Refrigerants Market

The global refrigerants market is projected to reach USD 8.4 billion by 2030, growing at a CAGR of 6.2% from 2023 to 2030. The increasing demand for consumer appliances such as refrigeration and air conditioning equipment, as well as the growth of the pharmaceutical industry, are the major drivers of this market. Furthermore, the rising need for natural refrigerants is expected to fuel market growth in the near future.

Market Dynamics:
Driver: Growing pharmaceutical industry
The pharmaceutical industry requires low-temperature conditions for the transportation and storage of drugs. The shift to biologics, specialty pharmaceuticals, insulin products, and vaccines is driving the demand for refrigerants in this industry, especially in developing Asian economies like China and India. The significant growth of the pharmaceutical industry in these regions is expected to drive the refrigerants market.

Restraints: Flammability and toxicity issues
Certain refrigerants, such as ammonia, carbon dioxide, and HCs, have flammable, corrosive, and toxic properties at higher concentrations. Safety precautions associated with these refrigerants, such as ammonia and carbon dioxide, require special measures compared to fluorinated refrigerant gases. These challenges pose restraints to the companies and manufacturers of refrigerants.

Opportunities: Increasing demand for natural refrigerants
Natural refrigerants, including ammonia, carbon dioxide, and HCs like propane and isobutene, offer advantages such as low global warming potential (GWP) and zero ozone depletion potential (ODP). Many companies, including The Coca-Cola Company and Red Bull GmbH, have already switched to natural refrigerants, while others are in the process of adopting them. Natural refrigerants provide higher thermodynamic properties and are energy-efficient, making them an attractive option for meeting cooling requirements.

Challenges: Illegal trade of refrigerants
The illegal trading of refrigerants poses challenges to companies and manufacturers. Efforts to curb illegal trade have been made, but there is a need to strengthen monitoring and enforcement systems to prevent the unauthorized trade of refrigerants.

The refrigerant market is witnessing the fastest growth in the hydrofluoro-olefins (HFOs) segment. HFOs, the fourth generation of fluorine-based gases, have low global warming potential and zero ozone depletion potential, making them a greener option than previous generations of refrigerants.


“HFO is projected to be the fastest-growing type of refrigerant, during the forecast period”
Hydrofluoro-olefins (HFOs) belong to the fourth generation of fluorine-based gases. Unlike HFC refrigerants that have single bonds between carbon atoms, HFOs contain at least one double bond. HFO 1234yf, developed collaboratively by DuPont and Honeywell under the trade names Opteon YF and SOLSTICE YF, was the first HFO and serves as a low-GWP substitute for R134a in mobile air conditioning (MAC) systems. With zero ozone depletion potential (ODP) and a low global warming potential (GWP), HFO refrigerants are considered more environmentally friendly compared to CFCs, HCFCs, and HFCs."

“Refrigeration system was the largest application for refrigerants market in 2021, in terms of value”
In 2021, the largest application for refrigerants in terms of value was the refrigeration system segment. Refrigerators operate as heat engines, using refrigerants to absorb and transfer heat from low-temperature and pressure environments to high-temperature and pressure environments. This segment encompasses domestic refrigeration, industrial refrigeration, and commercial refrigeration. Within the refrigeration system segment, the industrial refrigeration system held the largest market share due to the extensive use of refrigerants.

“Asia Pacific was the largest market for refrigerants in 2021, in terms of volume.”
Asia Pacific emerged as the largest market for refrigerants in 2021. The region is expected to achieve the highest compound annual growth rate (CAGR) during the forecast period. Asia Pacific's dominance in the refrigerants market is attributed to rapid economic growth, particularly in the consumer goods and automobile industries. The region's rapid urbanization, coupled with improved living standards, is driving the demand for refrigerants. China, Japan, and India are the major refrigerant markets in the emerging economies of Asia Pacific.

Not-in-kind cooling technology
Not-in-kind cooling technology refers to innovative approaches that deviate from traditional refrigeration and air conditioning systems reliant on vapor compression cycles with gaseous refrigerants. Not-in-kind systems, by not requiring gaseous refrigerants, are typically free of hydrofluorocarbons (HFCs) and contribute to climate-friendly technologies.

The key players in the refrigerants market include Honeywell International Inc. (US), The Chemours Company (US), The Linde Group (Ireland), Air Liquide (France), Daikin Industries Ltd. (Japan), Sinochem Group (China), Arkema S.A. (France), and Orbia (Mexico). Continuous advancements in the market, such as new product launches, mergers and acquisitions, agreements, and expansions, are expected to drive market growth. Leading refrigerant manufacturers are introducing multiple products and investing significantly to expand their production capacity and maintain their market positions."

This report categorizes the global refrigerants market based on type, application and region.
On the basis of type, the refrigerants market has been segmented as follows:
• HFC & Blends
• HFO
• Isobutane
• Propane
• Ammonia
• Carbon Dioxide
• Others

On the basis of application, the refrigerants market has been segmented as follows:
• Refrigeration system
o Domestic refrigeration
o Commercial refrigeration
o Industrial refrigeration
• Air conditioning system
o Window AC
o Split AC
o VRF
o Ducted, Packaged and Rooftop ACs
• Chillers
• MAC

On the basis of region, the refrigerants market has been segmented as follows:
• Asia Pacific
• Europe
• North America
• Middle East & Arica
• South America

Recent Developments
• In January 2022, Honeywell launched a new non-flammable energy-efficient Solstice N71 (R-471A) refrigerant to meet the stringent regulations regarding reducing greenhouse gas emissions.
• On May 8, 2021, Sinochem Holdings Corporation Ltd. was established and formed through the joint restructuring of the Sinochem Group and China International Corporation. The company is a leading state-owned enterprise with more than 220,000 employees.