Carbon Dioxide in Environmental

Carbon Dioxide in Environmental Market Outlook

The global carbon dioxide (CO2) market is projected to reach a value of approximately USD 2.5 billion by the year 2035, growing at a compound annual growth rate (CAGR) of about 4.2% during the forecast period of 2025–2035. This growth can be attributed to a surge in demand across multiple industries, particularly in oil and gas, food and beverage, and healthcare sectors, where CO2 is utilized for various applications such as carbonation, enhanced oil recovery, and medical applications. Additionally, growing environmental awareness and the need for sustainable practices are driving investments in carbon capture and storage technologies. Governments and organizations worldwide are increasingly recognizing the importance of reducing greenhouse gas emissions, which further propels the market for CO2, as it serves a critical role in mitigating climate change impacts.

Growth Factor of the Market

The carbon dioxide market is witnessing considerable growth due to several factors, including the rising industrial demand for CO2 in enhanced oil recovery processes, which leverages the gas to extract additional crude oil from existing wells. Furthermore, the food and beverage industry is a significant consumer of CO2, predominantly for carbonation in soft drinks and as a preservative for food packaging. The healthcare sector is also increasingly utilizing CO2 in medical procedures, such as insufflation during laparoscopic surgeries. Additionally, advancements in carbon capture and storage (CCS) technologies are creating new opportunities for CO2 utilization, making it a valuable resource rather than a waste product. The global push towards sustainability and regulatory frameworks aimed at reducing carbon emissions further stimulate the demand for CO2 across various industries. Lastly, ongoing research and development initiatives to explore innovative applications of CO2, such as in the production of synthetic fuels, are expected to expand the market's landscape.

Key Highlights of the Market

• Projected global market size of USD 2.5 billion by 2035.
• Expected CAGR of 4.2% from 2025 to 2035.
• Significant applications in oil & gas, food & beverage, and healthcare sectors.
• Increasing focus on carbon capture and storage technologies.
• Growing awareness about sustainability and environmental conservation.

By Source

Natural:

Natural sources of carbon dioxide primarily refer to CO2 generated from geological formations and biological processes. Naturally occurring CO2 can be found in volcanic eruptions, natural gas reservoirs, and the atmosphere as a result of respiration and decomposition. This natural CO2 is often captured and refined for various industrial applications, including its use in enhanced oil recovery and as a food-grade gas. Additionally, as natural sources of CO2 are generally more sustainable than industrially produced gases, they play a crucial role in the growing trend towards sustainable practices across multiple sectors. The increasing interest in carbon sequestration and utilization of natural CO2 sources further highlights the significance of this segment in the overall market landscape. Natural CO2 is also perceived as a cleaner alternative, which is gaining traction among environmentally conscious consumers and businesses alike.

Industrial:

Industrial sources of carbon dioxide are primarily generated through combustion processes in power generation, cement production, and various chemical manufacturing operations. These sources contribute significantly to the atmospheric CO2 levels, driving the need for effective carbon management strategies. The industrial segment has witnessed a rise in the adoption of carbon capture technologies to mitigate emissions and repurpose the captured CO2 for beneficial applications such as enhanced oil recovery and the production of chemicals. As industries face increasing regulatory pressure to reduce their carbon footprints, the demand for industrial CO2 is expected to rise. Moreover, innovative applications of industrial CO2 are being explored, including its use in the synthesis of valuable chemicals and fuel production, making this segment a critical focus for future market growth.

By End-Use Industry

Oil & Gas:

The oil and gas industry is a significant consumer of carbon dioxide, utilizing it primarily for enhanced oil recovery (EOR) techniques. In EOR, CO2 is injected into oil reservoirs to increase pressure, allowing for the extraction of additional crude oil that would otherwise remain unrecoverable. This method not only enhances oil production but also aids in sequestering CO2, thereby reducing greenhouse gas emissions. With the global demand for energy continuously on the rise, the oil and gas sector is expected to drive considerable growth in CO2 consumption. Furthermore, advancements in EOR technologies and increasing investments in carbon management initiatives are anticipated to bolster the market further, positioning oil and gas as a vital end-user industry for carbon dioxide.

