Carbon Dioxide Utilization Market Size, Share, and Industry Analysis, By Service (Capture, Transportation, Utilization, and Storage), By Technology (Pre-combustion Capture, Oxy-fuel Combustion Capture, and Post-combustion Capture), By Application (Oil & Gas, Power Generation, Iron & Steel, Chemical & Petrochemical, Cement, and Others), and Regional Forecast, 2025-2032

The global carbon dioxide utilization market is expanding with an increase in government initiative to curb carbon emissions as a goal toward sustainable environment. The process involves capturing CO2 gases emitted from the industrial sector and converting them into useful products such as synthetic fuels, chemicals, plastics, and building materials such as concrete.

• The European Union targets to achieve climate neutrality by 2050 and is working to cut emissions by at least 55% by 2030. In February 2024, the Commission recommended that the EU should target a 90% reduction in greenhouse gas emissions by 2040 as a step toward reaching net zero by 2050.


• In May 2024, China’s State Council released an action plan for carbon reduction and energy saving for 2024-2025, aimed at improving energy efficiency during the 14th Five-Year Plan. The goal is to cut energy consumption per unit of GDP by 13.5% by 2025 compared to 2020 levels. However, by the end of 2023, energy intensity had only decreased by 7.3%.

Carbon Dioxide Utilization Market Driver

Rising Global Temperatures to Impede the Market Growth

The growth in CO2 and greenhouse gases across the globe has led to an increase in global temperatures and extreme weather events. Carbon dioxide capturing and utilization have become an important prospect for controlling global warming, further leading to market growth. In addition, the rising awareness among individuals, corporates, and industries, coupled with government support and initiatives, would lead to the expansion of the market over the forecast period.

• According to the International Energy Agency, in 2023, emissions from fossil fuels increased by 1.1% compared to 2022, reaching a total of 36.8 billion metric tons of carbon dioxide. Both 2022 and 2023 experienced record increases in carbon dioxide emissions from fossil fuels.

Carbon Dioxide Utilization Market Restraint

High Cost for Establishing Carbon Dioxide Utilization infrastructure May Limit the Market Growth

The development and installation of capture and conversion technologies often require substantial capital investment, which can be a hurdle for many companies, especially smaller enterprises. Additionally, developing new technologies and optimizing existing processes involves extensive research and development, which is expensive and time-consuming.

Carbon Dioxide Utilization Market Opportunity

Advancements in Capturing and Conversion Technologies to Offer New Growth Opportunities

Technological advancements in capturing and conversion technologies have significantly improved the efficiency and cost-effectiveness of processes that transform CO₂ into valuable products. New methods for capturing CO₂ from industrial emissions and the atmosphere are becoming more efficient, enabling higher capture rates and lower energy requirements.

• In March 2024, UrjanovaC, an India-based start-up, created a cost-effective and scalable aqueous-based CO₂ capture technology using a new catalyst capable of capturing CO₂ from industrial wastewater. This innovation, developed with support from IIT Bombay's National Centre of Excellence in Carbon Capture and Utilization, represents a significant step toward climate-friendly technologies.

Segmentation

Key Insights

The report covers the following key insights:

• Key Emerging Trends – For Major Countries


• Latest Technological Advancements


• Insight on Regulatory Landscape


• Porters Five Forces Analysis


• Impact of COVID-19 on the market 

Analysis by Service

By service, the market is divided into capture, transportation, utilization, and storage.

The capture segment holds the major share in the market as it involves technologies designed to separate CO₂ from industrial emissions or the atmosphere. It includes post-combustion capture, pre-combustion capture, and direct air capture (DAC). The rising demand from industries to control carbon emissions before they are released into the atmosphere plays a key role in driving the segment's share in the market.

Analysis by Technology

By technology, the market is trifurcated into pre-combustion capture, oxy-fuel combustion capture, and post-combustion capture.

