The carbon dioxide utilization market involves employing CO2 as a feedstock or reactant to produce useful products like synthetic fuels, polymers, and chemicals. Capturing CO2 from industrial flue gases and directly utilizing it helps reduce emissions and achieve net-zero goals. There is a growing need to effectively manage carbon emissions to mitigate climate change effects. Using captured carbon can prevent it from accumulating in the atmosphere or being released into terrestrial or marine ecosystems.
The Global carbon dioxide utilization market is estimated to be valued at US$ 12.5 Bn in 2024 and is expected to exhibit a 13% CAGR over the forecast period 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. These companies are investing in large-scale carbon capture projects as well as developing technologies that can economically convert captured CO2 into useful products.
The Carbon Dioxide Utilization Market Size provides opportunities for new sustainable products and business models. Combining CO2 with hydrogen can generate synthetic fuels and chemicals that could directly replace fossil-derived variants. Across industries such as concrete, polymers, and fertilizers, carbon utilization enhances performance and reduces overall emissions. Governments worldwide are offering tax incentives and subsidies for projects and start-ups enabling carbon reuse.
With stringent emissions targets, companies are expanding carbon capture capacity globally. Regional utilization hubs are being planned near industrial clusters and geological storage sites in Europe, China, Middle East, and the US. Partnerships between technology developers, industrial plants, and policymakers will lead to large-volume commercialization of carbon dioxide utilization over this decade.
Market drivers
Increasing carbon emissions from industries like oil & gas, cement, refineries coupled with mandatory emission reduction targets by governments worldwide are majorly driving the carbon dioxide utilization market growth. Using captured industrial carbon for value-added applications helps companies meet their environmental goals in a cost-effective manner. R&D in novel utilization technologies is expected to enhance the commercial viability and large-scale adoption of carbon reuse over coal and gas in energy production. In the coming years, a carbon pricing mechanism may further boost the utilization business case over transportation or underground storage of CO2.
PEST Analysis
Political: The growing support from government organizations to reduce carbon footprint will drive the Carbon Dioxide Utilization Market Analysis. Several policies are being formulated to push adoption of carbon capture and utilization technologies.
Economic: With rising emission levels, carbon pricing mechanisms are being introduced which will make carbon utilization economically viable. New business opportunities are emerging for utilization of carbon in various end-use industries.
Social: Increasing awareness about climate change and carbon emissions among public is prompting industries to lower their carbon footprint. Bio-based products developed from carbon utilization receive higher consumer acceptance.
Technological: Advancements are being made in purification, transportation and engineering of carbon utilization technologies. New catalytic processes are enabling efficient conversion of CO2 into multiple end products. Carbon capture from industrial sources and air is also witnessing technological innovations.
The geographical region which accounts for major share of the global carbon dioxide utilization market value is North America. The region is early adopter of carbon capture and storage technologies. Stringent environmental regulations and availability of necessary infrastructure drives the market in North America.
The fastest growing region for carbon dioxide utilization market is Asia Pacific. The region is witnessing rapid industrialization which results in growing carbon emissions. Policies by economies like China and India promote utilization of captured carbon. Expanding end-use industries like oil & gas, construction also support the Asian market growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author – Money Singh
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, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile