CO2 Compressor Market Report Scope & Overview:

The CO2 compressor market size was valued at USD 2.33 billion in 2024 and is expected to reach USD 4.03 billion by 2032, growing at a CAGR of 7.12% over the forecast period of 2025-2032.

The growth in CO2 applications in refrigeration, air conditioning, and carbon capture and storage, along with increasing environmental awareness, are the key factors propelling the market growth over the forecast period. Technological developments in oil-cooled and water-cooled compressors are one of the key components driving the global trends, which increase and CO2 compressor market share and growth globally.

“In May 2025, Mitsubishi Heavy Industries Compressor Corporation received an order for an advanced 9-stage CO2 compressor for a carbon dioxide capture and storage (CCS) project in Japan.”

Market Size and Forecast

• Market Size in 2024: USD 2.33 Billion

• Market Size by 2032: USD 4.03 Billion

• CAGR: 7.12% from 2025 to 2032

• Base Year: 2024

• Forecast Period: 2025–2032

• Historical Data: 2021–2023

CO2 Compressor Market Trends

• Growing adoption of CO₂ compressors in food & beverage industries for carbonation, refrigeration, and packaging is driving demand.

• Rising focus on sustainable and eco-friendly refrigerants is boosting the shift toward CO₂-based systems.

• Increasing applications in oil & gas, chemical processing, and industrial manufacturing are expanding market scope.

• Growth of the cold chain industry, including frozen foods and pharmaceuticals, is accelerating compressor installations.

• Technological advancements in energy-efficient and high-performance CO₂ compressors are supporting market penetration.

• Government regulations promoting low-GWP (Global Warming Potential) refrigerants are pushing industries toward CO₂ compressors.

• Expansion of data centers and industrial cooling systems is further fueling adoption.

The U.S. CO2 compressor market size was valued at USD 0.37 billion in 2024 and is expected to reach USD 0.99 billion by 2032, growing at a CAGR of 6.50% over the forecast period of 2025-2032.

The U.S. CO2 compressor market is on a rapid expansion owing to high demand from carbon capturing and refrigeration applications. As a result, Key CO2 compressor companies are making investments and using advanced technologies for their efficiency and emission reductions. The trends in CO2 compressor market report about the surge in oil-cooled and water-cooled compressor adoption, which appears to be the catalyst for CO2 compressor market competitiveness and sustainability.

CO2 Compressor Market Growth Drivers:

• Growing Demand for High-Pressure CO2 Compressors in Industrial Applications Drives CO2 Compressor Market Growth

The CO2 compressor market analysis finds that demand for High-Pressure CO2 compressors across multiple industrial applications is one of the major contributing trends toward the market growth. These compressors are important in processes, such as systems to increase energy efficiency and reduce environmental impacts. The growing use of sustainable refrigeration methods, including CO2 refrigeration compressor systems, is equally driving market growth for compressors. Leading players in CO2 Compressors are investing in the latest technologies to cope with strict environmental regulations and growing demand. These CO2 compressor market trends suggest that the segment may continue to grow with many advancements being made.

“For instance, Wärtsilä has launched a new CO2 liquefaction solution for enhanced CO2 compression and liquefaction efficiency for both marine and industrial applications, supporting sustainability efforts and carbon reduction targets.”

• Increasing Adoption of CO2 Refrigeration Compressor Solutions in Food and Beverage Sector Fuels CO2 Compressor Market Demand

Based on the CO2 compressor market report, the increase in demand for compressor solutions in the food & beverage sector is boosting the growth of the overall market. Due to shifting sustainability standards and carbon-neutral practices, sustainable refrigeration systems are increasingly being adopted by companies. The introduction of modern systems by the prominent manufacturers of CO2 Compressors will shape these trends to favor low-global-warming-potential refrigerants. In addition to that, these compressors maintain efficient cooling performance and conform to environmental standards, which makes them the preferred option in the sector.

CO2 Compressor Market Restraints:

• High Initial Costs and Complex Maintenance Requirements Restrain CO2 Compressor Market Expansion

High initial investment cost and complexity involved in the maintenance of CO2 compressors are major restraining factors for the growth of the CO2 compressor market, despite its potential market space and promise in the form of various developments made by CO2 compressor companies. Achieving more sustainable greenhouse operations is generally associated with either significant capital expenditure for CO2, refrigeration compressor systems, and high-pressure CO2 compressors, and therefore, its use is limited to large enterprises. Moreover, maintenance on compression systems has strict safety guidelines and takes a high degree of skilled labor, which comes at a cost.

