U.S. Carbon Dioxide Market Size, Share & Trends Analysis Report By Source (Hydrogen, Ethyl Alcohol, Ethylene Oxide, Substituted Natural Gas), By Application (Food & Beverages, Oil & Gas, Medical), And Segment Forecast, 2022 - 2030

Report Overview

The U.S. carbon dioxide market size was valued at USD 3.19 billion in 2021 and is expected to expand at 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 drive the industry’s growth.CO2 is also used at a large scale for carbonation in beverage plants. This is anticipated to result in the growth of the market in the U.S. Moreover, the usage of food-grade carbon dioxide in meat processing and modified atmosphere packaging applications is also expected to contribute to the growth. The U.S. carbon dioxide market is expected to witness growth during the forecast period owing to an increase in the usage of carbon dioxide for enhanced oil recovery in the country.

Fluctuations in crude oil prices -and an increase in the number of mature oil fields in the U.S. are anticipated to result in a significant surge in the usage of enhanced oil recovery methods in the country for efficient and effective oil production from the oil wells.

Moreover, the availability of funding from the Government of the U.S. for research and development of enhanced oil recovery methods is anticipated to lead to increased oil recovery in the country. This, in turn, is expected to result in the growth of the carbon dioxide market in the U.S. as CO2 is utilized majorly as a medium for enhanced oil recovery from oil & gas fields using a gas-based injection method.

In 2019, the U.S. Department of Energy invested USD 39.9 million for funding research and development related to enhanced oil recovery in the country.The usage of carbon dioxide in medical applications is on the rise in the U.S. owing to the continuously increasing elderly population in the country. The demand for carbon dioxide from the healthcare sector of the U.S. is expected to increase during the forecast period.  

The spread of COVID-19 hindered the industry’s growth in 2020 and 2021 owing to factors such as the reduction in demand for CO2 in the country owing to lockdowns. However, an increase in demand for carbon dioxide from the manufacturers of pharmaceuticals and essential commodities such as fire safety products has been witnessed in the U.S., as well as across the world. The COVID-19 pandemic has caused several disruptions in the carbon dioxide industry of the U.S.

Source Insights

Based on source, the market has been segmented into hydrogen, ethyl alcohol, ethylene oxide, substituted natural gas, and others. In terms of revenue, ethyl alcohol accounted for the largest revenue share of 32.06% in 2021. CO2 is obtained as a by-product in the production of ethyl alcohol through alcoholic fermentation. In addition, the combustion of ethanol also leads to the release of carbon dioxide and water vapor.

CO2 obtained from these processes is primarily used for food & beverage applications such as carbonation and as a chilling, cooling, and freezing agent. Carbon dioxide captured from hydrogen production has increased significantly owing to the need to curb annual CO2 emissions resulting from hydrogen production using coal and natural gas. Furthermore, initiatives taken by the U.S. government to move toward a hydrogen economy will boost the production of hydrogen coupled with growth in the production of CO2 over the forecast period.

The production of substitute natural gas (SNG) or synthetic natural gas creates carbon dioxide as a byproduct. SNG is derived from the gasification of coal and emits byproducts such as carbon dioxide, hydrogen, carbon monoxide, and methane. There are different methods for the production of SNG like steam‐oxygen gasification, hydrogasification, and catalytic steam gasification.

Application Insights

Based on application, the industry has been segmented into food & beverages, oil & gas, medical, rubber, and others. In terms of revenue, the food & beverages segment led with a revenue share of 34.52% in the year 2021. CO is used for a wide range of applications in the food & beverage industry. In the food industry, the product is employed for modified atmospheric packaging (MAP), chilling & freezing, and controlling the temperature of products during transportation & storage.

Due to the ongoing shortage of carbon dioxide since the start of the COVID-19 pandemic, some food and beverage companies are looking for a replacement for carbon dioxide. Nitrogen is a strong contender as a substitute for CO2. This might hurt the demand for carbon dioxide in the forecast period.

CO2 is an excellent fire suppression agent and is used in several fire protection systems. It is used in fire extinguishing systems for inerting, total flooding, and local application. Carbon dioxide is used to extinguish the fire by removing oxygen from the surrounding area, which then allows the local application systems to remove the heat by breaking the fire triangle.

CO2 fire suppression systems are commonly used for generator rooms, engine rooms, power stations, and large flammable areas. Though CO2 fire suppression systems are highly efficient, they pose a health risk compared to other agents, and hence, are used in non-occupied environments.

Medical-grade carbon dioxide is used as a pure gas or it is mixed with other gases to form specialized mixtures for various purposes including anesthesia, breathing stimulation, and equipment sterilization. It is also used for minimally invasive surgeries, including endoscopy, arthroscopy, and laparoscopy, as an insufflation gas, where CO2 helps expand and stabilize the operating areas for better visibility.

Key Companies & Market Share Insights

The market is moderately consolidated with the presence of various multinational players. These factors make the market highly competitive as it also requires high initial investments for new entrants, along with increased research and development costs. Some of the significant players include Linde plc; Air Products Inc.; and Air Liquide. The companies have adopted the strategies such as mergers and acquisitions to gain greater market share and expand their networks in the country. Some prominent players in the U.S. carbon dioxide market include:

• Linde plc

• Air Products Inc.

• Air Liquide

• Matheson Tri-Gas, Inc.

• Messer

• Continental Carbonic Products, Inc.

• Greco Gas Inc.

• TAIYO NIPPON SANSO CORPORATION

• Universal Industrial Gases, Inc.

• Zephyr Solutions, LLC

U.S. Carbon Dioxide Market Report Scope

U.S. Carbon Dioxide Market Segmentation

This report forecasts revenue and volume growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the U.S. carbon dioxide market report based on source and application:

• Source Outlook (Volume, Million Tons; Revenue, USD Million, 2019 - 2030)

  • Hydrogen

  • Ethyl Alcohol

  • Ethylene Oxide

  • Substituted Natural Gas

  • Others

• Application Outlook (Volume, Million Tons; Revenue, USD Million, 2019 - 2030)

  • Food & Beverages

  • Oil & Gas

  • Medical

  • Rubber

  • Fire Fighting

  • Others