Food & Beverage:

Carbon dioxide has a longstanding history of use in the food and beverage sector, primarily for carbonation in soft drinks and as a food preservative. The beverage industry relies heavily on CO2 to achieve the desired fizziness in products such as soda, sparkling water, and beer. Additionally, CO2 plays a crucial role in food packaging, where it helps inhibit the growth of bacteria and extend shelf life. The increasing consumer preference for carbonated drinks and the rising trend of convenience foods are driving the demand for CO2 in this sector. Furthermore, as consumers become more health-conscious, the food and beverage industry is adapting by incorporating natural and organic ingredients, which may further enhance the role of CO2 in food preservation and carbonation processes.

Healthcare:

In the healthcare sector, carbon dioxide is utilized in a variety of medical applications, including insufflation during minimally invasive surgeries. CO2 is used to inflate the abdominal cavity, providing surgeons with better visibility and access to internal organs. Beyond surgical applications, CO2 is employed in various medical gas mixtures for respiratory therapy and as a tracer gas for diagnostic procedures. The growing prevalence of minimally invasive surgeries and advancements in medical technology are expected to significantly boost the demand for CO2 in the healthcare sector. Additionally, the increasing focus on patient safety and efficiency in medical procedures further highlights the importance of CO2 as a critical resource in healthcare applications.

Agriculture:

Carbon dioxide is also playing a vital role in agriculture, particularly in greenhouse cultivation. CO2 enrichment in greenhouses enhances plant growth and yield by facilitating photosynthesis. By increasing CO2 levels, growers can optimize plant growth conditions, leading to higher productivity and quality of crops. The rising global population and increasing demand for food are driving the adoption of CO2 enrichment practices among agricultural producers. Moreover, as agriculture faces challenges related to climate change, the strategic use of CO2 can provide a sustainable approach to improving crop production. The agricultural sector's growing focus on innovative farming techniques and sustainable practices underscores the significance of CO2 in enhancing food security and resource efficiency.

By Application

Wastewater Treatment:

Carbon dioxide is increasingly being utilized in wastewater treatment processes, where it acts as a pH stabilizer and enhances biological treatment efficacy. The controlled injection of CO2 helps maintain optimal pH levels, facilitating the growth of microorganisms responsible for breaking down organic matter. This application is particularly relevant in the treatment of municipal and industrial wastewater, where efficient and cost-effective solutions are required. The growing emphasis on sustainable wastewater management and the need to comply with stringent environmental regulations are driving the adoption of CO2 in treatment facilities. As municipalities and industries seek innovative ways to improve water quality and reduce costs, the role of CO2 in wastewater treatment is expected to expand significantly.

Enhanced Oil Recovery:

Enhanced oil recovery (EOR) is one of the most prominent applications of carbon dioxide in the oil and gas industry. The process involves injecting CO2 into oil reservoirs to increase pressure and improve the recovery of crude oil. CO2 acts as a solvent, reducing the viscosity of heavy oils, which helps mobilize and extract oil that would otherwise be left behind after primary and secondary recovery methods. The growing demand for energy, coupled with the need to maximize the efficiency of existing oil fields, is propelling the use of CO2 in EOR operations. As companies continue to invest in technologies that enhance oil recovery, the application of CO2 in this context is anticipated to experience substantial growth in the coming years.

Beverage Carbonation:

Beverage carbonation is one of the most well-known applications of carbon dioxide, where it is used to carbonate soft drinks, sparkling water, and alcoholic beverages. CO2 is dissolved in the liquid under pressure, creating bubbles that provide the characteristic fizziness consumers enjoy. The beverage industry's continuous innovation and the introduction of new products are driving the demand for CO2 for carbonation purposes. Additionally, as consumer preferences shift towards carbonated drinks, the market for CO2 in beverage carbonation is expected to grow. The trend of crafting artisanal beverages and the resurgence of carbonated mixers in cocktails further emphasize the importance of CO2 in this application.

