Canada
Natural Refrigerants market is expected to grow impressively through 2028, due
to the environmental commitments in the country. In 2022, global renewable
chemicals market size was around USD 91.7 billion.
Refrigeration
plays a crucial role in our daily lives, from preserving food and medicine to
creating comfortable indoor environments. However, traditional synthetic
refrigerants have raised environmental concerns due to their significant
contribution to global warming and ozone depletion. In recent years, there has
been a growing interest in natural refrigerants as a sustainable and
eco-friendly alternative. Natural refrigerants, derived from naturally
occurring substances, offer a promising solution to mitigate the environmental
impact of cooling systems while ensuring efficient and effective cooling
R-744,
also known as carbon dioxide, is one of the most widely used natural
refrigerants in the world. It has a low Global Warming Potential (GWP) (1) and
is not toxic or flammable. Carbon dioxide-based refrigerants are mainly used in
commercial refrigeration and supermarkets, as well as in heat pumps.
Ammonia
has been a refrigerant for more than a hundred years. It has high thermodynamic
properties, is energy efficient, and has a GWP (Greenhouse Gas Potential) of 0.
Ammonia is widely used in industrial refrigeration, cold storage and
large-scale cooling systems. However, it is important to note that ammonia is
toxic and requires careful handling and system design.
Propane
and Isobutane, both derived from petroleum, are also natural refrigerants with
low GWPs and are suitable for a variety of applications, such as domestic
refrigerators and freezers, as well as air conditioning systems. However, their
flammability necessitates safety precautions.
Natural
refrigerants have significantly lower or zero ozone depletion potential (ODP)
and GWP, compared to synthetic refrigerants. Their use helps in reducing
greenhouse gas emissions and combating climate change. Natural refrigerants
exhibit excellent thermodynamic properties, allowing for efficient heat transfer
and energy utilization. They contribute to lower operating costs and reduced
energy consumption in cooling systems. Natural refrigerants, such as CO2 and
ammonia, are naturally occurring substances that are widely available and can
be obtained sustainably, reducing dependence on non-renewable resources.
Canada,
known for its commitment to environmental stewardship, is at the forefront of
adopting natural refrigerants as a solution to mitigate the climate impact of
cooling systems. Canada's increasing awareness of environmental issues, coupled
with stringent regulations and a commitment to reduce greenhouse gas emissions,
has accelerated the demand for natural refrigerants. The country's
refrigeration industry, spanning commercial refrigeration, industrial applications,
and residential cooling, is embracing the transition towards sustainable
cooling solutions.
Government Support and Initiatives are Driving
Market Growth
Canada's
stringent environmental regulations and commitments have played a pivotal role
in driving the adoption of natural refrigerants. The country is aligning its policies
with international agreements, such as the Kigali Amendment to the Montreal
Protocol, which seeks to phase out the use of hydrofluorocarbons (HFCs) with
high global warming potentials (GWPs). This commitment positions natural refrigerants
as a viable and sustainable alternative, promoting their widespread adoption
across various sectors.
As
a country that values environmental sustainability, Canada recognizes the
urgent need to mitigate climate change. Natural refrigerants, with their significantly
lower or zero global warming potentials (GWPs), offer a viable solution to
reduce greenhouse gas emissions. By transitioning from synthetic refrigerants
to natural alternatives, the cooling industry can play a crucial role in
combating climate change and meeting Canada's emission reduction targets.
Shifting Consumer Demand is Driving Market Growth
The
utilization of natural refrigerants in refrigeration systems is becoming
increasingly popular due to their high thermodynamic properties, which not only
reduce greenhouse gas emissions, but also lead to significant cost savings for
both the business and the consumer. These refrigerants include carbon dioxide,
ammonia, and hydrocarbon, and are being adopted in a variety of sectors, such
as commercial, industrial, and residential refrigeration.
Canadian
natural refrigerants market is experiencing a period of rapid growth due to
ongoing innovation and technological progress. Research and development
(R&D) efforts are aimed at enhancing the effectiveness, safety and
compatibility of the natural refrigeration systems, including system design,
component optimisation and refrigerant management methods. As natural
refrigeration technologies are continually developed, they become more accessible,
dependable and economical, thus promoting their use in a wider variety of
applications.
Collaborations
and partnerships among industry players, government agencies, and research
institutions are vital growth drivers for Canada's natural refrigerants market.
These partnerships foster knowledge sharing, research initiatives, and the
development of best practices. They also contribute to the establishment of
training programs and certifications that enhance the skill set of technicians
and ensure the safe and efficient operation of natural refrigeration systems.
The collective efforts of these collaborations strengthen the market ecosystem
and accelerate the adoption of natural refrigerants.
Major
Challenges Faced by Canada Natural Refrigerants Market
Upgrading
existing infrastructure, training technicians, and acquiring new equipment can
be financially burdensome, especially for small businesses. However, as the
technology matures and demand increases, economies of scale are expected to
reduce costs and make natural refrigeration systems more accessible.
While
natural refrigerants are generally safe, certain refrigerants, such as ammonia
(NH3), require careful handling due to their toxicity. Ensuring the safety of
technicians and end-users is crucial. Adequate training programs,
certifications, and safety guidelines need to be established to educate
industry professionals about the proper handling, maintenance, and emergency
protocols associated with natural refrigeration systems. Strengthening training
initiatives will help address safety concerns and build confidence in the
industry.
