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The refrigerant market is a dynamic sector that is influenced by various factors, including technological advancements, regulatory changes, environmental concerns, and market demand. One of the key drivers of market dynamics in the refrigerant industry is the ongoing transition away from hydrochlorofluorocarbons (HCFCs) and hydrofluorocarbons (HFCs) due to their high global warming potential (GWP). This transition is primarily driven by international agreements such as the Montreal Protocol and the Kigali Amendment, which aim to phase out the use of these substances in favor of more environmentally friendly alternatives.
A Refrigerant is a chemical, widely used in cooling systems, that is capable of readily absorbing heat from the environment. It is a heat carrier and moves through a refrigeration cycle in different phases to absorb and release the heat. The refrigerant is a vital constituent of modern cooling systems such as air conditioners, refrigerators, freezers, etc.
As a result of these regulations, there has been a growing demand for alternative refrigerants with lower GWPs, such as hydrocarbons (HCs), ammonia, carbon dioxide (CO2), and hydrofluoroolefins (HFOs). This shift towards low-GWP refrigerants has led to a surge in research and development activities aimed at developing new formulations and improving the performance of existing alternatives. Additionally, manufacturers are investing in the production capacity for these alternative refrigerants to meet the increasing demand from various end-user industries such as automotive, HVAC&R (heating, ventilation, air conditioning, and refrigeration), and industrial refrigeration.
Another factor shaping the dynamics of the refrigerant market is the increasing focus on energy efficiency and sustainability. With rising concerns about climate change and environmental degradation, there is a growing emphasis on reducing greenhouse gas emissions and minimizing the carbon footprint of refrigeration systems. This has led to the development of more energy-efficient equipment and the adoption of natural refrigerants that have lower environmental impact.
Furthermore, the refrigerant market is influenced by changing consumer preferences and industry trends. For example, there is a growing demand for refrigerants that are compatible with eco-friendly and energy-efficient appliances, such as refrigerators, air conditioners, and heat pumps. Additionally, there is an increasing interest in natural refrigerants among consumers who are concerned about the environmental and health risks associated with synthetic refrigerants.
The dynamics of the refrigerant market are also shaped by economic factors such as pricing, supply chain disruptions, and market competition. Fluctuations in raw material prices, trade tariffs, and currency exchange rates can impact the cost of production and distribution of refrigerants, thereby influencing market dynamics. Moreover, market players face competition from both domestic and international manufacturers, which can affect pricing strategies, product innovation, and market share.
In addition to these factors, the refrigerant market is influenced by regulatory developments at the national, regional, and international levels. Governments around the world are implementing policies and regulations to phase out high-GWP refrigerants, promote energy efficiency, and encourage the adoption of environmentally friendly alternatives. These regulations create both challenges and opportunities for market players, as they need to ensure compliance with the latest requirements while also capitalizing on emerging trends and opportunities in the market.
Overall, the refrigerant market is characterized by constant change and evolution driven by a combination of technological advancements, regulatory changes, consumer preferences, and economic factors. Market players need to stay abreast of these dynamics and adapt their strategies accordingly to thrive in this competitive and rapidly evolving industry.
Refrigerant Market Highlights:
Global Refrigerant Market Overview
The refrigerant market is a booming market. The growing need for refrigeration with the rising living standards is driving the refrigerant market. The market was valued at USD 21.5 billion in 2020. Cooling systems have become a necessity nowadays and the demand is still rising. Refrigerants are used in refrigerators, air conditioners, freezers, fire suppression systems, etc. The refrigerant market is estimated to grow at a compound annual growth rate CAGR of about 7% over the current forecast period (2022-2030).
Almost every Industry relies upon artificial cooling systems to protect the material from natural damage. Artificial cooling is a necessity in houses, grocery stores, transportation systems, data centers, and other industries. Therefore owing to high demand the market is anticipated to assume a significant value in upcoming times. The refrigerant market value is estimated to hit USD 37.40 billion by the end of the current forecast period in 2030.