Post-combustion capture, which involves removing CO2 from the exhaust gases produced after fuel combustion, holds the major share in the market owing to its easy implementation in existing facilities and offers flexibility across a wide range of industries. It is the most widely used capture technology as it can be retrofitted to existing power plants and industrial facilities without significant alterations to the combustion process. It is particularly common in coal-fired power plants and cement, steel, and chemical industries.

Analysis by Application

Based on application, the market is bifurcated into oil & gas, power generation, iron & steel, chemical & petrochemical, cement, and others.

The oil & gas segment holds the major share of the market due to the maximum emission of the CO2 and other greenhouse gases in oil & gas production. The presence of oil & gas production sites offshore requires high consumption of fossil fuels for combustion, leading to the voluminous release of CO2. In addition, the significant requirement for CO2 in enhanced oil recovery, where the gas is injected into underground reservoirs to boost oil production, also contributes to the market growth.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Europe holds the dominating share in the global carbon dioxide utilization market due to strong government support, robust carbon pricing mechanisms, and extensive collaboration between industries and research institutions for developing more efficient technologies. In addition, the European Union and the governments of the nations across the region are also implementing initiatives to curb carbon emissions, which are playing a key role in the growth of the market.

• In July 2024, ArcelorMittal is testing a new carbon utilization technology at its Ghent plant in Belgium in collaboration with Mitsubishi Heavy Industries (MHI) and D-CRBN. This technology converts CO₂ emissions from steel production into carbon monoxide, which can be reused in steel and chemical manufacturing.

The Asia Pacific is anticipated to grow at the fastest rate owing to the presence of a huge industrial sector and the steady adoption of carbon dioxide utilization techniques impacted by the government's strict rules and regulations regarding greenhouse gas emissions. 

• In July 2024, Australia awarded a USD 43 million grant to seven carbon capture projects under the Carbon Capture Technologies Program (CCTP). These projects aim to decarbonize challenging industrial processes using innovative methods such as direct air capture (DAC) and mineral carbonization.

Furthermore, various initiatives and investments are being made in other regions such as North America, the Middle East & Africa, and Latin America, which will provide a positive outlook to the global carbon dioxide utilization market.

Key Players Covered

The global market is fragmented with the presence of a large number of group and standalone providers.

The report includes the profiles of the following key players:

• Linde Plc (U.K.)


• Shell plc (Netherlands)


• Fluor Corporation (U.S.)


• Exxon Mobil Corporation (U.S.)


• Slb plc (U.S.)


• JGC Holdings Corporation (Japan)


• Honeywell (U.S.)


• Aker Solutions (Norway)


• Halliburton (U.S.)


• Mitsubishi Heavy Industries, Ltd. (Japan)

Key Industry Developments

• In October 2024, Linde Engineering signed an agreement with NEXTCHEM to offer carbon capture technology to Abu Dhabi National Oil Company’s (ADNOC) Hail and Ghasha initiative. Situated in the United Arab Emirates (UAE), the initiative represents one of the world's largest offshore sour gas projects and is intended to function with net zero emissions.


• Linde Engineering would deliver its latest adsorption-based carbon capture solution HISORP CC to effectively capture and refine carbon dioxide (CO2) for sequestration (CCS), greatly diminishing greenhouse gas emissions in natural gas and oil extraction. Consistent with ADNOC’s plan to lower carbon emissions, the project seeks to capture 1.5 mtpa (million tonnes annually) of carbon dioxide and store it underground.


• In May 2024, Mitsubishi Heavy Industries (MHI) partnered with Chiyoda Corporation to license CO₂ capture technologies, enhancing MHI's position in Japan's growing carbon capture, utilization, and storage (CCUS) market. Through this collaboration, MHI will grant Chiyoda access to its "KM CDR Process" and "Advanced KM CDR Process," allowing Chiyoda to offer engineering, procurement, and construction (EPC) services for CO₂ capture projects in Japan.