Refrigerant Market By Products (Fluorocarbon, Hydrocarbon, and Inorganic), Application (Industrial Refrigeration, Domestic Refrigeration, Transport Refrigeration, Commercial Refrigeration, Stationary Air Conditioning, Chillers & Heat Pumps, and Mobile Air Conditioning) and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2030

Market Perspective

The Global Refrigerant Market By Products Market size was worth around USD 20,047.07 million in 2022 and is predicted to grow around USD 36,766.93 million by 2030 with a compound annual growth rate of 7.98% between 2020 and 2030.

Refrigerants are essential chemicals used in cooling systems such as air chillers, refrigerators, air conditioners, and freezers. Hydrofluorocarbons (HFCs) are currently the most commonly used refrigerants in the market, as their predecessor, chlorofluorocarbons (CFCs), have been phased out due to their negative impact on the ozone layer as per the Montreal Protocol. Additionally, the refrigerant industry is heavily influenced by macroeconomic factors such as climate change and rapid economic growth in emerging economies.

The expanding consumer electronics industry and economic growth in the least developed economies are major drivers for market growth. Additionally, the rise in purchasing power has led to an increase in the use of air conditioning and refrigeration devices in households.

Inorganic refrigerants, known for their eco-friendly properties, such as low ozone depletion potential (ODP) and global warming potential (GWP), non-toxic nature, and economic viability, are becoming increasingly popular in industrial, commercial, and residential applications. The demand for these refrigerants is also on the rise due to the expansion of the cold storage market.

The two main growth drivers for the global refrigerant market are increasing industrialization and improving living standards. Also, the high demand for refrigerants is being driven by the growing usage of cooling systems in the commercial, residential, and industrial sectors.

Key Insights of the global refrigerant market:

• Based on the product, fluorocarbon dominated the market share
• Based on application, stationary air conditioning, Chillers & Heat Pumps were the leading revenue-generating segment
• On the basis of region, Asia-Pacific was responsible for generating the highest market revenue

Several Governments and Agencies Imposing Regulations to Limit the Use of Certain Refrigerant

The use of hydrocarbon refrigerants is being restricted by some governments and regulatory bodies around the globe to avoid negative impacts on the environment. For instance, the use of chlorofluorocarbon refrigerants is known to damage the ozone layer. In line with this, several nations have come to the conclusion that it is in their best interest to stop using hydrofluorocarbons (HFCs) and hydrochlorofluorocarbons (HCFCs) entirely.

Increasing Demand for Natural Refrigerants and Increasing Demand in Commercial Sector

There has been a visible rise in demand for refrigerants in the commercial sector in recent years due to the growing number of shopping malls, offices, and other types of infrastructure worldwide. These buildings are outfitted with heating, ventilation, and air conditioning (HVAC) systems, including air conditioners.

Segmentation Analysis

The global refrigerant market is segmented into three main categories, Fluorocarbon, Hydrocarbon, and Inorganic. In 2022, fluorocarbons accounted for 53.13% of the total market volume, primarily due to their widespread use in household and air conditioning systems. However, strict government regulations on the consumption and production of fluorocarbons due to their potential negative impact on the ozone layer and global warming are expected to impede the growth of this segment.

Hydrofluorocarbons (HFCs) are commonly used in air conditioning systems as they are considered less harmful to the environment compared to other fluorocarbon refrigerants. HFCs are also becoming the primary replacements for Chlorofluorocarbons (CFCs) and Hydrochlorofluorocarbons (HCFCs), which are being phased out. As emerging nations are gradually eliminating the use of fluorocarbon refrigerants and working towards the elimination of HCFCs, this is expected to drive the global demand for HFCs.

Based on application, the global market is segmented into industrial refrigeration, domestic refrigeration, transport refrigeration, commercial refrigeration, stationary air conditioning, chillers & heat pumps, and mobile air conditioning. The stationary air conditioning and chillers & heat pumps segment dominated the market due to the increased purchasing power of the middle class for consumer appliances such as refrigeration systems. The growth in this segment is driven by factors such as rapid industrialization, deteriorating climatic conditions, and an increase in the production of consumer appliances.

Recent Developments

In May 2021: The establishment and formation of Sinochem Holdings Corporation Ltd resulted from the restructuring of Sinochem Group and China International Corporation. The corporation employs about 220,000 people and is a significant state-owned enterprise.

Asia Pacific Dominated the Market due to Increasing Consumption in Developing Countries

The Asia-Pacific region emerged as the leading consumer in the refrigerated market, accounting for a significant 33% of the total volume. This trend is expected to continue in the future, as the region is projected to remain the fastest-growing market due to a number of macroeconomic factors, such as a burgeoning population, rising disposable consumer income, rapid urbanization, and industrialization. The emerging economies of India, China, and Japan are driving the region's demand for refrigerants.

China, in particular, is one of the fastest-growing economies in the world, and this has led to significant growth in a range of end-user businesses. The country's rising population, improving the standard of living, and growing per capita income are all factors that have contributed to this growth. However, international trade disruptions and unfortunate geopolitical conditions are likely to lead to a slowdown in growth in the early years of the forecast period. Nevertheless, it is expected that growth will accelerate in the latter part of the forecast period as conditions and relationships improve.

In India, changing consumer preferences and choices are driven by the country's developing economy, which is fueled by rising living standards and per capita income. This results in the expansion of all key economic sectors, boosting the country's growth potential. The refrigerated market in India is expected to grow at a substantial rate in the forecast period.

Competitive Landscape

Key manufacturers operating in the refrigerant industry include Honeywell International Inc., AGC Inc., Daikin Industries Ltd., Dongyue Group, The Chemours Company. Chemour, Mexichem S.A.B de C.V., Sinochem Holdings Corporation Ltd., Linde plc., Air Liquide, Gujarat Fluorochemicals Limited, Arkema, and Dynamic, amongst others.

The global refrigerant market is segmented as follows:

By Products

• Fluorocarbon
• Hydrocarbon
• Inorganic

By Application

• Industrial Refrigeration
• Domestic Refrigeration
• Transport Refrigeration
• Commercial Refrigeration
• Stationary Air Conditioning, Chillers & Heat Pumps
• Mobile Air Conditioning

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
• Benelux Reunion
  • • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America