The global transcritical CO2 systems market is projected to grow from USD 54.15 billion in 2024 to USD 156.99 billion by 2031, with a compound annual growth rate (CAGR) of 16.8% during 2025–2031, according to a new report by The Insight Partners. This growth is driven by increased focus on sustainable refrigeration and storage technologies and regulatory pressure to phase out high-GWP refrigerants.
Adoption of transcritical CO2 systems is accelerating in supermarkets, food processing, and industrial applications. Supermarkets and grocery chains are among the leading users, driven by the need to reduce energy consumption and carbon emissions. For example, Tesco has implemented transcritical CO2 systems to support its goal of achieving net-zero carbon emissions by 2035.
Transcritical CO2 systems are seen as more energy-efficient in cold climates and align with circular economy principles by minimizing environmental impact. Recent innovations, including parallel compression, ejector technology, and heat recovery systems, have enhanced their efficiency and cost-effectiveness, especially in warmer regions where performance was previously limited.
Incentives such as tax credits and subsidies, as well as penalties for using high-GWP refrigerants, are encouraging adoption. The European market leads in revenue share as of 2024, supported by regulations under the F-Gas law and HFC phase-out. Europe is followed by Asia Pacific and North America, with North America expected to register the highest CAGR during the forecast period.
The market is segmented by application into ice skating rinks, food processing and storage facilities, heat pumps, supermarkets and convenience stores, and others. The supermarkets and convenience stores segment led in 2024. By function, the market includes air conditioning, refrigeration, and heating, with refrigeration being the dominant segment.
Major companies in the market include Danfoss, Carrier Global Corp, Emerson Electric Co, Bitzer, Advansor, Hillphoenix, Mayekawa, SCM Frigo, Panasonic, and TEKO Gesellschaft für Kältetechnik GmbH.