Carbon Dioxide Utilization Market to Cross $5.15 billion Revenue by 2030

Carbon Dioxide Utilization Market Overview

“The Carbon Dioxide Utilization Market Predictable at $3.88 billion in 2022, is estimated to increase at a CAGR of 13.15% from $2.31 billion in 2023 to $13.90 billion by 2030.”

Carbon neutralization absorbs carbon dioxide from combustion or industrial activities, transporting it underground for valuable products or services, and can produce carbon removal or negative emissions.

Carbon dioxide utilization methods are crucial for carbon collection, usage, and storage technologies, enabling the creation of high-value products like synthetic fuels, building materials, chemicals, and polymers. These techniques are widely adopted worldwide to decarburize the global economy. Subsurface carbon dioxide storage is gaining interest due to improved product characteristics and lower feedstock prices. Carbon neutralization involves absorbing carbon dioxide from fuel combustion or industrial activities and transporting it underground to create valuable products or services. Carbon utilization systems can produce carbon removal or negative emissions from the atmosphere.

The carbon dioxide utilization market faces technological, regulatory, and economic challenges, including high costs and energy consumption. Despite these challenges, numerous industry players worldwide are developing technology to improve energy efficiency and reduce costs. This is in response to the rising cost of carbon dioxide utilization methods compared to fossil fuels, aiming to harness environmental benefits.

Carbon dioxide (CO2) utilization is the process of turning CO2 emissions into value-added goods like chemicals, fuels, and building materials, thereby reducing greenhouse gas emissions and mitigating climate change, while also providing new economic opportunities.

The market for CO2 capture and use technologies is being driven by various factors such as climate change concerns, rising demand for sustainable products, and innovative technologies developed by governments worldwide, with incentives and regulatory frameworks also being offered.

Businesses in the chemical, fuel, construction, and agriculture sectors are actively utilizing CO2 for various applications. CO2 can be used as a feedstock for chemicals like methanol and urea, as a raw ingredient for concrete, and as a biofuel in the fuel sector. It can also boost crop growth in agriculture.

The CO2 usage market presents significant opportunities for innovation, economic growth, and climate change mitigation. As technologies evolve and regulatory frameworks become more established, the industry is expected to expand further in the future.

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Market Dynamics

Growth Factors

The carbon dioxide utilization sector is expanding due to its potential to meet global climate goals, with North American and European regions investing in this technology, driven by rising demand for carbon products from businesses and consumers.

Carbon dioxide-based polymers have grown significantly in Europe and Asia Pacific due to their widespread use in production of polymer polymers, commodity chemicals, construction materials, and fuels. The best uses include carbon nanotubes, diamonds, and carbon fiber, while the protein sector is a niche application. The carbon utilization market is expected to grow due to increased technology usage in gas and oil exploration operations.

Carbon dioxide is crucial for improved oil recovery techniques and supply to the gas and oil industries. Rapid industrialization is increasing carbon dioxide emissions, leading to increased demand for carbon dioxide capture and storage plants. Governments are establishing these plants to reduce carbon footprints and fuel the development of the carbon utilization market. This trend is expected to continue in the coming years.

Growth Drivers

Natural gas demand has increased in tandem with rising environmental consciousness

Environmental regulations have led to a rise in demand for carbon capture, use, and storage. Petrol, diesel, petroleum products, and natural gas are major energy sources, but their exploration and production are harmful. Natural gas is seen as an alternative for long-term growth, as it reduces greenhouse gas (GHG) emissions and carbon emissions.

The US government has implemented regulations to reduce risks associated with gasoline and diesel use and promote natural gas use. Countries with large natural gas reserves are exploring the benefits of carbon capture, use, and storage for reduced carbon emissions.

The US-China Energy Cooperation Programme, a 2010 international agreement, aims to reduce global greenhouse gas emissions by promoting sustainable energy and energy efficiency. The program predicts a 50% increase in global energy consumption by 2035, according to the Energy Information Administration and Institute of Energy Economics Japan.

Carbon Dioxide Utilization is Playing a Growing Role in Meeting Ambitious Global Climate Goals

The carbon dioxide sector is expanding to meet global climate goals, with North America and Europe anticipating significant investments. The industry is driven by increased demand from various industries and consumers, with carbon dioxide-based polymers gaining popularity in Europe and Asia Pacific.

Carbon dioxide is primarily utilized in polymer manufacturing but has potential applications in chemicals, construction materials, and fuels. The solid carbon sector, including carbon nanotubes, diamonds, carbon fiber, and protein, is best served by carbon dioxide consumption. The market for carbon utilization is expected to grow due to increased technology use in gas and oil exploration.

Opportunity

Enhanced Oil Recovery is becoming more popular

Carbon dioxide utilization is expected to become crucial for improved oil recovery techniques in both onshore and offshore activities, as it is needed to support the oil and gas industry, providing significant opportunities in the coming years.

