Refrigerants Market Size, Share & Industry Analysis, By Type (Fluorocarbons, Hydrocarbons, and Inorganic Refrigerants), By Application (Air Conditioning, Refrigeration, and Others), By End-Use Industry (Industrial, Commercial, and Domestic), and Regional Forecast, 2024-2032

The global refrigerants market size was valued at USD 24.20 billion in 2023 and is projected to grow from USD 26.11 billion in 2024 to USD 47.98 billion by 2032, exhibiting a CAGR of 7.9% during the forecast period. North America dominated the refrigerants market with a market share of 30.58% in 2023. Moreover, the refrigerants market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 11.98 billion by 2032, driven by the rising disposable income in the economy will favor the market size growth due to the increased use of air conditioning in domestic and industrial sectors.

A refrigerant is a mixture of liquid substances used in a refrigeration cycle and heat pump. Its transition from liquid to gaseous form takes place during the refrigeration cycle. They are preferred due to their properties such as high heat of vaporization, non-corrosive, high density in gaseous form, and moderate density in liquid form. Additionally, various available chemicals are used as refrigerants such as hydrofluorocarbons (HFCs), chlorofluorocarbons (HCFCs), hydrofluroolefins (HFO), and other inorganic chemicals. Their main application is air conditioning systems for buildings, chemical, pharmaceutical, and food industries.

The increasing demand from numerous end-use industries, mainly the automotive sector, is driving industry growth. Besides, rapid urbanization in emerging economies, growing number of cold stores, and the increasing demand for green refrigerants are other factors expected to drive the global market growth during the forecast period.

The COVID-19 pandemic served as a significant challenge for the market in 2020, owing to trade restrictions. The period recorded a decline in product usage due to government-imposed lockdowns. The global pandemic and lockdown restrictions imposed by numerous governments caused significant disruption in the commercial supply chain. Germany, China, the U.K., the U.S., and Japan are among the primary producers of refrigerants worldwide. The materials are primarily used in many commercial and industrial sectors. Lockdowns, travel restrictions, and economic instability caused supply chain disruption and delays in vital industrial activities in a majority of the given countries throughout the pandemic. The industry experienced its worst phase in recent years due to COVID-19. It has experienced consequences such as labor shortages, scarcity of raw materials, logistical challenges, and uncertainties leading to the suspension or closure of production facilities.

Refrigerants Market Trends

Increasing Demand for Natural Refrigerants is an Emerging Trend in the Market  

The impact of traditional refrigerants on the environment has become a significant issue in recent years as these liquids destroy the ozone layer, and directly contribute to the cause of global warming. However, natural refrigerants are produced in chemical and biological cycles of nature without human intervention. These natural refrigerants, such as ammonia, carbon dioxide, and hydrocarbons, are materials with a Global Warming Potential (GWP) of zero or near zero and can reduce gas, energy, and water consumption. Switching to natural refrigerants will serve as an efficient way to reduce greenhouse gas emissions, and be better for the sustainable growth of the environment.

Refrigerants Market Growth Factors

Increasing Product Deployment in Food Transportation to Aid the Market Growth

Refrigerants, such as R404a, R134a or R717, are broadly used in the beverage and food processing as they make an almost negligible contribution to global warming, reducing their impact on the ozone layer. significantly used for food and beverages storage, production, and transportation.

Medicines, food, and other perishable goods must be consistently refrigerated throughout their life cycle. Refrigerated trailers, container, and truck systems keep these supplies fresh during transport and preserve the goods from production to delivery. Growing demand for frozen food, medicines, and new therapeutic treatments within the cold chain has augmented the demand for reliable refrigerated transport.

The transport refrigeration sector relies on various systems to deliver goods locally and nationally. Large refrigerated vehicles, containers, and tractor units ensure uniform and efficient cooling in long-haul transport. Smaller trucks transporting goods from distribution centers to individual locations also require reliable cooling. These factors are expected to boost the market growth over the forecast period.  

Growing Demand for Air-conditioning Applications Aid the Market Growth

Refrigerants are chemicals that absorb heat from their environment and are used to cool products owing to their ability to absorb heat characteristics. Refrigerants are essential to modern refrigeration systems, such as refrigerators, air conditioners, chillers, freezers, and other applications.

Additionally, the growth of the construction sector is driving the commercial air conditioning market, which positively impacts the growth in demand for refrigerants. The rising infrastructure development activities, such as airports, office complexes, and metro systems, are helping to increase the need for commercial air conditioning once they are completed. The growing need for sustainable products leads to numerous manufacturers developing sustainable products and solutions.

Globally, the consumption of frozen and processed foods has increased due to several factors, such as convenience, busy lifestyles, increase in disposable income, and many other factors that have boosted the demand for refrigerants in the market.

RESTRAINING FACTORS

Flammability and Toxicity Issues are Likely to Restrain the Market Growth

In higher concentrations, refrigerants such as hydrocarbons, carbon dioxide, and ammonia are flammable, toxic, and corrosive. Ammonia can react with copper and damage it. Therefore, ammonia-based cooling systems are made from materials such as steel, which adds to the initial cost of the systems. It is important that appropriate safety precautions are adopted for ammonia and carbon dioxide compared to fluorinated refrigerant gases. Carbon dioxide is likely to solidify into dry ice when it comes into contact with air. Therefore, carbon dioxide cylinders and refrigeration systems require special valves to prevent this conversion. These factors may impede the mass adoption of the product over the forecast period.

Refrigerants Market Segmentation Analysis

By Type Analysis

Hydrocarbon Segment to Gain Momentum Due to Excellent Product Properties

Based on type, the market is segmented into fluorocarbons, hydrocarbons, and inorganic refrigerants.