CO2 Compressor Market Segment Analysis

By Product Type, Reciprocating compressors dominate the CO2 compressor market, while centrifugal compressors are the fastest-growing segment.

The CO2 compressor market was dominated by the reciprocating compressors segment, which accounted for more than 39.46% of global revenue in 2024. The widespread application of these devices in multiple end-use industries, such as oil & gas, chemicals, and refrigeration is expected to drive this dominance. Their high performance in managing high-pressure applications and flexibility in several operational demands also strengthens their go-to-market strategy. In addition, these compressors are suitable for low to medium-pressure compression systems, ensuring a safe and economical solution to modern industrial requirements.

The centrifugal compressor segment is anticipated to grow at a robust CAGR of approximately 7.43% over 2025-2032, owing to the growing needs of high-capacity and energy-efficient solutions at larger scales. This allows the compressors to have low maintenance and high performance due to technological advances, and is suitable for processes with continuous gas flow. This drives the market for centrifugal compressors, where an increasing number of industries are upgrading their systems. Additionally, their role in contemporary systems is in agreement with positive trends in environmental consciousness and cost-competitive operational efficiency.

By Application, Refrigeration leads the CO2 compressor market, whereas carbonating is the fastest-growing segment.

The refrigeration segment held the largest revenue share in the CO2 compressor market, which is 40% in 2024. Growth of this segment is primarily attributed to the increasing demand for sustainable, energy-efficient refrigeration systems from food processing and cold storage industries. They provide great thermodynamic properties, and they are also in better line with stricter environmental standards than other refrigeration systems. Together with a rise in the investment for sustainable cold chain infrastructure and the continued adoption of natural refrigerants, this has re-established the refrigeration segment as a leader in the CO2 compressor market.

The Carbonating segment is projected to register a significant CAGR over 2025-2032, owing to the increasing demand for carbonated beverages and packed sparkling water. An increase in consumer taste for fizzy drinks, particularly in developing economies, also drives this growth. CO2 compressors play a crucial role in beverage manufacturing lines, as they are necessary for carbonation, which makes them an important part of the process, as consistent carbonation is needed for a consistent product.

By End Use, Oil & Gas dominates the CO2 compressor market, while food & beverage is the fastest-growing segment.

 Oil & Gas segment leads the CO2 compressor market by dominant revenue share in 2024, driven by seeking a reliable gas compression solution as it translates into a significant manner from exploration and production activities. The role of CO2 compressors is crucial, and they play an important role in the enhanced oil recovery processes by transporting and injecting CO2 to enhance hydrocarbon recovery rates. With an increasing focus on operational efficiency and emission reduction, oil & gas operators are continually turning to integrated advanced compression systems.

During 2025-2032, the Food & Beverage segment is projected to have a considerable CAGR, during which it will be able to maintain more sustainable and efficient refrigeration and carbonation processes. With the inclination of the industry toward natural refrigerants, CO2 compressors are a good option that provides environmental compatibility and improved efficiency at high pressures. Furthermore, the global rise in demand for packaged food and beverages is a factor propelling the growth of this segment. Improved gas compression systems are also capable of significant investments in food and beverage processing operations.

By Type, Oil-cooled compressors lead the CO2 compressor market, whereas water-cooled compressors are the fastest-growing segment.

In 2024, the CO2 compressor market was dominated by the Oil-Cooled Compressors segment, with the largest revenue share due to its high cooling efficiency in addition to long service life, which makes them an ideal choice for heavy rainy or industrial applications. They are also better for high-pressure environments, which means less maintenance downtime and cost, as there is not so much wear and tear. This, coupled with the fact that these non-cryogenic systems can reliably operate in a wide array of temperature ranges, makes hybrid systems a go-to for many industries looking to enhance gas compression system efficiency and reliability in some of the most challenging operational climates.

The Water-Cooled Compressors segment is estimated to offer an optimistic CAGR due to water-cooled compressors providing excellent thermal performance in high-capacity operations. With industrial-scale implementations requiring more advanced CO2 compression systems, water-cooled compressors are becoming increasingly popular due to their higher heat dissipation potential and energy efficiency. These systems are specifically important in facilities requiring heavy cooling needs, such as power creating and synthesis, and are part of a wider shift towards greater sustainability and reliability of gas compression systems, expected to transcend over the global adoption in the upcoming years.

By Power Source, Electric compressors dominate the CO2 compressor market, while gas-powered compressors are the fastest-growing segment.

