Refrigerants Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 2.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Refrigerants Market Analysis
The Refrigerants Market size is estimated at 2.02 Million tons in 2024, and is expected to reach 2.29 Million tons by 2029, growing at a CAGR of 2.5% during the forecast period (2024-2029).
COVID-19 had a detrimental effect on the market. All the major manufacturing activities were on a temporary halt owing to the pandemic scenario, which minimized the demand for refrigerants used for refrigeration, air conditioners, and other applications. However, the market retained its growth trajectory in 2022 due to the resumed production processes in all industries.
- The major factors driving the market are the expansion of the global cold chain market and increasing demand for HVAC applications.
- However, stringent environmental regulations against fluorocarbon refrigerants and the continuous amendments in the Montreal Protocol are likely to restrain the market.
- The awareness and development of green and low GWP refrigerants are likely to act as an opportunity for market growth in the future.
- Asia-Pacific dominated the market across the world, owing to the rapidly growing demand from the countries like India, China and ASEAN Countries.
Refrigerants Market Trends
Increasing Demand from Air-conditioning Application
- Refrigerants are chemicals that absorb heat from their surroundings and are used in cooling products because of this characteristic. Refrigerant is a fundamental part of contemporary cooling systems, such as air conditioners, refrigerators, freezers, chillers, and other applications.
- Moreover, the expansion of the construction industry accounts for the propulsion of the commercial AC market, which in turn positively impacts the growth in demand for refrigerants. The growing infrastructure development activities, such as office complexes, airports, and metro rail systems, contribute to the increasing requirement for commercial AC after their completion. For instance, in March 2023, the United States government funded 11 major metro rail projects with an amount of USD 4.45 billion.
- According to the International Energy Agency, the global stock of air conditioners in buildings is anticipated to grow up to 5.6 billion by 2050, up from 1.6 billion in 2022, which amounts to 10 new ACs sold every second for the next 30 years.
- According to the Japan Refrigeration and Air Conditioning Industry, the demand for air conditioning devices in North America amounted to approximately 16.5 million units in 2021.
- According to the U.S. Bureau of Labor Statistics, in 2021, the mean household expenditure on window air conditioners by homeowners in the United States amounted to USD 4.81 per consumer unit.
- Additionally, the demand for environmentally friendly cooling solutions is driving chiller and air conditioner manufacturers to innovate. For instance, in February 2022, a Washington-based manufacturer and supplier of chillers for beverage processing and industrial markets, Pro-Refrigeration, Inc., developed the idea of a CO2 chiller, a natural refrigerant with zero impact on global warming.
- The increasing need for sustainable products is leading various manufacturers to develop sustainable products and solutions.
- Globally, there has been an increase in the consumption of frozen and processed food due to several factors, like convenience, an increase in disposable income, busy lifestyles, and many others, that have boosted the demand for refrigerants in the market.
- The data centers produce excessive heat, which presents an economic and environmental challenge. Such heavy emissions, the need for efficient cooling, and the increasing development of data centers have driven the demand for efficient chillers in HVAC systems in data centers and contributed to the market's growth.
- For instance, in April 2022, Meta, the parent company of Facebook, started two new data center projects in Missouri and Texas, bringing its total investment in the United States data center construction and operations to almost USD 16 billion. The increasing number of data centers is expected to significantly drive the refrigerants market.
- Therefore, the aforementioned factors are expected to have a significant impact on refrigerants in the coming years.
Asia-Pacific to Dominate the Market
- The Asia-Pacific region accounted for the highest market share and is likely to dominate the market during the forecast period.
- China is one of the fastest-growing economies worldwide, and almost all the end-user industries have been experiencing significant growth owing to the rising population, living standards, and per capita income.
- Chinese consumers are increasingly purchasing health and wellness food products, including organic foods that require cold storage, including peas, corn, etc. Packaged frozen foods are also increasingly popular, especially dairy, baby food, and confectionery products.
- According to the China Cold Chain Committee and the Intelligence Research Group, the cold chain industry sector in China is expected to increase further to about USD 130.13 billion in the future.
- Many consumers in China are considering refrigeration appliances as household necessities owing to the increasing usage of ready-to-eat packaged food, which paves the way for appliances to penetrate the market. The scenario further strengthens the growth of the Chinese refrigeration market.
