North America Transcritical CO2 Market Forecast, Share, and Growth to 2031

The North America transcritical CO2 market size is projected to reach US$ 28.45 billion by 2031 from US$ 4.57 billion in 2023. The market is expected to register a CAGR of 25.7% during 2023–2031. The growing implementation of advanced transcritical CO2 systems is likely to offer new key trends to the market in the coming years.

North America Transcritical CO2 Market Analysis

The rise in the adoption of sustainable refrigeration and storage technologies, an increase in demand for energy-efficient air conditioning in data centers, and the implementation of transcritical CO2 systems in supermarkets and convenience stores are the key driving factors for the North America transcritical CO2 market. In addition, the rising significance of CO2 refrigerants in food and beverages and pharmaceutical industries is expected to create a growth opportunity in the North America transcritical CO2 market. Moreover, the growing implementation of advanced transcritical CO2 systems is anticipated to be the market trend during the forecast period.

The raw material and components manufacturers gather raw materials and manufacture the components required for the transcritical CO2 system. The components required for designing the transcritical CO2 systems are compressors, evaporators, expansion valves, and condensers (gas coolers). Atlas Copco AB; Mehrer Compression GmbH; and Mitsubishi Heavy Industries, Ltd. are among the prominent CO2 compressor manufacturers. A few prominent CO2 evaporator manufacturers are Colmac Coil Manufacturing, Inc.; Hypro; Pentair; and LU-VE S.p.a. Major expansion valve components manufacturers are CAREL INDUSTRIES S.p.A., Parker Hannifin, and Danfoss. Component manufacturers send the components to transcritical C02 system manufacturers.

North America Transcritical CO2 Market Overview

Transcritical CO2 systems offer several advantages over other types of refrigeration systems. These systems are environmentally friendly, efficient, and cost-effective. They are also safer to operate. As a result, transcritical CO2 systems are becoming increasingly popular for a wide range of refrigeration applications. Commonly referred to as R-744, carbon dioxide (CO2) has been widely accepted as a natural refrigerant in recent years. CO2 has high thermal conductivity and density in the gaseous phase, which results in good heat transfer in evaporators, condensers, and gas coolers; so, these characteristics allow smaller units to be designated in comparison to those that use chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), and HFCs.

The rising adoption of transcritical CO2 systems in the commercial and industrial sectors, owing to the rising demand for energy-efficient chillers, air conditioners, and refrigerants, is acting as a major driver for the North America transcritical CO2 market. Several food retail stores in North America use transcritical CO2 systems to reduce greenhouse gas emissions. In February 2024, US-based OEM Zero Zone installed one of its transcritical CO2 (R744) refrigeration systems at a supermarket in Palmdale, California, altering its prior HFC-based equipment. In April 2021, ALDI US, a food retailer in North America, used natural refrigerants in its stores. ALDI US is mostly using transcritical CO2 equipment in its 360 stores. CO2-based refrigeration technologies are being adopted in a wide variety of small-format retailers, including convenience stores. In June 2023, DeCicco & Sons, a New York-based food retailer, used the transcritical CO2 (R744) system in their Larchmont store. The system helps DeCicco & Sons reduce electricity consumption by 7 to 37%. The advantages of transcritical CO2 drive their adoption in retail stores.

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North America Transcritical CO2 Market Drivers and Opportunities

Sustainable Refrigeration and Storage Technologies

Transcritical CO2 systems use carbon dioxide (CO2) as a refrigerant, which has a very low ozone depletion potential (ODP). Unlike conventional refrigerants such as hydrofluorocarbons (HFCs) or hydrochlorofluorocarbons (HCFCs), which contribute to ozone layer depletion, CO2 does not damage the ozone layer. This characteristic makes cold storage transcritical CO2 refrigeration systems environmentally friendly and supports efforts to phase out ozone-depleting substances. Transcritical CO2 systems have a substantially minimalized global warming potential (GWP) compared to many conventional cold storage facilities. GWP measures the ability of greenhouse gases to impact global warming over a definite period. CO2 has a GWP of 1, whereas HFCs commonly used in refrigeration systems have GWPs in the thousands or even tens of thousands. By using CO2 as a refrigerant, transcritical systems help moderate climate change and reduce the carbon footprint of cooling and refrigeration applications. Overall, the low environmental impact of cold storage transcritical CO2 systems is driving the market by supporting global environmental objectives. As the need for sustainable refrigeration and storage solutions continues to develop, cold storage transcritical CO2 technology offers a viable and smart option for businesses across various sectors. The application of cold thermal storage technology is one of the environment-friendly alternatives for storage facilities that can drive the growth of the North America transcritical CO2 market.

