Transcritical CO2 Market is expected to reach US$ 156.99 Billion by 2031

Growing Emphasis on Sustainable Refrigeration and Storage Technologies Boosts Transcritical CO2 Market Growth  

According to our latest market study on "Transcritical CO2 Market Size and Forecast (2025–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Application and Function," the market was valued at US$ 54.15 billion in 2024 and is anticipated to reach US$ 156.99 billion by 2031; it is estimated to register a CAGR of 16.8% during 2025–2031. The report includes growth prospects in light of current transcritical CO2 market trends and driving factors influencing market growth.

Conventional refrigerants such as hydrofluorocarbons (HFCs) or hydrochlorofluorocarbons (HCFCs) contribute notably to ozone layer depletion. Transcritical CO2 systems use carbon dioxide (CO2) as a refrigerant, which has a very low ozone depletion potential (ODP). This characteristic renders transcritical CO2 refrigeration systems an environmentally friendly option in cold storage facilities amid the efforts taken by various countries to phase out ozone-depleting substances. Transcritical CO2 systems have a substantially low global warming potential (GWP) compared to many conventional cold storage facilities. GWP is the measure of the ability of greenhouse gases to drive global warming over a specified period. CO2 has a GWP of 1, whereas HFCs commonly used in refrigeration systems have GWPs in the thousands or the multiples of ten thousand. By using CO2 as a refrigerant, transcritical systems help moderate climate change and reduce the carbon footprint of cooling and refrigeration applications. As the need for sustainable refrigeration and storage solutions continues to rise, cold storage transcritical CO2 technology offers a viable and smart option for businesses across various sectors. Supermarkets and grocery chains are among the largest adopters of transcritical CO? systems, as refrigeration accounts for a significant portion of their energy consumption and carbon emissions. For instance, Tesco has installed transcritical CO? systems in its stores as part of its strategy to achieve net-zero carbon emissions by 2035. ALDI (Germany) has also transitioned to transcritical CO? systems across its European stores to decrease emissions and improve energy efficiency. Lineage, Inc., a leading cold storage company, has invested in transcritical CO? systems as part of its efforts to cut down energy usage and minimize environmental impact. Thus, a burgeoning emphasis on sustainable refrigeration and storage technologies fuels the transcritical CO2 market growth across the world. Further, cold thermal storage technology is gaining traction as one of the environment-friendly alternatives for storage facilities, and it has significant potential to drive the development of the transcritical CO2 market across the globe over the forecast period.

Transcritical CO2 Market Analysis – by Geography, 2024

Source: The Insight Partners Analysis

The scope of the transcritical CO2 market report focuses on North America (US, Canada, and Mexico), Europe (UK, Germany, France, Italy, Russia, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), Middle East and Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East), and South and Central America (Brazil, Argentina, and Rest of South and Central America). North America is expected to register the highest CAGR in the transcritical CO2 market from 2025 to 2031. In 2024, Europe accounted for ethe largest transcritical CO2 market share, followed by Asia Pacific. The market in Europe is segmented into Germany, France, Italy, the UK, Russia, and the Rest of Europe. In Europe, Germany held the largest transcritical CO2 market share in 2024. Transcritical CO2 systems have gained considerable attention in this region due to their energy efficiency and environmental benefits. These systems use carbon dioxide as the refrigerant instead of the conventional hydrofluorocarbon (HFC) refrigerants that have high GWP. They can be used in transport refrigeration, industrial refrigeration, heat pumps, supermarkets, convenience stores, and other commercial and industrial refrigeration applications. These systems have a lower critical temperature than conventional refrigerants. Moreover, they are non-toxicity, non-flammable, or non-chlorinated. As a result, these systems have a negligible potential for ozone depletion and low leak rates, and they are also safe for industrial and commercial usage.

Germany is one of the most important pharmaceutical producers in the world. The country stands as the leading pharmaceutical market in Europe and ranks fourth globally, following the US, China, and Japan, respectively. Factors such as demographic shifts, an increase in chronic health conditions, and a growing focus on prevention and self-medication fuel the growth of this sector. In recent years, the pharmaceutical industry in Germany has been expanding at a rate that outpaces the overall German economy. According to the Germany Trade & Invest (GTAI), in 2023, sales in this sector rose by 5.8%, reaching approximately EUR 59.8 billion (excluding manufacturer prices). The over-the-counter (OTC) market also saw significant growth, with average annual increases of 4.5% between 2018 and 2023, culminating in remarkable 7.3% growth in 2023, thereby achieving nearly EUR 12.9 billion in revenue. This figure translates to about 1.7 billion packaging units sold. Notably, more than EUR 8.3 billion was generated from non-prescription drugs, while around EUR 4.5 billion came from health products that are not classified under pharmaceutical regulations, such as dietary supplements. Transcritical CO2 refrigeration systems are becoming a preferred choice for pharmaceutical companies due to their lower environmental impact and efficiency. The increasing demand for energy-efficient and environmentally friendly refrigeration solutions in the pharmaceutical sector aligns with the trends in sustainable practices.

Spain, Poland, and Denmark are the main countries in the transcritical CO2 systems market in the Rest of Europe. These European countries are renowned for promoting sustainable technologies, and they have witnessed a significant shift toward transcritical CO2 systems in various sectors. According to Eurostat, the Retail Sales Index in Spain was 104.8 in 2023, above the average of all European Union countries. In March 2024, the grocery products index placed Spain (127.2) above the EU average (118.2), notably above Portugal (123.3), France (117.1), Germany (115.6), and Italy (112.0). Supermarkets and retail chains have been actively adopting transcritical CO2 systems to reduce their carbon footprint. In Poland, the transcritical CO2 system market is gaining momentum with top retail chains—including Biedronka with 3,400 outlets, Dino with 2500 outlets, and ?abka runs over 11,000 outlets in Poland—deploying these systems in storage and transportation operations as of 2025. Denmark has been a frontrunner in the adoption of transcritical CO2 systems. The country has a strong focus on renewable energies and sustainable development. Also, Danish supermarkets and retail chains have made significant strides in implementing transcritical CO2 systems.

TEKO Gesellschaft fur Kaltetechnik GmbH, Baltimore Aircoil Co, BITZER Kuhlmaschinenbau GmbH, Carrier Global Corp, Danfoss AS, Hussmann Corp, Emerson Electric Co, Evapco LMP Inc., Mayekawa Manufacturing Co Ltd, and CoolSys are a few of the key players profiled in the transcritical CO2 market report. Other major players were also studied and analyzed in the report to get a holistic view of the market and its ecosystem. The transcritical CO2 market forecast can help stakeholders plan their growth strategies. The market analysis provides detailed market insights, which help the key players strategize their growth.    

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