Refrigerants Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (CFCs, HCFCs, HFCs, Inorganic Refrigerants, Others), By Application (Air Conditioners, Refrigerators, Electronics Devices, Chillers, Others), By Region and Competition, 2020-2030F

Market Overview

Global Refrigerants Market was valued at USD 6.50 Billion in 2024 and is anticipated to project steady growth in the forecast period with a CAGR of 4.82% through 2030. 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. 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. A recent study indicates that millennial consumption of frozen foods has risen by 34.7% over the past year. Additionally, 62 respondents expressed a preference for frozen vegetables and processed vegetarian foods over their fresh counterparts, highlighting a growing shift toward convenience and extended shelf life in dietary choices.

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. Globally, over 15,000 new drugs are in development, with more than 7,000 currently undergoing clinical trials. A significant share of these pipeline therapies consists of biopharmaceuticals—complex medicines characterized by their protein-based structures. Unlike conventional pharmaceuticals, biologic drugs, including hormones, proteins, and antibodies, cannot be synthesized through chemical processes. Instead, their production requires advanced biotechnological methods, reflecting the increasing shift toward biologics in modern medicine. 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. Many pharmaceuticals require storage at controlled room temperatures, typically between 68°F and 77°F, with permissible short-term deviations ranging from 59°F to 86°F. However, exposure to temperatures outside this range can significantly impact drug efficacy. For instance, diazepam experiences a 25% reduction in potency when stored above 98°F, while lorazepam undergoes a drastic 75% potency loss under the same conditions. Proper temperature management is essential to maintaining the stability and effectiveness of these medications.

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.

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. 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.

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

The HFCs (Hydrofluorocarbons) segment is the fastest-growing in the global refrigerants market in 2024, driven by their lower environmental impact compared to other fluorocarbon refrigerants. HFCs are widely used in air conditioning systems and have become key substitutes for the phased-out chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs). As environmental concerns and regulatory measures push for the elimination of harmful refrigerants, HFCs have emerged as a preferred option due to their relatively lower ozone depletion potential.

Moreover, emerging nations are progressively phasing out HCFCs and fluorocarbons, which is contributing to a growing demand for HFCs. This shift aligns with global efforts to reduce the environmental impact of refrigeration and air conditioning systems. As these regulations intensify, the demand for HFCs is expected to continue rising in the coming years, cementing their dominance in the refrigerants market.

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Regional Insights

Asia Pacific emerged as the dominant region in the Global Refrigerants Market in 2024, holding the largest market share in terms of value. This can be attributed to several macro-economic factors. Its contribution to global GDP has grown significantly, rising from approximately 27% in 2000 to around 37% by 2021. Projections indicate that APAC’s economic influence will continue to expand, with its share expected to reach nearly 42% of the world’s GDP by 2040, underscoring the region’s growing role in shaping the global economic landscape. The burgeoning population has led to increased demand for various goods and services, driving economic growth. The Asia-Pacific (APAC) region has emerged as a key driver of global economic growth, fueled by rapid population expansion and increasing investment opportunities.  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 February 2025, SK Enmove has obtained R-Number certification for two newly developed automotive refrigerants designed to improve heating and cooling efficiency. This certification underscores the company’s commitment to advancing high-performance, energy-efficient refrigerant solutions for the automotive sector.
• In February 2025, A study published in Science Advances by researchers from the University of Kansas presents a breakthrough in sustainable refrigerant recycling. The report introduces an innovative method for efficiently separating chemical components in widely used refrigerants, facilitating large-scale industrial recycling. This eco-friendly approach enhances the recovery of valuable compounds, reducing environmental impact and supporting the transition to more sustainable cooling solutions.
• In November 2024, Hydrofluoroolefins (HFOs) represent the latest advancement in refrigerant technology, offering a significantly lower Global Warming Potential (GWP) compared to traditional hydrofluorocarbons (HFCs). Extensive research has demonstrated that HFOs not only deliver high-performance cooling capabilities but also align with global sustainability goals due to their minimal environmental impact. Their ozone-friendly composition and reduced carbon footprint make them a viable long-term solution for industries seeking to transition toward eco-friendly refrigeration and air conditioning systems. As regulatory frameworks tighten and demand for low-GWP alternatives rises, HFOs are emerging as a key driver in the shift toward sustainable cooling technologies.
• In August 2024, A newly developed air-based refrigeration system is poised to serve as an alternative to environmentally harmful refrigerants, aligning with evolving regulatory frameworks. The European Union’s revised regulation on fluorinated greenhouse gases (F-gases), which came into effect in March this year, sets a clear roadmap for reducing reliance on these high-global-warming-potential substances. Beginning in 2025, the sale of products containing F-gases will be systematically phased out, while stricter regulations on industrial processes utilizing these gases are also anticipated. This regulatory shift is expected to accelerate the transition toward sustainable cooling technologies, driving innovation in next-generation refrigeration systems that minimize environmental impact.
• In July 2024, The Korea Institute of Machinery and Materials (KIMM) has pioneered a breakthrough in sustainable cooling technology with the development of a cost-effective refrigeration system that utilizes water as a refrigerant. This innovation marks a significant step toward environmentally friendly cooling solutions, eliminating the need for traditional chemical-based refrigerants while maintaining efficiency and affordability.
• In May 2024, The HVAC industry is undergoing a significant shift toward next-generation refrigerants in compliance with the American Innovation and Manufacturing (AIM) Act of 2020. This legislation mandates a phased reduction in the use of high-GWP (Global Warming Potential) refrigerants while introducing stringent requirements for those used in air conditioning and heat pump systems. The transition is driving the adoption of advanced refrigerants designed to minimize environmental impact, aligning with sustainability goals and regulatory standards.
• In April 2024, Honeywell has announced that Bosch’s latest series of heat pumps will incorporate its energy-efficient Solstice refrigerant, which features a low global warming potential (GWP). Under this partnership, Bosch technicians will undergo specialized training to ensure the safe installation and maintenance of these next-generation low-GWP systems. This collaboration aligns with Honeywell’s strategic focus on key global megatrends, including the transition to sustainable energy solutions.
• 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.
• 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:

• Refrigerants Market, By Type:

o   CFCs

o   HCFCs

o   HFCs

o   Inorganic Refrigerants

o   Others

• Refrigerants Market, By Application:

o   Air Conditioners

o   Refrigerators

o   Electronics Devices

o   Chillers

o   Others

• 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

Competitive Landscape

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

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Company Information

• Detailed analysis and profiling of additional market players (up to five).

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