CO2-based Refrigerant Market latest Statistics on Market Size, Growth, Production, Sales Volume, Sales Price, Market Share and Import vs Export 

CO2-based Refrigerant Market Summary Highlights 

The CO2-based Refrigerant Market is undergoing structural transformation driven by regulatory mandates, decarbonization targets, and accelerating investment in natural refrigerant technologies. CO₂ (R744) is increasingly positioned as a strategic alternative to high-GWP hydrofluorocarbons (HFCs), particularly in commercial refrigeration, heat pumps, industrial cooling, and transport refrigeration. 

The CO2-based Refrigerant Market Size is estimated at USD 3.8 billion in 2025 and is projected to surpass USD 7.4 billion by 2030, expanding at a CAGR of 14.2% during 2025–2030. Growth momentum is strongest in Europe and Asia-Pacific, supported by aggressive HFC phase-down policies and infrastructure modernization. 

Commercial refrigeration accounts for more than 46% of global revenue in 2025, while heat pump adoption is the fastest-growing application segment with CAGR exceeding 18% through 2030. 

The CO2-based Refrigerant Market is increasingly characterized by system-level innovation, including transcritical booster systems, parallel compression, ejector technology, and integrated heat recovery systems. 

CO2-based Refrigerant Market – Statistical Highlights (2025–2030) 

• CO2-based Refrigerant Market Size projected at USD 3.8 billion in 2025 

• Expected to reach USD 7.4 billion by 2030 

• CAGR (2025–2030): 14.2% 

• Commercial refrigeration share (2025): 46% 

• Heat pump segment CAGR (2025–2030): 18.6% 

• Europe regional share (2025): 38% 

• Asia-Pacific growth rate (2025–2030): 16.4% CAGR 

• Retail supermarket installations using CO₂ systems (2025): >85,000 stores globally 

• Industrial refrigeration adoption growth (2025–2028): 13% annually 
• Transport refrigeration CO₂ penetration expected to exceed 12% by 2028

Regulatory Acceleration Driving Structural Growth in CO2-based Refrigerant Market 

The CO2-based Refrigerant Market is expanding rapidly due to intensified regulatory frameworks targeting high global warming potential (GWP) refrigerants. CO₂ (R744) has a GWP of 1, compared to HFCs such as R404A with GWP exceeding 3,900. This fundamental environmental advantage is reshaping procurement strategies across refrigeration and HVAC industries. 

For instance, the European F-gas phase-down trajectory is reducing HFC supply quotas by nearly 79% between 2015 and 2030. As a result, over 70% of new supermarket refrigeration installations in Europe in 2025 are based on CO₂ systems. Similar regulatory tightening is emerging in Japan, Canada, and parts of North America. 

In 2025, more than 15 countries have introduced carbon taxation frameworks directly impacting refrigerant selection. Facilities switching to CO₂ systems are reporting lifecycle emissions reductions of 20–35%, including indirect emissions due to improved system efficiency in colder climates. 

The CO2-based Refrigerant Market Size is directly influenced by compliance-driven retrofits and greenfield installations. Retrofit projects alone account for nearly 28% of total installations in 2025, particularly in Western Europe and urban Asia. 

Regulatory certainty is reducing investment hesitation. Capital expenditure allocation toward natural refrigerant systems increased by 22% year-over-year in 2025 across commercial refrigeration sectors. 

Expansion of Commercial Retail Infrastructure Strengthening CO2-based Refrigerant Market 

Commercial retail expansion remains the single largest demand contributor to the CO2-based Refrigerant Market. Global supermarket floor space is projected to expand at 4.6% annually through 2028, with Asia-Pacific accounting for more than 45% of new store openings. 

For example, China and India collectively added over 18 million square meters of modern retail space in 2025. Approximately 32% of new hypermarkets in these markets adopted CO₂-based refrigeration systems due to long-term energy savings and regulatory preparedness. 