Medical:

In the medical field, carbon dioxide serves several critical functions, particularly in surgical procedures. CO2 is used for insufflation during laparoscopic surgeries, where it creates a working space in the abdominal cavity, allowing surgeons to operate with greater precision. Additionally, CO2 is utilized in various medical gas mixtures for respiratory therapy and diagnostic applications, enhancing patient care and safety. The increasing prevalence of minimally invasive surgical techniques and the growth of the global healthcare market are expected to drive the demand for CO2 in medical applications. Furthermore, advancements in medical technology and the focus on improving surgical outcomes are likely to further elevate the importance of CO2 in healthcare.

By Transportation

Liquid:

Transporting carbon dioxide in liquid form is a highly efficient method, particularly for industrial applications. Liquid CO2 can be transported via pipelines, tankers, or trucks, providing flexibility and scalability for end-users in various sectors. The ability to pressurize CO2 allows for its storage in smaller volumes, making it a cost-effective solution for transportation over long distances. The increasing demand for CO2 in enhanced oil recovery and food and beverage industries is driving the growth of liquid transportation solutions. Additionally, advancements in pipeline infrastructure and transportation technologies are expected to enhance the efficiency and safety of liquid CO2 transport, further solidifying its role in the market.

Gas:

Transporting carbon dioxide in gaseous form is another common method, particularly for short-distance deliveries and smaller-scale applications. Gaseous CO2 is typically delivered directly to end-users via pipelines or in pressurized gas cylinders. This method is favored for its rapid deployment and ease of use, especially in applications such as beverage carbonation and medical uses. The growth of the food and beverage industry, along with an increasing number of healthcare facilities requiring CO2 for medical applications, is driving demand for gas transportation methods. As industries continue to expand and seek reliable sources of CO2, the gaseous transportation segment is anticipated to witness notable growth in the coming years.

By Region

The North American region currently dominates the carbon dioxide market, accounting for approximately 40% of the total market share in 2024. This growth can be attributed to the high demand for CO2 in the oil and gas sector, particularly in the United States, where enhanced oil recovery techniques are widely adopted. Furthermore, increased investments in carbon capture and storage technologies are expected to support market growth in the region. The North American market is projected to witness a CAGR of 4.5% from 2025 to 2035, driven by advancements in CO2 applications across various industries and the growing emphasis on sustainability.

Europe is another significant market for carbon dioxide, holding a roughly 30% share of the global market. The region's commitment to reducing greenhouse gas emissions and transitioning towards a low-carbon economy has led to increased investments in carbon capture and utilization technologies. The food and beverage industry in Europe also remains a substantial consumer of CO2, particularly for beverage carbonation and food preservation applications. As European nations continue to implement stringent environmental regulations, the carbon dioxide market in this region is expected to grow steadily, with a projected CAGR of 3.8% during the forecast period.

Opportunities

The carbon dioxide market presents numerous opportunities for growth, particularly in the areas of carbon capture and storage (CCS) technologies. As environmental concerns intensify and governments implement stricter regulations on emissions, the demand for innovative solutions to capture CO2 from industrial processes is expected to rise. Companies that invest in research and development to enhance CCS technologies can position themselves as leaders in the market, providing sustainable solutions that contribute to reducing greenhouse gas emissions. Additionally, the exploration of new applications for CO2, such as in the synthesis of chemicals and fuels, presents an exciting avenue for growth. By diversifying their product offerings and venturing into emerging applications, companies can capitalize on the evolving market landscape.

Another promising opportunity in the carbon dioxide market lies in the agricultural sector. As the global population continues to grow, the pressure to increase food production intensifies. CO2 enrichment in greenhouse cultivation can significantly improve crop yields and quality, making it an attractive proposition for agricultural producers. Companies that develop and offer CO2 enrichment systems tailored for various crops and growing conditions can tap into this growing market. Furthermore, the increasing trend of sustainable agricultural practices and organic farming may further enhance the demand for CO2 in agriculture, providing additional growth opportunities in the coming years.

