Refrigerant Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Refrigerant Market is segmented By Type (Mineral Oils, Hydrochlorofluorocarbons (HCFCs) (R22, R123, R124, R133, R401 (A, B), R402 (A, B), R408A, R409A, Others), Synthetic (PAO, PAG, Silicones, Glycol Based Fluids), Chlorofluoro Carbon (CFC) (R11, R12, R113, R114, R115, R13, R14, R500, R502, R503, Others), Hydrofluoro Carbon (HFC) (R23, R116, R134A, R32, R125, R143A, R407C & R407F, Others), Paraffinic Oils, Propane, Mixed Refrigerants/Blend, Chemical Aromatics, Hydrofluoroolefin (HFO), Carbon Dioxide, Ammonia, Others), By Application (Refrigeration Systems (Small-Scale Refrigeration Systems (Household, Commercial, Transport), Large-Scale Refrigeration Systems (Industrial, Supermarket/Hypermarket)), Chillers (Centrifugal, Displacement), Air-Conditioning Systems, Mac (Mobile Air Conditioning System), Heat Pumps, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Refrigerant Market Overview

The Global Refrigerant Market is expected to grow at a CAGR of 7.2% during the forecast period 2024-2031

Refrigerant is a fluid substance or mixture which is widely used in a heat pump and refrigeration cycle.

It undergoes a phase transformation from a liquid to a gas and again vice versa. It helps to provide ventilation and temperature humidity with the addition of a control function as per the requirement. There are two types of refrigerants primary and secondary. Primary refrigerants are those fluids that are used as working fluids, for example, during the vapour compression and vapour absorption refrigeration systems to provide refrigeration by undergoing a phase change process in the evaporator. Secondary refrigerants are those liquids, which transmit thermal energy from one location to another with the same brine.

Refrigerant is substantially used in end-user industries such as pharmaceuticals, food, and beverages, air-conditioning equipment, fire suppression, etc.

Refrigerant Market Summary

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Refrigerant Market Dynamics

The rising of comfortable living drives the global refrigerant with the surge in consumer spending and increasing air-conditioning systems and equipment sales. Refrigerants are widely used in air-conditioning units to facilitate cooling and heating as per the requirements. Also, growing demand by the industries, malls, offices, and commercial spaces to provide a comfortable environment has propelled the refrigerant market growth.

Rising demand by the food and beverages industry due to increasing sales and demand for dairy and frozen foods products across the globe has propelled the refrigerant market.

Refrigerant demand is driven by the increasing food and beverages industry with the surge in the global population demand and rising consumption of refrigerated foods. As per the Food and Agriculture Center of Excellence, the Indian food market size reached US$ 544 billion in 2020 due to a surge in demand by the growing population. It created a massive demand for the refrigerant market. Also, the food and drink industry in the United Kingdom has contributed around US$ 42 billion to its economy annually.

Growing refrigeration and air-conditioning systems across the globe with increasing global demand has propelled the refrigerant market.

Refrigerants are widely used in air-conditioning and refrigeration systems to carry out evaporation. Increasing global heating ventilation and air-conditioning systems sales have propelled the demand for the refrigerant market. For instance, as per the International Institute of the Refrigeration (IIR) in 2019, the total number of refrigeration, air-conditioning, and heat pump systems reached US$ 3 billion annually. Also, as per the organization mentioned above, the global annual sales of refrigeration air-conditioning systems and other equipment accounted for nearly US$ 300 billion. Thus it created a massive demand for the refrigerant market around the globe.

The growing launch of eco-friendly refrigerants with advanced technology to combat worldwide environmental pollution by the leading players is expected to strengthen market growth.

Increasing the launching of eco-friendly refrigerants with advanced technology to combat pollution may create a huge opportunity for this market's growth. For instance, on 7th Jan 2019, Senseair launched A2L R32 Refrigerant Gas Sensor for controlling thermal functions in refrigeration systems at AHR Expo 2019 in Atlanta, Georgia. Further, on 29th Sept 2015, Haier Central Air-Conditioning has launched the first eco-friendly refrigerant, R-32, which significantly reduces greenhouse emissions. In addition to this, on 28th June 2018, Honeywell launched a non-flammable AC refrigerant with a GWP of 733 with R410A, with an energy-efficient, non-flammable, and lowered GWP solution with similar or better performance.

