Refrigerants Market

Refrigerants Market Size & Growth (2023-2028)

The Refrigerants Market is anticipated to be USD 36.4 billion by 2028, registering a CAGR of 8.1% from 2023 to 2028.

Refrigerants are used in air conditioners, and heat pumps to convert environmental heat into cool air, working with other components such as compressors and evaporators. It is a chemical compound available in the liquid and gas states. Refrigerators are wide across grocery stores, transportation, housing, pharmaceuticals, data centers & electricity production industries. Water, HFC R134A, Hydrocarbons (HCS), Ammonia (R717), CO2 R744, HCFC -22 (R-22), R-410A Refrigerants, and R-600 Series Refrigerants are a few of the major refrigerant types available. Hydrofluorocarbon (HFCs) refrigerant type is the most used, and R134A specifically is adopted across automotive, commercial, and residential air conditioning systems worldwide.

Refrigerants Market Drivers:

The usage of refrigerants has grown significantly in the transportation industry. Refrigeration plays a crucial role in the global food chain, and refrigerated transport usage is increasing aggressively worldwide. Refrigerant transportation is a process of moving food and related products in trucks that have in-built refrigeration systems. R134A is one of the refrigerant types used widely in the transportation of food for cooling purposes. Hence, the increasing need for refrigerants from the transportation industry to transfer various essential needs is anticipated to drive market growth.

Growth in the pharmaceutical industry and growing usage of refrigerants in the pharmaceutical industry are further expected to fuel the market’s growth rate. The pharmaceutical industry's growth has been growing aggressively worldwide for a long time now and was valued at USD 1.42 trillion in revenues in 2021. Various drugs, vaccines, syrups, and other medical products need 24-hour refrigeration to preserve their effectiveness, which is resulting in the increased usage of refrigeration in the pharmaceutical industry

In addition, refrigeration usage is growing in industries such as chemical, automotive, commercial, residential, and food and beverages, which is estimated to promote the refrigerants market growth. Factors such as growth in urbanization, increasing disposable income, and growing desire for lifestyle developments are fuelling the adoption and usage of air conditioning systems and promoting the market growth for refrigerants. Furthermore, technological advancements, developments in the retail business world, growing usage of refrigeration in agricultural systems, and rising commercial construction activities propel the refrigerants market growth. In addition, the growing usage of energy-efficient cooling systems is expected to impact the refrigerant market positively. Growing awareness regarding environmental health and depletion in the ozone layers are further anticipated for the development of the refrigerants market. Furthermore, the increasing industrialization activities from the APAC region are fuelling the number of data centers, further promoting the data center cooling solutions requiring refrigerants. The abovementioned factor is estimated to positively impact the market’s growth rate.

Refrigerants Market Restraints:

Strict regulations around certain refrigerants' usage limit the market’s growth rate. Refrigerants such as fluorocarbon and hydrocarbon are causing significant environmental damage and contributing to ozone depletion. Considering the same, various governments worldwide have proposed several regulations around the usage of refrigerants. In addition, explosion hazards associated with using refrigerants further hamper the market growth.

Refrigerants Market Opportunities:

The demand and adoption of natural refrigerants in place of synthetic refrigerants is one of the most significant opportunities for the global market. CO2 and ammonia are a few of the natural refrigerants in practice widely. The usage of natural refrigerants has seen a significant uptick in recent years owing to the growing consumption of healthy foods such as organic fruits and vegetables that requires continuous refrigeration. In addition, the growing adoption of packaged and frozen food items is anticipated to offer opportunities.

YOY growth in the commercial construction industry further provides lucrative growth opportunities to the refrigerants market. The commercial construction industry is growing rapidly in multiple countries, resulting in the growing use of HVAC and air conditioning systems, which is further expected to boost the usage of refrigerants.

COVID-19 impact on the refrigerants market:

The impact of COVID-19 was significant on individuals, businesses, and companies. During the COVID-19 pandemic, many companies announced temporary shutdowns and construction activities did not see any progress due to lockdowns, which negatively impacted the refrigerants market. Automotive, construction, pharmaceutical, and transportation industries were among the badly impacted industries by COVID-19. Being the usage of refrigerants only among these industries, the market experienced a significant setback in 2020. In addition, the disruption created in the supply chain ecosystem due to COVID-19 further dampened the market’s growth rate during the peak days of COVID-19. However, the market started regaining traction in 2021 owing to the relaxations and uplifting of the lockdowns and is anticipated to register healthy growth during the forecast period.

