Carbon Dioxide Global Market Opportunities and Strategies to 2033

This report describes and explains the carbon dioxide market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global carbon dioxide market reached a value of nearly $15.12 billion in 2023, having grown at a compound annual growth rate (CAGR) of 8.82% since 2018. The market is expected to grow from $15.12 billion in 2023 to $29.04 billion in 2028 at a rate of 13.94%. The market is then expected to grow at a CAGR of 13.50% from 2028 and reach $54.72 billion in 2033.

Growth in the historic period resulted from emerging markets growth, increase in focus on reducing carbon dioxide (Co2) emissions and increased demand from the medical industry. Factors that negatively affected growth in the historic period were safety concerns, changing regulations.

Going forward, growing government initiatives, increasing awareness to reduce greenhouse gas emissions, rising urbanization, growing demand for frozen food and growing demand from the oil and gas industry will drive the market growth. Factor that could hinder the growth of the carbon dioxide market in the future include uncertain regulatory landscape, high capital cost.

The carbon dioxide market is segmented by product into liquid carbon dioxide, solid carbon dioxide and gaseous carbon dioxide. The gas market was the largest segment of the carbon dioxide market segmented by product type, accounting for 64.3% or $9.73 billion of the total in 2023. Going forward, the solid segment is expected to be the fastest growing segment in the carbon dioxide market segmented by product type, at a CAGR of 14.42% during 2023-2028.

The carbon dioxide market is segmented by source into hydrogen, ethyl alcohol, ethylene oxide, substitute natural gas and other sources. The ethyl alcohol market was the largest segment of the carbon dioxide market segmented by source, accounting for 35.9% or $5.43 billion of the total in 2023. Going forward, the ethyl alcohol segment is expected to be the fastest growing segment in the carbon dioxide market segmented by source, at a CAGR of 14.80% during 2023-2028.

The carbon dioxide market is segmented by application into food and beverages, oil and gas, medical, metal products, chemical, firefighting, rubber and other applications. The beverages market was the largest segment of the carbon dioxide market segmented by application, accounting for 25.8% or $3.9 billion of the total in 2023. Going forward, the medical segment is expected to be the fastest growing segment in the carbon dioxide market segmented by application, at a CAGR of 14.39% during 2023-2028.

The carbon dioxide market is segmented by grade type into medical grade, food grade, industrial grade and other grades. The cabins and lavatories market was the largest segment of the carbon dioxide market segmented by grade type, accounting for 46.3% or $799.02 million of the total in 2023. Going forward, the engine and APUs segment is expected to be the fastest growing segment in the carbon dioxide market segmented by grade type, at a CAGR of 6.98% during 2023-2028.

Asia Pacific was the largest region in the carbon dioxide market, accounting for 45.3% or $6.85 billion of the total in 2023. It was followed by North America and Western Europe and then the other regions. Going forward, the fastest-growing regions in the carbon dioxide market will be Africa and Middle East where growth will be at CAGRs of 22.2% and 18.1% respectively. These will be followed by South America and Asia Pacific where the markets are expected to grow at CAGRs of 17.5% and 15.3% respectively.

The global carbon dioxide market is concentrated, with large players dominating in market. The top ten competitors in the market made up to 62.48% of the total market in 2022. The market concentration can be attributed to the presence of large players in different geographies. Air Liquide S.A. was the largest competitor with a 24.76% share of the market, followed by Linde PLC with 21.89%, Air Products and Chemicals, Inc. with 8.45%, Nippon Sanso Holdings Corporation with 3.24%, Air Water Inc. with 1.87%, Iwatani Corporation with 0.85%, Messer SE & Co. KGaA with 0.65%, SOL Spa with 0.44%, Gulf Cryo with 0.27% and Reliant Gases with 0.05%.

The top opportunities in the carbon dioxide market segmented by product type will arise in the gas segment, which will gain $8.82 billion of global annual sales by 2028. The top opportunities in the carbon dioxide market segmented by source will arise in the ethyl alcohol segment, which will gain $5,4040 million of global annual sales by 2028. The top opportunities in the carbon dioxide market segmented by application will arise in the beverages segment, which will gain $3.71 billion of global annual sales by 2028. The top opportunities in the carbon dioxide market segmented by grade type will arise in the industrial grade segment, which will gain $7.57 billion of global annual sales by 2028. The carbon dioxide market size will gain the most in China at $4.09 billion.

Market-trend-based strategies for the carbon dioxide market include focusing on the use of carbon dioxide separation technologies, focusing on developing new carbon capture and utilization projects, discovering opportunities in supplying carbon dioxide to greenhouses, focusing on using digital technologies such as blockchain, to improve carbon traceability, capitalizing on growth in carbon capture technologies, strategically partnering with other companies to develop new technologies and improve market share.

Player-adopted strategies in the carbon dioxide market include strategy such as focus on strengthening its operational capabilities through business expansions, focus on enhancing its business operations through securing new contracts, focus on enhancing its business capabilities through new launches.

To take advantage of the opportunities, the analyst recommends the carbon dioxide companies to focus on advancing carbon dioxide separation technologies, focus on expanding carbon capture and utilization projects, focus on enhancing carbon traceability through digital technologies, focus on rapidly expanding segments: gas and solid, focus on thriving sectors: ethyl alcohol and hydrogen sources, focus on industrial grade and medical grade carbon dioxide, expand in emerging markets, continue to focus on developed markets, focus on strategic collaborations for technological advancements, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions and focus on beverages and medical applications.