The carbon dioxide utilization market involves capturing carbon dioxide from power plants and industrial facilities and utilizing it in a wide array of applications such as enhanced oil recovery, production of algae, and synthetic fuels. Capturing carbon dioxide from flue gas streams and manufacturing exhausts allows it to be recycled and incorporated into useful products rather than emitting it into the atmosphere.
The global carbon dioxide utilization market is estimated to be valued at US$ 12.5 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period of 2024 to 2031.
Key Takeaways
Key players operating in the carbon dioxide utilization market are Fluor Corporation, Schlumberger Limited, Aker Solutions, Honeywell International Inc., Equinor ASA, TotalEnergies SE, Hitachi, Ltd, ExxonMobil Corporation, Linde plc, Royal Dutch Shell Plc, Mitsubishi Heavy Industries, Ltd, JGC Holdings Corporation, General Electric, Halliburton, SABIC. Key players are focusing on advancing carbon capture technologies and expanding carbon capture facilities to meet the growing demand for carbon dioxide from industrial applications such as enhanced oil recovery.
The rising demand for Carbon Dioxide Utilization Market Size in industrial applications is expected to drive market growth over the forecast period. Carbon dioxide has important applications in enhanced oil recovery which boosts oil production from mature oil fields. It is also used in food & beverage production such as carbonated drinks. Additionally, demand is rising from the chemical and agriculture sectors.
Technological advancements are helping increase carbon capture rates and reduce costs. New carbon capture technologies such as oxyfuel combustion, chemical looping, and direct air capture are becoming more economically viable. Membrane technology is also improving to facilitate separation of carbon dioxide from flue gases more efficiently.
Market Trends
The increasing utilization of carbon dioxide in enhanced oil recovery operations is a key trend in the market. Carbon dioxide injection helps recover around 6 billion barrels of oil annually in the United States. Several oilfields are deploying carbon capture and utilization technologies to extract harder to produce oil residues left behind after primary and secondary oil extraction methods.
Adoption of carbon dioxide in the agriculture sector is another major trend. Greenhouse farmers are utilizing carbon dioxide to accelerate plant growth and increase crop yields. controlled-environment agriculture adopts carbon dioxide enrichment techniques.
Market Opportunities
The production and use of carbon dioxide in synthetic fuels is a major market opportunity. Companies are working on technologies to convert carbon dioxide into methanol, synthetic methane and synthetic kerosene using renewable power sources. This helps address transportation sector decarbonization.
Development of direct air capture technology presents a lucrative opportunity. It allows recycling carbon dioxide directly from ambient air and is carbon negative. Improvements can make it cost effective for producing clean fuels and carbon products.
Impact of COVID-19 on Carbon Dioxide Utilization Market Growth
The COVID-19 pandemic adversely impacted the Carbon Dioxide Utilization market growth. Industries that utilize carbon dioxide such as oil & gas, chemicals, construction material, and power generation witnessed major disruptions due to lockdowns and supply chain issues. Factory and construction shutdowns led to lower demand for CO2 reducing utilization volumes significantly. The decline in industrial operations caused a fall in CO2 emissions. However, this had a negligible impact on atmospheric CO2 levels since emissions reduced only temporarily.
In the pre-COVID era, the market was growing steadily owing to increasing awareness about carbon capture and utilization technologies. Stringent emission reduction regulations were also propelling market expansion. However, the pandemic slowed down market momentum in 2020. Though some recovery was seen in 2021 as restrictions eased and industrial activity picked up partially, the market is yet to reach pre-pandemic growth levels. Post-COVID, rebuilding industrial infrastructure and establishing more sustainable production processes can accelerate the market. Carbon pricing mechanisms and incentives for carbon utilization projects may support faster market recovery in the coming years. Technologies promoting carbon recycling and replacement of virgin materials with those produced from carbon waste can drive future growth.
Geographical Concentration in Europe
In terms of value, Europe accounts for the largest share in the carbon dioxide utilization market currently. Stringent environmental regulations and large presence of major market players have elevated Europe's position. Countries like Germany, Norway, UK, Netherlands and Belgium have established carbon capture and utilization projects. Presence of natural underground storage sites and government funding for CCUS initiatives have augmented Europe's leadership. Going forward, Asia Pacific is expected to witness the fastest market growth due to rising industrialization, coal dependency, and government initiatives for emission control in countries like China and India.
Fastest Growing Region - Asia Pacific
The Asia Pacific region is anticipated to experience the highest CAGR in the global carbon dioxide utilization market during the forecast period. This is primarily attributed to rapid industrialization and urbanization across developing economies like China and India. Rising energy demand coupled with high coal consumption for power generation has boosted CO2 emissions. Stringent environmental mandates by regulatory bodies for carbon footprint reduction are positively impacting the market. Government investments and initiatives promoting CCUS technologies would further drive the Asia Pacific market. Additionally, availability of anthropogenic sources of carbon dioxide makes the region an attractive market for carbon utilization operations.
Get more insights on Carbon Dioxide Utilization Market
Get More Insights—Access the Report in the Language that Resonates with You:-
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
copyright src="chrome-extension://fpjppnhnpnknbenelmbnidjbolhandnf/content_script_web_accessible/ecp_regular.js" type="text/javascript">