Refrigerants Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Type (CFCs, HCFCs, HFCs, Inorganic Refrigerants, Others), By Application (Air Conditioners, Refrigerators, Electronics Devices, Chillers, Others), By Region and Competition

Market Overview

Global Refrigerants Market has valued at USD 5.94 billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 4.87% through 2028. Refrigerant is a crucial mixture of fluid substances used in heat pump or refrigeration cycles, acting as a coolant. During the refrigeration cycle, it undergoes a conversion from liquid to gas. It is widely utilized due to its favorable properties, including a non-corrosive nature, high heat vaporization, moderate density in liquid form, and high density in gaseous form. Various chemicals like hydrochlorofluorocarbons (HCFC), hydrofluorocarbons (HFC), chlorofluorocarbons (CFC), and other inorganic compounds are employed as refrigerants.

The growth of the refrigerant market is fueled by factors such as urbanization, lifestyle improvements, and the increasing demand for air conditioners. Technological advancements, particularly in the freezing techniques used in the food and transportation industries, further contribute to market growth. Additionally, the rise in automobile production, where refrigerants are utilized for air conditioning, drives the demand for refrigerants. Furthermore, the increasing production of electric vehicles plays a significant role in energy conservation and boosts the refrigerant market.

The commercial sector also experiences a noticeable boom, with the construction of numerous offices, shopping malls, and other infrastructures worldwide. These buildings are equipped with heating, ventilation, and air conditioning (HVAC) systems, where refrigerants play a pivotal role. Hence, the rapid growth of the commercial sector drives the expansion of the refrigerant market.

Furthermore, the significant rise in living standards and per capita income in India has led to changes in individual preferences, making it a developing nation. The increased purchase of health and wellness food products, including organic food that requires cold storage, such as peas and corn, along with packaged frozen food items like dairy products, baby food, and confectionery, are becoming increasingly popular. These trends contribute to the growth of the refrigerant market, as there is a rising demand for cold storage solutions. Additionally, the increasing demand for packaged frozen food presents lucrative growth opportunities for the market.

Key Market Drivers

Growing Demand of Refrigerants in Food & Beverage Industry

Refrigerants play a crucial role in the food and beverage industry, providing the necessary cooling for food storage and transportation. They are used in various applications, including cold storage, refrigerated transport, and refrigeration equipment in retail stores. As the need for food safety and quality increases, so does the demand for effective and efficient refrigeration solutions.

One of the key factors driving the demand for refrigerants in the food and beverage industry is the increase in the consumption and global trade of perishable foods. As consumers become more health-conscious, the demand for fresh, chilled, and frozen foods has risen. This trend necessitates the use of robust refrigeration systems to maintain the quality and safety of these foods.

Moreover, the globalization of food trade requires efficient cold chain logistics to transport perishable goods over long distances. This further fuels the need for high-performance refrigerants. With advancements in transportation infrastructure and the expansion of global markets, the demand for refrigerants that can ensure the freshness and quality of perishable goods during transit is on the rise.

Technological advancements have led to the development of more efficient and environmentally-friendly refrigeration systems. These new technologies often rely on advanced refrigerants that offer superior performance while minimizing environmental impact. For instance, the use of natural refrigerants, such as carbon dioxide and hydrocarbons, has gained momentum due to their lower global warming potential and ozone depletion potential compared to traditional synthetic refrigerants. The adoption of these technologies in the food and beverage industry is another factor driving the growth of the refrigerants market.

Growing Demand of Refrigerants in Pharmaceutical Industry

In the pharmaceutical industry, refrigerants play an indispensable role by providing essential cooling for a wide range of applications. These applications include the storage of temperature-sensitive drugs, vaccines, and biological samples, as well as the operation of cold rooms and freeze-drying systems. As pharmaceutical companies strive to ensure the efficacy and safety of their drugs, the need for reliable and efficient refrigeration solutions becomes increasingly crucial.

The surge in demand for refrigerants in the pharmaceutical sector can largely be attributed to the rising need for cold chain logistics. With the growing production of temperature-sensitive pharmaceutical products, maintaining an efficient cold chain becomes paramount. A well-maintained cold chain ensures that these products retain their quality and potency during storage and transportation, thus necessitating the use of high-performance refrigerants.

In conclusion, the increasing demand for refrigerants in the pharmaceutical industry serves as a significant driver for the global refrigerants market. As the production of temperature-sensitive pharmaceutical products continues to rise and new refrigeration technologies are developed, the demand for refrigerants is expected to further escalate, thus propelling the overall growth of the refrigerants market.

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Key Market Challenges

Rising Transition to Low-GWP Alternatives

Refrigerants with high Global Warming Potential (GWP), such as hydrofluorocarbons (HFCs), have been identified as contributors to global warming due to their ability to trap heat in the atmosphere. This has prompted the need for global HFC phase-down targets and proposals. In response, the industry has started developing equipment that utilizes low-GWP alternative refrigerants, aiming to mitigate the environmental impact.

However, the transition to low-GWP refrigerants is not without its challenges. One of the primary obstacles is ensuring that the switch to new refrigerants does not compromise the current efficiency levels of cooling systems. It is crucial to maintain or even enhance the energy efficiency of equipment while adopting these alternatives. Additionally, the increasing demand for space cooling has its own implications, as it can contribute to global warming through the emissions of hydrofluorocarbons and carbon from cooling equipment.

Furthermore, the shift from HFCs to low-GWP refrigerants, such as hydrofluoroolefins (HFOs), necessitates substantial changes in equipment design and operation. These changes can be both costly and time-consuming, posing an additional challenge to the widespread adoption of low-GWP refrigerants.

