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. Read More

What is the current Low GWP Refrigerant Market size?

In 2024, the Low GWP Refrigerant Market size is expected to reach 189.81 kilotons. Read More

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. Read More

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). Read More

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. Read More

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. Read More

Low GWP Refrigerant Market Trends

Market Trends of Low GWP Refrigerant Industry

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.

Low GWP Refrigerant Market: Commercial Air Conditioners, in Thousand Units, Global, 2021

Understand The Key Trends Shaping This Market

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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.