Energy efficiency remains a decisive factor. Transcritical CO₂ systems with parallel compression demonstrate 8–15% lower energy consumption in moderate climates compared to legacy HFC systems. In colder climates, efficiency gains exceed 20%. 

Retail chains are increasingly integrating heat recovery modules. In 2025, nearly 41% of new CO₂ supermarket systems included integrated heat reclaim, reducing total store heating energy consumption by 25–35%. 

The CO2-based Refrigerant Market is benefiting from total cost of ownership (TCO) advantages. Although initial system cost remains 8–12% higher than HFC-based alternatives, payback periods have narrowed to 2.5–3.5 years due to rising HFC prices and carbon compliance costs. 

By 2026, over 95,000 supermarkets globally are expected to operate CO₂-based systems, reinforcing scale economics and lowering component costs. 

Rapid Growth of CO₂ Heat Pumps Expanding CO2-based Refrigerant Market Scope 

The CO2-based Refrigerant Market is witnessing accelerated growth in the heat pump segment, particularly for domestic hot water and commercial building applications. 

CO₂ heat pumps offer superior performance at high outlet temperatures. Systems can deliver water at 90°C efficiently, making them suitable for retrofitting older buildings with radiator-based heating systems. 

Global heat pump installations are projected to exceed 24 million units in 2026, growing at 12% annually. Within this, CO₂-based heat pumps represent the fastest-growing natural refrigerant segment, with annual growth above 18%. 

For example: 

• Japan maintains more than 10 million CO₂ EcoCute units installed cumulatively 

• Europe’s CO₂ heat pump installations increased 21% in 2025 compared to 2024 

• Industrial hot water CO₂ systems above 100 kW capacity grew 27% year-over-year 

The electrification of heating is central to decarbonization pathways. Buildings account for nearly 37% of global energy-related CO₂ emissions. Transitioning fossil-fuel boilers to CO₂ heat pumps reduces direct emissions by 40–70% depending on grid mix. 

The CO2-based Refrigerant Market Size benefits significantly from this shift, as heat pumps carry higher per-unit refrigerant volumes and higher system value compared to standard refrigeration units. 

Technological Advancements Enhancing Efficiency in CO2-based Refrigerant Market 

The CO2-based Refrigerant Market has overcome historical efficiency concerns in warm climates through technology innovation. 

Earlier transcritical systems experienced efficiency losses in ambient temperatures above 30°C. However, ejector technology, adiabatic gas coolers, and parallel compression have significantly improved performance. 

By 2025: 

• Ejector-supported systems reduce energy consumption by 10–20% in warm climates 

• Parallel compression improves annual efficiency by 7–12% 

• Multi-ejector systems are deployed in over 18% of new European supermarket installations 

For instance, in Southern Europe and Southeast Asia, optimized CO₂ systems now achieve parity with advanced HFC systems in energy performance. This has expanded the viable geography for CO₂ adoption. 

Component manufacturers have reduced system footprint by 15–25%, enabling deployment in urban convenience stores with space constraints. 

Digital monitoring and predictive maintenance integration have further reduced operating costs by 6–9%, strengthening lifecycle economics. 

Technological maturity is reducing the skill gap barrier. Certified CO₂ technician programs increased by 34% globally in 2025, improving service infrastructure. 

Industrial and Transport Refrigeration Adoption Broadening CO2-based Refrigerant Market Applications 

Beyond retail, the CO2-based Refrigerant Market is expanding into industrial refrigeration and transport cooling. 

Industrial cold storage capacity globally is increasing at 5.8% annually, driven by food processing and pharmaceutical supply chains. Approximately 19% of new industrial facilities in 2025 are selecting CO₂ cascade or transcritical systems. 

For example: 

• Pharmaceutical cold chain investments increased 14% in 2025 

• Frozen food processing capacity expanded 9% 

• Urban distribution cold hubs grew 11% 

CO₂ cascade systems paired with ammonia are gaining traction due to safety benefits. They reduce ammonia charge by up to 85%, improving regulatory compliance in urban industrial zones. 

