Polaris Market Research today announced findings from its latest industry report, projecting the Europe carbon dioxide (CO2) market to grow from USD 1.74 billion in 2024 to USD 2.55 billion by 2034, expanding at a CAGR of 3.86% between 2025 and 2034. The 124-page report profiles 11 leading companies across the source and application segments that define the region's CO2 supply chain, spanning industrial gas majors, energy utilities, and emerging carbon-recycling innovators.

The Europe carbon dioxide market plays a crucial role across food and beverages, medical, oil and gas, and chemicals industries. Food and beverage companies use CO2 for carbonation, packaging, and preservation, while the medical sector relies on it for respiratory therapies and minimally invasive surgeries. In the oil and gas industry, enhanced oil recovery techniques use CO2 to improve extraction efficiency, and the chemical industry uses it as a feedstock for producing methanol, urea, and other compounds. Europe's strong emphasis on sustainability and circular-economy practices is also supporting the development of carbon capture, utilization, and storage (CCUS) technologies that align with the region's climate-neutrality targets under the European Green Deal.

Analyst Commentary on Europe Carbon Dioxide Market Growth

"Automakers, brewers, and beverage bottlers across Europe are quietly becoming some of the biggest drivers of CO2 demand, alongside rising interest in market growth opportunities tied to carbon capture and reuse," said a Senior Research Analyst at Polaris Market Research. "For buyers and investors, the opportunity lies less in raw production capacity and more in who can supply high-purity, sustainably sourced CO2 as Europe tightens its climate targets."

Europe Carbon Dioxide Market Statistics at a Glance

• 2024 Market Size: USD 1.74 Billion
• 2025 Market Size: USD 1.81 Billion
• 2034 Projected Size: USD 2.55 Billion
• CAGR (2025–2034): 3.86%
• Largest Market (2024): UK, 42.07% share

Key Growth Drivers, Major Companies and Segments Covered

Growth Drivers: Rising vehicle production, growing demand for carbonated drinks, and expanding urbanization are the primary forces behind the market's expansion, alongside growing demand for carbon capture, utilization, and storage (CCUS) solutions. The European Automobile Manufacturers' Association reports that roughly 14.8 million vehicles are manufactured across the EU each year, and automakers rely heavily on CO2 as a shielding gas in welding and metal fabrication, as well as in molding the plastics, rubbers, and foams used in vehicle components. The British Soft Drinks Association notes that carbonated drinks account for 38.6% of the UK soft drinks market, and bottlers require large, consistent supplies of high-purity CO2 to carbonate water and flavored syrups. Urbanization adds a third layer of demand: the European Commission projects the region's urbanization rate will climb to roughly 83.7% by 2050, a shift that is expanding hospitals, water treatment plants, and fire-suppression infrastructure that all rely on CO2 for medical procedures, pH control, and fire extinguishers. In December 2023, ORLEN Group acquired a stake in a carbon dioxide storage project in Norway, underscoring how energy majors are positioning themselves around emissions reduction and CO2 supply security. High energy consumption in capturing and storing CO2 remains a restraint, even as AI-driven tools increasingly optimize energy use, accelerate carbon capture innovation, and improve emissions-reporting accuracy for EU compliance.

Major Companies Covered: Air Liquide S.A., Linde PLC, Air Products and Chemicals, Inc., Messer Group GmbH, and RWE AG.

Segments Covered: By Source (Hydrogen, Ethyl Alcohol, Ethylene Oxide, Substitute Natural Gas, Others), By Application (Food & Beverages, Oil & Gas, Medical, Rubber, Firefighting, Others), By Country.

👉 Download a Free Sample of the Europe Carbon Dioxide Market Report → 
https://www.polarismarketresearch.com/industry-analysis/europe-carbon-dioxide-market 

Recent Developments in the Europe Carbon Dioxide Market

• July 2023: Technip Energies and LanzaTech Global, Inc. signed a joint collaboration agreement to transform waste carbon into ethylene, one of the most common building blocks in petrochemicals.
• December 2023: ORLEN Group acquired a stake in a carbon dioxide storage project in Norway.
• November 2023: Yara International and Northern Lights, a CO2 transport and storage supplier, signed a binding commercial agreement enabling the first cross-border transportation and storage of CO2 in Europe.

Regional Snapshot: UK Leads, Germany Fastest-Growing

The UK accounted for 42.07% of Europe's CO2 market share in 2024, supported by its strong oil and gas operations, extensive use of CO2 in enhanced oil recovery across North Sea fields, and an aggressive government push toward carbon capture, utilization, and storage projects. A strong domestic beverage industry relying on CO2 for carbonation and packaging further reinforced the UK's dominant position. Germany, meanwhile, is projected to register the fastest CAGR of 3.99% through 2034, driven by its large-scale beverage export industry, its manufacturing sector's use of CO2 in welding and cooling, and growing investment in bio-based CO2 recovery aligned with the country's renewable energy and decarbonization goals.

Why It Matters for Buyers Evaluating Market Entry

For stakeholders researching the Europe carbon dioxide market forecast, the underlying Polaris Market Research report benchmarks market share, company positioning, and segment-level forecasts across source, application, and country to support sourcing, partnership, and investment decisions through 2034.

About Polaris Market Research

Polaris Market Research is a B2B syndicated market research and consulting firm offering 5,000+ published reports across 20+ industry verticals, delivering data-backed insights to help businesses make informed decisions with confidence.

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