- India is a booming economy in modern times, due to significantly rising living standards and per capita income, which are changing the choices and preferences of an individual. These are resulting in the broadening of all major sectors of the Indian economy, leading to higher growth prospects in the country.
- India recorded a sale of 1.75 million units of air conditioners in April 2022, double as compared to the same period in the year prior. According to the companies' reports, Voltas sold 1.2 million units of residential ACs, while LG Electronic sold over one million units of residential inverter air conditioners.
- Moreover, rising construction activities in the region are also supporting the demand for refrigerants. China concentrated on constructing 200 airports in 2022, with completion anticipated for the end of 2035.The growing investments in construction activities in the country are driving the demand for ACs, which, in turn, may drive the refrigerants market over the forecast period.
- Therefore, the aforementioned factors are expected to boost the demand for refrigerants in the Asia-Pacific region in the coming years.
Refrigerants Industry Overview
The refrigerants market is partially consolidated, with the top five players accounting for a decent share of the market. The major companies include (not in any particular order) Honeywell International Inc., The Chemours Company, Mexichem SAB de CV, Arkema Group, and Linde PLC, among others.
Refrigerants Market Leaders
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Honeywell International Inc.
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Arkema Group
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Mexichem
-
The Chemours Company
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Linde plc
*Disclaimer: Major Players sorted in no particular order
Refrigerants Market News
- January 2023: The Chemours Company began selling its Opteon XL41 (R-454B) hydrofluoroolefin (HFO) refrigerant in the North American market. The product offers replacement in new air conditioning and heat pump applications, offering zero ozone depletion potential (ODP) and an approximate 78% reduction in global warming potential (GWP)
- May 2022: Honeywell International Inc. launched Solstice 456A, a new hydrofluoroolefin (HFO)-based refrigerant for the European automotive aftermarket that has the potential to reduce the greenhouse gas (GHG) emissions footprint of air conditioning systems in existing vehicles by more than 50%.
Refrigerants Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
-
4.1 Drivers
- 4.1.1 Expansion of the Global Cold Chain Market
- 4.1.2 Increasing Demand from Construction Sector for HVAC Systems
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4.2 Restraints
- 4.2.1 Stringent Environmental Regulations against Fluorocarbon Refrigerants
- 4.2.2 Continuous Amendments in the Montreal Protocol
- 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 Fluorocarbons
- 5.1.1.1 Hydrochlorofluorocarbons (HCFC)
- 5.1.1.2 Hydrofluorocarbons (HFC)
- 5.1.2 Inorganics
- 5.1.2.1 Ammonia
- 5.1.2.2 Carbon Dioxide
- 5.1.2.3 Other Inorganics
- 5.1.3 Hydrocarbons
- 5.1.3.1 Isobutane
- 5.1.3.2 Propane
- 5.1.3.3 Other Hydrocarbons
- 5.1.4 Other Types
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5.2 Application
- 5.2.1 Refrigeration
- 5.2.1.1 Domestic
- 5.2.1.2 Commercial
- 5.2.1.3 Transportation
- 5.2.1.4 Industrial
- 5.2.2 Air-conditioning
- 5.2.2.1 Stationary
- 5.2.2.2 Chiller
- 5.2.2.3 Mobile
- 5.2.3 Other Applications
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5.3 Geography
- 5.3.1 Asia-Pacific
- 5.3.1.1 India
- 5.3.1.2 Japan
- 5.3.1.3 South Korea
- 5.3.1.4 ASEAN Countries
- 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 France
- 5.3.3.3 United Kingdom
- 5.3.3.4 Italy
- 5.3.3.5 Rest of the 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 & Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 South Africa
- 5.3.5.3 Rest of Middle East & Africa (MEA)
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/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 Group (Bostik SA)
- 6.4.3 DAIKIN INDUSTRIES Ltd
- 6.4.4 Dongyue Group
- 6.4.5 Harp International Ltd
- 6.4.6 Honeywell International Inc.