Transport refrigeration is emerging as a high-growth vertical. CO₂-based trailer units are demonstrating 5–8% fuel efficiency improvement when integrated with electric standby modes. 

Electric refrigerated truck fleets are projected to grow 22% annually through 2028. CO₂ systems align well with electrification strategies due to compatibility with high-efficiency compressors. 

By 2028, CO₂ penetration in transport refrigeration is expected to exceed 12%, up from 4% in 2024. 

The CO2-based Refrigerant Market is therefore transitioning from niche regulatory substitute to mainstream refrigeration architecture across multiple verticals. 

Geographical Demand Dynamics in the CO2-based Refrigerant Market 

The CO2-based Refrigerant Market demonstrates regionally differentiated growth patterns shaped by regulatory maturity, retail infrastructure expansion, and electrification of heating systems. 

Europe remains the largest revenue contributor in 2025, accounting for approximately 38% of the global CO2-based Refrigerant Market. For instance, over 70% of new supermarket refrigeration installations across Western Europe utilize CO₂ transcritical systems. Countries such as Germany, France, the Nordics, and Italy collectively add more than 6,500 CO₂-based commercial refrigeration systems annually. Heat recovery integration is present in nearly 45% of these installations, improving total system energy efficiency by 20–30%. 

Asia-Pacific is the fastest-growing region in the CO2-based Refrigerant Market, expanding at 16–17% CAGR through 2030. China, Japan, South Korea, and Australia are driving regional demand. For example, Japan maintains over 10 million installed residential CO₂ heat pump units, and new annual installations exceed 900,000 units. In China, organized food retail floor space is increasing at over 5% annually, directly translating into higher demand for CO₂ refrigeration systems. Approximately 28% of newly commissioned hypermarkets in Tier 1 and Tier 2 Chinese cities adopted CO₂ systems in 2025. 

North America accounts for approximately 21% of the CO2-based Refrigerant Market in 2025. Adoption is concentrated in large-format retail chains and industrial cold storage facilities. For instance, more than 3,200 supermarkets in the United States operate on CO₂ systems, with new annual additions growing at 14%. Canada exhibits stronger penetration due to favorable climate conditions, with nearly 35% of new supermarkets deploying CO₂ refrigeration. 

Latin America and the Middle East are emerging markets. Brazil and Mexico are witnessing 12–15% annual growth in CO₂-based installations, primarily driven by multinational retail chains implementing global sustainability standards. In the Gulf region, high ambient temperature optimization has enabled gradual adoption, with pilot deployments increasing 18% year-over-year in 2025. 

Regional demand growth in the CO2-based Refrigerant Market correlates directly with regulatory stringency, electricity cost inflation, and food retail modernization rates. 

Production Landscape in the CO2-based Refrigerant Market 

The CO2-based Refrigerant production ecosystem is closely linked to industrial CO₂ capture, purification, and liquefaction infrastructure. Unlike synthetic refrigerants, CO₂-based refrigerants rely on by-product recovery from ammonia plants, bioethanol facilities, hydrogen production units, and carbon capture systems. 

Global CO2-based Refrigerant production capacity in 2025 exceeds 4.6 million metric tons annually, with effective utilization rates near 72%. Europe accounts for nearly 34% of total CO2-based Refrigerant production, followed by Asia-Pacific at 31% and North America at 24%. 

CO2-based Refrigerant production expansion is increasingly integrated with carbon capture and utilization (CCU) projects. For instance, 18 new CO₂ purification units were commissioned globally between 2024 and 2025, adding approximately 420,000 metric tons of incremental CO2-based Refrigerant production capacity. 

CO2-based Refrigerant production economics are influenced by feedstock source stability. Industrial-grade CO₂ recovered from ammonia plants constitutes nearly 48% of total CO2-based Refrigerant production, while ethanol and bio-based plants contribute 22%. 

Strategic investments are ongoing in Southeast Asia and Eastern Europe to localize CO2-based Refrigerant production and reduce dependency on cross-border industrial gas trade. By 2027, installed CO2-based Refrigerant production capacity is projected to exceed 5.5 million metric tons globally. 

