Originally Published on Technavio | Carbon Dioxide Market by Application, Production area, and Geography - Forecast and Analysis 2023-2027

The carbon dioxide market is projected to experience a Compound Annual Growth Rate (CAGR) of 4.32% between 2022 and 2027, resulting in a forecasted market size increase of USD 1.91 billion. The market's growth is contingent on various factors, including heightened demand from the oil and gas sector, increased applications in the food and beverage industry, and advancements in carbon capturing and storage technologies.

**Carbon Dioxide Market: Key Drivers, Trends, Challenges, and Customer Landscape:**

**Rising Demand from the Oil and Gas Industry:**

The market growth is significantly driven by the increasing demand from the oil and gas industry. This sector is a crucial end-user in the global carbon dioxide market, utilizing CO2 for enhancing oil recovery due to its miscibility with crude oil and cost-effectiveness compared to alternative fluids. Despite challenges such as high manufacturing costs, the use of nitrogen and CO2 in oil recovery projects and the demand for low-sulfur diesel and gasoline contribute to the market's growth. Additionally, the imbalance in the oil and gas industry's supply and demand, along with increased utilization of nitrogen and CO2, fosters global carbon dioxide market growth.

**Carboxytherapy Treatment Trend:**

A notable trend driving market growth is the adoption of carboxytherapy treatment. This non-surgical cosmetic treatment involves injecting CO2 into the skin to enhance facial texture and open pores for fat cell destruction. The liquid form of CO2 and dry ice is utilized in this treatment, leading to increased global demand for CO2. The CO2 laser finds applications in wound closure and the destruction of abnormal tissues in oral cavities. The rising preference for carboxytherapy over Botox and skin fillers in cosmetic surgical techniques is expected to drive CO2 demand during the forecast period.

**High Manufacturing Cost Challenge:**

The major challenge impeding market growth is the high manufacturing cost of CO2. Although CO2 is abundant in nature, establishing air separation plants for CO2 production involves substantial investments. Factors like raw material price volatility, increasing product costs, and packaging considerations reduce profit margins, particularly affecting medium and small vendors. The energy-intensive process of separating CO2 from atmospheric gases results in the separation of nitrogen, hydrogen, and oxygen. Vendors are adapting strategies such as tonnage distribution to maximize existing capacities and reduce variable costs, but challenges like demand lag persist.

**Customer Landscape:**

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Key purchase criteria and drivers of price sensitivity are also included to assist companies in evaluating and developing growth strategies.

**Major Carbon Dioxide Market Vendors:**

Vendors are employing diverse strategies, including strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to strengthen their market presence. Taiyo Nippon Sanso Corp., for instance, offers carbon dioxide for various applications, including steel and non-ferrous metal refining, glass, ceramics, cement, paper, and other materials. The report provides detailed analyses of the competitive landscape, featuring information about 15 market vendors such as Acail Gas, Air Products and Chemicals Inc., Axcel Gases, and others.

**Revenue-generating Application Segments:**

The enhanced oil recovery segment is expected to contribute significantly to market share growth during the forecast period. This application involves injecting carbon dioxide to enhance oil recovery, particularly when oilfield production slows down. The segment showed gradual market share growth from USD 4.47 billion in 2017, driven by the adoption of carbon dioxide in oil recovery applications.

**Key Regions for Carbon Dioxide Market:**

Asia-Pacific (APAC) is projected to contribute 61% by 2027, with increasing use of carbon dioxide in food processing and beverage carbonation applications. China and India, with their growing populations and thriving food industries, are major contributors to the rising demand for carbon dioxide. Despite the negative impact of the COVID-19 pandemic in 2020 and 2021, the resumption of end-user industries in the second half of 2021, following large-scale vaccination programs, facilitated market recovery in APAC.

**Segment Overview:**

The report forecasts market growth by revenue at global, regional, and country levels, providing an analysis of trends and growth opportunities from 2017 to 2027. The market is segmented by deployment (enhanced oil recovery, food and beverages, precipitated calcium carbonate, others), application (combustion, biological), and region (APAC, North America, Europe, Middle East & Africa, South America).

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