United States Natural Refrigerants Market, By Type (Carbon Dioxide, Ammonia, Hydrocarbons, Others), By Application (Industrial, Commercial, Domestic), By Region and Competition, Forecast & Opportunities, 2018-2028F

Market Overview

The United States Natural Refrigerants Market was valued at USD 279.09 Million in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 2.28% through 2028. Natural Refrigerants are artificial or synthetically created substances that have the built-in ability to automatically repair damage to themselves without any external diagnosis of the problem or human intervention. These materials mimic the natural ability of living organisms to heal wounds and restore functionality. Natural Refrigerants have many potential uses in various fields such as aerospace, automotive, civil engineering, biomedical, and electronics. Some examples of Natural Refrigerants are polymers, metals, ceramics, concrete, and coatings. Thus, increasing utilization of Natural Refrigerants contribute to the growth of the United States Natural Refrigerants Market in the forecast period.

Key Market Drivers

Rising Demand of Sustainability

As the world focuses on addressing climate change and embracing sustainable practices, the demand for environmentally friendly solutions is on the rise across various industries. In the United States, the adoption of natural refrigerants is experiencing a significant upswing as businesses, policymakers, and consumers seek alternatives to conventional synthetic refrigerants that have adverse environmental impacts. The shift toward natural refrigerants reflects a broader commitment to sustainability, energy efficiency, and reducing greenhouse gas emissions. The increased demand for sustainability in refrigeration and cooling systems has given rise to the prominence of natural refrigerants. These substances, derived from naturally occurring sources, have a significantly lower environmental impact compared to synthetic refrigerants, which are known to contribute to ozone depletion and global warming. In addition to this, various factors support the use of natural refrigerants like the detrimental effects of synthetic refrigerants, particularly hydrofluorocarbons (HFCs), on the ozone layer and climate change have raised environmental alarms, motivating the search for greener alternatives, international agreements such as the Kigali Amendment to the Montreal Protocol have prompted countries, including the United States, to phase out high-global-warming-potential (GWP) refrigerants and embrace low-GWP alternatives, natural refrigerants often exhibit higher energy efficiency compared to synthetic counterparts, reducing energy consumption and operational costs, and  as consumers become more environmentally conscious, they are driving demand for sustainable products and services, including those that utilize natural refrigerants.

Additionally, natural refrigerants perform various applications in various sectors such as commercial refrigeration which includes supermarkets, restaurants, and convenience stores are adopting natural refrigerants to cool and store products, reducing their carbon footprint, industrial refrigeration includes large industrial facilities are transitioning to natural refrigerants for cooling processes, improving efficiency and environmental performance, and air conditioning includes natural refrigerants are being explored for residential and commercial air conditioning systems, ensuring comfortable indoor environments with minimal ecological impact. Therefore, increasing focus on sustainability regarding the use of natural refrigerants led to the growth of United States Natural Refrigerants Market.

Supportive Regulatory Scenario

In the United States, the push for sustainability and environmental responsibility has led to the development of a supportive regulatory landscape for natural refrigerants. With a focus on reducing greenhouse gas emissions, preserving the ozone layer, and fostering energy efficiency, regulatory measures are driving the adoption of natural refrigerants across industries. This proactive approach aligns with global efforts to mitigate climate change and transition to greener alternatives. Various regulatory measures such as the American Innovation and Manufacturing Act (AIM Act) which are enacted in December 2020, the AIM Act aims to phase down hydrofluorocarbons (HFCs), which are high-global-warming-potential (GWP) synthetic refrigerants. The act aligns the U.S. with the Kigali Amendment to the Montreal Protocol, setting targets for HFC phase-down and promoting the transition to low-GWP alternatives, including natural refrigerants. The EPA has implemented regulations under the Clean Air Act to control emissions of ozone-depleting substances and high-GWP refrigerants. These regulations mandate the use of environmentally friendly alternatives, including natural refrigerants, in various applications such as air conditioning and refrigeration. Furthermore, the EPA's Significant New Alternatives Policy (SNAP) program evaluates and approves the use of substitute chemicals, including refrigerants. SNAP aims to identify safe and environmentally friendly alternatives, promoting the adoption of natural refrigerants as replacements for high-GWP synthetic refrigerants. Government agencies such as the Department of Energy (DOE) establish energy efficiency standards for appliances and equipment, including cooling and refrigeration systems. Natural refrigerants are often more energy-efficient, aligning with these standards and encouraging their use. Thus, the large number of initiatives by government regarding natural refrigerants is anticipated to drive the demand of United States Natural Refrigerants Market in the forecast period.