Competitive Landscape of the Carbon Dioxide Utilization Market

• Hitachi, Ltd (Japan)
• ExxonMobil Corporation (US)
• Linde plc (UK)
• Royal Dutch Shell Plc (Netherlands)
• Mitsubishi Heavy Industries, Ltd (Japan)
• JGC Holdings Corporation (Japan)
• General Electric (US)
• Halliburton (US)
• Fluor Corporation (US)
• Schlumberger Limited (US)
• Aker Solutions (Norway)
• Honeywell International Inc. (US)
• Equinor ASA (Norway)
• TotalEnergies SE (France)

Recent Developments in Carbon Dioxide Utilization Market

A thought of interest to capture automobile and store CO2 from the Fife Ethylene Unit was expressed by ExxonMobil Corporation, in October 2021. It has increased its participation in the Acorn carbon capture project in Scotland to achieve this target.

A part of Mitsubishi Heavy Industries, Ltd. (MHI) known as Mitsubishi Shipbuilding Co. Ltd., had operated withKawasaki Kisen Kaisha, Ltd. (Japan) and Nippon Kaiji Kyokai (Japan). These companies funtion with a view to carry numerous test operations and detailing for a small-scale ship-based CO2 capture demonstration unit which was in September 2020. This technology is being tested to ensure the equipment’s use as a marine-based CO2 capture system for future use.

In 2019, Carbon Clean Solutions partnered with Tuticorin Alkali Chemicals and Fertilizers Limited in India to install a CO2 capture and utilization plant. The plant captures 60,000 tons of CO2 emissions per year and converts it into soda ash, a key raw material used in glass manufacturing.

In 2020, BASF announced the launch of a pilot project in Germany to produce methanol from CO2 using renewable energy sources. The project aims to demonstrate the feasibility of using CO2 as a raw material for the production of chemicals.

In 2021, LanzaTech signed an agreement with China Steel Corporation to build a CO2-to-ethanol plant in Taiwan. The plant is expected to produce 5,000 tons of ethanol per year and reduce greenhouse gas emissions by 2,500 tons per year.

Regional Insights

The North American market holds the largest global carbon dioxide usage market, accounting for 50.85% due to the growing demand for clean technology. The North American region is widely used in enhanced oil recovery procedures, with Canada and the United States being key players. The United States accounts for 74.56% of global carbon capture capacity in enhanced oil recovery activities.

The growth of shale gas techniques and government support in both developing and developed countries are expected to boost revenue during the forecast period. Carbon dioxide-based polymers have experienced significant expansion in Asia Pacific and European countries, with approximately 250,000 metric tons of carbon dioxide used annually in polymer manufacturing.

Segments Covered in the Carbon Dioxide Utilization Market

Carbon Dioxide Utilization Market By Service

• Capture, Transportation
• Utilization
• Storage

Carbon Dioxide Utilization Market By Technology

• Pre-Combustion Capture
• Oxy-Fuel Combustion Capture
• Post-Combustion Capture

Carbon Dioxide Utilization Market By Application

• Food and Beverages Industry
• Oil and Gas Industry
• Medical Industry

Carbon Dioxide Utilization Market By End User

• Oil & Gas Power Generation
• Iron & Steel
• Chemical & Petrochemical
• Cement
• Others

Carbon Dioxide Utilization Market By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)

Frequently Asked Questions:

What is the current size of carbon dioxide utilization market?

The Carbon Dioxide Utilization Market Predictable at $3.88 billion in 2022, is estimated to increase at a CAGR of 13.15% from $2.31 billion in 2023 to $13.15 billion by 2030.

What will be the CAGR of global carbon dioxide utilization market?

The global carbon dioxide utilization market is expected to drive growth at a CAGR of 13.15% from 2023 to 2030.

Who are the major players operating in the carbon dioxide utilization market?

The major players operating in the carbon dioxide utilization market are Fluor Corporation (US), Schlumberger Limited (US), Aker Solutions (Norway), Honeywell International Inc. (US), Equinor ASA (Norway), TotalEnergies SE (France), Hitachi, Ltd (Japan), ExxonMobil Corporation (US), and Linde plc (UK).

Which are the driving factors of the carbon dioxide utilization market?

The carbon dioxide utilization market is gaining growth as it is a solution which will be able to provide over for the world's ambitious climate goals.

Segments Covered in the Carbon Dioxide Utilization Market

Carbon Dioxide Utilization Market By Service

• Capture, Transportation
• Utilization
• Storage

Carbon Dioxide Utilization Market By Technology

• Pre-Combustion Capture
• Oxy-Fuel Combustion Capture
• Post-Combustion Capture

Carbon Dioxide Utilization Market By Application

• Food and Beverages Industry
• Oil and Gas Industry
• Medical Industry

Carbon Dioxide Utilization Market By End User

• Oil & Gas Power Generation
• Iron & Steel
• Chemical & Petrochemical
• Cement
• Others

Carbon Dioxide Utilization Market By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)

Research Methodology