Low GWP Refrigerants Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 7.85 % |
| Fastest Growing Market | North America |
| Largest Market | Europe |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Low GWP Refrigerants Market Analysis
The Low GWP Refrigerant Market size is estimated at 189.81 kilotons in 2024, and is expected to reach 276.96 kilotons by 2029, growing at a CAGR of 7.85% during the forecast period (2024-2029).
The low GWP refrigerant market was negatively impacted by the COVID-19 pandemic. However, the market recovered significantly in 2021, owing to rising applications in pharmaceuticals, residential, commercial, and others.
- The low environmental impact and stringent regulations are likely to be the main driver of the low GWP refrigerant market's growth over the medium term.
- However, the higher flammability and other toxicity characteristics are expected to limit the growth of the low GWP refrigerant market.
- Nevertheless, developments for promoting low GWP refrigerants are likely to create lucrative growth opportunities for the global market soon.
- Europe represents the largest market,with the largest consumption coming from countries such as Germany,United Kingdom, etc.
Low GWP Refrigerants Market Trends
Commercial Refrigeration to Dominate the Market
- Low global warming potential (GWP) refrigerant solutions have been in greater demand for air conditioning and refrigeration applications. These low-GWP refrigerants increase energy consumption, introduces safety risks, and require significant equipment modifications.
- Moreover, these are primarily used to reduce service equipment energy consumption and carbon emissions by 50% compared to HFCs and CFCs.
- Low global warming potential (GWP) refrigerant solutions have been in greater demand for air conditioning and refrigeration applications. These low-GWP refrigerants increase energy consumption, introduces safety risks, and require significant equipment modifications.
- The usage of low GWP refrigerants is increasing, especially in the commercial refrigeration segment that includes varied applications, including food safety in dairy, meat, fisheries, and other food industries that rely on efficient cold chain networks (commercial freezers and refrigerators), cold chain preservation in the pharmaceutical industry, commercial air conditioners.
- Based on data published by the Air Conditioning and Refrigeration Association of Japan in June 2022, the worldwide demand for commercial air conditioners experienced a significant increase in 2021, reaching 14.88 million units. The North America region took the lead with a total of 7.37 million units in the same year, surpassing previous years figures.
- According to The Haier Smart Home, Asia's air-conditioners retail unit volume has reached 132.3 million units in 2022 and is estimated to reach 147.4 million units by 2024.
- Furthermore, according to OEA (India), the wholesale price index of air conditioners reached 119.4 in 2022.
- With the increasing demand for frozen food products and a highly competitive market with low margins, most food processors, distributors, and retailers are shifting from manually operated obsolete facilities to the high bay deep-freeze warehouses, where commercial refrigeration are widely employed.
- Moreover, the expansion of retail food chains by the multinational companies and the growth in international trade (due to trade liberalization) have led to an increase in the demand for the cold chain processes. This, in turn, is augmenting the demand for commercial refrigeration across the world.
Germany to Dominate the Europe Market
- The German economy is the largest in Europe and the fifth-largest in the world. Germany has a strong manufacturing sector, particularly in the areas of machinery and automotive. This has helped the country maintain a competitive edge in international trade and attract foreign investment.
- Based on the data published by the Association of Air Conditioning and Refrigeration Industry in Japan in June 2022, the sales of commercial air conditioning units in Germany experienced a significant increase in 2021, with the demand reaching 50 thousand units. This surge in demand marked a notable rise compared to previous years.
- The German food and beverage industry is the largest industry sector. Food processing is one of the major activities in the domestic food and beverage industry, which creates a significant need for refrigeration. The country's food and beverage export business exceeds more than EUR 72.6 billion (~USD 79.6 billion).
- Some of the major foods processed in the country include meat and sausage products, dairy products, baked goods, and confectionery. Most of these products need cold storage in order to increase their shelf life, further creating a demand for refrigeration.
- According to The Federal Ministry of Food and Agriculture( BMEL), Germany's per capita consumption of meat has reached 77.5 kilograms in 2022.
- Germany is one of the world's largest consumers of soft drinks with more than 120 liters of per-capita consumption. Caffeine-oriented drinks are the most dynamic in the present German market. This has given a boost to the sales of companies, such as Sprite, Fanta, Delta, Mezzo Mix, and Coca-Cola. The need for cold storage of these cold drinks has created a significant demand for refrigeration.
- Furthermore, with the use of better cryogenic equipment and the increased demand for frozen foods, the low GWP refrigeration market is poised to witness an increasing growth rate in the coming years in the country.
- However, there is significant demand from the food processing aftermarket, which is expected to increase the demand for refrigerants from the automotive industry in the coming years.
Low GWP Refrigerants Industry Overview
The low GWP refrigerants market is partially consolidated in nature, with players accounting for a marginal share of the market studied. A few major companies in the market (not in particular order) include Honeywell International Inc., The Chemours Company, Orbia, Arkema, and DAIKIN INDUSTRIES, Ltd., among others.
Low GWP Refrigerants Market Leaders
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Arkema
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The Chemours Company
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Orbia
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Honeywell International Inc.
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DAIKIN INDUSTRIES, Ltd.
