Refrigerants Market Size, Share, Forecast, & Trends Analysis by Type (CFCs, HCFCs, HFCs, HCs, CO2, HFO), Application (Air-conditioning, Refrigeration, Chilling and Heating), End User (Residential, Commercial, Industrial), and Geography - Global Forecast to 2031

The Refrigerants Market was valued at $6.7 billion in 2023. This market is expected to reach $10.5 billion by 2031 from an estimated $7 billion in 2024, at a CAGR of 5.8% during the forecast period from 2024 to 2031.

Refrigerants Market Size & Forecast

This market's growth is driven by the high adoption of air conditioning and refrigeration for commercial purposes and the rise in regulatory and environmental policies for sustainable refrigerants. However, flammability and toxicity issues are expected to restrain the market's growth.

The rising demand for refrigeration and storage solutions in pharmaceuticals and the growing need for refrigerants in automotive HVAC systems are expected to create market growth opportunities. However, high operational costs are a major challenge for the players operating in this market. Moreover, the increasing demand for natural refrigerants, green building certifications, and sustainable construction practices are prominent market trends in the refrigerants market.

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Refrigerants Market Growth Driver

High Adoption of Air Conditioning and Refrigeration for Commercial Purposes

Air conditioning systems are constantly evolving, incorporating new technologies and innovations aimed at enhancing energy efficiency, performance, air quality, connectivity, and user experience. As businesses grow and urban areas expand, the demand for effective cooling and refrigeration solutions in the commercial sector continues to rise. The commercial industry increasingly relies on air conditioning, as well as reach-in refrigerators and freezers in supermarkets, specialty food stores, convenience stores, and grocery stores. In this context, refrigerants play a crucial role in air conditioning and refrigeration systems, efficiently absorbing and releasing heat to ensure optimal temperature control and comfort in commercial spaces.

The increasing use of refrigerants plays a key role in providing reliable cooling and refrigeration, ensuring a comfortable environment for both employees and customers, which in turn enhances overall satisfaction and productivity. Several providers are responding to this demand by launching cooling systems that utilize natural refrigerants. For example, in March 2024, Panasonic Holdings Corporation (Japan) introduced three new models of commercial air-to-water (A2W) heat pumps that use environmentally friendly natural refrigerants designed for multi-dwelling units, stores, offices, and other light commercial properties.

This shift toward more efficient and eco-friendly refrigerants, such as hydrofluoroolefins (HFOs) and natural refrigerants, is being driven by regulatory changes and growing consumer preference for sustainable solutions. As a result, the market for these advanced refrigerants is growing. The increasing adoption of air conditioning and refrigeration in commercial settings is expected to further drive demand for refrigerants during the forecast period.

Refrigerants Market Opportunity

Growing Need for Refrigerants in Automotive HVAC Systems

The automotive sector is increasingly utilizing refrigerants in HVAC systems to provide efficient cooling and heating, ensuring a comfortable environment for drivers and passengers. The growing adoption of natural refrigerants is enhancing HVAC system efficiency, helping to reduce fuel consumption and improve vehicle fuel economy. High-quality refrigerants also ensure optimal performance under various operating conditions, including changes in climate. Moreover, the use of efficient refrigerants reduces wear and tear on HVAC components, potentially lowering maintenance and repair costs over time. As a result, automotive manufacturers are increasingly turning to government-approved refrigerants to comply with environmental regulations, driving the demand for these sustainable solutions.

In automotive HVAC systems, manufacturers are increasingly shifting toward low global warming potential (GWP) refrigerants to reduce their environmental impact and align with sustainability goals. These refrigerants have substantial benefits, enhancing comfort, efficiency, safety, and environmental sustainability.

With the rising demand for low-GWP refrigerants, several providers are launching new solutions for automotive HVAC systems. For example, in September 2024, The Chemours Company (U.S.) introduced a low-GWP refrigerant retrofit solution for the automotive aftermarket, supporting the global phasedown of higher-GWP hydrofluorocarbon (HFC) refrigerants. This retrofit approach offers vehicle owners and service technicians a straightforward, safe, and cost-effective way to replace the legacy R-134a refrigerant in existing vehicles. Such innovations are expected to drive increased demand for refrigerants in automotive HVAC systems in the coming years.

