Europe Carbon Dioxide Market Size Worth USD 2.55 Billion by 2034 | CAGR: 3.86%

The europe carbon dioxide market size is expected to reach USD 2.55 billion by 2034, according to a new study by Polaris Market Research. The report “Europe Carbon Dioxide (CO₂) Market Share, Size, Trends, Industry Analysis Report By Source (Hydrogen, Ethyl Alcohol, Ethylene Oxide, Substitute Natural Gas, Others), By Application, By Country; Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

Carbon dioxide (CO₂) in Europe is primarily emitted through energy production, transportation, industry, and residential heating, largely due to the burning of fossil fuels. The European Union has implemented stringent policies to reduce CO₂ emissions, including the European Green Deal and the Emissions Trading System (ETS), as part of its commitment to combating climate change. The shift toward renewable energy, improved energy efficiency, and electrification of transport are key strategies to lower CO₂ output. Reducing CO₂ emissions offers significant advantages, including improved air quality, enhanced energy security, and progress toward climate neutrality by 2050.

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Europe is also investing in carbon capture, utilization, and storage (CCUS) technologies to manage residual emissions. Monitoring and reporting systems ensure transparency and accountability. Overall, managing CO₂ emissions is crucial to Europe’s environmental, economic, and social sustainability goals.

Europe Carbon Dioxide (CO₂) Market Report Highlights

• In terms of source, the ethyl alcohol segment accounted for 31.76% of revenue share in 2024 due to extensive use of ethanol fermentation in the region’s beverage and biofuel industries, which generates CO₂ as a valuable byproduct.
• Based on application, the oil & gas segment held 67.31% of revenue share in 2024 due to widespread use of carbon dioxide in enhanced oil recovery (EOR) operations, where it helps increase crude extraction efficiency from reservoirs.
• The UK accounted for 42.07% of the Europe carbon dioxide (CO₂) market share in 2024. This is attributed to its strong presence in oil and gas operations and advanced carbon capture initiatives.
• The market in Germany is expected to grow at a CAGR of 3.99% from 2025 to 2034, owing to rising CO₂ demand across food, beverage, and industrial sectors. The country’s large-scale beverage production industry, with strong exports of carbonated drinks and beers, is heavily driving CO₂ consumption.
• A few key players in the Europe carbon dioxide (CO₂) market include Air Liquide S.A.; Air Products and Chemicals, Inc.; LanzaTech Global, Inc.; Linde PLC; Messer Group GmbH; Orlen; Ørsted A/S; RWE AG; SIAD Group; SOL Group; and Vattenfall AB.

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

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

• Germany
• France
• UK
• Italy
• Spain
• Netherlands
• Russia
• Rest of Europe