Carbon Dioxide Market Is Expected To Expand Due To Increasing Utilization CO2 For Enhanced Oil Recovery

 Carbon Dioxide Industry Overview

 

The global carbon dioxide market size was valued at USD 7.80 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.0% from 2021 to 2028.

 

The rise in utilization of carbon dioxide (CO2) in the oil & gas sector for Enhanced Oil Recovery (EOR) technology has been one of the key drivers for the market in countries that are working to enhance production efficiency from oil wells. The CO2 gas has been used for medical applications in form of an insufflation component for several surgical procedures including laparoscopy, endoscopy, and arthroscopy. A shift in focus of governments towards improvement in healthcare facilities owing to the ongoing global COVID-19 pandemic will also support the market growth.

 

Gather more insights about the market drivers, restrains and growth of the Global Carbon Dioxide Market

 

CO2 is used in numerous applications, such as inert gas in firefighting, enhanced Oil recovery (EOR), carbonation of beverages, and freezing & cooling food products. Increased investments in R&D for advanced technologies in EOR and Carbon Capture & Storage (CCS) have led to an increase in the demand for CO2. The harmful impact of carbon dioxide on the environment has resulted in the formulation of various government regulations globally. The rising concerns regarding the harmful impact of carbon emissions have encouraged carbon-pricing initiatives in several countries of the world.

 

These regulations help limit the emissions into the atmosphere. A rise in carbon emissions has led some countries to opt for CCS to limit their carbon footprint. However, the high cost of CCS technology is among the key restraint for the market. The COVID-19 pandemic has resulted in a dip in the supply of carbon dioxide, which is made from ethyl alcohol manufacturing. According to Renewable Fuels Association, in 2020, ethyl alcohol plants in the U.S. had curbed production due to falling demand for ethanol due to strict lockdown in the country.

 

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• S. Carbon Dioxide Market - The U.S. carbon dioxide market size was valued at USD 3,190.54 million in 2021 and is projected to register a compound annual growth rate (CAGR) of 8.4% from 2022 to 2030. Increasing usage of carbon dioxide for Enhanced Oil Recovery (EOR) in oil & gas plants is anticipated to result in the growth of the market in the country. The depletion of oil reserves in the U.S. has led to the growth of EOR technology.
• Enhanced Oil Recovery Market - The global enhanced oil recovery market size was valued at USD 46.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.7% from 2020 to 2027. An increasing number of aged wells along with decreasing production from existing oilfields is expected to drive the market over the forecast period. The enhanced oil recovery (EOR) technology enhances oil production from mature and aged oil fields, by almost 10 to 20% as compared to the conventional oil extraction methods. 

 

Carbon Dioxide Market Segmentation

Grand View Research has segmented the global carbon dioxide market report on the basis of source, application, and region:

• Carbon Dioxide Source Outlook (Volume, Kilo Tons; Revenue, USD Million, 2016 - 2028)
  • Hydrogen
  • Ethyl Alcohol
  • Ethylene Oxide
  • Substitute Natural Gas
  • Others
• Carbon Dioxide Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2016 - 2028)
  • Food & beverages
  • Oil & Gas
  • Medical
  • Rubber
  • Fire Fighting
  • Others
• Carbon Dioxide Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2016 - 2028)
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa (MEA)

 

Market Share Insights

• March 2021: Air Liquide entered into an agreement with the Gippsland Basin Joint Venture, a 50-50 joint venture between BHP Petroleum (Bass Strait) Pty Ltd and Esso Australia Resources Pty Ltd, for the construction of a new facility to deliver carbon dioxide to Australian industries.
  
• March 2019: Air Products, Inc. completed the acquisition of ACP Europe SA, which is the largest independent CO2 manufacturer and supplier in Continental Europe.

 

Key Companies profiled:

Some of the prominent players in the global carbon dioxide market include:

• Linde plc
• Air Liquide
• Air Products, Inc.
• Messer
• Taiyo Nippon Sanso Corp
• SOL Group
• Sicgil India Ltd.
• Strandmøllen A/S
• ACAIL Gas
• Gulf Cryo

 

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