Asia-Pacific Transcritical Co2 Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Transcritical Co2 Market Size

• The Asia-Pacific Transcritical Co2 market size was valued at USD 12.45 billion in 2024 and is expected to reach USD  24.27 billion by 2032, at a CAGR of 8.7% during the forecast period
• This growth is driven by factors such as the increasing demand for eco-friendly refrigeration systems, stringent government regulations on greenhouse gas emissions, and growing adoption of sustainable technologies in commercial and industrial refrigeration applications.

Transcritical Co2 Market Analysis

• Transcritical CO₂ systems are critical solutions used in commercial and industrial refrigeration, offering an environmentally friendly alternative to traditional HFC-based systems. They are essential for applications such as supermarkets, cold storage warehouses, and food processing facilities, where efficient and sustainable cooling is required.
• The demand for these systems is significantly driven by the global push to reduce greenhouse gas emissions, stringent environmental regulations, and increasing adoption of natural refrigerants across multiple industries.
• China is expected to dominate the Transcritical CO₂ market due to its rapid industrialization, growing retail and cold chain sectors, and government incentives promoting green technologies.
• India is expected to be the fastest growing region in the Transcritical CO₂ market during the forecast period, due to rising food retail chains, growing demand for sustainable refrigeration, and government focus on phasing out harmful refrigerants
• The retail segment is expected to dominate the market with a significant market share due to the high number of supermarket installations and increasing emphasis on eco-friendly refrigeration. As retailers shift toward carbon-neutral operations, the demand for Transcritical CO₂ systems continues to rise rapidly.

Report Scope and Transcritical Co2 Market Segmentation    

Transcritical Co2 Market Trends

“Adoption of Transcritical CO₂ Systems in Commercial Refrigeration”

• One prominent trend in the Transcritical CO₂ market is the increasing adoption of CO₂-based refrigeration systems in supermarkets, hypermarkets, and convenience stores due to their environmental advantages and regulatory compliance.
• These systems offer a sustainable alternative to synthetic refrigerants, reduce carbon footprint, and are favored for their energy efficiency in moderate and cooler climates. 
  • For instance leading retail chains in Europe and North America have rapidly transitioned to Transcritical CO₂ refrigeration units to comply with F-Gas regulations and achieve corporate sustainability goals. Notably, companies like Aldi, Walmart, and Carrefour are investing in CO₂-based systems for their new and retrofitted stores.
• This trend is revolutionizing the commercial refrigeration landscape, setting new benchmarks in green refrigeration technologies, and is expected to significantly drive market growth in the coming years

Transcritical Co2 Market Dynamics

Driver

“Strict Environmental Regulations and Phasing Out of HFCs”

• The Asia-Pacific region is witnessing a growing demand for Transcritical CO₂ systems due to stringent environmental regulations and global mandates to phase down hydrofluorocarbons (HFCs).
• Countries like Japan, China, and Australia are increasingly adopting sustainable refrigeration solutions aligned with the Kigali Amendment and national carbon reduction goals.
• Transcritical CO₂ systems offer a climate-friendly alternative with zero ozone depletion potential (ODP) and low global warming potential (GWP), making them a preferred choice for commercial and industrial refrigeration sectors.

For instance,

• In 2023, Japan's Ministry of the Environment introduced additional subsidies to promote the use of natural refrigerants, including CO₂-based systems, across food retail and cold chain sectors. 
• As a result of the push toward environmentally sustainable systems is significantly accelerating the adoption of Transcritical CO₂ technologies across Asia-Pacific.

Opportunity

“Rising Cold Chain Infrastructure Investments in Emerging Economies”

• Rapid urbanization, the growth of e-commerce, and increasing demand for perishable food products are fueling the expansion of cold chain infrastructure in emerging economies like India, Vietnam, and Indonesia.
• Governments and private sectors are investing heavily in cold storage, logistics, and food processing, creating vast opportunities for the deployment of efficient and eco-friendly Transcritical CO₂ systems.
• These systems are especially suited for applications in large-scale distribution centers, supermarkets, and food storage facilities, offering both operational efficiency and environmental benefits.

For instance,

• In 2024, the Indian government launched new incentives under its "PM Gati Shakti" initiative, allocating substantial funding for cold chain development, which includes encouraging the adoption of green refrigeration technologies. 
• The surge in infrastructure development is creating lucrative growth opportunities for manufacturers and suppliers of Transcritical CO₂ systems..

