The global Refrigerants Market Study analyzes and forecasts the market size across 6 regions and 24 countries for diverse segments -By Type (HFC, HFO, Isobutane, Propane, Ammonia, Carbon Dioxide, Others), By Application (Refrigeration System, Chillers, Air Conditioning Systems, Packaged & Rooftop ACs, MAC).
In 2024, the refrigerants market is undergoing significant changes, driven by global efforts to phase out ozone-depleting substances and reduce greenhouse gas emissions, leading to a shift towards environmentally friendly refrigerants with lower global warming potential (GWP). Refrigerants are essential fluids used in air conditioning, refrigeration, heat pumps, and other cooling applications to transfer heat and maintain desired temperatures. Traditional refrigerants such as hydrochlorofluorocarbons (HCFCs) and hydrofluorocarbons (HFCs) are being phased out due to their contribution to ozone depletion and climate change. Consequently, there is a growing demand for alternative refrigerants such as hydrofluoroolefins (HFOs), natural refrigerants like ammonia, carbon dioxide, and hydrocarbons, as well as blends and low-GWP versions of HFCs. These alternatives offer advantages such as improved energy efficiency, lower environmental impact, and compliance with regulations such as the Kigali Amendment to the Montreal Protocol and regional policies like the European Union's F-Gas Regulation. Further, advancements in refrigeration technology, such as variable-speed compressors, magnetic cooling, and thermoelectric cooling, are driving the development of more efficient and sustainable cooling systems. As industries and consumers prioritize energy efficiency and environmental sustainability, the demand for eco-friendly refrigerants is expected to growing, stimulating market expansion and fostering innovation in refrigerant chemistry and cooling technologies.
The market report analyses the leading companies in the industry including A-Gas International, Air Liquide S.A., Arkema S.A., Asahi Glass Corp, Daikin Industries Ltd, Dongyue Group Co. Ltd, Gas Servei S.A., Gujarat Fluorochemicals Ltd, Harp International Ltd, Honeywell International Inc, Linde Plc, Navin Fluorine International Ltd, Orbia, Puyang Zhongwei Fine Chemicals Co. Ltd, Quimobasicos S.A. De C.V., Shandong Yuean Chemical Industry Co. Ltd, Sinochem Corp, SRF Ltd, Tazzeti S.P.A., The Chemours Company, Zhejiang Fotech International Co. Ltd, and others.
One of the most prominent trends in the refrigerants market is the shift towards low Global Warming Potential (GWP) refrigerants. This trend is driven by increasing environmental awareness and regulatory pressures to reduce the impact of refrigerants on climate change. Traditional refrigerants, such as hydrofluorocarbons (HFCs), are being phased out in favor of alternatives like hydrofluoroolefins (HFOs), natural refrigerants (e.g., ammonia, carbon dioxide), and other low-GWP blends. These new refrigerants offer similar performance with significantly lower environmental impact, aligning with global sustainability goals and compliance with international agreements such as the Kigali Amendment to the Montreal Protocol. This transition is reshaping the market as manufacturers innovate to develop and adopt greener refrigerant technologies.
Stringent environmental regulations are a primary driver of the refrigerants market. Governments worldwide are implementing stricter regulations to limit the use of high-GWP refrigerants and promote the adoption of environmentally friendly alternatives. Policies such as the European Union’s F-Gas Regulation and the U.S. Environmental Protection Agency’s (EPA) regulations under the Clean Air Act are compelling industries to phase out high-GWP refrigerants and transition to more sustainable options. These regulations are accelerating research, development, and commercialization of low-GWP refrigerants. Compliance with these regulations not only helps in reducing greenhouse gas emissions but also provides companies with a competitive edge in markets that prioritize sustainability and environmental responsibility.
The HVAC (heating, ventilation, and air conditioning) and cold chain sectors present significant opportunities for growth in the refrigerants market. The increasing demand for air conditioning, refrigeration, and heating solutions in residential, commercial, and industrial applications is driving the need for efficient and sustainable refrigerants. Additionally, the expansion of the cold chain logistics sector, particularly for food preservation and pharmaceutical storage, requires advanced refrigeration technologies that can maintain precise temperature controls. As these sectors grow, the demand for innovative refrigerants that offer high performance, energy efficiency, and environmental benefits is expected to rise. This creates opportunities for companies to develop and market new refrigerant solutions tailored to the specific needs of HVAC and cold chain applications.
