Transcritical CO2 Market Size, Growth Analysis Report, 2024-2032
Transcritical CO2 Market Size, Share & Growth Analysis Report, 2024-2032

Transcritical CO2 Market Share, Size, Trends, & Industry Analysis Report By Function (Refrigeration, Heating, Air Conditioning); By Application; By Region, Segment Forecasts, 2024 - 2032

  • Published Date:Jan-2024
  • Pages: 118
  • Format: PDF
  • Report ID: PM1137
  • Base Year: 2023
  • Historical Data: 2019-2022

Report Outlook

The global transcritical CO2 market was valued at 53.22 billion in 2023 and is anticipated to grow at a CAGR of 15.1% during the forecast period.

The transcritical CO2 market is the broader concept of the refrigeration and heating industry that utilizes carbon dioxide (CO2) as a natural refrigerant in a transcritical cycle. Unlike traditional refrigerants, transcritical CO2 operates at higher pressures and temperatures, making it suitable for various applications, including heat pumps, supermarkets, food processing, and ice skating rinks.

The market has gained importance in recent years due to the environmental advantages of CO2 as a refrigerant compared to synthetic alternatives. One of the primary driving factors for the market is its low environmental impact. Carbon dioxide is a natural refrigerant with zero ozone depletion potential (ODP) and a minimal global warming potential (GWP). As concerns about climate change and environmental sustainability have intensified, industries are increasingly adopting transcritical CO2 systems to comply with stringent regulations aimed at phasing out synthetic refrigerants known for their adverse effects on the ozone layer and contribution to global warming.

Transcritical CO2 Market Size

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Energy efficiency is another significant factor fueling the growth of the market. Transcritical CO2 systems are known for their high energy efficiency, particularly in colder climates where traditional refrigerants tend to lose efficiency. This has led to increased adoption, especially in regions with colder climates, as these systems can provide efficient heating even in sub-zero temperatures.

Despite this, the market faces certain restraining factors, such as the high initial cost of implementing transcritical CO2 systems. The specialized equipment and technology required for transcritical CO2 refrigeration can result in higher investment compared to conventional systems. This cost factor may act as a barrier for some end-users, particularly in emerging economies with budget constraints. Another challenge is the complexity of transcritical CO2 systems, which can require skilled expertise for installation, operation, and maintenance.

Industry Dynamics

Growth Drivers

The growth of the market is driven by the adoption of transcritical CO2 systems in supermarkets.

The growth of the transcritical CO2 market is significantly propelled by the widespread adoption of transcritical CO2 systems in the supermarket sector, as the demand for environmentally sustainable refrigeration solutions is increasing day by day. Transcritical CO2 systems offer a good alternative to traditional refrigerants, addressing both environmental concerns and the need for energy-efficient cooling in large-scale commercial spaces.

Also, the adoption of transcritical CO2 systems in supermarkets is the regulatory push towards environmentally friendly refrigeration solutions. With increasing awareness of the environmental impact of traditional refrigerants, regulations and policies around the world are becoming more stringent, encouraging businesses to shift toward low-GWP (Global Warming Potential) and zero-ODP (Ozone Depletion Potential) systems. Transcritical CO2 systems align with these regulations, positioning themselves as a responsible and sustainable choice for supermarket refrigeration.

Transcritical CO2

Report Segmentation

The market is primarily segmented based on function, application, and region.

By Function

By Application

By Region

  • Refrigeration
  • Heating
  • Air Conditioning
  • Heat Pumps
  • Retail
  • Food Processing
  • Ice Skating Rinks
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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By Function Analysis

The refrigeration segment held the largest revenue share in 2023

In 2023, the refrigeration segment stood out as the dominant revenue generator in the market owing to the increasing recognition of transcritical CO2 systems as an environment-friendly solution for refrigeration applications. With growing concerns about the environmental impact of traditional refrigerants, industries, including food and beverage, cold storage, and pharmaceuticals, are increasingly adopting transcritical CO2 systems to align with stringent environmental regulations and reduce their carbon footprint.

Along with this, the refrigeration sector benefits substantially from the energy efficiency offered by transcritical CO2 systems, particularly in colder climates. The ability of transcritical CO2 systems to maintain high energy efficiency even in low temperatures makes them well-suited for refrigeration applications, where maintaining optimal temperature conditions is critical.

By Application Analysis,

The retail segment is expected to hold the largest revenue share over the forecasted period.

