The refrigerant market size in Latin America was worth USD 3.34 billion in 2023. The Latin American market is anticipated to reach a valuation of USD 4.25 billion by 2029, registering a CAGR of 4.1% from 2024 to 2029.
A refrigerant is a chemical combination of fluids, which operate as cooling agents in heat pumps & refrigeration cycles. It functions on the theory of phase transition and can be utilized either as primary working fluids in absorption refrigeration systems or as secondary fluids to transfer thermal energy from one medium to another.
Y-o-Y growth in the demand for air conditioning and refrigeration units, increasing usage of refrigerants in the automotive industry, and rapid adoption of environmentally friendly refrigerants across the Latin American region are primarily contributing to the growth of the Latin American market. The growing disposable income and urbanization, stringent regulations phasing out ozone-depleting substances, and increasing usage of refrigerants in the food and beverage industry are propelling the Latin American market growth.
The rising demand for refrigerants in commercial buildings, increasing replacement of aging refrigeration systems, the expansion of the pharmaceutical and healthcare sectors, and Y-o-Y growth in the construction of retail and supermarket chains are contributing to the growing demand for refrigerants in Latin America and supporting the Latin American market growth. The rising adoption of energy-efficient cooling solutions, increasing demand for refrigerated transportation, development of infrastructure in emerging economies and growing adoption of heat pump technology for heating and cooling are promoting the demand for refrigerants in Latin America and fueling the growth of the Latin American market.
However, the use of halons such as chlorofluorocarbon (CFC) and hydrochlorofluorocarbons (HCFC) has a significant adverse effect on the environment. As a result, novel environment-friendly refrigerant substances have been developed over the last few years, such as R-410A, R-404A, and R-407C.
Poor awareness about environmentally friendly refrigerants high initial costs of transitioning to new refrigerants and the presence of counterfeit refrigerant products in the market are primarily hampering the growth of the Latin American refrigerant market. Limited access to advanced refrigeration technology, inconsistent enforcement of regulations regarding refrigerants and rising dependency on imports for refrigerant supply are further impeding the reginal market growth.
The domination of the hydrocarbons segment is primarily attributed to the high demand for hydrocarbons due to the increasing utilization of refrigeration and AC devices. However, hydrochlorofluorocarbon and fluorocarbon are expected to be phased out by 2040 due to environmental concerns, which would lead to opportunities for other refrigerants. Based on Application, the market is segmented into Large-scale Refrigerators, Air Conditioners, Refrigerators, Chillers, and Heat Pumps. The air conditioners section is estimated to account for the highest revenue under this segment and this trend is not expected to change anytime soon.
Firms are continuously endeavoring to consolidate their presence through product development and application branching-out strategies. Advanced and cost-efficient solutions that meet both end-user stipulations and supervisory standards are significant determinants for a competitive edge.
The robust economy of Brazil, its growing middle-class population, and rising demand for air conditioning and refrigeration units in residential, commercial, and industrial sectors are contributing to the growth of the Brazilian market. The Brazilian regulations to phase out ozone-depleting substances and promote the use of environmentally friendly refrigerants, increasing investments in sustainable refrigeration technologies and the growth of cold chain logistics in Brazil are further aiding the expansion of the Brazilian market.
Mexico is also playing a key role in the Latin American refrigerant market. Y-o-Y growth in the manufacturing sector, including automotive and electronics industries is propelling the growth of the refrigerant market in Mexico.
Argentina is likely to showcase healthy growth in Latin America during the forecast period. The regulations of Argentina’s government to align with international environmental standards is propelling the demand for environmentally friendly refrigerants, which is driving the Argentina market growth. The rising emphasis on energy efficiency in Argentina is further contributing to the expansion of Argentina's market growth.
Companies playing a major role in the Latin America Refrigerant Market include Arkema, The Linde Group, Honeywell International Inc., Asahi Glass Co., Sinochem Group, Hychill, Hess Corporation, Airgas Inc., A-gas International, Dongyue Group, and Others.
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