Threats

Despite the promising growth potential in the carbon dioxide market, several threats exist that could pose challenges to market participants. One significant threat is the fluctuating price of CO2, which can be influenced by various factors such as changes in regulatory policies, shifts in supply and demand dynamics, and technological advancements. These fluctuations can create uncertainty for businesses relying on CO2 for their operations, making it difficult for them to plan and budget effectively. Additionally, the increasing focus on alternative energy sources and sustainable practices may lead to a decline in the demand for fossil fuels, potentially impacting the oil and gas industry's reliance on CO2 for enhanced oil recovery. As industries evolve and adapt to changing market conditions, companies must be prepared to navigate these challenges to maintain their competitiveness in the market.

Another significant restrainer affecting the carbon dioxide market is the public perception and environmental concerns surrounding CO2 emissions. Despite its various industrial applications, CO2 is still a greenhouse gas that contributes to climate change when released into the atmosphere. As consumers become more environmentally conscious and demand sustainable practices from businesses, companies may face pressure to reduce their carbon footprints and adopt greener alternatives. This shift in consumer preferences could pose challenges for industries heavily reliant on CO2, necessitating a reevaluation of their practices and approaches to ensure alignment with sustainability goals. To mitigate these challenges, companies must proactively invest in research, innovation, and sustainable practices to adapt to the evolving landscape of environmental expectations.

Competitor Outlook

• Praxair, Inc.
• Air Products and Chemicals, Inc.
• Chart Industries, Inc.
• ExxonMobil Corporation
• Shell Global Solutions
• Linde AG
• TotalEnergies SE
• Carbon Clean Solutions Limited
• Drax Group plc
• Oxy Low Carbon Ventures
• Climeworks AG
• Global CCS Institute
• Deep Sky Technologies
• GEO-Services, Inc.
• Air Liquide S.A.

The competitive landscape of the carbon dioxide market is characterized by the presence of several key players that have established a robust foothold across various segments. Companies such as Praxair, Air Products, and Linde AG are leading the market through their extensive production and distribution networks, coupled with innovative solutions for carbon capture and utilization. These players leverage their technological expertise and operational efficiency to provide high-quality CO2 to end-users in diverse industries, thereby capturing significant market share. Moreover, strategic partnerships, mergers, and acquisitions among these companies are expected to intensify competition and drive further advancements in CO2 technologies. As the market evolves, these companies are also focusing on sustainability initiatives and expanding their portfolios to include carbon capture solutions, positioning themselves as go-to providers for environmentally conscious businesses.

Praxair, Inc., a subsidiary of Linde AG, is one of the leading suppliers of industrial gases, including CO2. With a strong presence in North America and a diversified customer base, Praxair is well-positioned to capitalize on the growing demand for carbon dioxide across various sectors. The company is actively involved in research and development initiatives aimed at enhancing carbon capture technologies, which aligns with the increasing focus on sustainability. Additionally, Praxair's commitment to innovation and customer-centric solutions makes it a key player in the evolving carbon dioxide market.

Air Products and Chemicals, Inc. is another major competitor in the carbon dioxide market, recognized for its expertise in industrial gases and its focus on sustainable practices. The company has made significant investments in carbon capture and storage projects, positioning itself as a leader in the development of advanced CO2 solutions. Air Products' commitment to reducing greenhouse gas emissions and providing sustainable alternatives is expected to enhance its competitive edge in the market. Furthermore, the company's global reach and strong distribution capabilities enable it to serve a diverse clientele, thereby solidifying its position in the carbon dioxide landscape.