Rising Significance of CO2 Refrigerants in Food and Beverages and Pharmaceutical Industries

In the food and beverages industry, refrigerants are predominantly utilized to maintain a temperature-controlled environment to preserve stored food and beverage products. The demand for processed, canned, and easy-to-make food items is rising in the US with the growing population, rising urbanization, increasing disposable income, and busy lifestyles. Moreover, their taste and convenience of cooking render them popular among youth in the country. Canned or convenience food items require proper storage facilities to maintain them in consumable conditions. Processed foods are highly likely to rot within a few days or weeks if not preserved well. Optimal temperature and proper storage conditions are critical for extending the shelf life of processed or canned food, which results in the demand for refrigerants.

The hostile impact of high GWP refrigerants on climate change is well-identified. As a result, international regulations are being executed to phase out or limit the implementation of such refrigerants. Transcritical CO2 systems offer an alternative with substantially lower GWP, making them an attractive alternative for businesses looking to obey these regulations. The need to transition away from high GWP refrigerants creates a market opportunity for transcritical CO2 systems. Supermarkets and convenience stores typically have a significant environmental impact due to their reliance on refrigeration systems to store perishable goods. As sustainability and environmental responsibility have gradually become more important, there is a growing need to decrease the carbon footprint and greenhouse gas emissions associated with these cooling systems. As transcritical CO2 systems help alleviate the environmental impact linked with conventional refrigerants and align with sustainability goals, the increased demand for sustainable solutions presents an opportunity for transcritical CO2 systems to gain market share.

North America Transcritical CO2 Market Report Segmentation Analysis

Key segments that contributed to the derivation of the North America transcritical CO2 market analysis are application and function.

• In terms of application, the North America transcritical CO2 market is segmented into ice skating rinks, food processing and storage facilities, heat pumps, retail (supermarkets and convenience stores), and others. The retail segment held the largest share of the market in 2023.
• Based on function, the North America transcritical CO2 market is categorized into air conditioning, refrigeration, and heating. The refrigeration segment dominated the market in 2023.

North America Transcritical CO2 Market Share Analysis by Geography

The geographic scope of the transcritical CO2 market report offers a detailed country analysis in North America. The US is the major country witnessing significant growth in the transcritical CO2 market owing to the rise in demand for transcritical CO2 systems from the retail sector. The transcritical CO2 system is an environmental-friendly and reliable system under which CO2 is cooled, but it does not condense at the gas cooler outlet and operates above the critical point. These systems are mainly used for commercial purposes in supermarkets, convenience stores, and other commercial refrigeration applications. These systems are also used for industrial purposes such as food processing, cold storage warehouses, and breweries. These industries need reliable temperature control and energy efficiency, making transcritical CO2 systems a preferred choice.

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. Moreover, 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 growth 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 North America transcritical CO2 market growth.

North America Transcritical CO2 Market Report Coverage and Deliverables

The " North America transcritical CO2 market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• North America transcritical CO2 market size and forecast at country levels for all the key market segments covered under the scope
• North America transcritical CO2 market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Transcritical CO2 market analysis covering key market trends, country framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the North America transcritical CO2 market
• Detailed company profiles

North America Transcritical CO2 Market Regional Insights

The regional trends and factors influencing the North America Transcritical CO2 Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses North America Transcritical CO2 Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

North America Transcritical CO2 Market Report Scope

North America Transcritical CO2 Market Players Density: Understanding Its Impact on Business Dynamics

The North America Transcritical CO2 Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.