Carbon Dioxide (CO2) Utilization Project Development Global Market Report 2025

The carbon dioxide (CO2) utilization project development market size has grown rapidly in recent years. It will grow from $2.87 billion in 2024 to $3.28 billion in 2025 at a compound annual growth rate (CAGR) of 14.5%. Growth during the historic period can be attributed to rising demand for low-carbon industrial inputs, increased investments from government climate initiatives, greater availability of captured emissions from industrial facilities, a surge in sustainability commitments among global manufacturers, the expansion of green procurement policies, and growing interest from construction materials producers.

The carbon dioxide (CO2) utilization project development market size is expected to see rapid growth in the next few years. It will grow to $5.57 billion in 2029 at a compound annual growth rate (CAGR) of 14.1%. Growth in the forecast period can be attributed to increasing government incentives for carbon-neutral products, rising consumer preference for environmentally responsible goods, wider deployment of large-scale capture plants, a surge in corporate net-zero targets across heavy industries, the expansion of climate financing in emerging economies, and greater adoption of circular carbon strategies by manufacturers. Major trends expected in the forecast period include technological advancements in carbon-based synthetic fuels, progress in biological fixation methods for gas-to-material conversion, innovations in catalyst systems for faster reaction processes, developments in mineralization techniques for construction materials, research and development in electrochemical conversion pathways, and advancements in modular plant designs for distributed utilization systems.

The growing energy transition and net-zero initiatives are expected to drive the expansion of the carbon dioxide (CO₂) utilization project development market. Energy transition and net-zero initiatives involve national or regional efforts aimed at moving from fossil-fuel-based systems to renewable, low-carbon energy sources while committing to reduce greenhouse-gas emissions to net-zero levels. These initiatives are increasing due to the implementation of stricter climate regulations that require industries to cut emissions and adopt cleaner technologies. Carbon dioxide (CO₂) utilization project development supports these goals by converting captured CO₂ emissions from industrial and power sectors into valuable products such as fuels, chemicals, and building materials, thereby helping reduce greenhouse gas concentrations. For example, in October 2024, the European Commission, a Belgium-based policy-making body of the European Union (EU), reported that the region achieved a net 8% reduction in greenhouse-gas emissions in 2023 compared to 2022, marking the largest annual decline in decades aside from the COVID-19 lockdown year. Therefore, the growing energy transition and net-zero initiatives are contributing to the expansion of the carbon dioxide (CO₂) utilization project development market.

Leading companies in the carbon dioxide (CO₂) utilization project development market are prioritizing the integration of advanced technologies such as CO₂ curing to enhance performance, cost efficiency, and measurable carbon reduction. CO₂ curing is an advanced technique in which captured or industrial CO₂ is injected into controlled curing chambers, where it reacts with calcium-rich binders to form solid carbonates, enabling permanent carbon mineralization, accelerated curing, and reduced cement usage. For instance, in May 2023, CarbonBuilt, a US-based low-carbon concrete technology company, introduced Reversa ultra-low-carbon concrete blocks, a CO₂-curing-based product designed to permanently store CO₂ in concrete while reducing cement consumption. The technology features retrofit-compatible curing chambers, the use of industrial by-products in the binder, and commercial-grade strength and durability. Reversa enhances sustainability outcomes, reduces embodied carbon, and supports scalable, commercially viable CO₂ utilization in building materials.

In November 2023, ExxonMobil Corporation, a US-based integrated oil, gas, and petrochemicals company, acquired Denbury Inc. for approximately USD 4.9 billion. Through this acquisition, ExxonMobil gains access to Denbury’s extensive carbon dioxide (CO₂) pipeline network spanning more than 1,300 miles and multiple onshore CO₂ storage locations, thereby strengthening its carbon transport and sequestration capabilities while expanding its scale and presence within the CO₂ utilization project development sector. Denbury, a US-based specialist in CO₂-enhanced oil recovery and midstream infrastructure, is recognized for its robust pipeline assets and storage expertise.

Major players in the carbon dioxide (co2) utilization project development market are Infinium Holdings Inc., HIF Global LLC, LanzaTech Global Inc., Air Company Inc., Liquid Wind AB, Newlight Technologies LLC, CarbonCure Technologies Inc., Electrochaea GmbH, Twelve Benefit Corporation, Carbon Recycling International ehf, Carbon8 Systems Ltd., Arcadia eFuels ApS, Blue Planet Systems Corporation, Carbon Upcycling Technologies Inc., ABEL Energy Pty Ltd, European Energy A/S, SeeO2 Energy Inc., Nordic Electrofuel AS, CarbonBuilt Inc., Dimensional Energy Inc.

North America was the largest region in the carbon dioxide (CO2) utilization project development market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in carbon dioxide (CO2) utilization project development report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the carbon dioxide (CO2) utilization project development market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the utilities sector, particularly in power generation, grid infrastructure, and renewable energy projects. Higher duties on imported equipment such as turbines, transformers, solar panels, and battery storage systems have increased capital and operational costs for utility providers, forcing them to reconsider project timelines or pass on expenses to consumers through higher energy rates. The water and waste management segments are also affected, with tariffs driving up the cost of essential machinery, piping, and treatment technologies. Additionally, retaliatory tariffs have disrupted global supply chains for critical raw materials like rare earth metals used in clean energy technologies, further complicating the transition to sustainable energy sources. The sector must now prioritize domestic sourcing, digitalization, and efficiency-driven innovations to manage escalating costs while ensuring energy security and regulatory compliance.

The carbon dioxide (CO2) utilization project development market research report is one of a series of new reports that provides carbon dioxide (CO2) utilization project development market statistics, including the carbon dioxide (CO2) utilization project development industry global market size, regional shares, competitors with the carbon dioxide (CO2) utilization project development market share, detailed carbon dioxide (CO2) utilization project development market segments, market trends, and opportunities, and any further data you may need to thrive in the carbon dioxide (CO2) utilization project development industry. This carbon dioxide (CO2) utilization project development market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Carbon dioxide (CO2) utilization project development refers to the creation and operation of projects that capture CO2 and convert it into useful products rather than releasing it into the atmosphere. It involves technologies that collect CO2 from industrial facilities or directly from the air and then transform it into fuels, chemicals, building materials, plastics, or other valuable products. These projects help reduce emissions, promote a circular carbon economy, and generate new commercial goods from waste CO2.

The main types of carbon dioxide (CO2) utilization project development include pilot, demonstration, and commercial projects. A pilot is a small-scale, early-stage implementation of a project or technology used to assess feasibility, performance, and practical challenges before expanding to larger operations. The various technologies involved are carbon capture and utilization, direct air capture, biological conversion, chemical conversion, mineralization, and others. Key applications include enhanced oil recovery, fuels and chemicals, building materials, food and beverages, and additional uses. These projects serve multiple end-users, such as oil and gas, power generation, chemicals, cement, agriculture, and others.

The carbon dioxide (CO2) utilization project development market consists of revenues earned by entities by providing services such as feasibility studies, engineering design, technology integration, monitoring and verification, operations and maintenance, and carbon accounting. The market value includes the value of related goods sold by the service provider or included within the service offering. The carbon dioxide (CO2) utilization project development market also includes sales of low-carbon fuels, methanol, concrete blocks, construction aggregates, polymers, and fertilizers. 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.

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