Refrigerants Market by Type (HFC & Blends, HFO, Isobutane, Propane, Ammonia, Carbon Dioxide), Application (Refrigeration System, Air Conditioning System, Chillers, and MAC), and Region(Asia Pacific , North America, Europe, MEA)- Global Forecast to 2028
In terms of value, the refrigerants market is estimated to grow from USD 6.3 billion in 2022 to USD 9.0 billion by 2028, at a CAGR of 6.4%. Refrigerants are chemicals functioning on the principle of transferring heat by absorbing it at low temperature and pressure and releasing it at high temperature and pressure. Based on their functionality, refrigerants are broadly classified into two major types—primary and secondary refrigerants. Primary refrigerants act as phase change materials (PCMs) and enable refrigeration by undergoing a phase change. Secondary refrigerants are used to transfer heat energy from one source to another. They are mainly used in cooling equipment such as refrigeration and air conditioning systems.
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Market Dynamics
Driver: Growing pharmaceutical industry
The pharmaceutical industry requires low temperatures conditions for the transport and storage of drugs. Factors such as the shift to biologics and as well as growing specialty pharmaceuticals and insulin products & vaccines are fueling the demand for refrigerants in this industry in developing Asian economies. The pharmaceutical industry is witnessing significant growth in major emerging economies of Asia Pacific, such as China and India. Therefore, the growth in the pharmaceutical industry is expected to drive the market for refrigerants. The rapid growth of the pharmaceutical industry in emerging economies such as Brazil, China, and India, is leading to a gradual migration of research activities from Europe to these. According to the European Federation of Pharmaceutical Industries and Associations (EFPIA), from 2015 to 2020, the Brazilian, Chinese, and Indian pharmaceuticals industries grew by 11.3%, 4.8%, and 10.0%, respectively, compared to the growth of global pharmaceutical industry (5.0%) for the top 5 European Union markets and 4.9% for the US market. In 2020, North America accounted for 49.0% of world pharmaceutical sales, followed by Europe (23.9%).
Restraints:Flammability and toxicity issues
Refrigerants such as ammonia, carbon dioxide, and HCs are flammable, corrosive, and toxic at higher concentrations. Ammonia can react with copper and corrode it. Hence, ammonia-based refrigeration systems are made of materials such as steel, though it increases the overall initial cost of systems. The safety precautions associated with ammonia and carbon dioxide are comparatively greater than those associated with fluorinated refrigerant gases. Carbon dioxide tends to solidify into dry ice upon contact with air. Hence, carbon dioxide cylinders and refrigeration systems require special valves to prevent this conversion.
Opportunities:Increasing demand for natural refrigerants
The most used natural refrigerants are ammonia, carbon dioxide, and HCs such as propane and isobutene. Technological advancements in cooling equipment are replacing traditional refrigerants such as HCFC and HFC with natural ones. This has increased the market share of natural refrigerants in applications such as air conditioning, refrigeration, and heating systems.
Challenges: Illegal trade of refrigerants
Major enforcement efforts in 2020 have made an impact on the illegal trading of these refrigerants across the countries. However, EIA is concerned that the lack of seizures in the first half of 2021 reflects a lull in enforcement efforts by member states and OLAF, which risks undermining progress made in 2020. Given the reduction in available quota starting in 2021, there is an urgent need to strengthen the current monitoring and enforcement system and upscale enforcement capacity in the member states to end the illegal trade in HFCs. Thus, considering these points, the illegal trade of refrigerants poses a challenge to the companies and manufacturers of refrigerants.
Refrigerants Market Ecosystem
The refrigerants ecosystem includes companies manufacturing refrigerants, such as Arkema SA, Dongyue Group Co. Ltd., Honeywell International Inc., Chemours Company, Linde Group, Air Liquide S.A., Sinochem Corporation, Daikin Industries Ltd., Orbia, and Asahi Glass Corporation.
Based on type , HFC & Blends was the largest segment for refrigerants market, in terms of value, in 2022.
HFCs are used as refrigerants, blowing agents, and aerosol propellants. Following the phase-out of chlorofluorocarbons (CFCs) and later HCFCs, which were also greenhouse gases, HFC & blends became popular. Although HFCs are greenhouse gases but not as potent as CFCs or HCFCs. Following the phase-out of CFCs and HCFCs, demand for HFCs has risen rapidly and further increased with the expansion of air conditioning in developing countries. However, due to its high GWP, on October 15, 2016, it was announced in Kigali, Rwanda, that 170 nations had agreed to phase down HFCs through an amendment to the Montreal Protocol.
Based on applications, refrigeration system was the largest segment for refrigerants market, in terms of value, in 2022.
