The global carbon dioxide (CO2) market was valued at USD 6.50 billion in 2017 and is forecasted to grow at a CAGR of 3.9 % from 2018 to 2026. Increasing enhanced oil recovery operations by upstream players, in order to maintain their production levels, are expected to boost the market demand. Increasing use of the gas in application industries such as refrigeration, food & beverages, chemical wholesaling, and pharmaceuticals is projected to propel the market growth.
Growing demand for carbonated drinks and soda water is a major factor contributing to the market growth over the next few years. The high cost of carbon dioxide (CO2) capture, liquefaction, and transportation is anticipated to act as the key restraining factor for the market growth. Concerns regarding oversupply of carbon dioxide from numerous potential sources and the subsequent reduction in its price are likely to hamper the carbon dioxide market growth.
Major end-use industries of the gas include food & beverages, oil & gas, medical, rubber, and firefighting. The companies involved in forward integration are Universal Industrial Gases, Inc., Air Products & Chemicals, Inc., Airgas, Inc., and Praxair, Inc. These companies are involved in the production of sources from which CO2 is produced along with its separation & recovery.
The releasing of excessive CO2 into the atmosphere causes more heat to be trapped, which eventually results in global warming. The large-scale emission of carbon dioxide (CO2) has not only polluted the atmosphere but has also led to ocean acidification by around 30%. This pollution of the water bodies has affected numerous sea organisms.
Carbon dioxide is a high-profile greenhouse gas and valuable market commodity. Its demand as an industrial gas is increasing at a significant rate. Commonly, carbon dioxide (CO2) is produced from burning fossil fuels. Excess amount in the atmosphere can result in a significant increase in the temperature. This can result in global warming, suffocation of living organisms, and various other health related problems. It can also be toxic and harmful to humans.
To overcome these problems globally, governments have established various regulations and directives on Carbon Capture and Storage (CCS) for the safe storage and transportation of the product. These legal frameworks contain provisions regarding the capture and transport components of CCS technology. Globally, government agencies have formulated various regulations for the proper storage and transportation of the industrial gas. These regulations are beneficial for preventing environmental & health risks. In addition, these regulations also provide security of the carbon dioxide storage sites.
The application of carbon dioxide in the medical sector is growing significantly. It is commonly used as an insufflations gas for various surgeries (including endoscopy, arthroscopy, and laparoscopy). In these surgeries, CO2 is used to stabilize and inflate the body cavities to provide better visibility of the surgical area. In addition, it is also used for increasing blood flow to the brain and helps stimulates respiration. For medical purposes, carbon dioxide is supplied through specially prepared steel cylinders with chromium-plated cylinder valves and is administered to the patient via a facemask.
Increasing use in upstream activities and aging of production wells is anticipated to further augment the market over the forecast period. Large amounts of carbon dioxide raw materials are used as insert gasses in chemical processes. It is also majorly used as a shield gas in MIG/MAG welding for protecting the weld puddle from oxidation in the construction sector.
The application of carbon dioxide for quick freezing, surface freezing, refrigeration, and chilling in the transportation of foods has been on the rise owing to the growth of the food & beverage segment. Use of carbon dioxide to carbonate soft drinks, beers, and wines in order to prevent bacterial and fungal growth is expected to spur the market demand over the forecast period. Growing demand for carbon dioxide as an additive to oxygen in medical applications as a respiration stimulant is anticipated to augment the market growth over the next few years.
Rising standard of living of the consumers in North America is projected to positively drive the global carbon dioxide (CO2) market. High demand for large-scale refrigeration is expected to play an important role in complimenting the market over the forecast period. Growing industries in the Asia Pacific owing to the emerging economies and rising industrial expenditure in Middle East & Africa region is anticipated to positively drive the market growth.
Europe’s Emissions Trading Scheme (ETS) structural reform of is underway, with several changes modified to ensure that it sets a new price on carbon, that is sufficient enough for supporting the trending transition to enable the development of a low-carbon economy. EU’s New Entrants Reserve (NER) financial mechanism system has also been renewed. Its 400 million worth emission allowances have been dedicated for the establishment of an innovation fund for post-2020 periods. For the years of pre-2020, the specified market stability reserve (MSR) represents the placement of 50 million allowances for several low-carbon emission and generation innovative prototypes, that is aimed at supplementing the current NER 300. Such trends are expected to positively contribute to Europe CO2 market growth.
The carbon dioxide (CO2) market end-use industries include food & beverages, medical, oil & gas, rubber, and firefighting. The companies involved in forward integration are Air Products & Chemicals, Universal Industrial Gases, Inc., Inc., Airgas, Inc., and Praxair, Inc. These companies are involved in the production of sources from which CO2 is produced along with the separation & recovery of carbon dioxide.
Some of the key market participants are Universal Industrial Gases, Inc., Linde AG, Air Products & Chemicals, Inc., Inox Air Products Ltd., Airgas, Inc., Taiyo Nippon Sanso Corp., Praxair, Inc., Matheson Tri-Gas, Inc., The BOC Group, AGA AB, Air Liquide, and (Gas) National Industrial Gases Company.