently, would propel the growth of the carbon dioxide market in the years to come.
Merchant Gaseous Segment Would Account for the Major Share of the Market
Based on the source segment, the market is further bifurcated into, merchant liquid & solid, merchant gaseous, and captive. Among this, the merchant gaseous segment accounted for a substantial share of the market during previous years, primarily driven by the increasing investment in fire suppression. These investments have been escalating owing to rapid industrialization and urbanization, that have further risen the development of residential, commercial, industrial spaces, coupled with growing awareness for fire safety as well as the stringent government regulations for it. The chemical industry is anticipated to grow in the forthcoming years, particularly in bulk petrochemicals, organics, plastic resins, inorganic chemicals, specialty chemicals, and other sectors, as stated by the American Chemistry Council (ACC) in 2022. The significant growth and increased production demand in the chemical industry globally would create a ripple effect, leading to a need for new chemical manufacturing plants, including both conventional and sustainable categories. As a result, the demand for merchant gaseous carbon dioxide (CO2) is set to increase in the chemical industry, as gas plays a vital role as a raw material, solvent, or reactant in various applications within the chemical industry.
Asia-Pacific to Generate Significant Growth Prospects for the Carbon Dioxide Market
The rapidly expanding chemical, food & beverage, & metal fabrication industries in China, India, & Japan, coupled with the mounting demand for CO2 in semiconductor manufacturing, are driving the Asia-Pacific Carbon Dioxide Market. As a result, there's a significant rise in construction projects associated with the expansion of manufacturing units, consequently creating the demand for CO2. Additionally, in some countries, the implementation of carbon pricing mechanisms and environmental regulations has instigated the development of CCUS projects, particularly in China & India, amplifying the CO2 demand.
Taiwan, a major producer of semiconductors, where approximately 65% of all semiconductors are manufactured globally (as of 2023), is another significant area of growth opportunities for the carbon dioxide market in the region, as CO2 is utilized for inerting & temperature control purposes. Hence, several expansion plans of semiconductor manufacturers like TSMC, Broadcom, Inc., & Micron Technology to leverage their market position are set to create a massive demand for CO2 and, consequently, boost the Asia-Pacific Carbon Dioxide Market in the years to come.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including (A. Air Liquide S.A, Air Products and Chemicals, Linde Plc, Taiyo Nippon Sanso, Messer Group, Strandmøllen A / S, Yara International ASA, BASF, Air Water Group, and Reliance Industries Ltd.,) are looking forward to strengthening their market position.
Key Questions Answered in the Research Report