Global Transcritical CO2 Systems Market Size, Share, and COVID-19 Impact Analysis, By Function (Refrigeration, Heating, Air Conditioning), By Application (Retail, Heat Pumps, Food Processing and Storage Facilities, Ice Skating Rinks, Automobiles, Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 - 2035

Transcritical CO2 Systems Market Size Summary

The Global Transcritical CO2 Systems Market Size Was Estimated at USD 33.5 Billion in 2024 and is Projected to Reach USD 179.8 Billion by 2035, Growing at a CAGR of 16.5% from 2025 to 2035. The market for transcritical CO2 systems is expanding as a result of the growing need for environmentally friendly refrigeration, stricter environmental regulations that phase out HFCs, improved energy efficiency, and adoption by supermarkets, cold storage facilities, and food processing industries looking for economical and sustainable cooling solutions.

Key Regional and Segment-Wise Insights

• In 2024, the European transcritical CO2 systems market held the largest revenue share of 76.4% and dominated the global market.
• In 2024, the refrigeration segment held the highest revenue share of 89.3% and dominated the global market by function.
• With the biggest revenue share of 76.6% in 2024, the retail segment led the worldwide transcritical CO2 systems market by application.

Global Market Forecast and Revenue Outlook

• 2024 Market Size: USD 33.5 Billion
• 2035 Projected Market Size: USD 179.8 Billion
• CAGR (2025-2035): 16.5%
• Europe: Largest market in 2024

The market for transcritical CO2 systems contains all systems which use carbon dioxide (CO2) as a refrigerant in transcritical cycles that operate above the critical point of the fluid. CO2 has negligible ozone depletion potential (ODP) and a low global warming potential (GWP), making these systems more and more attractive as greener alternatives to conventional hydrofluorocarbon (HFC)-based refrigeration. The industry operates under worldwide environmental rules which restrict high-GWP refrigerants through EU F-gas regulations, and the Kigali Amendment. The market expansion results from the retail sector, cold storage, and food processing industries because they need sustainable energy-efficient cooling systems. The adoption of transcritical CO2 technologies grows because companies establish environmental targets. People become more aware of climate change.

The efficiency and reliability of transcritical CO2 systems improve through technological advancements, which include better compressors, advanced heat exchangers, and electronic expansion valves that perform optimally in different weather conditions. The Internet of Things integration with smart controls enables real-time monitoring and predictive maintenance. This leads to higher system efficiency. The global government backing programs, which offer financial support through subsidies for eco-friendly refrigeration systems, drive market expansion for sustainable cooling solutions. The growing funding support for research and development, together with industry partnerships, makes transcritical CO2 systems the leading choice for sustainable cooling solutions.

Function Insights

The refrigeration segment held the largest revenue share of 89.3% and led the transcritical CO2 systems market in 2024. The commercial and industrial sectors need refrigeration solutions which operate efficiently and protect the environment, so they become the dominant market force. The food processing industry, cold storage facilities, and supermarkets have started using transcritical CO2 systems because these systems have low global warming potential (GWP) and meet all environmental regulations. The introduction of CO2-based refrigeration has been further encouraged by government incentives and technological breakthroughs that favour environmentally benign refrigerants. The CO2 systems deliver a market-leading alternative that provides long-term financial benefits and reduced environmental impact to businesses which transition from hydrofluorocarbons (HFCs). Thus, maintain their functional market leadership.

Over the forecast period, the heating segment of the transcritical CO2 systems market is expected to grow at a significant CAGR because of increasing demand for energy-efficient, sustainable heating solutions. The market is showing growing adoption of transcritical CO2 heat pumps because these systems offer environmentally friendly operation and deliver efficient performance in cold weather conditions for commercial, industrial, and residential applications. Low-GWP refrigerants are being promoted by governments and regulatory agencies worldwide, which is helping to accelerate the transition from conventional heating systems to CO2-based technology. The growing demand for environmentally friendly solutions, together with rising energy prices and mandatory emission reduction targets, drives up the adoption of transcritical CO2 heating systems. This is expected to lead to significant market expansion in the years to come.

Application Insights

The retail segment led the transcritical CO2 systems market with the largest revenue share of 76.6% in 2024. The main reason for this robust market presence is the extensive use of CO2 refrigeration equipment in convenience stores, supermarkets, and hypermarkets. The shift toward eco-friendly refrigerants in retail stores continues because businesses want to achieve sustainability goals while following updated greenhouse gas emission regulations. Transcritical CO2 systems serve as a sustainable solution to replace high-GWP refrigerants while delivering enhanced energy performance in cooler regions. The major retail chains drive industry growth by adopting green technologies. These support their corporate sustainability targets. The retail industry stands as the main driver of transcritical CO2 system development because all these components combine to create this position.

