The global carbon dioxide market was estimated to be valued at USD 10.94 billion in 2023 and is projected to expand at a compound annual growth rate (CAGR) of 5.0% from 2024 to 2030. This anticipated growth is largely driven by the increasing application of carbon dioxide (CO2) in enhanced oil recovery (EOR) techniques, a response to the depletion of oil reserves and a heavy reliance on crude oil imports, particularly in the Asia Pacific region. Additionally, the rising demand from key end-use industries such as food and beverages, as well as the medical sector, is expected to further stimulate the carbon dioxide market throughout the forecast period.

The United States stands out as one of the leading markets for CO2 globally, projected to grow at a CAGR of 4.9% in terms of revenue in the coming years. This growth can be attributed to several factors, including heightened industrialization and the robust development of the oil and gas industry within the country. As industries expand and modernize, the demand for carbon dioxide as a critical resource in various applications is becoming increasingly significant.

In the medical sector, the application of CO2 is gaining remarkable importance worldwide. Carbon dioxide gas is predominantly used as an insufflation agent in numerous surgical procedures, including laparoscopy, endoscopy, and arthroscopy. By inflating and stabilizing cavities within the human body, CO2 provides improved visibility and access to the surgical area, thereby enhancing the overall safety and effectiveness of these procedures. Furthermore, CO2 plays a role in increasing blood flow to the brain and assisting in respiration during certain medical interventions. For these purposes, carbon dioxide is delivered in specially designed steel cylinders that are chromium-plated and fitted with valves to ensure safety and ease of use.

On a broader scale, the negative impact of carbon emissions on the environment is a significant factor contributing to global climate change. In response to this challenge, many countries have invested heavily in initiatives aimed at reducing carbon pollution. These efforts include the development of innovative carbon capture and storage (CCS) technologies, as well as the implementation of carbon pricing mechanisms in certain regions. However, despite these advancements, many nations still face considerable challenges in meeting their targeted climate goals, highlighting the need for ongoing innovation and commitment to environmental sustainability.

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Source Insights Segmentation

In terms of market sources, ethyl alcohol has emerged as a dominant player, capturing the largest revenue share of over 33.0% in 2023. This prominence is largely due to its easy availability and reliability as a long-term source for carbon dioxide production. The increasing global demand for food-grade CO2 is anticipated to further propel the production of carbon dioxide from ethyl alcohol in the years to come.

Carbon dioxide is primarily obtained as a by-product during the production of ethyl alcohol through the process of alcoholic fermentation. Additionally, the combustion of ethanol results in the release of CO2 and water vapor, contributing to the overall supply of carbon dioxide. The CO2 generated through these processes is predominantly utilized in the food and beverage sector for applications such as carbonation, as well as serving as a chilling, cooling, and freezing agent.

Moreover, carbon dioxide is produced as a by-product during hydrogen production through various processes, including biological, thermochemical, and electrolytic methods. This multifaceted approach to CO2 production highlights its versatility and significance across multiple industries.

Looking ahead, ongoing research and development efforts aimed at optimizing the manufacturing of carbon dioxide from a variety of sources are expected to bolster market growth. Several factors influence carbon dioxide pricing, including supply and demand dynamics, production costs, regulatory emissions standards, transportation logistics, and market competition. In scenarios where multiple suppliers are active in a particular application, increased competition may lead to lower prices, benefiting consumers and driving further market activity. As the market continues to evolve, adaptability and innovation will be key to addressing both demand and environmental challenges.

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