The Hydrofluorocarbons (HFC) segment is the largest segment in the refrigerants market by type. The large revenue share can be attributed to the widespread use of HFCs in various refrigeration and air conditioning applications across commercial, residential, and industrial sectors. HFCs gained popularity as alternatives to ozone-depleting substances like chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs) due to their lower ozone depletion potential (ODP). Additionally, HFCs are known for their high energy efficiency and excellent thermal properties, making them suitable for a wide range of cooling applications. The growth of the global HVACR (Heating, Ventilation, Air Conditioning, and Refrigeration) industry, driven by urbanization, rising disposable incomes, and increasing demand for comfort cooling in emerging economies, has further propelled the demand for HFC refrigerants. However, concerns over the environmental impact of HFCs, particularly their high global warming potential (GWP), have led to regulatory measures aimed at phasing out or reducing their usage in favor of more environmentally friendly alternatives such as hydrofluoroolefins (HFOs), natural refrigerants like ammonia and carbon dioxide, and hydrocarbons like isobutane and propane. Despite these challenges, the HFC segment continues to dominate the refrigerants market owing to its established infrastructure, wide availability, and compatibility with existing equipment.
The fastest-growing segment in the refrigerants market by application is Air Conditioning Systems. In particular, the rising global temperatures due to climate change have led to an increased demand for air conditioning units across residential, commercial, and industrial sectors. Urbanization and rising living standards in emerging economies, particularly in Asia-Pacific and Latin America, have significantly bolstered the market for air conditioners. Additionally, technological advancements have led to the development of more energy-efficient and environmentally-friendly refrigerants, which are increasingly being adopted in new air conditioning systems to comply with stringent environmental regulations. The shift towards smart homes and buildings, which incorporate advanced climate control systems, further propels the demand for modern air conditioning units. Moreover, government initiatives and incentives aimed at promoting energy efficiency and reducing greenhouse gas emissions are encouraging the replacement of older, less efficient air conditioning systems with newer models that use advanced refrigerants. These factors collectively make air conditioning systems the fastest-growing segment in the refrigerants market.
By Type
HFC
HFO
Isobutane
Propane
Ammonia
Carbon Dioxide
Others
By Application
Refrigeration System
-Domestic Refrigeration
-Commercial Refrigeration
-Industrial Refrigeration
Chillers
Air Conditioning Systems
-Window AC
-Split AC
-VRF
-Ducted
Packaged & Rooftop ACs
MACCountries Analyzed
North America (US, Canada, Mexico)
Europe (Germany, UK, France, Spain, Italy, Russia, Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, South East Asia, Rest of Asia)
South America (Brazil, Argentina, Rest of South America)
Middle East and Africa (Saudi Arabia, UAE, Rest of Middle East, South Africa, Egypt, Rest of Africa)
A-Gas International
Air Liquide S.A.
Arkema S.A.
Asahi Glass Corp
Daikin Industries Ltd
Dongyue Group Co. Ltd
Gas Servei S.A.
Gujarat Fluorochemicals Ltd
Harp International Ltd
Honeywell International Inc
Linde Plc
Navin Fluorine International Ltd
Orbia
Puyang Zhongwei Fine Chemicals Co. Ltd
Quimobasicos S.A. De C.V.
Shandong Yuean Chemical Industry Co. Ltd
Sinochem Corp
SRF Ltd
Tazzeti S.P.A.
The Chemours Company
Zhejiang Fotech International Co. Ltd
*- List Not Exhaustive
Global Refrigerants Market Size is valued at $18.6 Billion in 2024 and is forecast to register a growth rate (CAGR) of 5.1% to reach $27.7 Billion by 2032.
Emerging Markets across Asia Pacific, Europe, and Americas present robust growth prospects.
A-Gas International, Air Liquide S.A., Arkema S.A., Asahi Glass Corp, Daikin Industries Ltd, Dongyue Group Co. Ltd, Gas Servei S.A., Gujarat Fluorochemicals Ltd, Harp International Ltd, Honeywell International Inc, Linde Plc, Navin Fluorine International Ltd, Orbia, Puyang Zhongwei Fine Chemicals Co. Ltd, Quimobasicos S.A. De C.V., Shandong Yuean Chemical Industry Co. Ltd, Sinochem Corp, SRF Ltd, Tazzeti S.P.A., The Chemours Company, Zhejiang Fotech International Co. Ltd
Base Year- 2023; Estimated Year- 2024; Historic Period- 2018-2023; Forecast period- 2024 to 2032; Currency: Revenue (USD); Volume