Restraint/Challenge

“High Initial Installation and Maintenance Costs”

• One of the primary challenges limiting the penetration of Transcritical CO₂ systems in Asia-Pacific is their high upfront cost, especially compared to traditional HFC-based refrigeration systems.
• Installation of Transcritical CO₂ systems often requires specialized equipment, trained personnel, and infrastructure adaptation, which increases the overall project cost.
• Additionally, the technology’s complexity and maintenance requirements may deter small and medium enterprises from adoption.

For instance,

• In to the Japan Refrigeration and Air Conditioning Industry Association (JRAIA), the capital cost for installing a CO₂ transcritical system can be 20–30% higher than conventional systems, making affordability a barrier in cost-sensitive markets. 
• Consequently, cost concerns can slow adoption, particularly in developing countries, where budget constraints and lack of technical know-how limit the market potential.

Transcritical Co2 Market Scope

The market is segmented on the basis Function, End User.

In 2025, the Refrigeration is projected to dominate the market with a largest share in Function segment

The Refrigeration segment is expected to dominate the Transcritical Co2 market with the largest share of 56.22% in 2025 due to its widespread adoption in commercial and industrial applications. As businesses strive to meet stringent environmental regulations, the shift toward sustainable and energy-efficient refrigeration systems is accelerating. Technological advancements and government incentives further support the transition, while the growing need for eco-friendly cold chain solutions across food retail, logistics, and manufacturing continues to drive segment growth.

The Retail is expected to account for the largest share during the forecast period in End User market

In 2025, the Retail segment is expected to dominate the market with the largest market share of 51.31% due to increasing demand for energy-efficient refrigeration systems across supermarkets, hypermarkets, and convenience stores. The segment benefits from rising environmental awareness, regulatory pressure to phase out HFCs, and expansion of retail infrastructure in emerging economies. Retailers are increasingly investing in Transcritical CO₂ systems to lower operational costs and reduce carbon footprints, propelling market dominance across the Asia-Pacific region.

Transcritical Co2 Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Asia-Pacific presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, Function dominance. The above data points provided are only related to the companies' focus related to market.

The Major Market Leaders Operating in the Market Are:

• SCM Frigo S.p.A. (Italy)
• Emerson Electric Co. (U.S.)
• Danfoss (Denmark)
• Dorin S.p.A. (Italy)
• Baltimore Aircoil Company (U.S.)
• BITZER UK LIMITED (U.K.)
• LMP Systems (U.S.)
• MAYEKAWA MFG. CO., LTD. (Japan
• Henry Group Industries (U.S.)
• Panasonic Corporation (Japan)
• Carel Industries S.p.A. (Italy
• Parker Hannifin Corp. (U.S.)
• GEA Group Aktiengesellschaft (Germany)
• Hussmann Corporation (U.S.)
• Epta S.p.A. (Italy)
• LU-VE S.p.A. (Italy)
• ALFA LAVAL (Sweden)
• YELLOW JACKET (U.S.)
• Thermal Transfer Technology Ltd. (U.K.)

Latest Developments in Asia-Pacific Transcritical Co2 Market

• In August 2023, SCM Frigo S.p.A. introduced its next-generation “Smart Booster 2.0” transcritical CO₂ racks for commercial refrigeration applications. This new configuration includes five compressors, delivering higher cooling capacity for both low and medium-temperature operations, thereby enhancing energy efficiency and system performance.
• In March 2023, Emerson Electric Co. launched a new transcritical CO₂ screw compressor unit designed to meet the growing demand for sustainable refrigeration solutions in commercial and industrial sectors. This development underscores Emerson's commitment to advancing eco-friendly technologies in the Asia-Pacific
• In 2023, the Indian Navy, in collaboration with the Interdisciplinary Centre for Energy Research (ICE) at the Indian Institute of Science (IISc), Bengaluru, developed a 30TR transcritical CO₂ air conditioning plant for marine applications. This initiative aims to replace conventional HCFC systems with environmentally friendly alternatives, aligning with global sustainability goals.
• In 2023, retailers across Asia-Pacific, including supermarkets and convenience stores, increasingly adopted transcritical CO₂ systems to enhance energy efficiency and reduce environmental impact. This trend is driven by consumer demand for sustainable practices and regulatory pressures to phase out high-GWP refrigerants. The adoption of these systems allows retailers to improve their brand image and attract eco-conscious consumers

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