The global transcritical CO2 market has experienced substantial growth, reaching $US44.7 billion in 2022, and is set for even bigger growth, according to a new report from ResearchAndMarkets.com.
The research firm said the market will reach $117.1 billion by 2028, exhibiting a remarkable Compound Annual Growth Rate (CAGR) of 16.7 per cent, during the forecast period from 2023 to 2028.
Transcritical CO2 refers to a refrigeration system consisting of a gas cooler for heat dissipation and a high-pressure expansion valve to regulate the evaporator.
This system is known for its environmental-friendliness, non-flammability, non-toxicity, and excellent heat transfer properties with a high latent heat of vaporization.
Moreover, it offers cost-effectiveness by using more affordable fluids and demonstrating higher efficiency compared to traditional refrigeration systems.
Additionally, it enables the recovery of rejected heat due to its higher enthalpy, which can be harnessed for building heating, ventilation, and air conditioning (HVAC) as well as domestic hot water. Consequently, transcritical CO2 finds extensive applications in the food and beverage (F&B) and retail industries worldwide.
The report pointed to rising demand for air conditioning units in the hospitality and residential sectors globally which will contribute to this growth.
“Coupled with the lower operational costs of transcritical CO2 systems, this factor is a key driver of market growth,” the report said.
Another key driver is reduced maintenance costs.
“The high maintenance costs associated with hydro-chlorofluorocarbon (HCFC) and chlorofluorocarbon (CFC) based equipment are prompting businesses to opt for transcritical CO2 systems,” the report said.
Meanwhile, escalating demand for transcritical CO2 in cold storage facilities is creating significant growth opportunities for industry investors.
Governments worldwide are also implementing stringent regulations to reduce the use of fluorinated gases (F-gases), further propelling market growth.