REFRIGERANTS MARKET REPORT COVERAGE:

Market Segmentation:

Refrigerants Market - By Type

• CFCs

• HCFCs

• HFCs

• Hydrocarbons

• Inorganic Refrigerants

• Mixtures

Based on Type, the hydrocarbons segment is anticipated to account for the largest share of the global refrigerants market during the forecast period owing to the benefits associated with hydrocarbons, such as energy efficiency, cost-effectiveness, and environment friendly. Furthermore, the greater availability of hydrocarbons is another notable factor promoting the adoption and is an excellent alternative to fluorocarbon equipment. In addition, growing investments by the key market participants to conduct R&D also positively impact the segment's growth.

Refrigerants Market - By Application

• Air Conditioners

• Refrigerators

• Chillers

• Heat Pumps

• Electronics Devices

Based on the application, the air conditioners segment is estimated to hold the largest share of the global refrigerants market during the forecast period and will have around 41% of the global market share in 2021. Refrigerator usage is high among the air conditions segment, which positions the segment in the top position. The growing disposable income and increasing adoption of air conditioners, and rising commercial constructional activities are increasing the number of air conditioners across the world and are directly fuelling the growth of refrigerants in the air conditioning segment. Furthermore, in the current world, air conditioner sales are increasing among the middle-class population worldwide, which is further anticipated to boost the usage and adoption of refrigerants. Furthermore, increasing urbanization, industrialization, and environmental changes are fuelling the sales of air conditions and promoting the segment’s growth.

On the other hand, the chillers segment is expected to showcase a lucrative CAGR during the forecast period. The growing adoption of chillers among industries is one of the major factors boosting market growth. APAC is one of the regions that have significant adoption of chillers.

Refrigerants Market - By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East and Africa

Geographically, the Asia-Pacific refrigerants market held around 39% of the global market share in 2021. The presence of emerging economies coupled with growth in this region's population and the automotive industry's growth is propelling market growth in the Asia-Pacific region. Increasing lifestyle improvements and growing usage of cooling solutions from various commercial, residential, and automotive industries. China and India are anticipated to showcase lucrative growth during the forecast period in this region. In addition, APAC is a highly populated region with an increasing scope for refrigerated food transport, further estimated to promote the market’s growth rate in this region.

North America had the second-largest share of the global market in 2021. Technological advancements are playing a vital role in the market growth in this region. In addition, the growing focus on innovating solutions around food waste and increasing refrigeration activity among food and beverages, automotive, and pharmaceutical industries are promoting the refrigerants market in this region. The Cold chain technology is anticipated to showcase a positive influence on the market in this region during the forecast period. Increasing deployment of air conditions and cooling systems in supermarkets and cold storage further favor North America's market. In this region, countries like the United States and Canada are anticipated to project promising growth during the forecast period.

The Europe region is estimated to showcase a prominent CAGR during the forecast period. Industries such as automotive and commercial construction are growing significantly in the European region and are primarily fuelling the market’s growth rate. Europe has strict regulations regarding the usage of refrigerants, and the market participants are focusing on sustainable products following the required mandates. As a result, countries such as the UK, Germany, and France are expected to register promising growth during the forecast period in this region.

Latin America is another region across the world projected a healthy growth rate. Increasing implementation of cold chain technology in the food chain and growth in urbanization and industrialization are driving the market in Latin America.

RECENT MARKET DEVELOPMENTS:

• In January 2022, Honeywell International Inc., one of the leading competitors in the global refrigerants market, announced the launch of the N71 (R-471A) refrigerant. This refrigerant is non-explosive and compatible with GHG regulations.

• In May 2021, Sinochem Group, another promising player in the global refrigerants market, formed a venture with China International Corporation called “Sinochem Holdings Corporations Ltd

Refrigerants Market Key Market Players:

• Honeywell International Inc.

• Gujarat Fluorochemicals Limited

• SRF Limited

• Daikin Industries, Ltd.

• Asahi Glass Corporation

• The Chemours Company

• Sinochem Group

• Airgas Refrigerants Inc.

• Linde Group

• Mexichem