Key Market Trends

Increased Adoption of Hydrofluoroolefins (HFOs)

The transition to Hydrofluoroolefins (HFOs) as refrigerants is driven by several factors. Firstly, the increasing demand for sustainable and eco-friendly refrigerants that have lower global warming potential (GWP) is pushing industries to adopt HFOs. The need to reduce greenhouse gas emissions and mitigate climate change effects has become a priority for many sectors.

Secondly, consumers and industries are becoming more environmentally conscious, recognizing the importance of adopting refrigerants that have minimal impact on the ozone layer and contribute less to global warming. This awareness has led to a rapid increase in the demand for HFO refrigerants, as they offer a viable solution to address these concerns.

Furthermore, the imminent phase-down of hydrofluorocarbons (HFCs) due to their high GWP has accelerated the shift towards advanced fluorocarbon refrigerants like HFOs. HFCs are being gradually replaced by HFOs, which have significantly lower GWP values and are considered more environmentally friendly alternatives.

This transition towards HFOs is further supported by global market trends in the adoption of other low GWP alternatives such as carbon dioxide (CO2) and low GWP HFCs like HFC-32 (R32). These refrigerants, along with HFOs, offer promising solutions for reducing environmental impact and complying with regulatory policies aimed at phasing out high GWP substances.

In conclusion, the increased adoption of HFOs is a significant trend in the global refrigerants market. As industries and consumers continue to prioritize environmental sustainability, and as regulatory policies increasingly favor low-GWP alternatives, the demand for HFOs is expected to grow further, shaping the future of the global refrigerants market. This shift towards HFOs represents a crucial step in achieving a more sustainable and greener future for refrigeration and air conditioning systems.

Segmental Insights

Type Insights

Based on the category of type, the HFCs segment emerged as the dominant player in the global market for refrigerants in 2022. Hydrofluorocarbons (HFCs), due to their lower impact on the atmosphere compared to other fluorocarbon refrigerants, are widely utilized in air conditioning applications. They have emerged as prominent substitutes for phased-out chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs). Additionally, emerging nations are gradually phasing out fluorocarbon refrigerants and actively working towards the elimination of HCFCs. This progressive shift in refrigerant usage is expected to drive the global demand for HFCs in the foreseeable future.

Application Insights

The air conditioners segment is projected to experience rapid growth during the forecast period. The usage of refrigerants in air conditioning systems has witnessed a significant increase, driven by the growth of the global economy and the rise in domestic standards. To ensure optimal performance, an ideal refrigerant should seamlessly integrate with the refrigeration system, delivering efficient energy utilization.

In the context of air conditioning, the desired outcome is effective cooling, and the selection of superior refrigerants plays a pivotal role in achieving this objective while minimizing carbon emissions. By carefully considering the characteristics and properties of refrigerants, we can enhance the overall output of air conditioning systems, resulting in a more sustainable and environmentally friendly approach to cooling.

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Regional Insights

Asia Pacific emerged as the dominant player in the Global Refrigerants Market in 2022, holding the largest market share in terms of value. This can be attributed to several macro-economic factors. Firstly, the burgeoning population has led to increased demand for various goods and services, driving economic growth. Secondly, rising consumer disposable income has provided individuals with greater purchasing power, stimulating consumption and further boosting the economy. Lastly, rapid urbanization and industrialization have created new opportunities for businesses and job seekers, fueling economic development. Together, these factors have contributed to the overall growth and dynamism of the economy.

Recent Developments

• In January 2023, The Chemours Company, a global leader in sustainable solutions, took a significant step towards a greener future by introducing its highly innovative Opteon XL41 (R-454B) hydrofluoroolefin (HFO) refrigerant to the North American market. This cutting-edge product not only offers a seamless replacement for conventional refrigerants in new air conditioning and heat pump applications, but it also boasts remarkable environmental credentials. With zero ozone depletion potential (ODP) and an impressive approximate 78% reduction in global warming potential (GWP), Opteon XL41 is a game-changer in the realm of refrigerants.
• Similarly, in May 2022, Honeywell International Inc., renowned for its commitment to sustainability, launched Solstice 456A - a groundbreaking hydrofluoroolefin (HFO)-based refrigerant designed specifically for the European automotive aftermarket. With a strong focus on reducing greenhouse gas (GHG) emissions, Solstice 456A has the potential to significantly decrease the carbon footprint associated with air conditioning systems in existing vehicles. Preliminary estimates suggest that this innovative refrigerant can achieve a remarkable reduction of over 50% in GHG emissions, making it a pivotal solution in the fight against climate change.

Key Market Players

• Daikin Industries, Ltd.
• Asahi Glass Corporation
• The Chemours Company
• Sinochem Group Co Ltd
• Honeywell International Inc.
• Gujarat Fluorochemicals Limited
• Airgas Refrigerants Inc.
• Linde PLC
• Mexichem America Inc.
• SRF Limited

Report Scope:

In this report, the Global Refrigerants Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Global Refrigerants Market, By Type:

o   CFCs

o   HCFCs

o   HFCs

o   Inorganic Refrigerants

o   Others

• Global Refrigerants Market, By Application:

o   Air Conditioners

o   Refrigerators

o   Electronics Devices

o   Chillers

o   Others

• Global Refrigerants Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Kuwait

§  Turkey

§  Egypt

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Refrigerants Market.

Available Customizations:

Global Refrigerants Market report with the given market data, Tech Sci 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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