Carbon Monoxide Market Size, Share & Industry Analysis, By Application (Metal Fabrication, Chemicals, Ore Processing and Extraction, Pharma & Biotechnology, and Electronics) and Regional Forecast, 2024-2032

The global carbon monoxide market size was valued at USD 3.36 billion in 2023. The market is projected to grow from USD 3.50 billion in 2024 to USD 4.93 billion by 2032, exhibiting a CAGR of 4.4% during the forecast period. Asia Pacific dominated the carbon monoxide market with a market share of 41.67% in 2023. Moreover, the carbon monoxide market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 0.74 billion by 2032, driven by the growing mining activities and rising metal ore exploration, which is influencing the market size growth.

Carbon monoxide (CO) is widely used in the metal extraction and processing industries due to its strong reducing properties. The demand for CO is expected to rise globally, mainly due to the increasing investment in developing advanced and technical products. This rise in demand is also creating opportunities for market players. The carbon monoxide market is expected to grow even further with more research and development activities.

Carbon monoxide is a byproduct of specific commercial-grade chemical production processes. As a result of the COVID-19 pandemic, the production of these chemicals was halted, which subsequently led to a reduction in CO production. In addition, the decrease in product demand from the mining and metal extraction industries impeded the market's growth rate. However, it is noteworthy that government regulations and interventions have been implemented to revive the global economy, which shows encouraging signs amidst the social and economic challenges caused by the pandemic.

Carbon Monoxide Market Trends

Rising Uptake of Syngas is an Emerging Trend

The shortage of conservative petroleum resources and the progression in solid-to-gas conversion technologies revived the demand for the use of solid fuels. Among all conversion technologies, gasification is the most consistent and energy efficient, with advantages in both upstream and downstream flexibility. Syngas, also known as water gas or synthesis gas, is a combination of carbon monoxide (60-65%), hydrogen (25-30%), methane, and carbon dioxide in trace amounts.

Syngas is deployed as a fuel across different applications in many industrial processes. The compound is produced from biomass and solid waste, which is a carbon-neutral fuel that is supposed to be an encouraging type of fuel for next-generation engines. Syngas was extensively used for spark-ignition engines in the World War II era. It has a higher laminar flame speed than compressed natural gas (CNG). The increasing use of syngas as industrial fuel gas is expected to act as an opportunity for the market.

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Carbon Monoxide Market Growth Factors

Rising Metal Extraction and Mining Activities to Propel the Market Growth

Carbon monoxide is used as a reducing agent in the metals and mineral industry during the refinery process. There has been a significant increase in mining and metal extraction activities in the last decade. The increasing demand for iron ore and iron metallic from various end-user sectors across the globe is likely to boost product consumption. The product demand is also propelled by exceptional properties such as high affinity toward transition metals. The compound does not exhibit acidic or basic properties and is predominantly used in the metal extraction process. According to the U.S. Geological Survey (USGS), 46,000 kilotons of iron ore were produced in the U.S. in 2022. The high product demand from the metal extraction and purification process is likely to drive the market growth.

RESTRAINING FACTORS

Poisonous Nature of the Gas May Hinder the Market Growth

Carbon monoxide is a poisonous gas that can result in death, if exposed for a longer period. It readily combines with hemoglobin to form carboxyhemoglobin, which potentially affects gas exchange, which can further lead to fatality. Nowadays, industries are following very strict and stringent regulations for the use of CO. These regulations ensure a safe working environment and avoid any dangerous, life-threatening situations for workers. Thus, regulations implemented by governments to ensure safety in workplaces are primarily hindering the growth of the market.

Carbon Monoxide Market Segmentation Analysis

By Application Analysis

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Metal Fabrication Segment Dominated Due to High Product Demand

In terms of application, the market is segmented into metal fabrication, chemicals, ore processing and extraction, pharma & biotechnology, and electronics.

The metal fabrication segment held the largest carbon monoxide market share in 2023. The high demand for the product in metal extraction, purification, and fabrication applications is anticipated to propel the growth of this segment.

The chemicals and ore processing and extraction segments are expected to generate significant revenue during the forecast period. The product is mainly consumed in the manufacturing process of several inorganic as well as organic chemicals, including metal carbonyls, titanium dioxide, and benzaldehyde.