The Electric Compressors segment dominated the market by generating the highest revenue share in 2024, as modern end-user sectors seek to reduce their eco-footprint, and electric compressors have emerged as cleaner and energy-efficient in operation. They are specifically popular in heavily populated and industrial areas under more stringent environmental regulations. In addition, electric compressors enable lower noise levels during operation and are ideal for automated systems, which makes them more attractive for the new generation of industries to follow the green initiatives.

The Gas-Powered compressors segment is predicted to grow at a significant CAGR throughout the forecast period of 2025-2032, owing to their portability and off-grid applications. In many remote industrial applications and oil & gas fields where there is no stable electrical grid, gas-driven compressors provide reliable performance. Modular skids serve the temporary use cases well and also act as a portable station for field-based operations in need of customized gas compression. The flexibility and power supply independence are likely to drive the growth of this segment by fulfilling unique operational needs in diverse industries.

CO2 Compressor Market Regional Analysis

North America CO2 Compressor Market Insights

In 2024, North America held the largest revenue market share of approximately 35.28% in the CO2 compressor market. The dominance can be ascribed to the well-established industrial sector in the region, the increasing penetration of carbon capture and storage (CCS) technologies, and the growing adoption of CO2-based refrigeration systems, particularly in the food & beverage and petrochemical industries. In addition, presence of all the key players in the market and continuous development of compressor designs have significantly aided this market leadership.

Asia Pacific CO2 Compressor Market Insights

In the Asia Pacific region, rapid industrialization includes activities such as infrastructure development, which are expected to propel this huge market at a spine-chilling CAGR of about 9% from 2025-2032. The demand for food & beverage processing, chemical manufacturing, and power generation further spurs this growth. The ongoing developments in the region for sustainability, as well as the implementation of advanced systems, are also complementary to the most relevant trends in the CO2 compressor market, fueling the regional market growth. With the increase in investments and manufacturing capacities in countries, such as China and India, the Asia-Pacific region remains the fastest-growing market.

Europe CO2 Compressor Market Insights

The European CO2 Compressor Market is driven by sound systems based on sustainability, with rising industrial demand. New technologies like oil-free high-pressure CO2 compressors reinforce this trend. The regional market is ruled by Germany owing to the strong manufacturing market along with the greener focus of the economy.

Middle East & Africa and Latin America CO2 Compressor Market Insights

Middle East & Africa and Latin America in the CO₂ Compressor Market are witnessing gradual adoption driven by growing industrial refrigeration, food processing, and cold chain applications. While the market remains smaller compared to North America and Europe, increasing infrastructure investments, expanding commercial and industrial sectors, and government initiatives to promote energy-efficient and low-emission technologies are supporting market growth. Partnerships with global suppliers further enhance regional CO₂ compressor deployment opportunities.

CO2 Compressor Market Competitive Landscape:

Atlas Copco

Atlas Copco, founded in 1873, is a global industrial technology leader specializing in compressors, vacuum solutions, and air treatment systems. The company focuses on delivering energy-efficient, sustainable, and high-performance solutions for diverse industrial applications. With a strong commitment to innovation and environmental responsibility, Atlas Copco supports industries worldwide in optimizing operations, reducing emissions, and enhancing productivity while maintaining safety and reliability in equipment and services.

• October 2024: Atlas Copco introduced advanced CO2 compressors in India, focusing on sustainability and efficiency, strengthening its presence in the Indian market, and supporting industrial gas compression needs.

Danfoss

Danfoss, founded in 1933, is a global leader in engineering solutions for refrigeration, heating, and industrial automation. The company develops energy-efficient and sustainable technologies, including compressors, heat pumps, and control systems, aimed at improving industrial performance and reducing environmental impact. Danfoss is committed to advancing climate-friendly solutions, enabling industries to meet sustainability goals while maintaining high operational efficiency and reliability across commercial and industrial applications.

• February 2024: Danfoss launched the BOCK CO2 compressor with increased capacity and robust performance, enhancing sustainability for industrial refrigeration and heat pump applications.

Key Players in CO2 Compressor Market are:

• Wärtsilä

• Atlas Copco AB

• Siemens AG

• Mitsubishi Heavy Industries, Ltd.

• Danfoss

• Copeland LP

• Dorin S.p.A.

• HAUG Sauer Kompressoren AG

• Mehrer Compression GmbH

• SANDEN CORPORATION

• Panasonic Corporation

• Pentair PLC

• Haier Carrier

• Bengbu AOT Compressor Co., Ltd.

• Sollant Group

• Bitzer SE

• GEA Group AG

• Howden Group Ltd.

• Ingersoll Rand

• Kaeser Compressors