Market Insights & Projections Global Carbon Dioxide Market (2023-28)
The Global Carbon Dioxide Market is estimated to grow at a CAGR of around 4.87% during the forecast period, i.e., 2023-28. The market growth imputes to the unceasing use of urea as a nitrogen fertilizer in the global agriculture industry, making the fertilizer industry one of the key end users of captive carbon dioxide throughout the historical period. As per IEA, global urea consumption accounted for nearly 122 Mt in 2020. Although, in recent years, the annual growth in agriculture production globally has been highly volatile, yet to fulfill the growing population’s food requirements in the coming years.
As per the United Nations, the world population is expected to reach about 8.5 billion by 2030. Thus, the progression in industrial activities on account of the growing global population is estimated to boost the growth of anthropogenic carbon dioxide emissions globally. Furthermore, the transition of the world’s reliance to clean energy sources is fueling the development of clean hydrogen & ammonia to replace conventional oil & gas products in excessive carbon-emitting industrial applications.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 4.87% |
| Regions Covered | North America: US, Canada |
| Europe: The UK, Germany, France, The Netherlands, Italy, Spain, Nordic Region, Rest of Europe | |
| Asia-Pacific: China, Japan, India, South Korea, Indonesia, Australia, Rest of Asia Pacific | |
| Latin America: Mexico, Brazil, Argentina, Chile, Rest of South America | |
| Middle East & Africa: The UAE, Saudi Arabia, Kuwait, Oman, Qatar, & Bahrain, Egypt, South Africa, Rest of the Middle East & Africa | |
| Key Companies Profiled | 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., Others |
| Unit Denominations | USD Million/Billion |
The booming diversification in the application of oil & gas in the forthcoming years creates a considerable need for CO2 for Enhanced Oil Recovery (EOR) techniques to increase oil production from mature fields. Other commercial applications, including metal fabrication, cooling, fire suppression, and stimulating plant growth in greenhouses, also generate the demand for CO2. As the manufacturing & construction industries are expanding worldwide, the demand for metal fabrication will likely increase and, consequently, elevate the requirement for CO2 in welding over the coming years.
The emergence of new methods to put CO2 to use in different industries & purposes, such as the production of fuels, chemicals & building materials, etc., is augmenting the popularity of carbon capture utilization and storage (CCUS), which involves technologies like direct air capture. Governments, private parties, and investors are escalating their support by funding start-ups involved in the CCUS from diverse sectors like fuels & chemicals, building materials, etc. For instance,
Hence, massive investments in the exploration & development of new CCUS technologies owing to their immense potential to reduce carbon emissions from various end-user industries like refining, petrochemicals, power generation, metal, & cement manufacturing are set to create new directions for the carbon dioxide market in the years to come.
Global Carbon Dioxide Market Driver
Soaring Usage of Carbon Dioxide in the Food & Beverage Industry: Over the past few years, the global population has significantly risen and has surged the requirements for food & beverage products. According to the United Nations, in 2022, the world population reached approximately 8 billion. Moreover, developing countries in the Asia-Pacific, like India, China, etc., are undergoing urbanization & industrialization due to the evolution plans such as China's 14th Five-Year Plan (2021-2025), India's Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0, etc., laid down by their governments.
As a result, the working population in these countries is significantly increasing. According to the Ministry of State Labour, in 2021, the employment rate in India increased to approximately 52.9%. This increase in the office-going population is resulting in a rise in demand for processed food & beverage products across the globe. Thus, to cater to this rising demand for food & beverages, the companies such as Coca-Cola, Goya Foods, etc., are expanding their food production capacity by setting up manufacturing units in different countries.
The CO2 is essential in food & beverage manufacturing units for various purposes such as carbonation, Freezing & Cooling, pH control, etc. Thus, the setup of new food & beverage manufacturing units across the globe to cater to the growing demand for food & beverage is driving the Global Carbon Dioxide Market.
Global Carbon Dioxide Market Growth Opportunity
Increasing Focus on Therapeutic Drug Manufacturing - The global pharmaceutical sector has experienced significant growth and attention from several governments after COVID-19. According to the World Health Organization, more than 13 million individuals lost their lives during the pandemic (2020-2021). Therefore, the pandemic served as an opportunity for governments across the North America & Asia-Pacific region, primarily in the countries like the US, India, China, Mexico, etc., to expand their pharmaceutical sector and establish drug manufacturing units to enhance the healthcare infrastructure & save the lives of millions of individuals. This has resulted in governments worldwide laying down initiatives & schemes, such as India's Production Linked Incentive (PLI), The US' National Adaptive Pharmaceutical Manufacturing Initiative, and others to increase their drug manufacturing capabilities and boost the establishment of pharmaceutical companies within their countries.
CO2 is essential in therapeutic drug manufacturing units for various purposes like solvent extraction, pH control & buffering, etc. Thus, the increasing establishment of pharmaceutical manufacturing units across the globe would elevate the Global Carbon Dioxide Market growth in the forthcoming years.
Global Carbon Dioxide Market Challenge
Conveyance & Distribution Related Concerns - Carbon Dioxide is generally available in the liquid & gaseous state. However, its transportation occurs in the gaseous state due to atmospheric conditions. CO2 requires specialized handling, infrastructure, and safety measures during transportation, which further increases transportation costs, making it costlier for end-users. Moreover, CO2 pipelines have specific design considerations due to the corrosive nature of CO2 and the need to prevent leaks or seepage during transport. Hence, the lack of infrastructure, like the unavailability of the transportation pipeline in low-developed economies, complicates CO2 transportation, resulting in end-users seeking alternatives like nitrogen and, in turn, impeding the growth of the Global Carbon Dioxide Market.