Carbon monoxide is a versatile industrial gas that finds its use in a wide range of chemical processes. It is primarily used as a reducing agent in the production of chemicals such as methanol, acetic acid, and formaldehyde. In addition, it is used as a fuel gas in many industrial processes, including steel manufacturing and metal fabrication. However, carbon monoxide is a highly toxic gas, and its consumption in the chemical industry requires careful handling and safety procedures. Proper ventilation and monitoring of these gas levels are crucial in ensuring the safety of workers and the public.

REGIONAL INSIGHTS

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Regionally, the market is classified into Europe, North America, the Middle East & Africa, Latin America, and the Asia Pacific.

Asia Pacific is the dominant region in the market and the market size in the Asia Pacific stood at USD 1.40 billion in 2023. The high demand from metal extracting and processing companies is expected to boost the regional market growth. The large manufacturing base for end-user industries such as chemical and pharmaceuticals is further expected to boost the Asia Pacific carbon monoxide market growth. Moreover, increasing demand for electronic grade high purity CO from China and Japan for the production of ICs and other sensitive components is expected to influence industry growth.

Europe market is expected to show significant growth during the forecast period owing to the presence of a large product manufacturing base. For instance, the presence of Linde and Air Liquide, renowned commercial manufacturers of industrial gases, is expected to significantly contribute to Europe market growth. In addition, the rising product demand from the metal fabrication and pharma & medical manufacturing sectors is likely to foster the regional growth.  

North America is expected to show considerable growth during the forecast period owing to the presence of ample manufacturers in the U.S. The growing mining activities and rising metal ore exploration are influencing the market growth. According to the U.S. Geological Survey, the U.S. metal mine production in 2022 was estimated to be valued at USD 34.7 billion, of which iron ore comprised 15%. The predominant use of CO in iron extraction from iron ore in blast furnaces is further expected to propel market growth.

Latin America is expected to show moderate growth by the end of the forecast period, attributed to the growing ore exploration activities. The abundant availability of non-ferrous metals, especially copper, is likely to increase the product demand as a reducing agent in the extraction process.

The Middle East & Africa is anticipated to exhibit substantial growth over the study period. The swelling demand from end-use sectors is expected to boost the market growth in the region.

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List of Key Companies in Carbon Monoxide Market

Key Companies Form Strategic Alliances to Promote Sales

The competitive landscape depicts a consolidated and competitive market. Air Liquide, Linde Plc., Air Products, and Praxair are the key players operating in the market. Industry players operate principally based on the product's price and application characteristics. To boost their market share and achieve a competitive advantage, several major players are engaged in numerous strategic alliances to promote brand and sales.

LIST OF KEY COMPANIES PROFILED

• Air Liquide (France)


• Linde Plc. (Ireland)


• Air Products (U.S.)


• Praxair Inc. (U.S.)


• American Gas Products (U.S.)


• Sipchem Company (Saudi Arabia)


• Messer (Germany)


• MESA Specialty Gases & Equipment (U.S.)

KEY INDUSTRY DEVELOPMENTS

• August 2023 - Air Products Company announced that it is ready to launch two new world-scale carbon monoxide (CO) projects. This new project expands the world’s largest carbon monoxide pipeline network based in the U.S. Gulf Coast. In addition, it increases the CO capacity by around 70 Million Standard Cubic Feet Per Day (MMSCFD).


• July 2022 - Air Liquide’s subsidiary company, Shanghai Chemical Industry Park Industrial Gases Co., Ltd, invested money to set up two hydrogen production units in Shanghai Chemical Industry Park. These production plants will be able to produce 70,000 Nm3/h hydrogen (H2) and 28,000 Nm3/h carbon monoxide.


• February 2022 - Linde entered an expanded agreement with Celanese to enhance prescreens. The company expanded its existing agreement with Celanese Corporation to begin supplying carbon dioxide and hydrogen to the Celanese manufacturing facility in Clear Lake, Texas.


• February 2021 – Celanese Singapore, a global specialty material and chemical manufacturing company, announced the extension of the long-term contract with Linde Gas Singapore for the supply of carbon monoxide.

An Infographic Representation of Carbon Monoxide Market

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REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and raw materials. It also offers insights into market growth trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the market growth in recent years. It includes historical data and forecasts revenue growth at the global, regional, and country levels and analyzes the industry's latest market dynamics and opportunities.

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Report Scope & Segmentation