Refrigerants Market By Type ( Fluorocarbons, Inorganics, Hydrocarbons, and Other), By Application (Refrigerators, Large-Scale Refrigerators, Chillers, Air Conditioners, and Other), By End-User (Domestic, Commercial, Industrial, and Other), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032

Report Overview

Refrigerants Market size is expected to be worth around USD 44.7 Bn by 2032 from USD 21.4 Bn in 2022, growing at a CAGR of 7.8% during the forecast period from 2023 to 2032.

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Refrigerant is a fluid mixture used as a heat pump or refrigeration cycle coolant. During the refrigeration cycle, it changes from a liquid to a gas; due to its non-corrosive nature, low density in liquid form, and high density in gaseous form, it is utilized. A variety of inorganic Chemicals and Materials are utilized as refrigerants. Technological advancements and the widespread use of freezing in food transportation aid the Refrigerants Market's expansion. Air conditioners are in high demand as a result of urbanization and improvements in lifestyles, also supporting the growth of the Refrigerants Market.

Driving factors

Rising Demand For Home Air Conditioning Systems

The global market is being driven by the rapid expansion of the consumer electronics industry and rising demand for home air conditioning systems. In the domestic and industrial sectors, the development of energy-efficient cooling systems has resulted from the awareness of the negative effects of Refrigerants Market on the environment. Consequently, refrigerant gases have changed significantly. Traditionally, chlorofluorocarbons (CFCs) were used as refrigerants.

However, sulfur dioxide, ammonia, and non-halogenated hydrocarbons are increasingly replacing CFCs due to their effects on destroying the ozone layer. In addition, the growing demand for automobile air conditioning systems is further propelling the market. In addition, the food and beverage industry's demand for Refrigerants Market has increased as a result of the cold chain market's growing demand for refrigerators and deep freezers. In addition, rising living standards and rapid industrialization, and infrastructure development are driving market expansion.

Restraining Factors

Toxicity and Flammability

Refrigerators like carbon dioxide, ammonia, and HCs are flammable, toxic, and corrosive at higher concentrations. Copper foil can be corroded when ammonia reacts with it. As a result, ammonia-based refrigeration systems are constructed from materials like steel, albeit at a higher initial cost. Compared to fluorinated refrigerant gases, the safety precautions for ammonia and carbon dioxide are significantly greater.

When carbon dioxide comes into contact with air, it tends to freeze into dry ice. As a result, in order to prevent this conversion, carbon dioxide cylinders and refrigeration systems require special valves.

Type Analysis

Fluorocarbons Dominated the Market with High Use in Air Conditioning Equipment

In 2022, fluorocarbons dominated the market, accounting for nearly half the total volume. They are frequently used in air conditioning equipment. However, the expansion of this market is likely to be stymied by stringent government regulations on the use and production of fluorocarbons due to potential ozone depletion and global warming. Since hydrofluorocarbons are less harmful to the environment than other fluorocarbon Refrigerants Market, they are widely used in air conditioning applications.

Additionally, they are the most widely used alternatives to phased-out HCFCs and CFCs. Fluorocarbon Refrigerants Market and HCFCs are being phased out slowly in emerging nations. As a result, there will be a worldwide high demand for HFCs. Inorganic refrigerants are likewise prevailing options in the Refrigerants Market business because of their environment-friendly nature. They have roughly zero Ozone Exhaustion Potential and temperature alteration Potential, are economically feasible, and are non-poisonous, which has prompted their use in modern business and homegrown applications.

Application Analysis

The Air Conditioning Industry dominates the market with Increased Spending of Middle-Class.  

The air conditioning industry dominates the global Refrigerants Market. The air conditioning segment is subdivided into chillers, heat pumps, and stationary air conditioning. This market has grown because the middle class spends more on cooling systems and other household appliances. Rapid urbanization and industrialization, decreasing climatic conditions, and increased production of household appliances have all contributed to the expansion of the Refrigerants Market.

Air conditioning is gaining importance as a comfort feature in automobiles, influencing consumer behavior and driving a strong demand for mobile air conditioning services. In off-highway vehicle applications, air conditioning has also been cited as improving efficiency, increasing demand even more.

The rise in international trade of perishable goods, consumer demand for frozen and chilled food and beverages, and demand from the pharmaceutical and life science industries all contribute to the expansion of the refrigeration market, particularly in cold-chain logistics, due to increased healthcare spending, booming fruit and vegetable and confectionery trade, and rising middle-class spending on frozen food and beverages.

 End-User Analysis

The Industrial Refrigeration System Accounted for the Largest Market Share Due to the High-Volume Usage of Refrigerants Market

Based on end-users, the market is segmented into domestic, commercial, industrial, and other end-users. The industrial refrigeration system accounted for the largest market share due to the high-volume usage of Refrigerants Market in places like dairy processing, cold food capacity, drink creation, ice arenas, and the weighty industry. These are enormous-scope cooling frameworks.

