Refrigerant

Refrigerant

The Refrigerant Market is expected to grow at a steady rate of around 6.95% owing to the rising demand for HVAC systems, driven by climate change and extreme temperatures, along with increased adoption of refrigeration solutions in the food and pharmaceutical sectors. The Heating, Ventilation, Air Conditioning, and Refrigeration (HVAC&R) market has been expanding in recent years internationally, and the resulting products require refrigerants. This increase is well articulated in emerging markets as urbanization and better standards of living increase the uptake of air conditioning and refrigeration equipment. In 2023, according to the report published by Consumer Electronics and Appliances Manufacturers Association, due to scorching heat, the demand for room air-conditioners across the country is expected to touch 14 million units annually for the first time. Air-conditioner sales saw record-breaking figures in May and there is volume growth expected of 30-40 percent in the summer alone, Consumer Electronics and Appliances Manufacturers Association (CEAMA). The HVAC&R industry, especially in the commercial refrigeration sector, is also contributing to the growth. Economic growth, particularly due to the emergence of organized retail and cold chain sectors has led to the need for commercial refrigerator equipment. This growth in the HVAC&R industry translates to more demand for refrigerants because it is an important part of all the cooling and refrigeration systems.

• Based on the product type, the refrigerant market is segmented into synthetic and natural. The synthetic segment acquired a majority share in the market due to its wide applications in various industries, availability, and established usage patterns. Synthetic refrigerants have gained popularity and are extensively used in various sectors including HVAC (heating, ventilation, and air conditioning), automotive, and refrigeration among other industrial purposes. Refrigerants are customized to the proper cooling requirements of the application. Thus, they are diverse in use among various systems and machinery. Moreover, these substances are well known to technicians and engineers, shortening the acclimatization period and reducing further training or alteration of the already existing system. On top of that, the performance of synthetic refrigerants is consistent and reliable over a range of operating conditions which makes them fit to be used in commercial and domestic refrigeration and air conditioning systems.
• Based on application, the refrigerant market is bifurcated into refrigerators and air conditioners. The air conditioner segment dominated the market in 2023 and is expected to behave in the same fashion in the forecast period. Temperature fluctuations have resulted in the diversification of markets in different parts of the world. Growing global temperatures, higher cooling requirements for both humid and dry spaces, and increasing urbanization in developing countries are the key drivers engaging this trend. Furthermore, the requirements of modern air conditioning systems, which are energy efficient and make use of non-ozone depleting sub-stances have propelled market growth. Due to the phenomenon of climate change, people are increasingly looking for mechanisms that cool their surroundings as the global temperature advances. This is particularly true for those regions where there are prolonged periods of high heat as there has been an upsurge in the use of air conditioners.
• For a better understanding of the market adoption of Refrigerant, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia Pacific held the majority share of the market in the year 2023. The major factors contributing to the growth of the market are primarily owing to the rapid pace of industrialization, urbanization, and the increasing environmental consciousness within the region. The transition towards low-GWP and natural refrigerants namely hydrofluoroolefins (HFOs), CO₂, and ammonia is influenced by factors such as increasing food and healthcare refrigeration sectors, growth in cold chain logistics, and government restrictions on greenhouse gas emissions. The healthy building trend is further healthy for the market due to the regional changes towards sustainable cooling technologies and construction activities. For instance, in 2024, Trane® by Trane Technologies, a global climate innovator, launched a new generation electric air conditioning VRF GEN Elite C Series, a Cooling Only Variable Refrigerant Flow (VRF) system designed for India, Thailand, Vietnam, and other developing regions of the Asia Pacific market. Additionally, major air conditioner manufacturers in the region are focusing on developing low-GWP systems and expanding their production capacity. For instance, in 2022, Daikin Industries Ltd. has confirmed its intention to construct new manufacturing facilities for residential air conditioners. The facilities will be in the Republic of Indonesia at the Greenland International Industrial Center (GIIC) in the vicinity of Jakarta, the capital city. The construction of the new production base is being undertaken to meet the growing demand in the air conditioning market of Indonesia. The company plans to start operations by December 2024. Therefore, amongst regions, Asia Pacific dominated the refrigerant market globally.
• Some of the major players operating in the market include Honeywell International Inc., Linde PLC, The Chemours Company, A-Gas, Arkema, DAIKIN INDUSTRIES, Ltd., Tazzetti S.p.A., AGC Chemicals Americas, Sinochem Corporation, and SRF Limited.