Carbon Monoxide Market Size & Growth Analysis to 2030

The global carbon monoxide market size was valued at around USD 4 billion in 2023 and anticipated to register a significant CAGR of around 4% during the forecast period from 2024 to 2030. Its widespread industrial applications, particularly in steel manufacturing and chemical synthesis, underscore its indispensability in various processes. The chemical industry’s reliance on carbon monoxide as a fundamental building block for crucial chemicals amplifies its significance, especially in emerging markets experiencing growth. Furthermore, the energy sector’s pursuit of alternative fuels and clean energy sources propels the demand for carbon monoxide in synthesis gas production. Environmental considerations, driven by stringent regulations, stimulate the adoption of cleaner technologies, impacting carbon monoxide byproducts. Ongoing research and development endeavors, technological advancements, and innovations in capture and utilization technologies contribute to the market’s evolution. The interconnectedness of global economic trends, particularly in relation to industrial activities, plays a pivotal role, as does the ever-changing landscape of supply chain dynamics, including the availability and pricing of raw materials.

Market Snapshot:

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Market Drivers:

• Industrial Applications: Carbon monoxide plays a pivotal role in diverse industrial applications. Industries such as steel manufacturing, chemical synthesis, and metal fabrication rely on CO for processes like reduction reactions and as a feedstock for various chemical productions. The continuous growth and evolution of these industries contribute significantly to the demand for carbon monoxide.
• Chemical Industry: In the chemical industry, carbon monoxide serves as a fundamental building block for the synthesis of essential chemicals. Its application extends to the production of acetic acid, methanol, and hydrogen, among others. Therefore, any expansion or transformation within the chemical sector, especially in emerging markets, directly influences the demand for carbon monoxide.
• Energy Sector: Within the energy sector, carbon monoxide is utilized in the production of synthesis gas (syngas), a crucial intermediate for manufacturing liquid fuels and chemicals. Developments in the energy sector, particularly those focused on alternative fuels and clean energy production, can significantly impact the carbon monoxide market.
• Steel Industry: The steel industry is a major consumer of carbon monoxide, employing it in processes like the reduction of iron ore to produce steel. Changes in steel production trends, technological advancements, or shifts in the demand for steel can have a direct effect on the need for carbon monoxide.
• Environmental Regulations: Growing concerns about environmental sustainability and stringent regulations are driving industries to adopt cleaner technologies. In this context, the reduction of carbon monoxide emissions becomes a priority. Companies may seek technologies that minimize carbon monoxide byproducts, aligning with global efforts to reduce environmental impact.
• Research and Development: Ongoing research and development activities within the field of carbon monoxide are critical drivers. Innovations in production methods, purification processes, and novel applications for carbon monoxide can open up new avenues for market growth. Advancements in carbon monoxide capture and utilization technologies also contribute to shaping the market landscape.
• Global Economic Trends: Economic conditions on a global and regional scale play a pivotal role in determining industrial activities. Economic growth is often accompanied by increased production across various sectors, thereby influencing the demand for carbon monoxide. Conversely, economic downturns may lead to a contraction in industrial activities.
• Technology Advancements: Ongoing technological advancements related to the production, purification, and utilization of carbon monoxide are significant market influencers. More efficient and cost-effective processes contribute to increased adoption, fostering market growth. Innovations that enhance the overall sustainability and efficiency of carbon monoxide-related processes are particularly noteworthy.

Market Insights:

The global carbon monoxide market is bifurcated into grade, end-use, and geography. On the basis of grade, the market is further segmented into commercial grade and electronic grade. The electronic grade segment is accounted to hold the largest revenue share on the market. The dominance signifies a notable shift in dynamics, likely driven by the rapid growth of the semiconductor industry and technological advancements. The increasing demand for high-purity gases in the production of advanced electronic components, such as those used in microelectronics and nanotechnology, has positioned electronic-grade carbon monoxide as a crucial element in these manufacturing processes. The trend towards miniaturization of electronic devices, coupled with the growing dependence on electronics across various industries, has heightened the need for gases with extremely low impurity levels. Industries like semiconductor manufacturing, which adhere to stringent quality and reliability standards, find electronic-grade carbon monoxide more suitable for their applications. Additionally, investments in research and development within the electronic and semiconductor sectors, along with environmental and regulatory considerations favoring cleaner technologies, likely contribute to the dominance of the electronic-grade segment.