Increasing Energy Efficiency

As the United States seeks to reduce energy consumption and curb environmental impact, the adoption of natural refrigerants is emerging as a strategic solution. These refrigerants not only offer eco-friendliness but also significantly contribute to rising energy efficiency across various sectors. From commercial refrigeration to air conditioning, natural refrigerants are heralding a new era of sustainable cooling that aligns with the nation's commitment to energy conservation and environmental stewardship. Energy efficiency is a cornerstone of sustainable development, and the United States recognizes its significance in mitigating climate change and reducing energy costs. Natural refrigerants, derived from environmentally friendly sources, are a prime example of how innovation in cooling technologies can simultaneously address environmental concerns and energy efficiency goals. Moreover, natural refrigerants have various advantages regarding energy efficiency like natural refrigerants have significantly lower GWP compared to synthetic counterparts like hydrofluorocarbons (HFCs). This means they have a reduced impact on global warming potential, aligning with the country's emissions reduction goals, natural refrigerants often exhibit superior thermodynamic properties, resulting in more efficient heat transfer and cooling processes. This can lead to reduced energy consumption and lower operating costs, the improved thermodynamic properties of natural refrigerants can contribute to reduced energy demand, which is especially critical in high-energy-consumption sectors like air conditioning and refrigeration. Thus, these factors dominate the growth of United States Natural Refrigerants Market in the forecast period.

Key Market Challenges

Limited Availability of Natural Refrigerants

The adoption of natural refrigerants holds immense promise for a more sustainable and environmentally friendly approach to cooling and refrigeration. However, one of the challenges in transitioning to these alternatives is their limited availability. As industries and governments prioritize sustainability and reduced carbon footprints, addressing this challenge becomes crucial for a successful and widespread adoption of natural refrigerants. The limited availability of natural refrigerants can be attributed to several factors such as the production and distribution of natural refrigerants may not be as established or widespread as their synthetic counterparts, leading to limitations in supply, regulations and standards governing the use of refrigerants vary across regions. Some natural refrigerants might be restricted due to safety concerns or lack of regulatory approval, some existing cooling and refrigeration systems are designed to work with specific synthetic refrigerants, making it challenging to retrofit them for natural refrigerants, and limited demand for natural refrigerants in the past has resulted in a smaller market size, which, in turn, impacts availability.

Safety Concern Regarding Natural Refrigerants

The transition to natural refrigerants is driven by the imperative to reduce environmental impact and promote sustainability. While these alternatives offer numerous benefits, it's important to acknowledge and address safety concerns associated with their use. Understanding potential risks, implementing proper safety measures, and fostering education are essential to ensure that the adoption of natural refrigerants is a safe and responsible endeavor. Many natural refrigerants, such as hydrocarbons and some variations of ammonia, have varying levels of flammability and toxicity which might hamper the growth of United States Natural Refrigerants market in the projected period.

Key Market Trends

Expansion of Hydrocarbon Refrigerants

In the pursuit of more sustainable and environmentally friendly cooling solutions, hydrocarbon refrigerants are taking center stage. These natural refrigerants, which include propane (R290) and isobutane (R600a), have been recognized for their low environmental impact and energy efficiency. As industries and governments prioritize eco-conscious practices, the expansion of hydrocarbon refrigerants is driving innovation, reducing carbon footprints, and redefining the cooling landscape. Hydrocarbon refrigerants offer a range of benefits that make them an attractive choice for various applications such as hydrocarbons have exceptionally low GWP, contributing minimally to global warming and climate change. This aligns with international agreements and regulations aimed at reducing greenhouse gas emissions, hydrocarbon refrigerants have superior thermodynamic properties, resulting in improved energy efficiency. This translates to lower energy consumption and operational costs for cooling systems, hydrocarbons are derived from natural sources, making them a renewable and sustainable choice for cooling applications, and hydrocarbon refrigerants do not contribute to ozone depletion, further reducing their environmental impact.