Strict government rules and regulations to phase out harmful refrigerants may hamper the refrigerant market's growth.

Refrigerants such as propane, mixed refrigerants/blend, chemical aromatics, chlorofluorocarbon (CFC), hydrofluorocarbon (HFC), hydro fluoro olefin (HFO) are responsible for global warming potential across the globe. Several leading companies have phase-out refrigerants due to pollution control norms. For instance, on 30th May 2018, Arkema has signed an agreement with the Chemours Company for phase-out refrigerants such as Forane 449A (XP40) due to its ozone-depleting, global warming potential. On 22nd Sept 2016, Arkema has supported the United Nations to phase down hydrofluorocarbons (HFCs). All the members of the united nations of the EU have adopted a new amendment to the Montreal Protocol to phase down hydrofluorocarbons (HFCs) globally.

COVID-19 Impact on Refrigerant Market

The global refrigerant market has shown immense declination due to theCovid-19pandemic, as several leading manufacturing industries were closed. Several countries have restricted production activities during the covid-19 pandemic. Further, the textile & apparel demand also declined due to low demand in June 2020.

However, the refrigerant demand is slightly increased in August 2020, as several leading manufacturers started production. The refrigerant's leading manufacturers have planned the investment for enhancing the output due to the sudden growing demand for food and beverages in August 2020. For instance, on 11th May 2020, Manufacturers in India have launched an air conditioners campaign due to increasing sales from August 2020 as the industry has been impacted due to the covid-19 pandemic with spreading faster air-conditioned areas. Further demand for refrigerants will increase as soon as the pandemic is over.

Refrigerant Market Segmentation Analysis

The global refrigerants market is segmented on type, application, and region.

Rising demand for air-conditioning equipment with a surge in the global sale and growing production of refrigeration systems have propelled the chlorofluorocarbon (CFC)segmental growth for this market.

In terms of type, the global refrigerant is bifurcated into mineral oils, hydrochlorofluorocarbons (HCFCs), synthetic, paraffinic oils, propane, mixed refrigerants/blend, chemical aromatics, chlorofluorocarbon (CFC) (R11, R12, R113, R114, R115, R13, R14, R500, R502, R503, and others), Hydrofluoro Carbon (HFC) (R23, R116, R134A, R32, R125, R143A, R407C & R407F) Hydrofluoroolefin (HFO), carbon dioxide, ammonia, and others. Among this chlorofluorocarbon (CFC) segment has the highest market share in 2019; this is primarily due to rising demand for the sale of air-conditioning systems worldwide. For instance, Energy Government Organization's annual air-conditioning equipment has increased to 100 units per year, which was valued at around US$ 100 billion per year globally, which accounted for 4.5 exajoules.

Further, Hydrochlorofluorocarbons (HCFCs) is divided into R22, R123, R124, R133, R401 (A,B), R402 (A,B), R408A, R409A and others. R22 is most commonly used in the Asia-Pacific region due to its easy availability and low cost.

The synthetic segment is divided into PAO, PAG, Silicones, and Glycol Based Fluids. Among these, glycol-based fluids had the highest market share in 2019; this is due to growing demand globally for refrigeration purposes.  

The rising dependence of refrigeration systems in the food and beverages industry has propelled the led refrigerant market growth.

Similarly, mineral oils, hydrochlorofluorocarbons (HCFCs), paraffinic oils, propane, mixed refrigerants/blend, chemical aromatics, hydrofluorocarbon (HFC), hydro-fluoro olefin (HFO), carbon dioxide, ammonia segments are also growing in demand owing to the surge in the sale of the air conditioning and refrigeration systems for households. For instance, as per the International Energy Agency in 2020, the United States and China registered 393 units and 688 units. It created a massive demand for the refrigerant market in this region.

Rising demand for refrigeration systems in hotels, restaurants, and households in the Asia-Pacific region have propelled the refrigerant market growth.

