Japanese OEM Panasonic is seeing increased demand for its higher-capacity CO₂ (R744) outdoor condensing units (OCUs) as more businesses in Europe and the U.S. transition to natural refrigerant technologies, according to Gaku Shimada, General Manager of Panasonic’s Condensing Unit Engineering Department.

Shimada told NaturalRefrigerants.com in a recent interview that this shift is also being driven by the demand for flexible, cost-effective and energy-efficient alternatives to traditional CO₂ rack systems.

Historically, Panasonic’s focus in Europe has been on its 2HP to 10HP CO₂ OCUs. However, with growing confidence in the technology, the company is now promoting larger-capacity units, Shimada said. In particular, there’s strong demand for its 20HP model, launched earlier this year.

Of the 600 CO₂ OCUs Panasonic sold in Europe from April to August 2024, less than 1% were 20HP units, with Shimada noting that the company is “just getting started.” Due to this growing interest, Panasonic has announced that it will showcase its 20HP unit at Chillventa 2024, which will be held in Nuremberg, Germany, October 8–10.

While details have not yet been confirmed, Shimada said that the company is also hoping to bring its 40HP and 80HP OCUs to Europe in the future.

Supermarkets driving growth

Since Panasonic launched its 2HP CO₂ unit in Europe in 2017, the company has installed around 4,000 OCUs, with 1,000 installations in the past year. Much of this growth is due to a major order from a large international supermarket chain, which has driven a shift in Panasonic’s customer base.

“As of early 2023, non-food installations made up around 40% of our CO₂ OCU sales,” Shimada explained. “But over the past two years, that has shifted toward supermarkets, which now account for more than 50% of our sales in Europe.”

European supermarkets typically use CO₂ rack systems to power in-store refrigeration, with OCUs deployed for cold rooms or refrigerated storage. However, more retailers are now using OCUs for refrigeration showcases, he added.

Despite the emerging focus on supermarkets, cold storage facilities and biomedical applications remain important markets for the manufacturer.

Supermarkets Are Key to Widespread Adoption of CO₂ in Japan, Says Panasonic

Expanding regional production capacity

To meet the rising demand for CO₂ refrigeration technology in Europe, Panasonic recently announced plans to expand its production capacity with the acquisition of Area Cooling Solutions, a Polish manufacturer of R744 condensing units.

“The European CO₂ condensing unit market is growing, and the export supply from Japan is not enough to meet this demand,” Shimada said. “Adding Area Cooling Solutions’ product lineup will definitely strengthen the Panasonic Group. We needed a factory closer to the market.”

With the European market being so advanced in terms of CO₂ technology development and adoption, there is a lot that can be learned by being more present in the region, he added.

“The European CO₂ condensing unit market is growing, and the export supply from Japan is not enough to meet this demand.”

Gaku Shimada, GM of Condensing Unit Engineering Department, Panasonic

The U.S. and Oceania

While the U.S. CO₂ market is still small, it is expanding rapidly as businesses move toward natural refrigerants in response to regulatory changes and environmental goals.

“We see significant opportunities in the U.S.,” Shimada said. “With Hussmann’s strong market presence and customer base, Hussmann and Panasonic are confident we can establish ourselves as a key player in the CO₂ space.”

While Panasonic’s CO₂ OCU sales in Australia and New Zealand remain smaller than those in Europe and the U.S., the company is seeing steady growth in the region, Shimada noted.

Australian supermarkets, many of which also have operations in Europe, are increasingly adopting natural refrigerants due to their energy-saving benefits. Panasonic expects sales in Australia to grow this year as more retailers transition to natural refrigerants, with Shimada noting that Panasonic and Hussmann’s close collaboration has also played a role.

“With Hussmann’s strong market presence and customer base, [we] are confident we can establish ourselves as a key player in the CO₂ space.”

Gaku Shimada, GM of Condensing Unit Engineering Department, Panasonic