Global Carbon Dioxide Market Trends
Growing Greenhouse & Hydroponics Cultivation - Controlled agricultural practices, such as greenhouse and hydroponic cultivation, are gradually gaining traction in the Middle Eastern, North American & Asia-Pacific countries such as the US, the UAE, Saudi Arabia, Indonesia, & Singapore, among others, to enhance food security. Moreover, the increasing infrastructural development activities in these countries to upgrade the life of residents and attract foreign investments have decreased the arable land for cultivation. As a result, the governments in these regions are increasingly approving the establishment of hydroponic farms & vertical farms to increase crop yields.
Since these farms require CO2 to provide a suitable environment for plant growth & productivity, the rapidly increasing controlled agricultural practices are driving the demand for CO2. Moreover, many governments have laid down several plans & initiatives, such as the UAE’s National Food Security 2051, India’s National Mission for Sustainable Agriculture (NMSA), Mexico’s MasAgro Initiative, etc., for encouraging sustainable agricultural practices, further increasing the number of greenhouse & hydroponic farms and, in turn, amplifying the demand for CO2 in the forthcoming years.
Global Carbon Dioxide Market (2023-28): Segmentation Analysis
Global Carbon Dioxide Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the analysis, the market has been further classified as:
Based on Source:
Of them all, Merchant Gaseous held the major share of the Global Carbon Dioxide Market during the historical years. Investments in the expansion of fire suppression have ascended over the years globally, owing to the mounting prevalence of urban areas & wildfires on account of rising global temperature & increased frequency of natural calamities, etc. The implementation of fire suppression systems across various industries and commercial spaces has been growing rapidly. These systems are designed to quickly & efficiently extinguish fires, protecting people, property, and the environment. Hence, the demand for Carbon dsioxide (CO2) as a gaseous agent in fire suppression systems owing to its effectiveness in displacing oxygen and smothering the fire is set to consistently increase in the coming years, consequently driving the market.
On the other hand, the chemical industry, i.e., projected to rapidly expand in the coming years, especially in bulk petrochemicals, organics, plastic resins, inorganic chemicals, specialty chemicals, etc., is another prominent contributor to the growth of the carbon dioxide market. The mounting need for new chemical manufacturing plants, both in conventional & sustainable categories, is set to amplify the demand for CO2 as acritical raw material, solvent, or reactant in the chemical industry. In addition, numerous new large-scale projects are announced in the sector, which are expected to promote the requirement for carbon dioxide in manufacturing units in the coming years. For instance, in 2023, BASF, German Chemical manufacturing company announced the establishment of its Verbund factory in China. The company pronounced to start the beginning of construction of its new polyethylene (PE) facility in Zhanjiang, Guangdong Province.
Global Carbon Dioxide Market (2023-28): Regional Analysis
Geographically, the Global Carbon Dioxide Market expands across:
Of all regions globally, Asia Pacific is expected to experience a significant surge in demand for CO2 and contribute notably to the Carbon Dioxide Market growth during 2023-28. Governments of countries like China, Japan, India, etc., are increasingly focusing on increasing spending for the expansion of various industries, including chemical manufacturing, food & beverage production, and metal fabrication. These measures toward improving economic growth have accelerated construction activities associated with the expansion of industrial units, gradually increasing the demand for CO2 across the region. Also, the implementation of carbon pricing mechanisms and environmental regulations in some countries influences the utilization of CO2 and the development of CCUS projects across countries like China, India, etc.
Moreover, the demand for CO2 in Taiwan is expected to rise notably, mainly due to the surge in industrial activities. The country is one of the major producers of semiconductors, accounting for around 65% of all semiconductors manufactured across the globe in 2023. CO2 is used extensively in these manufacturing facilities for inerting & controlling the temperature. As a result, companies are planning expansions in order to capitalize on their position in the market. For instance, in 2022, TSMC announced the construction of a new semiconductor manufacturing facility in Kaohsiung, Taiwan, which would produce nearly 7-nanometre & 28-nanometer chips, for which the production is expected to begin by 2024. Hence, the constantly growing manufacturing industries across the region would continue pushing the demand for carbon dioxide and, consequently, fuel the Asia-Pacific Carbon Dioxide Market growth in the years to come.
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Frequently Asked Questions
A. Carbon Dioxide Market is expected to showcase a CAGR of 4.87% during 2023-28.
A. Soaring usage of Carbon Dioxide in the Food & Beverage industry is expected to drive the Carbon Dioxide Market during 2023-28.
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, Reliance Industries Ltd., are the top players in the Carbon Dioxide Market
A. Asia Pacific region would present growth prospects in the Carbon Dioxide Market during 2023-28.
A. Asia Pacific region would present growth prospects in the Carbon Dioxide Market during 2023-28
A. Growing Greenhouse & Hydroponics Cultivation is a new trend shaping the market growth.
A. Increasing focus on therapeutic drug manufacturing across the globe is the growth opportunity anticipated to drive the Carbon Dioxide Market through 2028.
A. Conveyance & Distribution related concerns are the possible restraints affecting the growth of the Carbon Dioxide Market.
Global Carbon Dioxide Market Research Report (2023-2028) - Table of Contents