The hydrocarbons segment holds the largest refrigerants market share and is anticipated to dominate the global market during the forecast period. This is due to the extensive application of hydrocarbon solutions in air conditioners, refrigerators, heat pumps, chillers, and others. Moreover, the surge in industrialization in developing countries and their utilization for a wide range of commercial and residential purposes further boost the hydrocarbons segment growth.

The fluorocarbons segment is set to witness significant growth during the forecast period. Fluorocarbons are extensively used for domestic purposes and in air conditioning equipment such as vapor compression, foam blowing, aerosols, chemical feedstock, fire suppression, and solvents.

The inorganic refrigerants segment is anticipated to witness significant gains during the forecast period. This is due to their superior thermal efficiency, which allows them to play an essential role in industrial applications. The segment growth can also be credited to the low cost, easy availability, and environmental friendliness of inorganic refrigerants.

By Application Analysis

Refrigeration Segment to Dominate due to Increasing Demand for Refrigeration Equipment

Based on application, the market is segmented into air conditioning, refrigeration, and others.

The refrigeration segment accounted for the largest market share in 2023. The increased purchasing power of the middle class for consumer goods such as refrigeration systems has led to the growth of this segment. The increasing demand for refrigeration equipment due to rapid industrialization, deteriorating weather conditions, and growth in consumer goods manufacturing has also positively influenced the product demand.

The air conditioning segment is expected to grow significantly during the forecast period. This is due to the high adoption of air conditioners in emerging economies such as China, India, and Japan. Additional factor boosting the refrigerants market growth is the increasing demand for air conditioners from several end-use industries.

By End-Use Industry Analysis

Industrial Segment Holds a Significant Share Owing to Extensive Product Adoption

By end-use industry, the market is classified into industrial, commercial, and domestic.

The industrial segment accounted for the highest market share in 2023. The rising industrial pollution in emerging countries and increasing government environmental regulations, particularly on manufacturing plants, are creating lucrative opportunities for the adoption of natural chemicals, fueling the product usage in industrial applications.  

The commercial segment is set to witness significant growth during the forecast period. This is due to increasing number of supermarkets, hypermarkets, and food retail chains and a rise in frozen and packaged foods consumption.

The domestic segment is expected to grow considerably due to the rising acceptance of energy-efficient and environmentally friendly products in developed economies such as North America and Europe. In emerging markets, such as Asia Pacific and the Middle East and Africa, the demand for household refrigeration is driven by concerns about food waste, improved food quality, and increased disposable income, prompting the wealthier middle class to spend more on modern appliances.

REGIONAL INSIGHTS

North America is anticipated to dominate the market during the forecast period. The rising disposable income in the economy will favor the market growth due to the increased use of air conditioning in domestic and industrial sectors. The rising demand from the automotive and transportation sectors is further expected to support the market growth in the region.

Asia Pacific is expected to witness significant growth over the forecast period. This is due to rapid economic growth, mainly in the automobile and consumer goods industries. The region's rapid urbanization and improved living standards are further boosting the market growth.

In Europe, the market is anticipated to grow at a substantial rate over the analysis period. The growth is driven by the expansion of the food & beverages industry coupled with the increasing need for refrigerators in households.

In Latin America, the growing demand for specialty refrigerants from the automotive sector is anticipated to drive the market expansion.

The Middle East & Africa is a potentially growing market due to rapid industrialization and urbanization coupled with growing demand for refrigerators in super, hyper, and local markets.

List of Key Companies in Refrigerants Market

Key Players are Adopting Business Expansion Strategy to Maintain their Market Position

The global market is fragmented, with major players such as Air Liquide, Advanced Technologies, Linde plc, A-Gas, the Chemours Company, and Tazzetti S.p.A. Manufacturers are expanding their business to gain expertise in the industry and mitigate threats from new entrants. Market players have competition from international and regional players with broad distribution networks, suppliers, and regulations. Additionally, companies made acquisitions, contracts, and strategic partnerships with other market players to expand their market share.

LIST OF KEY COMPANIES PROFILED

• Air Liquide Advanced Technologies (France)


• Linde plc (Ireland)


• A-Gas (England)


• The Chemours Company (U.S.)


• Tazzetti S.p.A. (Piedmont)


• AGC Inc. (Japan)


• DuPont (U.S.)


• Honeywell International Inc. (U.S.)


• Arkema (France)


• DAIKIN INDUSTRIES, Ltd.s (Japan)

KEY INDUSTRY DEVELOPMENTS

• February 2023- Linde, a global multinational chemical company, declared that it invested USD 1.8 billion and signed a contract to provide clean hydrogen and other industrial gases to OCI's new world scale blue ammonia facility in Beaumont, Texas. The Beaumont plant aims to build and strengthen the world's leading platform for clean fuels and blue ammonia.


• July 2020- Linde Group built a new Air Separation Unit (ASU) and the first of 3 nitrogen generators for a 15-year agreement to offer ultra-high purity industrial gases to a significant electronics consumer in Taiwan.


• June 2020- AGC, a world-leading manufacturer of chemical, glass, and high-tech materials, was felicitated with the environment award in the 19th Green and Sustainable Chemistry Awards ceremony. The award was accorded in recognition of the outstanding environmental technology of AGC's AMOLEA that shows the low environmental impact of HFO products

REPORT COVERAGE

The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and end-use industries. The report also offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, it encompasses various factors contributing to the market growth in recent years.

Furthermore, the report includes historical data and forecasts revenue growth at the global, regional, and country levels, and analyzes the latest market dynamics and opportunities.

Report Scope & Segmentation