• 1 Appendix

  • 1.1 List of Tables
  • 1.2 List of Figures

• 2 Introduction

  • 2.1 Market Definition
  • 2.2 Scope of the Report
  • 2.3 Study Assumptions
  • 2.4 Base Currency & Forecast Periods

• 3 Market Dynamics

  • 3.1 Market Growth Factors
  • 3.2 Economic & Global Events
  • 3.3 Innovation Trends
  • 3.4 Supply Chain Analysis

• 4 Consumer Behavior

  • 4.1 Market Trends
  • 4.2 Pricing Analysis
  • 4.3 Buyer Insights

• 5 Key Player Profiles

  • 5.1 Linde AG
    • 5.1.1 Business Overview
    • 5.1.2 Products & Services
    • 5.1.3 Financials
    • 5.1.4 Recent Developments
    • 5.1.5 SWOT Analysis
  • 5.2 Climeworks AG
    • 5.2.1 Business Overview
    • 5.2.2 Products & Services
    • 5.2.3 Financials
    • 5.2.4 Recent Developments
    • 5.2.5 SWOT Analysis
  • 5.3 Praxair, Inc.
    • 5.3.1 Business Overview
    • 5.3.2 Products & Services
    • 5.3.3 Financials
    • 5.3.4 Recent Developments
    • 5.3.5 SWOT Analysis
  • 5.4 Drax Group plc
    • 5.4.1 Business Overview
    • 5.4.2 Products & Services
    • 5.4.3 Financials
    • 5.4.4 Recent Developments
    • 5.4.5 SWOT Analysis
  • 5.5 Air Liquide S.A.
    • 5.5.1 Business Overview
    • 5.5.2 Products & Services
    • 5.5.3 Financials
    • 5.5.4 Recent Developments
    • 5.5.5 SWOT Analysis
  • 5.6 TotalEnergies SE
    • 5.6.1 Business Overview
    • 5.6.2 Products & Services
    • 5.6.3 Financials
    • 5.6.4 Recent Developments
    • 5.6.5 SWOT Analysis
  • 5.7 GEO-Services, Inc.
    • 5.7.1 Business Overview
    • 5.7.2 Products & Services
    • 5.7.3 Financials
    • 5.7.4 Recent Developments
    • 5.7.5 SWOT Analysis
  • 5.8 Global CCS Institute
    • 5.8.1 Business Overview
    • 5.8.2 Products & Services
    • 5.8.3 Financials
    • 5.8.4 Recent Developments
    • 5.8.5 SWOT Analysis
  • 5.9 Deep Sky Technologies
    • 5.9.1 Business Overview
    • 5.9.2 Products & Services
    • 5.9.3 Financials
    • 5.9.4 Recent Developments
    • 5.9.5 SWOT Analysis
  • 5.10 Chart Industries, Inc.
    • 5.10.1 Business Overview
    • 5.10.2 Products & Services
    • 5.10.3 Financials
    • 5.10.4 Recent Developments
    • 5.10.5 SWOT Analysis
  • 5.11 ExxonMobil Corporation
    • 5.11.1 Business Overview
    • 5.11.2 Products & Services
    • 5.11.3 Financials
    • 5.11.4 Recent Developments
    • 5.11.5 SWOT Analysis
  • 5.12 Shell Global Solutions
    • 5.12.1 Business Overview
    • 5.12.2 Products & Services
    • 5.12.3 Financials
    • 5.12.4 Recent Developments
    • 5.12.5 SWOT Analysis
  • 5.13 Oxy Low Carbon Ventures
    • 5.13.1 Business Overview
    • 5.13.2 Products & Services
    • 5.13.3 Financials
    • 5.13.4 Recent Developments
    • 5.13.5 SWOT Analysis
  • 5.14 Carbon Clean Solutions Limited
    • 5.14.1 Business Overview
    • 5.14.2 Products & Services
    • 5.14.3 Financials
    • 5.14.4 Recent Developments
    • 5.14.5 SWOT Analysis
  • 5.15 Air Products and Chemicals, Inc.
    • 5.15.1 Business Overview
    • 5.15.2 Products & Services
    • 5.15.3 Financials
    • 5.15.4 Recent Developments
    • 5.15.5 SWOT Analysis

