PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1792763
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1792763
Global Industrial Carbon Dioxide Market to Reach US$6.0 Billion by 2030
The global market for Industrial Carbon Dioxide estimated at US$5.2 Billion in the year 2024, is expected to reach US$6.0 Billion by 2030, growing at a CAGR of 2.3% over the analysis period 2024-2030. Natural Gas Processing Source, one of the segments analyzed in the report, is expected to record a 3.1% CAGR and reach US$2.0 Billion by the end of the analysis period. Growth in the Ammonia Plants Source segment is estimated at 1.5% CAGR over the analysis period.
The U.S. Market is Estimated at US$1.4 Billion While China is Forecast to Grow at 4.5% CAGR
The Industrial Carbon Dioxide market in the U.S. is estimated at US$1.4 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$1.1 Billion by the year 2030 trailing a CAGR of 4.5% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 0.8% and 1.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.2% CAGR.
Global Industrial Carbon Dioxide Market - Key Trends & Drivers Summarized
How Has the Industrial Landscape Shifted with the Rising Utilization of Carbon Dioxide?
The industrial carbon dioxide market has witnessed transformative shifts in recent years, spurred by evolving industrial applications, tightening environmental policies, and advancements in carbon capture technologies. Traditionally viewed as a greenhouse gas with detrimental environmental consequences, carbon dioxide is increasingly being harnessed as a valuable industrial feedstock. Sectors such as food and beverage, healthcare, welding and metal fabrication, and oil recovery have significantly scaled up their consumption of CO2. In the food and beverage sector, CO2 is widely used for carbonation, refrigeration, and packaging, while in healthcare, it plays a critical role in surgeries, cryotherapy, and respiratory treatments. Simultaneously, as industries pivot toward greener practices, carbon dioxide captured from industrial emissions is being redirected into commercial use rather than being released into the atmosphere. The growing deployment of Carbon Capture and Storage (CCS) and Carbon Capture, Utilization and Storage (CCUS) systems has provided a much-needed infrastructure for capturing CO2 efficiently. These systems are being increasingly integrated with ammonia plants, ethanol production units, and natural gas processing facilities, especially across North America and Europe. The result is a multi-pronged value chain that not only reduces emissions but also commercializes CO2, thereby altering its perception from pollutant to resource.
Why Is Demand Surging in Non-Traditional Sectors and Emerging Markets?
A striking trend in the industrial CO2 market is the expanding demand from non-traditional and emerging sectors, alongside robust activity in developing economies. While legacy sectors like carbonated drinks and fire extinguishers continue to be significant users, industries such as green building materials, synthetic fuels, and alternative proteins are increasingly absorbing CO2 into their processes. The cement industry, for example, has begun utilizing carbon dioxide in the curing process of concrete to enhance material properties while reducing emissions. Additionally, the burgeoning field of algae-based biofuels, which consumes CO2 for biomass cultivation, represents a niche but high-potential application. Another noteworthy development is the application of industrial carbon dioxide in dry ice production, a sector that experienced dramatic growth during the COVID-19 pandemic for vaccine storage and continues to remain important for cold chain logistics. Meanwhile, Asia-Pacific, especially countries like China, India, and Indonesia, is emerging as a hotspot for market growth. These nations are investing in expanding industrial infrastructure and are simultaneously implementing stricter emissions control laws, thereby boosting the availability and use of captured CO2. Moreover, localized production supported by governmental initiatives is reducing reliance on imports and making the market more resilient to global supply shocks.
Could Innovation in CO2 Conversion Redefine the Industrial Value Chain?
One of the most disruptive trends in the industrial carbon dioxide market is the rapid pace of innovation in CO2 conversion technologies. Scientific advancements have paved the way for novel methods of converting CO2 into value-added chemicals, fuels, and materials. For example, electrochemical and photochemical conversion processes are being developed to transform carbon dioxide into methanol, formic acid, and even polymers. These technologies are of particular importance to industries aiming to decarbonize their operations without compromising profitability. The automotive and plastics industries are exploring CO2-derived polyols for use in foam production and vehicle interiors. Furthermore, start-ups and research institutions are collaborating with industrial players to commercialize artificial photosynthesis and direct air capture (DAC) technologies, both of which have the potential to create circular carbon economies. Importantly, these innovations are being supported by a wave of new patents, international research grants, and private-sector investment, particularly in Europe and the U.S. The outcome is a market environment where carbon dioxide is not just a byproduct but a building block for a wide range of sustainable solutions. Such developments are also helping industries meet net-zero goals, thereby aligning economic growth with climate responsibility in an unprecedented manner.
What’s Fueling the Acceleration of Market Growth?
The growth in the industrial carbon dioxide market is driven by several factors that reflect the intersection of technological advancement, end-user behavior, and global policy shifts. The first major driver is the scaling of carbon capture infrastructure across industrial plants, refineries, and power stations, which has dramatically increased the availability of high-purity CO2 for downstream use. Another significant force is the growing demand from the food and beverage industry for processed and packaged goods, especially in emerging markets where urbanization and changing dietary habits are accelerating consumption. Thirdly, the expansion of the pharmaceutical and healthcare sectors, particularly in respiratory therapy and surgical applications, has fueled sustained CO2 demand. Additionally, enhanced oil recovery (EOR) remains a key segment, particularly in North America, where CO2 injection technologies are prolonging the life of mature oil fields. The market is also benefiting from the rising adoption of CO2-based refrigeration systems, especially in Europe, where hydrofluorocarbon (HFC) alternatives are being phased out due to their high global warming potential. Furthermore, the increase in clean energy initiatives is catalyzing the use of CO2 in power-to-gas and synthetic fuel production. Finally, government mandates encouraging net-zero goals are pushing industries to adopt CO2 reuse technologies rather than incur carbon taxes or emission penalties. These cumulative forces are reinforcing a robust growth trajectory for the global industrial carbon dioxide market.
SCOPE OF STUDY:
The report analyzes the Industrial Carbon Dioxide market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Source (Natural Gas Processing Source, Ammonia Plants Source, Ethanol Plants Source, Production Wells Source, Other Sources); Application (EOR Application, Ammonia Synthesis Application, Carbonation Application, Shielding & Inert Gas Application, Dry Ice Application); End-Use (Food & Beverages End-Use, Oil & Gas End-Use, Chemicals End-Use, Building & Construction End-Use, Medical & Pharmaceuticals End-Use, Metal End-Use, Rubber & Plastic End-Use, Other End-Uses)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
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