The distributed nature of CO2-based Refrigerant production provides supply chain resilience compared to fluorinated refrigerants dependent on chemical synthesis hubs. 

Market Segmentation Structure of the CO2-based Refrigerant Market 

The CO2-based Refrigerant Market is segmented across application, system type, end-user, and region. 

By Application 

• Commercial refrigeration – 46% share (2025) 

• Heat pumps – 24% share 

• Industrial refrigeration – 18% share 

• Transport refrigeration – 7% share 

• Others (vending, ice rinks, specialty cooling) – 5% share 

By System Type 

• Transcritical systems – 58% 

• Cascade systems – 26% 

• Subcritical systems – 16% 

By End-User 

• Supermarkets and hypermarkets – 44% 

• Cold storage & food processing – 19% 

• Residential heating – 17% 

• Hospitality and healthcare – 11% 

• Logistics & transport – 9% 

Commercial refrigeration remains the structural backbone of the CO2-based Refrigerant Market. For example, global supermarket count is expanding at 4–5% annually, while frozen food consumption is growing at 6% annually, directly driving refrigeration capacity additions. 

Heat pumps represent the fastest-growing segment within the CO2-based Refrigerant Market. Electrification policies are increasing annual residential heat pump sales by over 12%, and CO₂ variants are gaining share due to high-temperature performance capabilities. 

Industrial refrigeration demand is expanding in parallel with global cold chain infrastructure. Cold storage capacity additions exceeded 38 million cubic meters globally in 2025, of which approximately 19% integrated CO₂ cascade refrigeration systems. 

Transport refrigeration is transitioning gradually. Electric refrigerated truck fleets are increasing at 20% annually, creating compatibility advantages for CO₂ systems in hybrid configurations. 

The CO2-based Refrigerant Market segmentation reflects diversification beyond supermarket reliance, enhancing long-term demand stability. 

CO2-based Refrigerant Price Dynamics in the CO2-based Refrigerant Market 

CO2-based Refrigerant Price remains structurally lower compared to synthetic refrigerants on a per-kilogram basis. In 2025, average global CO2-based Refrigerant Price ranges between USD 1.2–2.0 per kg depending on purity grade and regional logistics cost. 

However, CO2-based Refrigerant Price fluctuations are influenced by industrial gas supply cycles and energy costs. For instance, during periods of ammonia plant shutdowns, temporary tightening of CO₂ supply can elevate CO2-based Refrigerant Price by 8–12%. 

The CO2-based Refrigerant Price Trend between 2023 and 2025 demonstrates relative stability compared to HFC refrigerants, which experienced volatility exceeding 25% due to quota restrictions and raw material constraints. 

In Europe, average CO2-based Refrigerant Price increased 6% in 2024 due to energy cost inflation but stabilized in 2025 as liquefaction efficiency improved. In Asia-Pacific, localized production expansion reduced CO2-based Refrigerant Price by 4% year-over-year in 2025. 

CO2-based Refrigerant Price Trend analysis indicates moderate upward pressure through 2027 as demand growth outpaces new purification capacity additions. However, long-term price escalation risk remains limited due to abundant industrial CO₂ availability. 

Bulk purchasing agreements by supermarket chains are further stabilizing CO2-based Refrigerant Price through long-term contracts. Approximately 52% of large retail groups now operate centralized procurement for CO₂ refrigerant supply. 

The CO2-based Refrigerant Price differential compared to R404A remains substantial. For example, R404A equivalent refrigerant cost per kg in regulated markets can exceed USD 18–22 per kg, making CO₂ economically attractive even after accounting for system capital costs. 

The CO2-based Refrigerant Price Trend therefore supports long-term adoption economics, particularly as carbon taxation expands across regions. 

Infrastructure Expansion Supporting CO2-based Refrigerant Market Growth 

Cold chain modernization, urban retail expansion, and electrification strategies collectively reinforce structural demand in the CO2-based Refrigerant Market. 