This application is divided into three major categories, which are domestic refrigeration, industrial refrigeration, and commercial refrigeration. Domestic refrigeration is mainly used in households for preserving food, drinks, and medicine. This category mainly covers refrigerators, freezers, and combined systems. Initially, refrigerants such as CFCs (CFC11 and CFC12) and HCFC (R22) were used in cooling systems. Commercial refrigeration is mainly used to preserve or display food & beverages in retail stores. This segment includes supermarkets, hypermarkets, and office buildings, which require refrigeration systems. Currently, refrigerants such as HCFC (R22), HFCs (R134A and R404A), and HC (290 and 600A) are used in commercial refrigerators, with HCFCs being the predominant one in this application. The industrial refrigeration segment includes refrigerants used in manufacturing plants. Refrigerants such as HCFC and ammonia are most commonly used in industrial applications. However, due to new environmental legislation, the use of HCFC refrigerants is declining.
“Asia Pacific accounted for the largest market share for refrigerants market, in terms of value, in 2022”
Asia Pacfic is the largest refrigerants market, accounting for the largest share of the market in 2022. HFC and carbon dioxide are among the most widely consumed refrigerants due to the increasing consumption of refrigeration and AC equipment in commercial buildings and supermarkets. In Asia Pacific, the demand for inorganic refrigerants is expected to rise mainly due to the 100% phase-out of HCFCs by 2040 and the 85% phase-out of HFCs by 2047. Market growth in Asia Pacific is mainly attributed to China—the largest refrigerants market in the world in terms of volume. The presence of large consumer pockets and the low cost of production in India and China are driving the region’s refrigerants market. Moreover, rapid urbanization, demand for domestic consumer appliances, and the rapidly growing infrastructure industry in Thailand and Indonesia are also expected to support the growth of the refrigerants market in Southeast Asia during the forecast period.
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Key Market Players
The key players profiled in the report include Arkema S.A. (France), Daikin Industries Ltd. (Japan), Honeywell International Inc. (US), The Chemours Company (US), The Linde Group (Dublin), and Air Liquide (France), among others, these are the key manufacturers that secured major market share in the last few years.
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Report Metric |
Details |
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Years considered for the study |
2016–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Units considered |
Value (USD Million/Billion) and Volume (Kiloton) |
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Segments covered |
Type, Application, and Region |
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Regions covered |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
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Companies profiled |
The key players profiled in the report include Arkema S.A. (France), Daikin Industries Ltd. (Japan), Honeywell International Inc. (US), The Chemours Company (US), The Linde Group (Dublin), and Air Liquide (France) and others. |
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
- HFO
- Isobutane
- Propane
- Ammonia
- Carbon Dioxide
- Others
On the basis of application , the Refrigerants market has been segmented as follows:
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Refrigeration System
- Domestic Refrigeration
- Commercial Refrigeration
- Industrial Refrigeration
- Chillers
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Air Conditioning Systems
- Window AC
- Split AC
- VRF
- Ducted, Packaged & Rooftop ACs
- MAC
On the basis of region, the Refrigerants market has been segmented as follows:
- Asia Pacific
- North America
- Europe
- Middle East & Arica
- South America
Recent Developments
- In June 2023, Honeywell announced first low-carbon district heating network located in Tallaght, Dublin, is using a heat pump with its energy efficient, ultra-low-global-warming-potential (GWP) hydrofluoroolefin (HFO) Solstice ze (R-1234ze) refrigerant. The project is now operational and will support Ireland’s 2030 and 2050 renewable energy targets, as well as the European Union’s decarbonization initiatives including REPowerEU.
- In may 2023, The Chemours Company announced a capacity investment in its low global warming potential (GWP) Opteon 1100 foam blowing agent and Opteon SF33 specialty fluid. The expansion will triple capacity of the ultra-low GWP, hydrofluoroolefin (HFO) solution, enabling customers and value chain partners to meet the escalating demand for sustainable and efficient HFO-1336mzzZ-based fluids.
- 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.
- In June 2021, Arkema S.A. announced the finalization of an agreement with the Chinese producer Aofan to manufacture Forane 1233zd in China. This is expected to support the market needs for sustainable solutions with high-efficiency insulation materials in various applications.
- On May 8, 2021, Sinochem Holdings Corporation Ltd. was established, formed through the joint restructuring of the Sinochem Corporation and China International Corporation. The company is a leading state-owned enterprise with more than 220,000 employees.s
- In January 2021, Air Liquide S.A. established a joint venture with Hefei Institutes of Physical Sciences to promote the development of helium refrigeration equipment in China.