*Disclaimer: Major Players sorted in no particular order
Low GWP Refrigerants Market News
- In March 2023, Danfoss completed the acquisition of Bock GmbH, a German manufacturer of CO2 and low-GWP compressors. through the acquisition, the company has expanded its position in the refrigeration markets.
- In June 2022, Arkema signed a long-term supply agreement with Chinese fluorochemical manufacturer Aofan and has completed the expansion of its Forane 1233zd production capacity at its Changshu plant in China. Through expansion, the company increased the plant's production capacity by 50%, allowing Arkema to meet the growing demand for low GWP refrigerants in Asia.
- In January 2022, Honeywell announced an innovative, new low-global-warming-potential (GWP) refrigerant (SOLSTICE N71 (R-471A)) for commercial and industrial refrigeration that is specially designed for supermarkets to meet the needs of grocers and retailers who are seeking low-global-warming solutions ahead of likely regulatory changes.
Low GWP Refrigerants Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Drivers
- 4.1.1 Low Environmental Impact
- 4.1.2 Stringent Regulations
- 4.1.3 Other Drivers
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4.2 Restraints
- 4.2.1 Higher Flammability and Other Toxicity Characteristics
- 4.2.2 Other Restraints
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
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5.1 Type
- 5.1.1 Inorganics
- 5.1.2 Hydrocarbons
- 5.1.3 Fluorocarbons and Fluoro-olefins (HFCs and HFOs)
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5.2 Application
- 5.2.1 Commercial Refrigeration
- 5.2.2 Industrial Refrigeration
- 5.2.3 Domestic Refrigeration
- 5.2.4 Other Applications
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5.3 Geography
- 5.3.1 Asia-Pacific
- 5.3.1.1 China
- 5.3.1.2 India
- 5.3.1.3 Japan
- 5.3.1.4 South Korea
- 5.3.1.5 Rest of Asia-Pacific
- 5.3.2 North America
- 5.3.2.1 United States
- 5.3.2.2 Canada
- 5.3.2.3 Mexico
- 5.3.3 Europe
- 5.3.3.1 Germany
- 5.3.3.2 United Kingdom
- 5.3.3.3 France
- 5.3.3.4 Italy
- 5.3.3.5 Rest of Europe
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 South Africa
- 5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 A-Gas
- 6.4.2 Arkema
- 6.4.3 DAIKIN INDUSTRIES, LTD.
- 6.4.4 Danfoss
- 6.4.5 engas Australasia
- 6.4.6 GTS SPA
- 6.4.7 HARP International
- 6.4.8 Honeywell International Inc
- 6.4.9 Linde
- 6.4.10 Messer Group
- 6.4.11 Orbia
- 6.4.12 Tazzetti S.p.A
- 6.4.13 The Chemours Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Developments for Promoting Low GWP Refrigerants
- 7.2 Other Opportunities
Low GWP Refrigerants Industry Segmentation
A Low Global Warming Potential (GWP) refrigerant is a refrigerant with a lower environmental impact than traditional refrigerants, which have high GWP values. GWP measures how much a gas contributes to global warming compared to carbon dioxide (CO2). The lower the GWP value of a refrigerant, the less impact it has on the environment.
The market is segmented into type, application, and geography. By type, the market is segmented into inorganics, hydrocarbons, fluorocarbons, and fluoro-olefins (HFCS and HFOS). By application, the market is segmented into commercial refrigeration, industrial refrigeration, domestic refrigeration, and other applications. The report also covers the market size and forecasts for the low GWP refrigerant market in 15 countries across major regions. The market sizing and forecasts for each segment have been done based on volume (tons).
| Type | Inorganics | |
| Hydrocarbons | ||
| Fluorocarbons and Fluoro-olefins (HFCs and HFOs) | ||
| Application | Commercial Refrigeration | |
| Industrial Refrigeration | ||
| Domestic Refrigeration | ||
| Other Applications | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Italy | ||
| Rest of Europe | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | Saudi Arabia |
| South Africa | ||
| Rest of Middle-East and Africa |
Low GWP Refrigerants Market Research FAQs
How big is the Low GWP Refrigerant Market?
The Low GWP Refrigerant Market size is expected to reach 189.81 kilotons in 2024 and grow at a CAGR of 7.85% to reach 276.96 kilotons by 2029.
What is the current Low GWP Refrigerant Market size?
In 2024, the Low GWP Refrigerant Market size is expected to reach 189.81 kilotons.
Who are the key players in Low GWP Refrigerant Market?
Arkema, The Chemours Company, Orbia, Honeywell International Inc. and DAIKIN INDUSTRIES, Ltd. are the major companies operating in the Low GWP Refrigerant Market.
Which is the fastest growing region in Low GWP Refrigerant Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Low GWP Refrigerant Market?
In 2024, the Europe accounts for the largest market share in Low GWP Refrigerant Market.
What years does this Low GWP Refrigerant Market cover, and what was the market size in 2023?
In 2023, the Low GWP Refrigerant Market size was estimated at 175.99 kilotons. The report covers the Low GWP Refrigerant Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Low GWP Refrigerant Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Low GWP Refrigerant Industry Report
Statistics for the 2024 Low GWP Refrigerant market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Low GWP Refrigerant analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
