Carbon Dioxide Utilization Market Poised for Remarkable Growth, Projected to Reach US$9.9 Billion by 2030 with a CAGR of 14.3%
The global carbon dioxide utilization market is set to witness substantial growth, with an impressive CAGR of approximately 14.3% during the forecast period from 2023 to 2030. By the end of 2030, the market is expected to achieve a market value of around US$9.9 billion.
The escalating pace of global industrialization has led to a significant increase in carbon dioxide emissions. In response, several governments worldwide are taking proactive measures to mitigate their carbon footprint by establishing multiple carbon dioxide capture and storage facilities. This trend is expected to drive the growth of the carbon dioxide utilization market during the forecast period. The carbon capture, utilization, and storage (CCUS) process involve capturing carbon dioxide from fuel combustion or industrial processes, transporting it via ship or pipeline, and utilizing it as a resource for producing useful goods or services, or securely storing it underground in geological formations. Additionally, CCUS technologies lay the foundation for carbon removal or negative emissions when carbon dioxide originates from bio-based processes or the atmosphere.
Key Findings from the Report:
- The carbon dioxide utilization market is poised for substantial revenue expansion over the decade from 2023 to 2030.
- Post-combustion capture continues to be in high demand in the carbon dioxide utilization market.
- The oil & gas power generation sector claimed the highest revenue share in the carbon dioxide utilization market in 2022.
- North America is expected to maintain its leadership, while the Asia Pacific carbon dioxide utilization market is set to experience the most robust growth until 2030.
Increased Demand for Natural Gas and Environmental Consciousness:
The rising demand for carbon capture, utilization, and storage can be attributed to stringent environmental regulations. Conventional energy sources such as petrol, diesel, petroleum products, and natural gas are known to have adverse environmental effects. Exploration and production of these fuels contribute to environmental degradation. Natural gas, however, is increasingly recognized as a sustainable alternative fuel that reduces greenhouse gas (GHG) emissions, mitigates global warming, and curbs carbon emissions.
To promote the use of natural gas and reduce the risks associated with petrol and diesel fuels, the US government has implemented various rules and regulations. Countries with significant natural gas reserves are also exploring the benefits of carbon capture, utilization, and storage, resulting in reduced carbon emissions.
The US-China Energy Cooperation Programme, initiated in 2010, is an international climate pact between China and the US, two major contributors to global GHG emissions. As global energy consumption is projected to increase by 50% by 2035, carbon capture, utilization, and storage will play a crucial role in addressing this growth, further driving the carbon dioxide utilization market.
Growing Role of Carbon Dioxide Utilization in Achieving Climate Targets:
Carbon dioxide utilization is gaining prominence as a means to achieve ambitious global climate targets. Regions such as North America and Europe are expected to witness significant investments in this technology. The industry is driven by the increased demand for carbon-derived products from various sectors and consumers. In recent years, there has been a significant increase in the use of carbon dioxide in the production of polymers, particularly in Europe and the Asia Pacific regions.
The manufacturing processes for polymers heavily rely on carbon dioxide. Carbon dioxide utilization offers vast potential in the production of common chemicals, building materials, and fuels. The solid carbon industry, encompassing carbon nanotubes, diamonds, carbon fiber, and the protein industry, is poised to benefit significantly from carbon dioxide utilization. The market is expected to grow substantially during the forecast period, driven by increased technological applications in gas and oil exploration activities.
Growing Adoption for Enhanced Oil Recovery:
The use of carbon dioxide for enhanced oil recovery techniques will become increasingly important for both onshore and offshore operations. The oil and gas industry’s demand for carbon dioxide is rising, particularly in activities related to enhanced oil recovery. This growing demand presents significant opportunities for revenue generation in the coming years.
Overview of Key Segments:
Chemical Conversion and Direct Air Capture Technology to Dominate:
Chemical conversion and direct air capture technology are expected to dominate the carbon dioxide utilization market over the forecast period. Chemical conversion technology is extensively used for producing chemicals and synthetic fuels, including methanol, ethanol, formaldehyde, formic acid, and carbon monoxide. Direct air capture, another promising technology, converts carbon dioxide into chemicals and synthetic fuels, such as gasoline, jet fuel, and diesel. Carbon Engineering, a Canada-based clean energy company, has been at the forefront of commercializing direct air capture technology, which captures carbon dioxide directly from the atmosphere.
Chemicals and Fuels Form Dominant Segments:
Chemicals and fuels are set to dominate the carbon dioxide utilization market. These industry verticals are expected to witness substantial market share growth due to the increasing demand for carbon-derived chemicals and petrochemicals. The utilization of carbon dioxide in chemical production is expected to prevent millions of tons of CO2 emissions annually while reducing dependency on fossil fuels, a major contributor to CO2 emissions. Companies are focusing on producing synthetic fuels from carbon dioxide, with applications in fuel additives and biodiesel production.
Growth Opportunities Across Regions:
North America Continues Leadership:
North America is poised to maintain its leadership position in the carbon dioxide utilization market, driven by the growing demand for clean technology. The region currently accounts for the largest market share, with widespread use of carbon dioxide in enhanced oil recovery practices. Carbon dioxide utilization in these plants is expected to drive the market in countries such as Canada and the United States.
The United States, with approximately 75% of global carbon capture capacity in enhanced oil recovery activities, has implemented the Furthering Capital Carbon Capture, Utilization, Technology, Underground Storage, and Reduced Emissions (FUTURE Act) under the 45Q provision. This legislation incentivizes the capture of carbon dioxide from industrial and power sources for use in enhanced oil recovery. Despite recent developments in shale gas technology and government policies, the market in the United States is expected to witness moderate growth, further increasing North America’s market share in the carbon capture, utilization, and storage sector.
Asia Pacific Holds Promise for Growth:
The Asia Pacific region is expected to experience significant growth in the carbon dioxide utilization market, thanks to robust industrial development, particularly in China. China, a major consumer of carbon dioxide in the region and globally, has seen substantial growth in industrial output, further fueling the region’s industrial production. Multiple carbon capture and utilization initiatives are underway or planned in the Asia Pacific region, creating opportunities for market participants. Countries such as South Korea, India, Australia, and China are taking the lead in advancing carbon capture and utilization technologies in the region.
Carbon Dioxide Utilization Market: Competitive Landscape:
Leading players in the carbon dioxide utilization market include Carbon Recycling International, Royal Dutch Shell Plc, LanzaTech Inc., TotalEnergies SE, Hitachi, Ltd., Climeworks AG, ExxonMobil Corporation, Linde plc, Schlumberger Limited, Aker Solutions, Honeywell International Inc., Mitsubishi Heavy Industries, Ltd, JGC Holdings Corporation, General Electric, and CarbonCure Technologies.
Browse Global Carbon Dioxide Utilization Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – (By Technology Coverage, By Application Coverage, By Geographical Coverage, Leading Companies): https://www.fairfieldmarketresearch.com/report/carbon-dioxide-utilization-market
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