The retail segment is expected to hold the largest revenue share in the market because retail establishments, including supermarkets, hypermarkets, and convenience stores, have become the point of attraction for the adoption of transcritical CO2 systems. Supermarkets are on the front line of adopting transcritical CO2 systems due to their extensive refrigeration needs. These systems offer superior energy efficiency, ensuring optimal cooling performance while minimizing energy consumption. As energy costs continue to be a significant operational consideration for retailers, the efficiency gains provided by transcritical CO2 systems contribute to the cost savings of these retail establishments.

Transcritical CO2 Seg

Regional Insights

Europe region is expected to dominate the transcritical CO2 market in the forecast period.

Europe region is expected to dominate the market in the forecast period because the demand for transcritical CO2 has been rising in the region, particularly in the UK, Germany, and France, as a result of an increase in the use of gas in supermarkets, convenience stores, and food processing and storage facilities for refrigeration and air conditioning applications.  

The transcritical CO2 market in Europe is being driven by the low operating costs of these systems as well as their minimal environmental impact due to their non-toxicity and non-flammability. Also, the region's market is anticipated to be driven by strict government regulations imposed on the use of greenhouse gases and chlorofluorocarbons (CFCs). The market is predicted to grow even more as a result of the recent F-gas regulations and HFC phase-out plan in Europe, which mandate cutting the use of hydrofluorocarbon (HFC) in refrigeration applications by nearly half by 2025.

The market is anticipated to grow at the fastest rate in North America due to the region's concentration of the world's most prestigious food manufacturing companies, many of which have begun utilizing CO2 for refrigeration. In addition to these, another factor propelling the regional market is the existence of the top heat pump systems manufacturing sector in the region, particularly in the United States.  

Transcritical CO2 Reg

Key Market Players & Competitive Insights

Prominent players in the market, such as global companies and innovative startups, are investing significant resources toward research and development initiatives. The efficiency, dependability, and safety of transcritical CO2 systems are the main goals of these initiatives. Research and development efforts are focused on creating sophisticated compressors, heat exchangers, and system controls that are specifically designed to handle the special thermodynamic properties of CO2 under transcritical circumstances. Manufacturers are also concentrating on improving the transcritical CO2 solution’s scalability and application.

Some of the major players operating in the global transcritical CO2 market include:

  • Advansor A/S
  • Baltimore Aircoil Company Inc.
  • Carnot Refrigeration Inc.
  • Carrier Commercial Refrigeration
  • Danfoss GmbH
  • Emerson Climate Technologies
  • Green & Cool World Refrigeration Ab
  • Henry Technologies Inc.
  • Hill Phoenix Inc
  • Mayekawa MSG. Co. Ltd.
  • SCM Frigo SPA
  • Shecco SPRL,
  • Systems LMP Inc.

Recent Developments

  • In June 2023, A new line of transcritical CO2 (R744) compressors for industrial use was unveiled by Italian compressor manufacturer Dorin. The new compressors are from Dorin's CD600 series with six cylinders and a maximum output of 160 horsepower and 100 m3/h.
  • In August 2023, SCM Frigo, an Italian manufacturer that specializes in refrigeration technologies based on CO2 (R744), introduced a new line of transcritical CO2 booster racks for commercial use.
  • In September 2023, SWEP, a part of Dover Group, launched its innovative solution for transcritical refrigeration systems.

Transcritical CO2 Market Report Scope

Report Attributes


The market size value in 2024

USD 61.03 billion

Revenue Forecast in 2032

USD 187.94 billion


15.1% from 2024 – 2032

Base year


Historical data

2019 – 2022

Forecast period

2024 – 2032

Quantitative units

Revenue in USD billion and CAGR from 2024 to 2032

Segments Covered

By Function, By Application, and By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa


Report customization as per your requirements concerning countries, regions, and segmentation.

Explore the market dynamics of the 2024 Transcritical CO2 Market share, size, and revenue growth rate, meticulously examined in the insightful reports crafted by Polaris Market Rersearch Industry Reports. The analysis of Transcritical CO2 Market extends to a comprehensive market forecast up to 2032, coupled with a retrospective examination. Avail yourself of a complimentary PDF download to sample this in-depth industry analysis.

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The Transcritical CO2 Market report covering key segments are function, application, and region.

The global transcritical CO2 market size is expected to reach USD 187.94 billion by 2032

The global transcritical CO2 market is anticipated to grow at a CAGR of 15.1% during the forecast period.

Europe regions is leading the global market.

The growth of the market is driven by the adoption of transcritical CO2 systems in supermarkets are the key driving factors in Transcritical CO2 Market.