Carbon Dioxide (CO2) Market Size Worth USD 12.50 Billion by 2034 | CAGR: 4.37%

The carbon dioxide market size is expected to reach USD 12.50 billion by 2034, according to a new study by Polaris Market Research. The report “Carbon Dioxide Market Share, Size, Trends, Industry Analysis Report By Source (Hydrogen, Ethyl Alcohol, Ethylene Oxide, Substitute Natural Gas, Others), By Application, By Region; Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

Carbon dioxide (CO2) is a colorless, odorless gas composed of one carbon atom bonded to two oxygen atoms. It is a naturally occurring compound in Earth's atmosphere and plays a crucial role in the carbon cycle, a process essential for life on Earth. CO2 is produced through natural processes such as respiration in animals, decomposition of organic matter, volcanic eruptions, and the combustion of organic materials. Human activities, especially the burning of fossil fuels such as coal, oil, and natural gas, significantly increase atmospheric CO2 levels, contributing to global climate change due to its nature as a greenhouse gas that traps heat in the atmosphere.

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CO2 has numerous practical applications across various industries. In the food and beverage sector, it is used to carbonate soft drinks, beer, and sparkling water. In agriculture, CO2 enrichment in greenhouses enhances plant growth by boosting photosynthesis, leading to higher crop yields. The oil industry uses CO2 in enhanced oil recovery (EOR), where it is injected into oil reservoirs to increase pressure and extract more oil. Additionally, CO2 is used in portable fire extinguishers, as it displaces oxygen and suppresses flames, and in certain medical procedures, such as laparoscopic surgery.

Top of FormCO2 Market Report Highlights

• In terms of source, the ethyl alcohol segment accounted for 31.46% of revenue share in 2024, due to strong demand from food and beverage processing, particularly for carbonated drinks.
• Based on application, the oil & gas segment held 66.19% of revenue share in 2024, due to growing energy demand and the need to maximize recovery from aging oil fields.
• North America accounted for 38.38% of the global carbon dioxide (CO2) market share in 2024. This dominance is attributed to rising demand for packaged foods and growing oil & gas exploration activities.
• The market in Asia Pacific is projected to hold a substantial revenue share by 2034 due to rapid industrialization, urbanization, and the expanding food and beverage industry.
• The industry in Europe is projected to register a CAGR of 3.83% from 2025 to 2034, owing to stringent environmental regulations, a strong focus on sustainability, and innovation in carbon utilization technologies.
• A few global key players in the carbon dioxide market include Air Liquide; Air Products and Chemicals, Inc.; AIR WATER INC; Aker Solutions; Aramco; BOSCO INDIA; Gulf Cryo; Jinhong Gas Co., Ltd; LanzaTech; Linde PLC; UNIVERSAL AIR PRODUCTS PVT LTD; SABIC; and SICGIL Industrial Gases Ltd.

Polaris Market Research has segmented the CO2 market report on the basis of source, application, and region:

By Source Outlook (Revenue, USD Billion, Volume Kiloton, 2020–2034)

• Hydrogen
• Ethyl Alcohol
• Ethylene Oxide
• Substitute Natural Gas
• Others

By Application Outlook (Revenue, USD Billion, Volume Kiloton, 2020–2034)

• Food & Beverages
• Oil & Gas
• Medical
• Rubber
• Firefighting
• Others

By Regional Outlook (Revenue, USD Billion, Volume Kiloton, 2020–2034)

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Netherlands
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Malaysia
  • South Korea
  • Indonesia
  • Australia
  • Vietnam
  • Rest of Asia Pacific
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Israel
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Mexico
  • Brazil
  • Argentina
  • Rest of Latin America