Refrigerants Market

The pharmaceutical industry requires low-temperature conditions for transport and storage of drugs. Factors such as the increasing focus on biologics, the growing demand for specialty pharmaceuticals, insulin products, and vaccines are driving the need for refrigerants in this sector, particularly in developing Asian economies. The pharmaceutical industry is experiencing significant growth in major emerging markets in Asia Pacific, notably in China and India. This growth is expected to further boost the demand for refrigerants. Additionally, the rapid expansion of the pharmaceutical sector in emerging economies such as Brazil, China, and India is resulting in a gradual shift of research activities from Europe to these regions. According to the European Federation of Pharmaceutical Industries and Associations (EFPIA), from 2015 to 2020, the pharmaceutical industries in Brazil, China, and India grew by 11.3%, 4.8%, and 10.0%, respectively. In comparison, the global pharmaceutical industry grew by 5.0% in the top five European Union markets and by 4.9% in the US market.

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.

The global demand for environmentally friendly cooling solutions propels this growth because of executive GWP regulations, together with enhanced environmental awareness and multiple sectors increasing need for sustainable cold solutions. The food processing sector, together with cold storage facilities and retail operations, fast-tracks the implementation of natural refrigerants to fulfill sustainability requirements and decrease their environmental impact. Natural refrigerants consisting of carbon dioxide, ammonia, and hydrocarbons provide low GWP performance and aggressive ODP profiles which make them suitable choices instead of synthetic refrigerants in industrial applications. Stationary equipment manufacturers diligently pursue improved system designs and safety measures to support the industrial adoption of natural refrigerants in commercial applications. Market expansion is expected due to key players innovating to sustain their position amid an emerging and active competitive environment.

The illegal import of refrigerants is a major challenge to the global refrigerants market, which is against the effort to meet the regulatory targets and compromises product safety. This issue is especially concerning with hydrofluorocarbons (HFCs), which are being phased out under international agreements such as the Kigali Amendment and the Montreal Protocol. Illegal trading of these substances interrupts the progress of emission reduction and creates enormous risks to safety and performance. Illegally imported refrigerants are frequently of substandard quality or counterfeits, which can degrade refrigeration and HVAC systems and raise the prospect of accidents.