Commercial Grade Carbon Monoxide: Commercial grade carbon monoxide is primarily used in a wide range of industrial applications. It serves as a crucial feedstock in the production of various chemicals, including acetic acid, methanol, and formaldehyde. Additionally, it finds extensive use in metal fabrication processes, such as the reduction of iron ore in the steel industry. The automotive sector also utilizes commercial-grade carbon monoxide in catalytic converters for emissions control.

Electronic Grade Carbon Monoxide: Electronic-grade carbon monoxide is characterized by higher purity levels and is specifically tailored for applications in the electronics industry. It is used in semiconductor manufacturing, where stringent purity requirements are essential to prevent contamination of electronic components. Electronic-grade carbon monoxide may also find applications in other high-tech industries where purity is a critical factor.

The carbon monoxide market research report presents the analysis of each segment from 2020 to 2030 considering 2023 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2024 to 2030.

Historical & Forecast Period

• 2020-22 – Historical Year
• 2023 – Base Year
• 2024-2030 – Forecast Period

Market Segmentation:

By Grade:

• Commercial Grade
• Electronic Grade

By End-Use Industry:

• Chemical industry
• Metal Industry
• Electronic Industry

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, the Asia Pacific dominated the global carbon monoxide market in the benchmark year and expected to grow at a significant CAGR over the forecast period. The dominance of the Asia-Pacific region in the carbon monoxide market underscores the region’s pivotal role in global industrial activities. With major economies like China and India experiencing rapid industrial expansion and serving as manufacturing powerhouses, the demand for carbon monoxide has surged across diverse sectors such as steel production, chemical manufacturing, and electronics. The Asia-Pacific region’s status as a manufacturing hub has positioned it as a key consumer of carbon monoxide, contributing to its dominance in terms of market share. Additionally, economic development initiatives, technological advancements, and supportive government policies have further fueled the region’s demand for carbon monoxide, solidifying its leadership position in the market.

Moreover, the Asia-Pacific region’s influence extends beyond its borders, with global trade dynamics playing a crucial role. The interconnectedness of the region with other major markets enhances its dominance, as it contributes significantly to the overall supply chain and trade flows in the carbon monoxide market. The region’s dominance is likely to persist as long as industrial growth, technological innovation, and economic development continue to drive the demand for carbon monoxide across its diverse industrial landscape.

Competitive Assessment:

Some of the dominant market players operating in the global carbon monoxide market are Linde plc, Air Liquide S.A., Air Products and Chemicals, Inc., Messer Group GmbH, and Taiyo Nippon Sanso Corporation. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Recent Developments:

• In February 2022, Linde expanded its collaboration with Celanese by introducing additional pre-screening solutions. As part of this extension, Linde will supply carbon dioxide (CO2) and hydrogen to Celanese’s manufacturing plant located in Clear Lake, Texas. Celanese aims to leverage these provided resources as alternative raw materials in the production of methanol through their joint venture, Fairway Methanol LLC. This strategic shift is anticipated to yield methanol with significantly reduced carbon emissions, contributing to environmentally sustainable manufacturing practices.
• In July 2020, Air Products unveiled plans for the establishment of a new industrial gas facility in Geismar, Louisiana. The facility will feature a steam methane reformer and cold box, with the primary objective of supplying hydrogen and carbon monoxide (CO) to Huntsman Corporation’s industrial operations. With a production capacity of approximately 6.5 million standard cubic feet per day (MMSCFD) of CO, 50 MMSCFD of hydrogen, and up to 50,000 pounds per hour of steam, the facility is poised to enhance the availability of these critical industrial gases in the region.

Key Companies:

• Linde plc
• Air Liquide S.A.
• Air Products and Chemicals, Inc.
• Messer Group GmbH
• Taiyo Nippon Sanso Corporation
• Mitsubishi Chemical Corporation
• Others

Key Questions Answered by Carbon Monoxide Market Report

• Global carbon monoxide market forecasts from 2024-2030
• Regional market forecasts from 2024-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2024-2030 covering 15 major countries from the regions as mentioned above
• Carbon monoxide submarket forecasts from 2024-2030 covering the market by grade, end-use industry, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level carbon monoxide markets from 2024-2030
• Competitive Landscape and market positioning of top 10 players operating in the market