Additionally, hydrocarbon refrigerants are particularly well-suited for small refrigeration systems, such as those used in domestic refrigerators and freezers. Additionally, advantages such as energy efficiency and being an environmentally friendly option has significantly contributed towards expansion of hydrocarbon refrigerants.

Advancement in Technology

The pursuit of sustainable and environmentally friendly cooling solutions has driven remarkable advancements in the field of natural refrigerants. As industries and researchers seek to address climate change and reduce carbon footprints, technology has played a pivotal role in making natural refrigerants more efficient, safe, and accessible. From improved system designs to cutting-edge manufacturing processes, these advancements are reshaping the way we think about cooling and refrigeration. Moreover, advanced technologies are optimizing the performance of cooling systems that use natural refrigerants. Innovations in heat exchangers, compressors, and system controls enhance energy efficiency and overall system performance. Microchannel Heat Exchangers which are compact and efficient heat exchangers improve heat transfer and reduce refrigerant charge, contributing to more energy-efficient systems. In addition to this, variable speed compressors that adjust their speed based on cooling demands, providing precise and efficient cooling while minimizing energy consumption.

Additionally, smart controls and Internet of Things (IoT) technology is enabling remote monitoring and control of cooling systems, optimizing their performance and detecting issues in real time.

Segmental Insights

Form Insights

Based on the type, the carbon dioxide segment is expected to register the highest growth of 3.33% during the forecast period 2024-2028. Carbon dioxide is an environmentally friendly, non-toxic, and non-flammable natural refrigerant. With a GWP of 1, carbon dioxide is the reference value to compare the direct influence of different refrigerants on global warming. Carbon dioxide is obtained as a by-product of several production processes, hence is easily available for use as a refrigerant which leads to the growth of United States Natural Refrigerants Market during the forecast period.

Application Insights

Based on the application, the industrial segment is expected to register the highest growth of 3.09% during the forecast period, 2024-2028. As industrial sector includes refrigeration systems used in large-scale industrial applications such as chemical manufacturing, pharmaceuticals, and food processing. Currently, carbon dioxide refrigeration technology is mainly used in three areas heat pumps, automotive air conditioning, and multi-stage refrigeration systems. Since carbon dioxide is an environmentally friendly refrigerant, carbon dioxide compressors have been developed and manufactured for various industries result in propelling the growth of the United States Natural Refrigerants Market during the projected period.

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Regional Insights

Midwest United States Natural Refrigerants Market will witness fastest growth during the forecast period, 2024-2028. This is attributed to the widespread adoption of natural refrigerants in the region driven by both regulatory and market factors. Along with this, the use of hydrocarbon refrigerants is increasing in the region, particularly in commercial refrigeration and air conditioning applications. The use of CO₂ as a refrigerants is also on the rise, particularly in industrial refrigeration.

Recent Developments

• In March 2023, Emerson launched ‘Industry-First’ Transcritical CO₂ screw compressor for industrial applications at IIAR Show.
• In December 2022, A-Gas’ new separators will be operational in early 2023 and will more than double the separation capacity at the current site- addressing a critical need highlighted by the NGO report.
• In October 2022, A-Gas announced that it has become a member of the Climate and Ozone Protection Alliance (COPA), committed to building a more sustainable future through effective refrigerant management.
• In September 2019, Daikin adopts R-32 for key HVAC products in North America to reduce greenhouse gas emissions and climate impacts and is the ideal low-GWP alternative to R-410A for many key residential, light-commercial, and applied products.

Key Market Players

·         Emerson Electric Co.

·         Airgas Inc.

·         Daikin U.S. Corporation

·         SWEP North America, Inc.

·         Copeland LP

·         Messer North America, Inc.

·         National Refrigerants Inc.

Report Scope:

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

• United States Natural Refrigerants Market, By Type:

o   Carbon Dioxide

o   Ammonia

o   Hydrocarbons

o   Others

• United States Natural Refrigerants Market, By Application:

o   Industrial

o   Commercial

o   Domestic

• United States Natural Refrigerants Market, By Region:

o   Northeast

o   South

o   Midwest

o   West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the United States Natural Refrigerants Market.

Available Customizations:

The United States Natural 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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