- In July 2020, The Linde Group set up a new air separation unit (ASU) and the first of three nitrogen generators as part of a 15-year contract to supply ultra-high purity industrial gases to a major electronics customer in Taiwan.
Frequently Asked Questions (FAQ):
Which are the major players in Refrigerants market?
The key players profiled in the report include Arkema S.A. (France), Daikin Industries Ltd. (Japan), Honeywell International Inc. (US), The Chemours Company (US), The Linde Group (Dublin), and Air Liquide (France).and others.
Who are the top 5 players in the market?
Honeywell International Inc., The Chemours Company, The Linde Group, Air Liquide and Daikin Industries Ltd.are the major service providers of refrigerants market.
What are the drivers and opportunities for the refrigerants market?
Increasing demand for consumer appliances and growing pharmaceutical industry are some of the drivers of refrigerants market .
What are the various strategies key players are focusing within Refrigerants market?
New acquisitions, expansion and partnership are some of the strategies atoped by key players to expand their global presence.
What are the major factors restraining Refrigerants market growth during the forecast period?
Increasing stringent regulations against fluorocarbon refrigerants and flammability and toxicity issues. This acts as a major threat. .
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The study involved four major activities in estimating the market size for refrigerants. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Post that, the market breakdown and data triangulation procedures were used to estimate the market size of the segments and subsegments.
Secondary Research
Secondary sources used in this study included annual reports, press releases, and investor presentations of companies; white papers; certified publications; articles from recognized authors; and gold standard & silver standard websites such as Factiva, ICIS, Bloomberg, and others. The findings of this study were verified through primary research by conducting extensive interviews with key officials such as CEOs, VPs, directors, and other executives. The breakdown of profiles of the primary interviewees is illustrated in the figure below:
Primary Research
The Refrigerants market comprises several stakeholders, such as raw material suppliers, end-product manufacturers, and regulatory organizations in the supply chain. The demand side of this market is characterized by the automotive, medical, construction and others. The supply side is characterized by advancements in technology and diverse application industries. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information.
Breakdown of Primary Participants
Note: Tier 1, Tier 2, and Tier 3 companies are classified based on their market revenue in 2022 available in the public domain, product portfolios, and geographical presence.
Other designations include consultants and sales, marketing, and procurement managers.
To know about the assumptions considered for the study, download the pdf brochure
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COMPANY NAME |
DESIGNATION |
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Honeywell International Inc. |
Director of Marketing |
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The Chemours Company |
Manager- Sales & Marketing |
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The Linde Group |
Sales Manager |
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Air Liquide |
Production Manager |
Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the Refrigerants market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry have been identified through extensive secondary research.
- The supply chain of the industry has been determined through primary and secondary research.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
Refrigerants Market: Top-Down Approach
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Data Triangulation
After arriving at the overall market size—using the market size estimation processes as explained above—the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, the data triangulation, and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the refrigerants industry.
Market Definition
According to the International Institute of Refrigeration, refrigerants are cooling mediums that absorb heat at low temperatures and pressure and release heat at high temperatures and pressure. Fluorocarbons are the most widely used refrigerants in equipment, such as refrigerators and air conditioners. However, due to their high ozone depleting potential (ODP) and global warming potential (GWP), they are being replaced by greener refrigerants such as propane, isobutane, ammonia, and carbon dioxide, among others, such as water and propene.
Key Stakeholders
- Refrigerants Manufacturers
- Refrigerants Traders, Distributors, and Suppliers
- End-use Market Participants of Different Segments of Refrigerants
- Government and Research Organizations
- Associations and Industrial Bodies
- Research and Consulting Firms
- R&D Institutions
- Environment Support Agencies
- Investment Banks and Private Equity Firms
Report Objectives
- To define, describe, and forecast the refrigerants market in terms of value and volume
- To provide detailed information regarding the drivers, opportunities, restraints, and challenges influencing market growth
- To estimate and forecast the market size by type, application, and region
- To forecast the size of the market for five main regions: Europe, North America, Asia Pacific, South America, and the Middle East & Africa, along with their key countries
- To strategically analyze micromarkets1 with respect to their growth trends, prospects, and contribution to the overall market
- To analyze opportunities in the market for stakeholders and provide a competitive landscape for market leaders
- To analyze competitive developments, such as deals and expansions, in the market
- To analyze the impact of the recession on the market
- To strategically profile key players and comprehensively analyze their growth strategies
Available Customizations
Along with the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Regional Analysis
- Further breakdown of a region with respect to a particular country or additional application type
Company Information
- Detailed analysis and profiles of additional market players (up to five)
Generating Response ...
Growth opportunities and latent adjacency in Refrigerants Market