Covid 19 Analysis
Covid 19 had a serious impact on the global refrigerant market. The market demand fell owing to restrictions on the movement of goods and the people. Covid being a respiratory disease associated with colds, the demand for frozen food products fell very sharply. Moreover, the large-scale closure of food and beverage distribution units brought down the market growth rate. The growth of the refrigerant industry was also hampered by disruptions in the supply chain and industrial production. The demand from cooling units from residential complexes was also very less over the period owing to fear of virus spread through cooling systems.
The pharmaceutical industry brought a slight relief for the global refrigerant market due to its strong market hold over the period. However, the market is showing vigorous growth in the post-pandemic period and is likely to cross the previous growth rate.
Market Dynamics
Drivers
Rising industrialization and improvement in living standards of people are the major growth driving factors for the global refrigerant market. Refrigerant-based cooling systems have become an indispensable part of our life. The increasing use of cooling systems in residential, commercial, and industrial sectors is generating high demand for refrigerants.
New refrigeration technology and environment-friendly refrigerants will change the face of the refrigerant industry in the future. Many countries have started phasing out fluorinated gases with natural gases. The rising disposable income of people will generate high market demand particularly in the automobile sector and residential cooling sector. Moreover, compatible and energy-friendly refrigeration devices are witnessing high demand in the agriculture and food product industry. The rapidly growing cold chain industry is also a potential demand-generating sector. Therefore, the eco-friendly refrigerant industry has bright prospects.
Restraints
Conventional refrigerants such as Chlorofluorocarbons ( CFCs) are responsible for ozone hole depletion thus, are potent greenhouse gases. Therefore, environmental concerns about the use of such refrigerants are the major growth hindering factor. Moreover, illegal import and trade of refrigerants such as HFCs is a huge concern for the global refrigerant market. These refrigerants are traded illegally to bypass government rules and restrictions which is causing harm to the market. Furthermore, stringent government regulations on the use of refrigerants for their toxicity and explosive behavior are also a potential growth hindering factor.
Technology Analysis
A Refrigerant is a chemical, widely used in cooling systems, that is capable of readily absorbing heat from the environment. It is a heat carrier and moves through a refrigeration cycle in different phases to absorb and release the heat. The refrigerant is a vital constituent of modern cooling systems such as air conditioners, refrigerators, freezers, etc.
The refrigerant is liquid at low temperature and readily becomes gas by absorbing heat from the environment. Next, at high temperature and pressure, the gas condenses to release the absorbed heat and it again becomes a cool liquid by the end of the cycle. A good refrigerant has an atmospheric boiling point between -40 °C - 0° C, it must not be toxic, must be easily available, and should be non-inflammable. The newer refrigerants in the market are having low GWP which is a big achievement.
Study Objectives
This report aims to provide a complete overview of the refrigerant market. The specific objectives of this market report are given below:
- To analyze and forecast the refrigerant market in terms of value and volume.
- To provide information about the impact of covid 19 on the market growth.
- To identify the problems and prospects of the refrigerant market.
- To give details about the technological viability of the product.
- To provide an overview of the regional market and potentially growing segments.
- To identify the key players of the industry.
Segment Analysis
Segmentation of the global refrigerant market, by type
- Natural refrigerants
- Organic/hydrocarbons
- Propane
- n-butane
- iso-butane
- Others
- Inorganic refrigerants
- Ammonia
- CO2
- Water
- Others
- Organic/hydrocarbons
- Synthetic refrigerants
- Pure fluorocarbons
- chlorofluorocarbons (CFCs)
- Hydrofluorocarbons (HCFCs)
- hydrofluorocarbons (HFCs)
- hydro fluoro olefins (HFO)
- Others
- Fluorocarbon blends
- Azeotropic
- Zeotropic (non-azeotropic)
- Pure fluorocarbons
Hydrofluorocarbons (HFCs) under synthetic refrigerants are the fastest-growing refrigerant segment. Hydrofluorocarbons are less harmful to the environment and have good refrigerant properties. These are non-inflammable, recyclable, chemically stable, and do not contribute to ozone layer depletion. Moreover, they have also emerged as a potent substitute for phasing out fluorocarbons. However, Ammonia under inorganic refrigerant accounts for the largest market share.