The food processing and storage facilities segment of the transcritical CO2 systems market is expected to grow at a significant CAGR over the forecast period. The food industry drives this growth through its need for refrigeration solutions that deliver both efficiency and sustainability while meeting all required standards. The food processing and cold storage industry has adopted CO2 systems because these systems create minimal environmental effects and help businesses save money in the long run while meeting regulations that control greenhouse gas emissions and ban high-GWP refrigerants. CO2 brings outstanding thermodynamic properties, which allow it to maintain steady low temperatures needed for food safety and quality preservation. The market will experience substantial growth in transcritical CO2 systems because global demand for processed and frozen foods continues to rise.

Regional Insights

The Europe region leads the transcritical CO2 system market with the largest revenue share of 76.4% in 2024. The area maintains its leadership position because of strict environmental regulations, which include the F-Gas Regulation that requires companies to stop using high-GWP refrigerants. European nations established commercial refrigeration operations with CO2 natural refrigerants as their first users. The region's extensive supermarket and food retail chain network, along with cold storage facilities, has driven up demand. Market penetration has also been increased by robust government incentives and policy support for sustainable technologies. Europe leads the global transition toward energy-efficient heating and refrigeration systems because of its technological progress and established CO2-based system infrastructure.

Asia Pacific Transcritical CO2 Systems Market Trends

The Asia Pacific market for transcritical CO2 systems will experience significant growth rates because of stricter high-GWP refrigerant regulations and increasing environmental awareness. South Korea, China, and Japan have started using natural refrigerant technology because they need to meet international climate agreements and environmental targets. The retail industry's growth and urban expansion, together with expanding cold chain networks, drive up the requirement for energy-efficient and environmentally friendly refrigeration systems. The adoption of CO2-based solutions continues to grow because government programs actively back green technologies through their financial support of low-emission systems. The Asia Pacific region will become the main growth area for transcritical CO2 systems because of expanding awareness and strengthening regulatory requirements in the region.

North America Transcritical CO2 Systems Market Trends

The North American transcritical CO2 system market will experience substantial growth during the forecast period because of increasing regulatory requirements to eliminate high-GWP refrigerants and reduce greenhouse gas emissions. The U.S. Environmental Protection Agency (EPA), together with other regulatory bodies, promotes eco-friendly refrigerants, which drives up the demand for CO2-based systems. Big retailers, together with food processing industries, dedicate resources to sustainable refrigeration systems because they need to reach corporate sustainability targets and follow shifting regulations. The market growth stems from technological progress, together with a better understanding of transcritical CO2 systems' long-term operational cost savings and energy efficiency benefits. The North American CO2 technology sector will experience major expansion because of growing infrastructure and knowledge development in this field.

Key Transcritical CO2 Systems Companies:

The following are the leading companies in the transcritical CO2 systems market. These companies collectively hold the largest market share and dictate industry trends.

• Advansor
• Emerson Climate Technologies
• SCM Frigo S.P.A.
• Teko GmbH
• Strategic Initiatives
• Hillphoenix, Inc.
• Danfoss
• Panasonic Corporation
• Carnot Refrigeration
• Systemes LMP, Inc.
• Bitzer
• Carrier Commercial Refrigeration
• Mayekawa MFG. Co., Ltd.
• Henry Technologies, Inc.
• Others

Recent Developments

• In March 2023, with the greatest displacement in its line, Emerson's Copeland transcritical CO2 semi-hermetic reciprocating compressor, model 4MTLS28ME, was recently introduced. Standard medium-temperature and parallel, this adaptable compressor is used in transcritical CO2 booster systems. Transcritical CO2 racks may require fewer compressors if the capacity is 303 kBTU/hour, which also increases design flexibility.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Decision Advisors has segmented the transcritical CO2 systems market based on the below-mentioned segments:

Global Transcritical CO2 Systems Market, By Function

• Refrigeration
• Heating
• Air Conditioning

Global Transcritical CO2 Systems Market, By Application

• Retail
• Heat Pumps
• Food Processing and Storage Facilities
• Ice Skating Rinks
• Automobiles
• Others

Global Transcritical CO2 Systems Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa