|
Forecast Period
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2024-2028
|
|
Market Size (2022)
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USD 279.09 Million
|
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CAGR (2023-2028)
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2.28%
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Fastest Growing Segment
|
Carbon Dioxide
|
|
Largest Market
|
Midwest
|
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.
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By Type
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By
Application
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By Region
|
|
•
Carbon Dioxide
•
Ammonia
•
Hydrocarbons
•
Others
|
•
Industrial
•
Commercial
•
Domestic
|
• Northeast
• Midwest
• West
• South
|
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).
United States Natural Refrigerants Market is an
upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]