Segmentation of the global refrigerant market, by application
- Refrigerators
- Domestic refrigerators
- Commercial refrigerators (medium scale)
- Industrial & supermarket refrigerator (large scale)
- Transport refrigerator
- Air conditioners
- Centralized AC
- Split AC
- Window AC
- Portable AC
- Hybrid AC
- Chillers/heat pump
- Others
Domestic Refrigerators and Air conditioners are the rapidly growing segments. The rise in disposable income of the people is driving the market growth. With rapid infrastructure development in developing economies, the installation of cooling mechanisms such as HVAC systems is going on a large scale.
Regional Analysis
The different regional markets for the global refrigerant market are:
- North America
- US
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- Malaysia
- Australia & New Zealand
- Rest of Asia-Pacific
- South America
- Brazil
- Venezuela
- Argentina
- Colombia
- Rest of the world
- The Middle East
- Africa
The Asia Pacific is the largest regional market for global refrigerant trade. Rapid industrial development and economic growth in this region are the major growth driving factors. Expansion of the cold chain is also helping the market to grow significantly. Moreover, the rise in disposable income of people is also a big contributor to the market growth in this region.
North America is the major demand-raising regional segment. The luxurious lifestyle of people and the want for a modern living system develops the need for refrigerants in this region. Moreover, the widespread cold chain network is the major refrigerant user in this region. Europe is a moderately growing market. Most of the demand in this region comes from A.C-enabled transportation systems. Additionally, the pharmaceutical industry and food industry also demand generators. In South America, the growing food and beverage industry is the largest end-user of refrigerants. Moreover, economic development and rising disposable income are also contributing to the market growth here. The Middle East is a potentially growing market for refrigerants. Huge demand for cooling systems in the hospitality and residential sector is the major growth enabling factor.
Competitive Landscape
The major global companies playing a key role in the refrigerant market are :
- Daikin Industries, Ltd.(Japan)
- The Chemours Company. (the U.S.)
- Honeywell International Inc. (U.S.)
- Arkema S.A. (France)
- Dongyue Group Co. Ltd (China)
- Asahi Glass Co., Ltd. (Japan)
- Sinochem Group (China),
- Mexichem S.A.B. de C.V. (Mexico)
- The Linde Group (Germany)
- SRF Limited (India)
- DowDuPont Inc. (U.S.)
Recent Developments
March 2023: The European Union (EU) announced a ban on the use of hydrofluorocarbon (HFC) refrigerants in new air conditioners starting in 2023. This is a major step towards phasing out HFCs, which are potent greenhouse gases.
April 2023: The United States Environmental Protection Agency (EPA) announced a new rule that will require all new appliances sold in the US to use low-GWP refrigerants starting in 2023. This rule is expected to reduce greenhouse gas emissions from appliances by 150 million metric tons over the next 10 years.
May 2023: The Chinese government announced a plan to phase out the use of HFC refrigerants by 2030. This is a major step for China, which is the world's largest market for HFCs
Intended Audience
This report will be beneficial for every stakeholder of the refrigerant market such as :
- Manufacturers of refrigerants
- Raw material Suppliers of refrigerant Industry
- Research and Development Institutes
- Traders
- Importers and Exporters
Report Overview
This report provides an in-depth analysis of the refrigerant market in terms of current value and future forecast. This report also highlights the problems and prospects of the given market.
Moreover, technological analysis of the product will greatly help in decision-making. Furthermore, this report contains a detailed analysis of every segment of the given market for the current forecast period. This report has also highlighted the key players and the current developments in the refrigerant market.
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