How big is the CO2 Refrigerant Market | Market Breakdown & Growth 2025

Q: What is the current size of the CO₂ refrigerant market?

The CO₂ refrigerant market was valued at USD 1.2 billion in 2024 and is projected to reach USD 3.1 billion by 2031.

Q: What is the growth rate of the CO₂ refrigerant market?

The CO₂ refrigerant market is expected to grow at a CAGR of 14.4% during the forecast period of 2025 to 2031.

Q: Which applications contribute the most in the CO₂ refrigerant market?

Commercial refrigeration, industrial cold storage, heat pumps, food processing, and transportation cooling.

Q: What is driving demand in the CO₂ refrigerant market?

HFC phase-out policies, eco-friendly alternatives, energy efficiency, and global sustainability goals.

Q: What challenges does the CO₂ refrigerant market face?

High system pressure requirements, installation complexity, cost of retrofitting, and climate performance variations.

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Code: MTA5461

Publication Date: Jul 2025

How big is the CO₂ Refrigerant Market?

According to 6Wresearch internal database and industry insights, the CO₂ refrigerant market was valued at approximately USD 1.2 billion in 2024 and is projected to reach USD 3.1 billion by 2031, growing at a CAGR of 14.4%.

This growth is fueled by rising environmental concerns, strict regulations against HFCs, and the increasing adoption of natural refrigerants in commercial and industrial cooling systems. CO₂ (R-744) is emerging as a viable, sustainable, and energy-efficient refrigerant across applications.

Key Growth Drivers of the CO₂ Refrigerant Market

Stringent global regulations phasing down synthetic refrigerants like HFCs and HCFCs
High demand for eco-friendly, non-toxic, and non-flammable refrigerants
Adoption of CO₂ in commercial refrigeration, heat pumps, and cold storage facilities
Rising preference for low GWP and energy-efficient refrigeration systems
Growing deployment of trans critical and subcritical CO₂ systems worldwide

CO₂ Refrigerant Market Trends

The CO₂ refrigerant market is witnessing increased use in supermarkets, food retail chains, and industrial cold chains. Trans critical Co 2 systems are also being embraced in the regions where weather temperatures are mild or low. The manufacturers have been coming up with better system components to accommodate high pressures due to CO 2. There is an increasing combination of CO 2 refrigeration with heat recovery systems so as to enhance overall efficiency. The change to natural refrigerants is encouraged by governmental subsidies and carbon-free policies.

Emerging Developments in the CO₂ Refrigerant Market

New developments include the use of ejector technology in CO₂ systems to enhance energy efficiency in warm climates. Firms are designing modular and compact CO 2 refrigeration systems to use in smaller systems. The R&D is centered on low cost of operations coupled with better performance in different climatic conditions. CO 2 There are partnerships between HVAC manufactures and retail chains that are rapidly increasing installation of CO 2 systems. IoT is introducing smart control systems to optimize the performance of CO 2 refrigerations.