Transcritical CO2 Market Report: Size, Share and Outlook by 2031

The transcritical CO2 market is projected to expand from US$ 48,529.81 million in 2023 to US$ 140,931.01 million by 2030, reflecting a compound annual growth rate (CAGR) of 16.5% during this period.

Transcritical CO2 systems are recognized for their energy efficiency, reduced global warming potential, and lower likelihood of refrigerant leaks. As a non-toxic and non-flammable refrigerant, CO2 air conditioning presents a safe alternative for a variety of applications. These systems are predominantly utilized in large-scale commercial and industrial settings, including supermarkets, data centers, and cold storage facilities. They outperform traditional air conditioning systems by delivering equivalent cooling while consuming less energy. The naval sector has also adopted transcritical air conditioning systems, moving away from conventional HCFC systems. In March 2023, the Indian Navy collaborated with the Interdisciplinary Centre for Energy Research (ICE) at the Indian Institute of Science (IIS) in Bengaluru to create a 30TR transcritical CO2 air conditioning plant tailored for marine use.

In hypermarkets, transcritical CO2 systems are employed to keep fresh produce, such as fruits and vegetables, at optimal temperatures. This is crucial since fresh produce is highly sensitive to temperature fluctuations and requires consistent cooling to preserve its quality. For instance, in April 2019, Globus Hypermarket Holding in Russia implemented a CO2 transcritical refrigeration system. They installed two transcritical booster refrigeration units utilizing CO2 produced by Tehnofrost LLC for their cold storage operations. These units are equipped with a heat recovery system that repurposes high-grade energy from the discharge line to heat water for various needs, effectively eliminating the need for external water heating systems during warmer months and reducing the required heat output by over 750 kW. Such functionalities significantly contribute to the growing adoption of transcritical CO2 systems in supermarkets and hypermarkets.

The COVID-19 pandemic had a notable impact on the growth of the transcritical CO2 market.

Germany stands out as a leading pharmaceutical producer globally. During the COVID-19 pandemic in 2020, the country's pharmaceutical sector saw a revenue increase of 6.7%, exceeding US$ 55.1 billion. By 2022, Germany emerged as the largest exporter of medicinal and pharmaceutical products in Europe, with the industry valued at US$ 37 billion in 2021. Between 2015 and 2020, the over-the-counter (OTC) market in Germany experienced an average annual growth of 3.3%, surpassing US$ 12.2 billion in 2020. The non-prescription medicine market generated approximately US$ 7.0 billion, while the health goods segment contributed around US$ 4.3 billion. Biologics play a significant role in Germany's pharmaceutical landscape, accounting for over a quarter of the total market revenue (approximately US$ 16.7 billion). The expansion of the pharmaceutical and biopharma sectors in Germany drives the demand for storage and cooling solutions, thereby increasing the need for transcritical CO2 systems.

France is home to numerous national grocery chains, including Auchan, Carrefour, Intermarch?, Leclerc, Monoprix, and Super U. Carrefour, one of the largest supermarket chains globally, operates over 5,000 stores in France, ranging from small urban outlets to large rural hypermarkets. Intermarch? features both smaller supermarkets and larger hypermarkets, with around 2,000 locations nationwide. Leclerc, which owns over 700 hypermarkets, is the leading food retailer by market share, primarily located outside major urban centers. The extensive network of grocery chains in France creates a continuous demand for refrigeration to prevent spoilage and maintain product quality.

Italy is actively promoting environmental sustainability and the adoption of eco-friendly technologies. The growth of the transcritical CO2 market in Italy is driven by various factors, including government policies and regulations aimed at achieving carbon neutrality and net-zero emissions. The Italian government provides incentives and enforces laws to encourage the use of green technologies and natural refrigerants, further stimulating market growth.

Italy boasts several prominent supermarket chains, such as Coop Italia with 1,100 stores, Esselunga with over 160 locations primarily in Lombardy, Piedmont, Emilia-Romagna, Liguria, Tuscany, and Lazio, and Carrefour Italia with more than 1,000 stores. Additionally, Eurospin operates a significant network of 1,200 stores across the country. The increasing number of supermarkets and retail outlets, coupled with rising consumer awareness of environmental issues and a growing demand for sustainable products, is propelling the adoption of transcritical CO2 systems in Italy.

In the UK, the transcritical CO2 market is influenced by the rising number of convenience stores, supermarkets, and retail establishments, as well as ice rinks. The UK government is actively promoting sustainable technologies and aims to achieve net-zero greenhouse gas emissions by 2050 through various strategies, including the transition to low-carbon refrigeration solutions.

Russia is also advancing the use of transcritical CO2 systems across industrial applications, commercial refrigeration, and food processing sectors. Acknowledging the potential of these systems to reduce greenhouse gas emissions and enhance energy efficiency, the Russian government has implemented regulations and initiatives to encourage their adoption. The country hosts numerous domestic and international grocery chains, many of which operate across various formats. For example, Magnit had 25,351 outlets in 2021, while Pyaterochka operates 17,600 convenience stores. This trend is driving investments in transcritical CO2 systems to improve refrigeration capabilities and lower carbon footprints, leading to a positive growth trajectory for the market in Russia.

Key players in the transcritical CO2 market include TEKO Gesellschaft f?r K?ltetechnik mbH, ADVANSOR A/S, BITZER K?hlmaschinenbau GmbH, Carrier Global Corporation, Danfoss A/S, Hussmann Corporation, Emerson Electric Co., Panasonic Holdings Corporation, EVAPCO LMP, and MAYEKAWA MFG. CO., LTD.