For instance: 

• Global frozen food market expanding at 6% CAGR 

• Pharmaceutical cold chain volume growing at 9% annually 

• Urban convenience store count rising at 7% annually in Asia-Pacific 

• Heat pump installations exceeding 24 million units in 2026 

Each of these verticals directly translates into incremental refrigerant volume demand. The CO2-based Refrigerant Market benefits from both new installations and retrofit cycles, with retrofit penetration reaching 28% of annual system deployments in 2025. 

Geographical diversification, stable CO2-based Refrigerant production expansion, favorable CO2-based Refrigerant Price Trend, and segmentation-driven demand resilience collectively position the CO2-based Refrigerant Market for sustained double-digit growth through 2030. 

Competitive Landscape Structure in the CO2-based Refrigerant Market 

The CO2-based Refrigerant Market is characterized by a dual-layer competitive structure comprising industrial gas suppliers on the upstream side and refrigeration system manufacturers and component OEMs on the downstream side. Market concentration is moderate at the refrigerant supply level and more fragmented at the system integration level. 

In 2025, the top five industrial gas companies collectively account for approximately 68–72% of global CO2-based Refrigerant Market revenue at the refrigerant supply level. This concentration reflects scale advantages in CO₂ capture, purification, liquefaction, and bulk logistics infrastructure. The remaining share is distributed among regional gas processors, captive CO₂ producers, and specialized refrigerant distributors. 

On the system side, the top seven refrigeration OEMs account for nearly 55–60% of global installed CO₂ transcritical and cascade systems, while regional integrators and engineering firms hold the remaining share. Competitive positioning is driven by compressor technology, ejector systems, controls integration, and lifecycle service contracts. 

Industrial Gas Leaders in the CO2-based Refrigerant Market 

The CO2-based Refrigerant Market at the refrigerant supply level is dominated by global industrial gas companies with vertically integrated operations. 

Linde plc holds an estimated 26–28% share of the global CO2-based Refrigerant Market in 2025. The company leverages its large-scale CO₂ capture from hydrogen and ammonia plants and offers high-purity R744 streams for refrigeration applications. Its product portfolio includes bulk liquid CO₂ supply contracts for supermarket chains and on-site CO₂ recovery solutions for industrial facilities. Linde’s strength lies in integrated engineering capabilities, enabling direct partnerships with large cold storage operators. 

Air Liquide commands approximately 18–20% share of the CO2-based Refrigerant Market. The company operates extensive purification and liquefaction assets across Europe and Asia-Pacific. Its R744 offerings are positioned for food-grade and refrigeration-grade applications. Air Liquide has expanded modular CO₂ liquefaction systems that allow localized CO₂-based Refrigerant production near retail clusters, reducing transportation cost by 6–9%. 

Air Products & Chemicals holds roughly 14–16% share of the CO2-based Refrigerant Market. Its competitive advantage lies in industrial-scale gas processing and long-term supply agreements with food processors and cold chain operators. The company’s investments in carbon capture facilities indirectly support growth in CO₂ refrigerant availability. 

Messer Group accounts for nearly 6–7% share, with strong presence in Europe and Southeast Asia. Taiyo Nippon Sanso and several regional suppliers collectively hold around 10–12%, primarily serving domestic refrigeration equipment manufacturers and mid-sized supermarket chains. 

The CO2-based Refrigerant Market share by manufacturers at the refrigerant level is therefore influenced by geographic production assets and logistics efficiency rather than proprietary chemistry, as CO₂ is a naturally occurring refrigerant with standardized purity requirements. 

Refrigeration OEMs and System Manufacturers in the CO2-based Refrigerant Market 

The downstream portion of the CO2-based Refrigerant Market is driven by system manufacturers specializing in transcritical and cascade CO₂ technologies. 

Danfoss is estimated to hold 13–15% share of the global CO2-based Refrigerant Market in terms of CO₂ system component revenue. The company’s product lines include CO₂ compressors, high-pressure valves, controllers, and multi-ejector systems optimized for warm climates. Its ejector technology improves system efficiency by 10–20%, enabling expansion of CO₂ systems into regions where ambient temperatures exceed 35°C. 

