Transcritical CO2 Market Growth, Size, Share, Trends, Key Players Analysis, and Forecast till 2031

The transcritical CO2 market size is expected to reach US$ 156.99 billion by 2031 from US$ 54.15 billion in 2024. The market is estimated to register a CAGR of 16.8% during 2025–2031. The utilization of CO2 recycled from waste in refrigeration applications is likely to bring new trends to the market in the coming years.

Transcritical CO2 Market Analysis

Transcritical CO2 systems are predominantly suited for cold storage facilities, offering consistent cooling with a lower environmental impact. The rapid growth of the cold chain industry, driven by a soaring demand for frozen and perishable food, is a major factor driving the need for these systems for cooling purposes. Innovations in transcritical CO2 systems have helped overcome some of the past challenges, such as ineffectiveness in high ambient temperatures. Developments such as ejector technology and parallel compression have enhanced the performance of transcritical systems in warmer climates, propelling their applicability worldwide.

Transcritical CO2 Market Overview

The transcritical CO2 market orbits the application of carbon dioxide (CO2) as a refrigerant in transcritical systems. A transcritical CO2 system functions above the critical pressure of CO2, making it extremely efficient in applications such as refrigeration and heating. These systems are gaining traction owing to their environmentally friendly function, cost efficiency, and regulatory compliance, which align them with the goals of phasing out synthetic refrigerants with high global warming potential (GWP). Amid the continuous streak of urbanization in developing regions such as Asia Pacific, Africa, and South America, the increasing penetration of supermarkets in India and Brazil creates a significant opportunity for the adoption of transcritical CO2 systems. Governments in these regions are also accepting environmental policies that encourage the application of natural refrigerants. Beyond retail and food processing, industries such as pharmaceuticals, chemical processing, and data centers are utilizing transcritical CO2 systems for their cooling requirements.

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Transcritical CO2 Market: Strategic Insights

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Transcritical CO2 Market Drivers and Opportunities

Rise in Demand for Energy-Efficient Air Conditioning in Data Centers Across North America and Europe

The growing number of data centers benefits the transcritical CO2 market. Considering the significant levels of energy consumption in the operations of data centers, design engineers must offer reliable, energy-efficient air conditioning systems for these facilities. Europe has significant presence of a flourishing data center industry, with major hubs such as Frankfurt, London, Amsterdam, Paris, and Dublin. Emerging markets such as Milan, Warsaw, and Berlin are also undergoing rapid expansion. With the mounting dependence on digital services, data centers are becoming the backbone of the digital economy of Europe. Interconnected through robust networks, these data hubs facilitate seamless access to the internet, eventually supporting operations in various crucial sectors, such as medicine, life sciences, and banking. Data center operators across the region are progressively prioritizing sustainability, driven by stringent EU regulations on carbon emissions. In the US, Texas has become one of the growing data center hubs, 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.

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 making efforts to decrease their dependence on chillers and have shifted to free cooling strategies that involve air-handling units and fresh air as alternatives. Refrigerants are commonly used in enterprise data centers 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 provides a boost to the transcritical CO2 market.

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

In the food and beverages industry, refrigerants are predominantly utilized to maintain a temperature-controlled environment to preserve food and beverage products. The demand for processed, canned, and easy-to-make food items is rising in the US with ongoing urbanization, increasing disposable income, and busy lifestyles. Moreover, their taste and convenience of cooking render them popular among the youth in the country. Canned or convenience food items require proper storage facilities to maintain their palatability. 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. Thus, supermarkets and convenience stores typically have a significant environmental impact due to their reliance on refrigeration systems to store perishable goods. The surging importance of sustainability and environmental responsibility underlines the need to decrease the carbon footprint and greenhouse gas emissions associated with these cooling systems. The need to transition away from high-GWP refrigerants, thus, serves as a growth opportunity for transcritical CO2 system providers. As transcritical CO2 systems help alleviate the environmental impact linked with conventional refrigerants and align with sustainability goals, the demand for sustainable solutions would continue to benefit the transcritical CO2 market in the future as well.

Transcritical CO2 Market Report Segmentation Analysis

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

• In terms of application, the market is categorized into ice skating rinks, food processing and storage facilities, heat pumps, supermarkets and convenience stores, and others. The supermarkets and convenience stores segment dominated the market in 2024.
• By function, the market is categorized into air conditioning, refrigeration, and heating. The refrigeration segment dominated the market in 2024.

Transcritical CO2 Market Share Analysis by Geography

The transcritical CO2 market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and South and Central America (SAM). North America dominated the market in 2024, followed by Europe and Asia Pacific.

The transcritical CO2 market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South and Central America. In 2024, Europe led the market with a substantial revenue share, followed by Asia Pacific. Further, North America is expected to register the highest CAGR in the transcritical CO2 market from 2025 to 2031. The transcritical CO2 market in Europe is subsegmented into Germany, France, Italy, the UK, Russia, and the Rest of Europe. The region has experienced an increase in the number of cold storage facilities. According to the European Cold Storage & Logistics Association (ECSLA), Europe has thousands of cold shops with more than 60,000 m3 of cold storage capacity for various commodities. Moreover, European countries have implemented rules and regulations to have stringent control over fluorinated greenhouse gas and ozone-depleting substance emissions. Thus, with the F-Gas law and HFC phase-out plan, the transcritical CO2 system market in Europe is expected to grow at a notable rate in the future.

Transcritical CO2 Market Regional Insights

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

Transcritical CO2 Market Report Scope

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

The Transcritical CO2 Market 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.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Transcritical CO2 Market are:

1. TEKO Gesellschaft fur Kaltetechnik GmbH
2. Baltimore Aircoil Co
3. BITZER Kuhlmaschinenbau GmbH
4. Carrier Global Corp
5. Danfoss AS
6. Hussmann Corp

Disclaimer: The companies listed above are not ranked in any particular order.

Transcritical CO2 Market News and Recent Developments

The transcritical CO2 market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key developments in the market are listed below:

• CoolSys announced the acquisition of Universal Refrigeration, Inc. (Source: CoolSys, Press Release, June 025)
• Evapco, a Maryland-based OEM of natural refrigerant systems and components, showcased both low-charge ammonia (penthouse refrigerators and chillers) and transcritical CO2 packaged systems at the IIAR Conference and Expo, held from March 12 to March 15 in Long Beach, California. (Source: Evapco, Press Release, April 2023)
• Emerson (US) announced an expansion of its CO2 compression portfolio with the launch of the industry’s first transcritical CO2 screw compressor. (Source: Emerson, Press Release, March 2023)
• Hussmann, a Panasonic company, is expanding its CO2 refrigeration system product offerings with the addition of an outdoor CO2 condensing unit (OCU). The OCU is engineered for medium-temperature or low-temperature applications, providing versatility and efficiency for retail refrigeration. (Source: Hussmann, Press Release, December 2024)

Transcritical CO2 Market Report Coverage and Deliverables

The "Transcritical CO2 Market Size and Forecast (2025–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• Transcritical CO2 market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• 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, global and regional 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 transcritical CO2 market
• Detailed company profiles