In
certain areas of Canada, natural refrigeration equipment and components may be
difficult to obtain. The natural refrigeration market is still in its infancy,
and businesses may find it difficult to find equipment that is both accessible
and cost-effective. To bridge this gap, it is recommended that equipment
manufacturers collaborate with one another and that research and development
(R&D) initiatives be implemented to expand the range of natural
refrigeration options available to businesses..
Navigating
complex regulatory frameworks and standards can pose challenges for businesses
transitioning to natural refrigerants. While Canada has regulations in place to
support the phase-out of high-GWP synthetic refrigerants, there is a need for
harmonization at the provincial and federal levels to ensure consistent
regulations and facilitate market growth. The establishment of clear
guidelines, standards, and certifications specific to natural refrigerants,
will provide businesses with a more streamlined and supportive regulatory
environment.
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Recent
Trends and Developments
- In
Canada, the regulatory framework governing the use of refrigerants, has
undergone notable transformations to promote the adoption of natural
refrigerants. In 2018, the country ratified the Kigali Amendment to the
Montreal Protocol, committing to gradually phase down the production and
consumption of hydrofluorocarbons (HFCs) with high GWPs. This global commitment
has spurred the adoption of natural refrigerants, such as hydrocarbons (HCs),
ammonia (NH3), and carbon dioxide (CO2), which have significantly lower or zero
GWPs.
- The
utilization of natural refrigerants has seen a surge in Canada, with
supermarkets and convenience stores leading the way in the adoption of systems
based on natural refrigerants. Transcritical CO2 systems have become
increasingly popular due to their high energy efficiency and minimal
environmental footprint. Additionally, a number of companies have begun to
incorporate high-temperature hydrocarbons (HCs) into their refrigeration units,
such as R-290 propane and R-600a isobutane..
- Ammonium
remains a preferred source of energy in the industrial sector due to its
advantageous thermodynamic characteristics and low Gross Wholesale Product
(GWP). The utilization of ammonia systems in food processing facilities,
distribution centers and breweries has seen a rise in recent years.
Additionally, CO2 utilization in industrial applications has seen an increase
due to its low Gross Wholeness Per Unit (GWP) and its accessibility as a
by-product of industrial processes, such as cold storage warehouses or ice
rinks.
Market
Segmentation
Canada Natural
Refrigerants Market is segmented based on Type, Application and Region. Based on Type, Canada Natural
Refrigerants market is categorized into Carbon Dioxide, Ammonia, Hydrocarbons, and
Others. Based on Application, Canada Natural Refrigerants market is segmented
into Industrial, Commercial, and Domestic. Based on region, Canada Natural
Refrigerants market is divided into Quebec, Ontario, Alberta, British Columbia,
Saskatchewan & Manitoba, and Rest of Canada.
Market
Players
CIMCO
Refrigeration, Embraco, Mayekawa Canada, GEA Refrigeration Canada Inc, Danfoss
Canada, BITZER Canada Inc.,
Systemes LMP Inc., Hussmann Canada Inc., Carnot Refrigeration Inc., Emerson Climate
Technologies Canada are some of the key
players of the Canada natural refrigerants market.
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Attribute
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Details
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Base Year
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2022
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Historic Data
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2018 –
2021
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Estimated Year
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2023
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Forecast Period
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2024
– 2028
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Quantitative Units
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Revenue in USD Million and CAGR for 2018-2022
and 2023-2028
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Report coverage
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Revenue
forecast, company share, competitive landscape, growth factors, and trends
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Segments covered
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Type
Application
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Regional scope
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Quebec,
Ontario, Alberta, British Columbia, Saskatchewan, and Manitoba
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Key companies profiled
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CIMCO
Refrigeration, Embraco, Mayekawa Canada, GEA Refrigeration Canada Inc,
Danfoss Canada, BITZER
Canada Inc., Systemes LMP Inc., Hussmann Canada Inc., Carnot Refrigeration
Inc., Emerson Climate Technologies Canada
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Customization scope
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10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
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Pricing and purchase
options
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Avail customized purchase options to
meet your exact research needs. Explore purchase options
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Delivery Format
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PDF
and Excel through Email (We can also provide the editable version of the report
in PPT/Word format on special request)
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Report
Scope:
In
this report, Canada Natural Refrigerants market has been segmented into the following
categories, in addition to the industry trends, which have also been detailed below:
- Natural Refrigerants Market, By Type:
- Carbon Dioxide
- Ammonia
- Hydrocarbons
- Others
- Natural Refrigerants Market, By Application:
- Industrial
- Commercial
- Domestic
- Natural Refrigerants Market, By Region:
- Quebec
- Ontario
- Alberta
- British Columbia
- Saskatchewan & Manitoba
- Rest of Canada
Competitive
landscape
Company
Profiles: Detailed
analysis of the major companies present in Canada Natural Refrigerants market.
Available
Customizations:
With
the given market data, TechSci Research offers customizations according to a
company’s specific needs. The following customization options are available for
the report:
Company
Information
- Detailed
analysis and profiling of additional market players (up to five).
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