Natural Refrigerant Market By Gas (Carbon Dioxide, Ammonia, Hydrocarbons, Others), By Application (Refrigerators, Air Conditioning Systems, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032
The global natural refrigerant market was valued at $1.5 billion in 2022 and is projected to reach $2.7 billion by 2032, growing at a CAGR of 6.2% from 2023 to 2032.
A natural refrigerant is a substance derived from natural sources such as ammonia, water, or carbon dioxide that possesses favorable thermodynamic properties for heat transfer and is used in refrigeration and air conditioning systems. It is characterized by having low or zero ozone depletion potential (ODP) and low global warming potential (GWP), making it an environmentally friendly alternative to synthetic refrigerants. Natural refrigerants have minimal impact on climate change and thus serve as a sustainable and energy-efficient cooling solution.
Frozen food is gaining popularity among working women and families with increasing spending abilities. Preservation of food through freezing retains the quality of food products for long storage periods. As an approach to the long-term preservation of vegetables and fruits, freezing is considered superior to dehydration and canning of food & beverages to retain the nutritive properties and sensory attributes. In recent years, owing to changing consumer profiles, the frozen food & beverages industry has witnessed a significant change. The rapid increase in the number of working women and the reduction in the overall family size globally has resulted in a decrease in time spent cooking/preparing food. This has further led to an increase in the variability of frozen or ready-to-eat food and dairy products. In addition, the global frozen food industry is expanding exponentially to cater to the increasing demand for frozen food and dairy products and their variability. Harmful and relatively less efficient fluorocarbon refrigerants are being replaced by ammonia, carbon dioxide, hydrocarbons, and other natural refrigerants by increased industry players. Approximately two-thirds of multinational supermarkets use natural refrigerants. Thus, the surge in demand for frozen food and dairy products along with an increase in the demand for a variety of frozen food products is a key factor that boosts the market growth.
Synthetic refrigerants have been extensively utilized in the refrigeration industry. Hydrofluorocarbons (HFCs), chlorofluorocarbons (CFCs), and hydrochlorofluorocarbons (HCFCs) are the most commonly used synthetic refrigerants in the modern world. Natural refrigerants are not preferred for effective residential and small business refrigeration as they are highly susceptible to microbial decay. This is attributed to their high toxicity, corrosiveness, high pressures, flammability, and, in some instances, lower operating efficiencies. As a consequence of extensive R&D, the first synthetic refrigerants were developed. Initially, due to technological limitations, synthetic refrigerants outperformed natural refrigerants. Another advantage that synthetic refrigerants have over their natural counterparts is their stability. These factors significantly influenced the global expansion of the market. Thus, the presence and widespread acceptance of synthetic refrigerants restrain the market expansion.
Green cooling technologies are currently available and utilized in numerous industries. 50% of newly manufactured refrigerators already utilize natural refrigerants such as R600a (isobutane) and R290 (propane). Unitary air conditioning is the fastest-growing subsector of the Rent-A-Center (RAC) sector in a number of countries and is undergoing numerous positive changes. This is attributed to the increasing popularity of inverter technology as major manufacturing countries such as China and India introduce R290-based UAC systems to the market. Major corporations are further opting to use green cooling technologies, particularly due to their substantial cost reductions. For instance, Coca-Cola has already acquired 1.7 million units free of climate-damaging hydrofluorocarbons (HFCs) and has reduced electricity consumption by up to 35% by implementing intelligent energy management features. As the demand for cooling rises, it is imperative to implement climate-friendly and sustainable cooling strategies. Using the most energy-efficient technologies and a product with a very low global warming potential (GWP), the green cooling strategy reduces the negative environmental effects of RAC appliances and reduces energy costs. Thus, technological advances in green cooling are expected to open new avenues for market expansion during the forecast period.
The global natural refrigerant market is segmented into gas, application, and region. By gas, the market is divided into carbon dioxide, ammonia, hydrocarbons, and others. On the basis of application, it is categorized as refrigerators, air conditioning systems, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The major players operating in the global natural refrigerant market are Danfoss, Linde Plc, A-Gas International Ltd., Daikin Industries Ltd., Evonik Industries AG, AGC Inc., Air Liquide, HyChill Australia Pty Ltd., Johnson Controls, and Puyang Zhongwei Fine Chemical Co., Ltd.
Key Benefits For StakeholdersThis report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the natural refrigerant market analysis from 2022 to 2032 to identify the prevailing natural refrigerant market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the natural refrigerant market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global natural refrigerant market trends, key players, market segments, application areas, and market growth strategies.
Key Market SegmentsBy GasHydrocarbons
Type
Propane
Isobutane
Ethane
Ethylene
Propylene
Others
Others
Carbon Dioxide
Ammonia
By ApplicationRefrigerators
Type
Industrial
Commercial
Domestic
Others
Air Conditioning Systems
Type
Stationary
Chillers
Heat Pumps
Others
Others
By RegionNorth America
U.S.
Canada
Mexico
Europe
Germany
UK
France
Spain
Italy
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Australia
Rest of Asia-Pacific
LAMEA
Brazil
Saudi Arabia
South Africa
Rest of LAMEA
Key Market Players
A-Gas International Ltd
AGC Inc.
Air Liquide
DAIKIN INDUSTRIES LTD.
Danfoss AS
Evonik Industries AG
HyChill Australia Pty Ltd
Johnson Controls International plc
Linde Plc
Puyang Zhongwei Fine Chemical Co., Ltd
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