Commercial refrigeration is another application that has seen significant development in recent years. Expanding hypermarkets, food corporate stores, and general stores, combined with increased utilization of bundled and frozen food sources, have supported the interest in Refrigerants Market. The rising adoption of energy-efficient and environmentally friendly products is driving domestic refrigeration demand in developed economies like North America and Europe. Concerns about food waste, the need for better food quality, and increased disposable income are driving demand for domestic refrigeration in emerging economies.

Key Market Segments

Based on Type

• Fluorocarbons
  • Chlorofluorocarbons
  • Hydrofluorocarbons
  • Hydrochlorofluorocarbons
• Inorganics
  • Carbon Dioxide
  • Ammonia
  • Other Inorganics
• Hydrocarbons
  • Propane
  • Isobutane

Based on Application

• Refrigerators
• Large-Scale Refrigerators
• Chillers
• Air Conditioners
• Other Applications

Based on End-User

• Domestic
• Light Commercial
• Industrial
• Other End Users

Growth Opportunity

Increase The Commercial Sector's Demand

With the global proliferation of office buildings, shopping malls, and other infrastructures, a significant increase in the commercial sector's demand is evident. Air conditioners and other HVAC equipment are integrated into these buildings. The commercial sector is driving demand for refrigerants in the Refrigerants Market and creating lucrative opportunities for the rate of market growth.

Increasing Demand for Natural Refrigerants

The natural refrigerants ammonia, carbon dioxide, and HCs such as isobutene and propane are the most frequently utilized in the market. Natural refrigerants are taking the place of conventional refrigerants as a result of technological advancements in cooling equipment. Natural Refrigerants Market have gained market share in a variety of applications, including heating, air conditioning, and refrigeration systems.

Latest Trends

Growth Of The Consumer Electronics Industry

The main macroeconomic factors affecting the industry are shifting weather patterns and rapid economic expansion in emerging economies. The refrigerant industry's primary growth drivers are the growth of the consumer electronics industry and the economies of Least Developed Countries. Domestic air conditioning and refrigeration systems are being used more frequently as a result of an increase in purchasing power. The global demand for Refrigerants Market has also increased as a result of the expansion of the cold storage market.

Regional Analysis

Asia-Pacific was the Biggest Consumer Due to Rapid Urbanization and Industrialization

In 2022, Asia-Pacific was the biggest consumer. Due to a number of macroeconomic factors, including a growing population, rapid urbanization and industrialization, and rising consumer disposable income, it is also anticipated to be the region's fastest-growing segment.

Due to technological advancements in the cold chain industry, rising concerns about food waste, rising demand for refrigerated food and beverages, and increased supermarket penetration, the inorganic segment has gained more market share in North America. Due to the compound's excellent cooling and efficiency, ammonia dominated the inorganic Refrigerants Market. Due to strong mobile air conditioning, and industrial and commercial demand, Europe is the second-largest regional consumption segment.

Manufacturers must adhere to stringent guidelines to guarantee the overall sustainability of products in the region, which is governed by numerous laws. In order to expand their capabilities and take advantage of lucrative opportunities provided by end-users, a number of manufacturers have initiated joint ventures with Asian businesses and established production facilities in emerging economies. Additionally, the region's Refrigerants Market can take advantage of low-cost labor and resources to cut production costs and meet lost-cost needs.

Key Regions and Countries

North America

• US
• Canada
• Mexico

Western Europe

• Germany
• France
• The UK
• Spain
• Italy
• Portugal
• Ireland
• Austria
• Switzerland
• Benelux
• Nordic
• Rest of Western Europe

Eastern Europe

• Russia
• Poland
• The Czech Republic
• Greece
• Rest of Eastern Europe

APAC

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Colombia
• Chile
• Argentina
• Costa Rica
• Rest of Latin America

Middle East & Africa

• Algeria
• Egypt
• Israel
• Kuwait
• Nigeria
• Saudi Arabia
• South Africa
• Turkey
• United Arab Emirates
• Rest of MEA

Key Players Analysis

Emerging key players are focused on a variety of strategic policies to develop their respective businesses in foreign markets. Volatile prices for raw materials and multinational corporations employing cutting-edge technologies are expected to pose obstacles for new competitors. In order to expand their global presence, existing players are investing heavily in research and development (R&D) and expanding their operations. Additionally, they are creating novel, economical products to meet specific application requirements.

Top Key Players in Refrigerants Market

• Arkema
• Dongyue Group Co. Ltd.
• Honeywell International Inc.
• The Chemours Company
• Linde Plc.
• Air Liquide
• Sinochem Lantian Co. Ltd.
• Daikin Industries LTD.
• Mexichem
• AGC Inc.
• Other Key Players

Recent Development

• Honeywell introduced a brand-new, energy-efficient, non-flammable Solstice N71 refrigerant in January 2022 to meet stringent regulations for lowering greenhouse gas emissions.
• The Sinochem Group and China International Corporation restructured together to create Sinochem Holdings Corporation Ltd. on May 8, 2021. With more than 220,000 employees, the company is a leading state-owned business.

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