Depending upon the application, the global refrigerant market is divided into refrigeration systems, chillers, air-conditioning systems, heat pumps, mac (Mobile Air Conditioning System), and others. Among these, the refrigeration systems segment had the highest market share in 2019. It is primarily due to a surge in demand by households, hotels, restaurants, and others. According to the (IBEF) India Brand Equity Foundation in 2018, the washing machine, refrigerator, and air conditioner market in India was valued at around US$ 1.09 billion, US$ 3.03 billion, and US$ 3.1 billion, respectively. It created a massive demand for the refrigerant market.

Refrigeration systems are segmented into small-scale refrigeration systems and large-scale refrigeration systems. Small scale refrigeration system is divided into household, commercial, and transport, whereas large scale refrigeration system is divided into industrial and supermarket/hypermarket. The supermarket/hypermarket has the highest market share due to the growing demand for the central air-conditioning systems at malls, shops, etc.  

Global Refrigerant Market Geographical Share

Asia-Pacific region holds the largest market share global refrigerant market.

Asia-Pacific region dominates the global refrigerant market with the highest market share in 2019 due to several manufacturing companies related to food and beverages, growing population demand, and increasing investment by the leading players in this region by North America and Europe.

Further growing government and private company investment in the Asia-Pacific region for several projects has propelled the Refrigerant market demand in this region. Also, increasing sales and demand for refrigeration and air-conditioning systems in the Asia-Pacific region due to growing population demand have propelled the refrigeration market growth.

For instance, as per the Rocky Mountain Institute Organization in 2019, globally, the number of room air conditioner (RAC) units in operations as of 2019 increased to 1.2 billion units and is projected to reach 4.5 billion units by 2050 with the highest demand by the Asia-Pacific region due to growing population demand. Similarly, the North American region is growing faster due to increasing production with the surge in demand for household refrigeration and air-conditioning systems in this region, followed by Europe.

Refrigerant Market Companies and Competitive Landscape

The refrigerant market is consolidated with the presence of local as well as global companies. Some of the key players contributing to the market's growth include Daikin Industries Limited, Arkema SA, Dongyue Group Co. Ltd, Sinochem Corporation, Gas Servei S.A., Honeywell International Inc, The Linde Group, Mexichem S.A.B. de C.V., Zhejiang Fotech International Co Ltd, Changsu 3F Fluorochemical Industry Co Ltd, Tazzetti SPA, Quimobasicos Sa De Cv, AGC Inc, SRF Limited, Airgas and A-Gas and others.

The major players adopt several growth strategies such as product launches, acquisitions, and collaborations, contributing to the refrigerant market's global growth. For instance, on 1st April 2016, SRF Ltd has planned to set up a pilot plant to establish the next-generation refrigerant gas HFO 1234yf to develop and manufacture with indigenous technology.

Arkema group:

Overview: The Arkema group was founded in October 2004 and headquartered at Colombes, near Paris, France. The company is one of the world's leading players in the field of speciality chemicals. The company is leading manufacturers of refrigerants, adhesives and sealants, cooling and refrigeration, building and construction, agriculture and food industry, automotive, transportation, and aerospace industries products.

Product Portfolio: The company has a wide range of refrigerants, including

• Forane Refrigerants: Forane and Foranext brand, including refrigerants, blowing agents, and specialities. Arkema's refrigerants are used cooling or refrigeration are required, including home air conditioners and heat pumps, appliances, automobiles, food processing, commercial refrigeration, industrial refrigeration, chillers, and supermarkets.
• HFC refrigerants and Forane 427A: Forane is refrigerants that work as blowing agents and specialities. Refrigerants are used cooling required for home air conditioners and heat pumps, appliances, automobiles, commercial refrigeration, food processing, industrial refrigeration, chillers, and supermarkets.
  • Applications:
    • Domestic, commercial, and industrial refrigeration
    • Automotive air conditioning
    • Domestic and commercial air conditioning, heat pumps
    • Transport refrigeration

Key Development: On 2nd July 2018, Arkema has developed a new range of its latest generation fluoro gases for end-use applications such as refrigeration and insulation markets.