Bitzer accounts for approximately 9–11% share. Its CO₂ compressor portfolio includes reciprocating and screw compressors specifically engineered for high-pressure transcritical operation. Bitzer’s modular rack systems are widely deployed in European supermarkets and industrial facilities. 

Emerson, through its Copeland compressor division and system control technologies, holds nearly 8–10% share of the CO2-based Refrigerant Market in system components. The company focuses on integrated electronic controls and scroll compressor technologies for medium-capacity commercial refrigeration. 

Carrier, including its subsidiary Hussmann, commands roughly 6–8% share. The company provides full-system transcritical racks and turnkey supermarket installations. Its presence is strongest in North America, where adoption is accelerating at over 14% annually. 

GEA Group and Mayekawa are prominent players in industrial CO₂ cascade refrigeration systems, particularly in food processing and cold storage facilities. Together, they account for around 8–10% of industrial CO₂ refrigeration deployments globally. 

Regional integrators such as Advansor, SCM Frigo, Panasonic, Hillphoenix, and Sanden collectively represent 20–25% of the CO2-based Refrigerant Market in system-level revenue, particularly in Europe and Asia-Pacific. 

CO2-based Refrigerant Market Share by Manufacturers – Competitive Positioning 

The CO2-based Refrigerant Market share by manufacturers is increasingly influenced by technology differentiation rather than refrigerant availability. 

Upstream suppliers compete on: 

• Purity consistency (99.9%+ refrigeration grade) 

• Liquefaction efficiency 

• Distribution network density 

• Long-term contract pricing stability 

Downstream OEMs compete on: 

• Energy efficiency performance (kWh per ton of cooling) 

• Ejector and parallel compression integration 

• Heat recovery capability 

• Digital monitoring and predictive maintenance 

• Total cost of ownership optimization 

For instance, supermarket chains increasingly prefer OEMs that demonstrate 12–18% energy savings over legacy HFC systems. Industrial cold storage facilities prioritize cascade configurations that reduce ammonia charge by up to 85%, improving regulatory compliance. 

Market consolidation remains moderate. No single OEM controls more than 15% of global CO₂ system installations, indicating healthy competitive dynamics. 

Innovation Pipeline Strengthening the CO2-based Refrigerant Market 

The CO2-based Refrigerant Market is witnessing accelerated product innovation focused on improving efficiency in high-ambient climates. 

In early 2026, large-scale CO₂ ejector systems were introduced for industrial refrigeration, expanding transcritical system viability in regions such as the Middle East and Southeast Asia. These systems improve annual energy efficiency by approximately 8–12% compared to earlier designs. 

Several OEMs have launched compact integrated CO₂ racks targeting urban convenience stores under 500 square meters. These modular systems reduce footprint by 20–25% and installation time by 15%, supporting rapid retail expansion in Asia-Pacific. 

Digitalization is also emerging as a differentiator. Predictive maintenance systems reduce unplanned downtime by 18–22%, directly lowering lifecycle operating cost. 

Recent Developments and Strategic Moves in the CO2-based Refrigerant Market 

2024–2025 witnessed accelerated investment in localized CO₂ purification units across Eastern Europe and Southeast Asia, increasing regional CO2-based Refrigerant production capacity by nearly 9% annually. 

In 2025, multiple supermarket chains in North America announced full transition strategies toward natural refrigerants for all new store formats, increasing forward demand visibility for OEMs through 2028. 

In 2026, several industrial refrigeration suppliers expanded CO₂ cascade installations in pharmaceutical cold chains, responding to 9% annual growth in temperature-controlled logistics. 

Strategic partnerships between industrial gas suppliers and refrigeration OEMs have increased, enabling bundled refrigerant supply and service contracts. This integration model strengthens customer retention and stabilizes CO2-based Refrigerant Market share by manufacturers.