Need for Sustainable Cooling and Refrigeration Solutions Drives Transcritical CO2 Market
According to our latest market study on "Transcritical CO2 Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Application and Function," the market is expected to grow from US$ 48,529.81 million in 2023 to US$ 140,931.01 million by 2030; it is estimated to record a CAGR of 16.5% from 2023 to 2030.
Transcritical CO2 systems use carbon dioxide (CO2) as a refrigerant, which has an ozone depletion potential (ODP) of zero. Unlike traditional refrigerants such as hydrochlorofluorocarbons (HCFCs) or hydrofluorocarbons (HFCs), which contribute to ozone layer depletion, CO2 does not harm the ozone layer. This characteristic makes transcritical CO2 systems environmentally friendly and aligns with global efforts to phase out ozone-depleting substances. Transcritical CO2 systems have a significantly lower global warming potential (GWP) compared to many conventional refrigerants. GWP measures the potential for a greenhouse gas to contribute to global warming over a specific 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 mitigate climate change and reduce the carbon footprint of cooling and refrigeration applications. The transcritical CO2 market growth if obvserved because of the the low environmental impact of transcritical CO2 systems. As the need for sustainable cooling and refrigeration solutions continues to grow, transcritical CO2 systems offer a viable and attractive option for businesses across various sectors.
Transcritical CO2 Market — by Application, 2022
Transcritical CO2 Market Forecast to 2030 - Global Analysis by Application (Ice Skating Rinks, Food Processing & Storage Facilities, Heat Pumps, Supermarkets & Convenience Stores, and Others) and Function (Air Conditioning, Refrigeration, and Heating)
Transcritical CO2 Market Size, Analysis Report 2030
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Source: The Insight Partners Analysis
Various food retail stores in North America use transcritical CO2 systems to reduce greenhouse gas emissions. In April 2021, ALDI US, a food retailer in North America, used natural refrigerants in their stores. ALDI US is mostly using transcritical CO2 equipment in its 360 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%. Such advantages of these systems is expected to drive the transcritical CO2 market growth.
In ice skating rinks, transcritical CO2 systems are increasingly used as an environmentally friendly and energy-efficient alternative to traditional refrigerants such as ammonia and HFCs. CO2 is a natural refrigerant with a zero-ozone depletion potential (ODP) and a low global warming potential (GWP), making it a sustainable option for cooling ice rinks. In Asia Pacific, the manufacturer of the transcritical CO2 systems is also offering the transcritical CO2 systems for ice-making in skating applications. In September 2022, the National Hockey League (NHL) announced that it would get its first hockey area featuring transcritical CO2 refrigeration systems. The Canadian Cimco will upgrade the arena’s HFC-22 (R22) system by installing two 200 TR (703 kW) packaged transcritical CO2 systems with full redundancy. Thus, the growth of ice skating rinks segment is anticipated to expand the transcritical CO2 market share.
The manufacturers are expanding their transcritical CO2 systems product portfolio. In March 2023, Emerson Electric Co. launched its Transcritical CO2 Screw Compressor Unit in California. The new product has been developed to meet the growing demand for sustainable, safe, and reliable CO2 refrigeration technologies. Additionally, in September 2021, Wilson Industries Pty Ltd launched transcritical CO2 waste heat recovery vessels. The vessels are available in various sizes using multiple heat exchange coils.
Carrier Corporation, Danfoss, Emerson Electric, Panasonic Corporation, and Evapco LMP are a few key players profiled during the study on the transcritical CO2 market. Several other major transcritical CO2 market players were studied and analyzed during this market research study to get a holistic view of the market and its ecosystem. The transcritical CO2 market report provides detailed market insights, which would help key transcritical CO2 market players strategize their growth.
In 2020, the rapid spread of novel coronavirus urged governments worldwide to impose strict restrictions on human movement. Travel bans, mass lockdowns, and business shutdowns adversely affected economies and countless industries in various countries. The shutdown of restaurants and other food service businesses has led to a decline in demand for transcritical CO2 systems for refrigeration. Hence, the COVID-19 pandemic has hindered the transcritical CO2 market share.
In Q4 of 2020, the transcritical CO2 market started to stabilize due to the ease in the lockdown restrictions. The manufacturing plants of the transcritical CO2 system also restarted, fueling the market growth. In addition, the market players restarted receiving orders from various industries in different countries, such as supermarkets & convenience stores, food processing & storage facility, and retail stores.
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