U.S. Refrigerants Market Size, Share & COVID-19 Impact Analysis, By Type (Fluorocarbons, Hydrocarbons, and Inorganic Refrigerants), By Application (Air conditioning, Refrigeration, and Others), By End-use Industry (Industrial, Commercial, and Domestic), and Country Forecast, 2023-2030

The U.S. refrigerants market size was valued at USD 5.02 billion in 2022 and is projected to record a CAGR of 9.1% during the forecast period.

A refrigerant is a chemical combination of liquids used in heat pumps and refrigeration circuits. It is widely used in various commercial, residential, and industrial applications. Refrigerant systems play a significant role in various industrial processes. In household appliances, these systems are cooling and maintain the room temperature at the desired level. The demand for refrigerant systems has increased significantly with the rapid growth of the packaged food, pharmaceutical, and automotive industries.

The market’s growth is driven by the growing demand for fresh foods & chilled products, need for replacing ageing equipment owing to technological developments, and rising demand for energy efficient appliances. The focus on platform-based control and cold chain integration for monitoring purposes is expected to grow in the coming years, which may positively impact the market’s progress.

The COVID-19 pandemic had a notable impact on the supply chain of the market as manufacturing facilities around the world faced disruptions due to lockdowns and reduced workforce. This scenario affected the production of these chemicals, causing shortages and delays in their supply.

U.S. Refrigerants Market Trends

Increasing Demand from Air Conditioning Applications to Drive Market Growth

The increasing demand for refrigerants from air conditioning applications has significantly driven the U.S. market’s growth. As the population in the U.S. continues to grow, there is a greater need for residential and commercial buildings to be equipped with air conditioning systems. In addition, climate change and rising temperatures have led to a higher demand for air conditioners to maintain comfortable indoor temperatures, especially in summer. Moreover, energy efficiency regulation often necessitates using refrigerants with low Global Warming Potential (GWP). GWP measures how much gas can trap heat in the atmosphere, contributing to climate change. High-GWP refrigerants, such as some hydrofluorocarbons (HFCs), have come under scrutiny due to their negative environmental impact.

Moreover, the increasing demand for air conditioning systems in the U.S. and the need for environmentally friendly and energy-efficient solutions have been a driving force in shaping the market’s future. The market needs to continuously adapt to changing regulations and consumer preferences to meet both cooling needs and environmental goals. Such factors will drive the U.S. market growth during the forecast period.

U.S. Refrigerants Market Growth Factors

High Regulatory Compliance to Aid Market Growth

The U.S. has implemented and continues to strengthen its regulations aimed at phasing out high global warming potential refrigerants, particularly hydrochlorofluorocarbons (HCFCs) and certain hydrofluorocarbons (HFCs). Regulations, such as the Environmental Protection Agency’s (EPA) Significant New Alternative Policy (SNAP) program, require the use of low-GWP alternatives in various applications. Additionally, the EPA has been actively involved in implementing regulations to reduce the use of high-GWP products. These regulations against fluorocarbon refrigerants are making significant contributions to reducing climate change.

Moreover, regulatory compliance is a significant driving factor for the market as it sets the legal framework for the product’s use, with a strong emphasis on reducing the environmental impact by phasing out high-GWP refrigerants. Manufacturers, distributors, and end-users in the HVAC and refrigeration industry are compelled to follow these regulations, which shape their choices and investment in refrigerant technologies and solutions.

RESTRAINING FACTORS

Illegal Trade of Refrigerants to Restraint Market Growth

The illegal trade of refrigerants in the U.S. can have an adverse impact on the market. Illegal activities, such as smuggling or selling counterfeit products, can have several consequences. Illegally traded products may not meet environmental standards, leading to increased emissions of greenhouse gases and ozone-depleting substances, which can harm the environment. Counterfeit or substandard products may pose safety risks as they can be unstable or incompatible with different equipment, potentially causing accidents or damage to the HVAC systems. To address these issues, authorities need to enforce regulations, raise awareness about the risks of using illegal products, and encourage responsible practices in the refrigeration & air conditioning industry.

U.S. Refrigerants Market Segmentation Analysis

By Type Analysis

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

The hydrocarbons segment accounted for the largest U.S. refrigerants market share in 2022. The growth of the segment is attributed to the rising demand for hydrocarbons due to the growing utilization of ACs and refrigeration devices in the country.

The fluorocarbons segment will witness significant growth during the forecast period. They are widely used for domestic purposes and in air conditioning equipment.

The inorganic refrigerants segment will witness significant growth during the forecast period due to its superior thermal efficiency, enabling it to play a significant role in industrial applications. Other advantages, such as environmental friendliness, easy availability, and low costs, are anticipated to help the segment grow steadily during the forecast period.

By Application Analysis

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

The refrigeration segment accounted for the largest market share in 2022. The growing demand for refrigeration systems/equipment owing to rapid industrialization, deteriorating weather conditions, and growth in consumer goods manufacturing positively impacted the product demand.

The air conditioning segment is likely to grow significantly during the forecast period. Air conditioning systems have been known to increase efficiency in off-highway automotive applications, boosting their future demand.

By End-use Industry Analysis

Based on end-use industry, the market is segmented into industrial, commercial, and domestic.

The industrial segment accounted for the highest market share in 2022. Rising industrial pollution in the U.S. and increasing environmental regulations imposed by the government are creating lucrative opportunities for the adoption of natural chemicals. These factors are expected to boost the demand for refrigerants in industrial applications.

The commercial segment is set to witness significant growth during the forecast period owing to the increasing demand for hypermarkets, supermarkets, and food retail chains. Moreover, growth in packaged and frozen food consumption will likely boost the growth of the commercial segment.

The domestic segment is expected to grow considerably owing to the increasing acceptance of environmentally friendly and energy efficient products among households in the country.

List of Key Companies in U.S. Refrigerants Market

In terms of the competitive landscape, the U.S. market depicts the presence of established and emerging refrigerant manufacturing companies. Key players include The Chemours Company, DuPont, A-Gas, Honeywell International Inc., and Arkema, among others. These players are competing in the price and application areas of the product. They emphasize product innovations, social media marketing, acquisitions, and collaborations.

LIST OF KEY COMPANIES PROFILED:

• The Chemours Company (U.S.)


• DuPont (U.S.)


• A-Gas (U.K.)


• Honeywell International Inc. (U.S.)


• Arkema (France)


• DAIKIN INDUSTRIES, Ltd. (Japan)


• Air Liquide (France)


• Linde plc. (Ireland)

KEY INDUSTRY DEVELOPMENTS:

• February 2023: Linde announced that the company had signed a long-term agreement to supply clean hydrogen and other industrial gases to OCI's new world-scale blue ammonia plant in Beaumont, Texas. The Beaumont plant aims to build and strengthen the world's leading platform for blue ammonia and clean fuels.


• January 2022: Honeywell launched a new non-flammable, energy-efficient refrigerant named Solstice N71(R-417A) to meet the stringent regulations to reduce greenhouse gas emissions.

REPORT COVERAGE

An Infographic Representation of The U.S. refrigerants market

View Full Infographic

To get information on various segments, share your queries with us

The report thoroughly examines key factors, such as leading companies, applications, and products. It also provides information on market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market's growth in recent years. It examines the industry's newest market dynamics, opportunities, historical data, and revenue growth estimates at the country level.

Report Scope & Segmentation