North America Transcritical CO2 Market is expected to reach US$ 28.45 Billion by 2031

Rise in Demand for Energy-Efficient Air Conditioning in Data Centers Drives North America Transcritical CO2 Market Growth

According to our latest market study on "The North America Transcritical CO2 Market to 2031 – Regional Analysis – by Application and Function," the market was valued at US$ 4.57 billion in 2023 and is expected to reach US$ 28.45 billion by 2031; it is anticipated to register a CAGR of 25.7% during 2023–2031. The North America transcritical CO2 market report includes growth prospects in light of current transcritical CO2 market trends and driving factors influencing the market growth.   

The growing number of data centers is a significant driver for the North America transcritical CO2 market. Data centers need a significant amount of energy, and design engineers must offer reliable, energy-efficient air conditioning systems. Texas is one of the growing data center hubs in the US, owing to notable activities from the hyperscale operators. The Western US region positions itself as a developed market for data centers, hosting all the major companies such as Meta (formerly Facebook), Google, and Microsoft in major locations such as Idaho, Oregon, California, and Utah. Northern Virginia is progressing into a multi-state market for air conditioners and chillers owing to high data center developments. Georgia is also actively supporting the growing development of the data center industry by employing tax exemptions on high-technology-driven data center equipment till 2033. This initiative attracts substantial attention to Atlanta, where several data center projects are in development or planning stages.

The North America Transcritical CO2 Market Share — by Country, 2023

Source: The Insight Partners Analysis

In March 2024, Carrier introduced AquaForce 30XF air-cooled screw chillers with a combined hydronic free-cooling system and variable-speed inverter drives, designed to deliver energy efficiency of up to ~50% specifically for data centers. Refrigerants using HFCs are utilized in a few data center equipment, including computer room air conditioning (CRAC) units, chillers, and some in-row cooling systems. Several large-scale data center operators are working to decrease their dependence on chillers and have shifted to free cooling strategies that leverage air-handling units and fresh air. Refrigerants are normally used in enterprise data centers. They are also used to support hyperscale and service provider data centers in warmer climates where free cooling is not practical. Natural refrigerants in the form of CO2 are being widely used in industrial and commercial cooling systems. Thus, the growing demand for energy-efficient air conditioning and cooling systems is boosting the market growth.

The scope of the North America transcritical CO2 market report focuses on the US, Canada, and Mexico. In terms of revenue, the US accounted for the largest transcritical CO2 market share in 2023, and the country is anticipated to continue its dominance during 2023–2031. The US transcritical CO2 market is expected to grow significantly during the forecast period due to the growing number of convenience stores. According to the 2024 NACS/NIQ Convenience Industry Store Count, 152,396 convenience stores are operating in the US, a 1.5% rise from the store count in 2023 and reversing a four-year slide. Also, ~118,678 convenience stores (i.e., 79%) are dedicated to selling motor fuel. In the US, ~80% of motor fuels were purchased from convenience stores in 2023. Moreover, ~39 states and Washington, DC, reported an increase in the number of stores, led by Georgia, which added ~271 stores in 2023. A growth in single-store operators, from 1,087 to 90,423 locations, i.e., 60.2% of all convenience stores, increased the installation of the transcritical CO2 systems. As the number of convenience stores increases in the country, the demand for transcritical CO2 systems also grows.

The increasing concerns regarding environmental sustainability and the phase-out of ozone-depleting substances have driven the demand for transcritical CO2 systems. These systems are known for their low global warming and zero depletion potential, making them an environmentally friendly alternative to traditional refrigerants. The rise in demand for transcritical CO2 in the ice-making, beer-brewing, and margarine-production industries is one of the key factors anticipated to propel the expansion of the North America transcritical CO2 market in the coming years. Additionally, the growing demand for air conditioning and refrigeration applications and the lower operating costs of systems will fuel the regional market growth.

In the US, the growing demand for meat, canned and processed food, and dairy products, owing to the rising population and changing lifestyle, is driving the need for cold storage facilities. Increasing health consciousness and growing inclination toward vegan food products are also boosting the demand for cold storage facilities. As per the Department of Agriculture, in June 2022, the US registered 3.73 billion cubic feet of gross refrigerated warehouse capacity. Among these, public storage accounted for 72%, with 517 warehouses, and private and semi-private facilities registered 387 warehouses. In addition, the US accounted for 1,858 refrigerated storage businesses in 2023. Tobin Scientific, United States Cold Storage, Lineage Logistics, Agro Merchant Group LLC, Wabash National Corporation, and Americold Logistics, Inc. are a few of the major cold storage and logistic companies operating in the US. In 2023, CJ Logistics America announced the expansion of its temperature-controlled warehousing capabilities with the inauguration of a 206,000 sq ft storage facility in Nashville, Tennessee. The changing consumer preference toward convenience food, busy lifestyles, and rising awareness for maintaining food value are boosting the demand for cold storage facilities in the US, positively impacting the transcritical CO2 market.

In Canada, food & beverage processing is the second-largest manufacturing industry. Food processing is crucial to the economies of all Canadian provinces. In 2022, the food and beverage processing industry was the major manufacturing industry in Canada in terms of production and sales, accounting for ~18.2% of total manufacturing sales and ~1.7% of the national Gross Domestic Product (GDP). Moreover, the most significant food industry in the Canadian provinces is seafood products, mostly present in Newfoundland, Nova Scotia, and New Brunswick. Owing to the large food processing industry, the demand for transcritical CO2 systems increases as storing the food without damage requires a cool environment. This requirement will boost the transcritical CO2 market growth in Canada. The growing stock of frozen meat and canned products is fueling the demand for proper cold storage facilities in Canada. In October 2023, stocks of frozen and chilled pork amounted to ~78,179 metric tons, and chilled and frozen beef amounted to ~30,121 metric tons, contributing to the largest proportion of chilled and frozen meats in cold storage facilities across Canada. In 2023, Lineage Logistics announced the expansion of a cold storage facility in Calgary, Canada, that will increase its total capacity to 200,000 square feet and more than 24,000 pallet positions. In 2022, Lineage acquired VersaCold Logistics Services. VersaCold operates 24 temperature-monitored supply chain warehouses with a capacity of 114 million cubic feet spread over nine provinces. Its facilities are located in Calgary, Toronto, Vancouver, Edmonton, Montreal, and Alberta. Thus, the rising number of food processing and storage facilities is acting as a major driver for the transcritical CO2 market in Canada.

BITZER Kuhlmaschinenbau GmbH; Carrier Global Corp; Danfoss A/S; Emerson Electric Co.; Panasonic Holdings Corporation; EVAPCO LMP; MAYEKAWA MFG. CO., LTD; Dover Corporation, CoolSys; and Epta Group are a few key transcritical CO2 manufacturers. These players are adopting various advanced products, such as parallel compressors, chill boosters, and heat recovery systems, to enhance their offerings. End users include ice-skating rinks, food storage and storage facilities, heat pumps, and supermarkets and convenience stores.

The North America transcritical CO2 market study is carried out by identifying and evaluating key players in the market. BITZER Kuhlmaschinenbau GmbH; Carrier Global Corp; Danfoss A/S; Emerson Electric Co.; Panasonic Holdings Corporation; EVAPCO LMP; MAYEKAWA MFG. CO., LTD; Dover Corporation; CoolSys; and Epta Group are among the key players profiled in the North America transcritical CO2 market report.  

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