- 6.4.7 Hudson Technologies
- 6.4.8 Mexichem SAB de CV
- 6.4.9 Navin Fluorine International Limited
- 6.4.10 Sinochem Group
- 6.4.11 SRF Limited
- 6.4.12 The Chemours Company
- 6.4.13 LINDE PLC
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Awareness and Development of Green and Low GWP Refrigerants
- 7.2 Other Opportunities
Refrigerants Industry Segmentation
A refrigerant is a working fluid used in the refrigeration cycle of air conditioning systems and heat pumps where, in most cases, they undergo a repeated phase transition from a liquid to a gas and back again. The refrigerant market is segmented by type, application, and geography. By type, the market is segmented into fluorocarbons, inorganics, hydrocarbons, and other types. By application, the market is segmented into refrigeration, air-conditioning, and other applications. The report also covers the market size and forecasts for the refrigerant market in 16 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (tons).
| Type | Fluorocarbons | Hydrochlorofluorocarbons (HCFC) |
| Hydrofluorocarbons (HFC) | ||
| Type | Inorganics | Ammonia |
| Carbon Dioxide | ||
| Other Inorganics | ||
| Type | Hydrocarbons | Isobutane |
| Propane | ||
| Other Hydrocarbons | ||
| Type | Other Types | |
| Application | Refrigeration | Domestic |
| Commercial | ||
| Transportation | ||
| Industrial | ||
| Application | Air-conditioning | Stationary |
| Chiller | ||
| Mobile | ||
| Application | Other Applications | |
| Geography | Asia-Pacific | India |
| Japan | ||
| South Korea | ||
| ASEAN Countries | ||
| Rest of Asia-Pacific | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| France | ||
| United Kingdom | ||
| Italy | ||
| Rest of the Europe | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East & Africa | Saudi Arabia |
| South Africa | ||
| Rest of Middle East & Africa (MEA) |
Refrigerants Market Research Faqs
How big is the Refrigerants Market?
The Refrigerants Market size is expected to reach 2.02 million tons in 2024 and grow at a CAGR of 2.5% to reach 2.29 million tons by 2029.
What is the current Refrigerants Market size?
In 2024, the Refrigerants Market size is expected to reach 2.02 million tons.
Who are the key players in Refrigerants Market?
Honeywell International Inc., Arkema Group, Mexichem, The Chemours Company and Linde plc are the major companies operating in the Refrigerants Market.
Which is the fastest growing region in Refrigerants Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Refrigerants Market?
In 2024, the Asia Pacific accounts for the largest market share in Refrigerants Market.
What years does this Refrigerants Market cover, and what was the market size in 2023?
In 2023, the Refrigerants Market size was estimated at 1.97 million tons. The report covers the Refrigerants Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Refrigerants Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Refrigerants Industry Report
The refrigerants market is experiencing significant growth, driven by various factors and segmented by type, application, and geography. The market share and market size for refrigerants are critical metrics that highlight the industry's expansion. The market trends indicate a shift towards sustainable and environmentally friendly refrigerants, which is a key focus in the industry analysis. The global market for refrigerants is diverse, with significant contributions from regions such as Asia-Pacific, North America, Europe, South America, and the Middle East & Africa.
The market report provides a comprehensive market forecast, offering insights into future market growth. The market report is available as a report PDF, which includes detailed market data and market analysis. The industry reports cover various aspects of the market, including industry information, industry outlook, and industry research.
The market segmentation by type includes fluorocarbons, inorganics, hydrocarbons, and other types, while the application segmentation includes refrigeration, air conditioning, and other applications. The market review and market overview sections of the report provide a detailed analysis of the current market scenario and future market predictions. The industry statistics and industry trends are crucial for understanding the market dynamics and growth rate.
The report also highlights the market leaders and their contributions to the industry. The market outlook and market value sections provide valuable insights into the future prospects of the refrigerants market. The report example and research companies sections offer additional resources for further industry research. The market predictions and market forecast sections are essential for strategic planning and decision-making.
Overall, the refrigerants market is poised for substantial growth, with increasing demand for efficient and eco-friendly refrigerants. The industry sales and industry size are expected to rise, driven by technological advancements and regulatory support. The comprehensive industry analysis and market data provided in the report are invaluable for stakeholders looking to navigate the evolving refrigerants market.