• 6 Market Segmentation

  • 6.1 Carbon Dioxide in Environmental Market, By Source
    • 6.1.1 Natural
    • 6.1.2 Industrial
  • 6.2 Carbon Dioxide in Environmental Market, By Application
    • 6.2.1 Wastewater Treatment
    • 6.2.2 Enhanced Oil Recovery
    • 6.2.3 Beverage Carbonation
    • 6.2.4 Medical
    • 6.2.5 Others
  • 6.3 Carbon Dioxide in Environmental Market, By Use Industry
    • 6.3.1 Oil & Gas
    • 6.3.2 Food & Beverage
    • 6.3.3 Healthcare
    • 6.3.4 Agriculture
    • 6.3.5 Others
  • 6.4 Carbon Dioxide in Environmental Market, By Transportation
    • 6.4.1 Liquid
    • 6.4.2 Gas

• 7 Competitive Analysis

  • 7.1 Key Player Comparison
  • 7.2 Market Share Analysis
  • 7.3 Investment Trends
  • 7.4 SWOT Analysis

• 8 Research Methodology

  • 8.1 Analysis Design
  • 8.2 Research Phases
  • 8.3 Study Timeline

• 9 Future Market Outlook

  • 9.1 Growth Forecast
  • 9.2 Market Evolution

• 10 Geographical Overview

  • 10.1 Europe - Market Analysis
    • 10.1.1 By Country
      • 10.1.1.1 UK
      • 10.1.1.2 France
      • 10.1.1.3 Germany
      • 10.1.1.4 Spain
      • 10.1.1.5 Italy
  • 10.2 Asia Pacific - Market Analysis
    • 10.2.1 By Country
      • 10.2.1.1 India
      • 10.2.1.2 China
      • 10.2.1.3 Japan
      • 10.2.1.4 South Korea
  • 10.3 Latin America - Market Analysis
    • 10.3.1 By Country
      • 10.3.1.1 Brazil
      • 10.3.1.2 Argentina
      • 10.3.1.3 Mexico
  • 10.4 North America - Market Analysis
    • 10.4.1 By Country
      • 10.4.1.1 USA
      • 10.4.1.2 Canada
  • 10.5 Middle East & Africa - Market Analysis
    • 10.5.1 By Country
      • 10.5.1.1 Middle East
      • 10.5.1.2 Africa
  • 10.6 Carbon Dioxide in Environmental Market by Region

• 11 Global Economic Factors

  • 11.1 Inflation Impact
  • 11.2 Trade Policies

• 12 Technology & Innovation

  • 12.1 Emerging Technologies
  • 12.2 AI & Digital Trends
  • 12.3 Patent Research

• 13 Investment & Market Growth

  • 13.1 Funding Trends
  • 13.2 Future Market Projections

• 14 Market Overview & Key Insights

  • 14.1 Executive Summary
  • 14.2 Key Trends
  • 14.3 Market Challenges
  • 14.4 Regulatory Landscape

Segments Analyzed in the Report

The global Carbon Dioxide in Environmental market is categorized based on

By Source

• Natural
• Industrial

By Use Industry

• Oil & Gas
• Food & Beverage
• Healthcare
• Agriculture
• Others

By Application

• Wastewater Treatment
• Enhanced Oil Recovery
• Beverage Carbonation
• Medical
• Others

By Transportation

• Liquid
• Gas

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Players

• Praxair, Inc.
• Air Products and Chemicals, Inc.
• Chart Industries, Inc.
• ExxonMobil Corporation
• Shell Global Solutions
• Linde AG
• TotalEnergies SE
• Carbon Clean Solutions Limited
• Drax Group plc
• Oxy Low Carbon Ventures
• Climeworks AG
• Global CCS Institute
• Deep Sky Technologies
• GEO-Services, Inc.
• Air Liquide S.A.