Refrigerants Market Analysis: Key Findings

The Chlorofluorocarbons (CFCs) Segment to Dominate the Refrigerants Market in 2024

Based on type, the refrigerants market is segmented into chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), hydrofluorocarbons (HFCs), hydrocarbons (HCs), ammonia, water refrigerant, carbon dioxide (CO2), hydrofluoroolefin (HFO), Iso-butane, propane, and other types. In 2024, the chlorofluorocarbons (CFCs) segment is expected to account for the largest share of over 29.0% of the refrigerants market. This segment's large market share is driven by the widespread adoption of CFC refrigerants, largely due to their low toxicity, which enhances safety in controlled environments. Additionally, the increasing use of CFCs in HVAC systems is fueled by their ability to provide long-term reliability and durability, owing to their excellent lubrication properties for compressor components.

Moreover, the chlorofluorocarbons (CFCs) segment is expected to register a higher CAGR during the forecast period.

The Refrigeration Segment to Dominate the Refrigerants Market in 2024

Based on application, the refrigerants market is segmented into air-conditioning, refrigeration, chilling and heating, and other applications. In 2024, the refrigeration segment is expected to account for the largest share of over 34.0% of the refrigerants market. This segment's large market share is attributed to the growing use of refrigerants for refrigeration systems to provide efficient cooling and reduce energy use and operating costs. Refrigerants provide stable temperatures for refrigeration systems for preserving food, pharmaceuticals, and other temperature-sensitive items.

However, the air-conditioning segment is expected to register the highest CAGR during the forecast period. This segment's growth is driven by the increasing adoption of refrigerants, which efficiently absorb heat from indoor air, providing fast and effective cooling. Furthermore, the rising use of refrigerants to maintain consistent temperature and humidity levels is crucial in creating a comfortable environment for occupants.

The Industrial Segment to Dominate the Refrigerants Market in 2024

Based on end user, the refrigerants market is segmented into residential, commercial, and industrial. In 2024, the industrial segment is expected to account for the largest share of over 35.0% of the refrigerants market. This segment's large market share is driven by the growing adoption of refrigerants across various industrial applications, including cold storage, HVAC systems, and heat exchangers. Additionally, increasing government environmental regulations in manufacturing plants, along with the rising use of government-approved refrigerants to comply with these regulations, are helping to mitigate environmental risks and enhance corporate responsibility in industrial settings.

However, the commercial segment is expected to register a higher CAGR during the forecast period. This segment's growth is driven by the increasing adoption of refrigerants in offices, retail spaces, and restaurants to provide effective cooling and maintain comfortable environments. Furthermore, the rising use of refrigerants to enhance the energy efficiency of HVAC and refrigeration systems in commercial applications is helping to reduce electricity costs, further supporting market growth.

Geographical Analysis

Asia-Pacific to Dominate the Refrigerants Market in 2024

In 2024, Asia-Pacific is expected to account for the largest share of over 42.0% of the refrigerants market. Asia-Pacific's large market share can be attributed to the increasing consumption of refrigeration and air conditioning equipment in commercial buildings and supermarkets. Additionally, rapid industrialization and urbanization in countries such as China, Japan, and India, along with a surge in construction and industrial projects that require advanced ventilation and air conditioning systems, are driving the rising demand for refrigerants in the region.

Moreover, Asia-Pacific is expected to register the highest CAGR of over 7.0% during the forecast period.

Refrigerants Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the refrigerants market are Honeywell International Inc. (U.S.), Daikin Industries, Ltd. (Japan), Linde plc (Ireland), L’AIR LIQUIDE S.A. (France), A‑Gas International Limited (U.K.), The Chemours Company (U.S.), Tazzetti S.p.A. (Italy), AGC Inc. (Japan), DuPont de Nemours, Inc. (U.S.), Arkema Group (France), Dongyue Group Limited (China), Sinochem Group Co., Ltd. (China), SRF LIMITED (India), Gujarat Fluorochemicals Limited (India), and Engas Pty Ltd (Australia).

Refrigerants Industry Overview: Latest Developments from Key Industry Players

• In August 2024, Copeland LP (U.S.) partnered with CRK Corporation (South Korea), a premier commercial refrigeration company, to develop low-global-warming-potential cold-chain refrigeration technology. This initiative aligns with Korea's upcoming national refrigerant regulations.
• In May 2024, Lennox International Inc. (U.S.) introduced low global warming potential (GWP) light commercial and ducted residential HVAC products to comply with the 2025 low GWP refrigerant regulations. This transition to low GWP refrigerants marks a significant environmental advancement, as it substantially reduces the impact of harmful greenhouse gases.

Refrigerants Market Research Summary

Key questions answered in the refrigerants market report: