Bio- Carbon Dioxide (CO2) Utilization Market Report 2026

The bio- carbon dioxide (co2) utilization market size has grown rapidly in recent years. It will grow from $1.66 billion in 2025 to $1.88 billion in 2026 at a compound annual growth rate (CAGR) of 13.7%. The growth in the historic period can be attributed to rising greenhouse gas emissions, research in microbial fermentation, government climate initiatives, growth in renewable energy projects, availability of industrial co2 sources.

The bio- carbon dioxide (co2) utilization market size is expected to see rapid growth in the next few years. It will grow to $3.12 billion in 2030 at a compound annual growth rate (CAGR) of 13.5%. The growth in the forecast period can be attributed to net zero emission targets, investment in carbon utilization technologies, growth of bio based materials, advances in metabolic engineering, corporate sustainability commitments. Major trends in the forecast period include growing adoption of biological co2 conversion, expansion of algae based carbon utilization, increasing production of biofuels from co2, rising use of co2 derived bioplastics, focus on carbon neutral manufacturing.

The increasing adoption of bio-based products is expected to drive growth in the bio-carbon dioxide (CO₂) utilization market in the coming years. Bio-based products are derived from renewable biological sources such as plants, algae, and microorganisms, rather than fossil-based feedstocks. Adoption of these products is rising due to stricter environmental regulations and sustainability mandates, which encourage manufacturers to replace fossil-based materials with lower-carbon, renewable alternatives. Bio-carbon dioxide utilization enables the transformation of captured CO₂ from industrial or biological sources into valuable feedstocks, supporting the production of sustainable biofuels, bioplastics, and biochemicals while simultaneously reducing greenhouse gas emissions. For instance, in December 2023, the European Bioplastics Association projected that global bioplastics production capacity would increase from approximately 2.18 million tonnes in 2023 to nearly 7.43 million tonnes by 2028, reflecting the growing demand for renewable materials. Consequently, rising adoption of bio-based products is fueling the bio-CO₂ utilization market.

Key companies in the market are advancing technologies such as biocatalytic gas-fermentation to improve CO₂ conversion efficiency and expand the production of low-carbon, value-added chemicals. Biocatalytic gas-fermentation uses specially selected or engineered microorganisms to convert CO₂ and hydrogen into commercial compounds through biological catalysis. This process enables continuous carbon conversion, modular deployment, and integration with industrial CO₂ sources. For example, in November 2023, Again, a Denmark-based carbon-to-chemicals biomanufacturing startup, launched its first CO₂ utilization plant in Copenhagen. The facility employs biocatalytic gas-fermentation to transform industrial waste CO₂ streams into carbon-negative chemicals such as acetate and acetic acid. The plant’s modular bioreactors and direct gas feed system support industrial decarbonization while producing materials for textiles, packaging, and consumer goods.

In February 2024, CycleØ Group Limited, a UK-based provider of renewable gas solutions, acquired Biogasclean A/S to strengthen its bio-CO₂ utilization capabilities. The acquisition provides CycleØ access to Biogasclean’s proprietary biological methanation and biogas purification technologies, enabling enhanced CO₂ capture and conversion. This allows CycleØ to produce fully circular green gas by converting biogenic CO₂ into e-methane. Biogasclean, based in Denmark, specializes in upgrading biogas streams and transforming CO₂ into renewable methane using microbial processes, further supporting industrial decarbonization and the circular economy.

Major companies operating in the bio- carbon dioxide (co2) utilization market are Hitachi Zosen Corporation+Y314:Z325, LanzaTech Global Inc., Newlight Technologies LLC., Air Protein Inc., Algenol Biotech LLC., String Bio Private Limited., Cemvita Factory Inc., Electrochaea GmbH., Buggypower Biotech S.A., Solar Foods Oy., NovoNutrients Inc., Phytonix Corporation., Pond Technologies Inc., Global Algae Innovations Inc., Seambiotic Ltd., Photanol BV., Kiverdi Inc., Aerbio, Arkeon Biotechnologies GmbH., MBD Energy Limited.

Europe was the largest region in the bio- carbon dioxide (CO2) utilization market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the bio- carbon dioxide (co2) utilization market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the bio- carbon dioxide (co2) utilization market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The bio- carbon dioxide (CO2) utilization market consists of revenues earned by entities by providing services such as carbon capture services, engineering and design services, project development services, technology integration services, monitoring and verification services, and carbon credit management services. The market value includes the value of related goods sold by the service provider or included within the service offering. The bio- carbon dioxide (CO2) utilization market also includes sales of proteins, animal feed ingredients, fertilizers, synthetic methane, building materials, and specialty polymers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.