The refrigerant market was valued at US$ 16,458.3 million in 2021 and is projected to reach US$ 25,534.6 million by 2028; it is expected to grow at a CAGR of 6.5% from 2021 to 2028.
Refrigerant is a compound found in either a liquid or gaseous state. It absorbs heat from the environment and can provide refrigeration or air conditioning when combined with other components such as compressors and evaporators in the refrigeration cycle. The features of refrigerant, such as thermal stability, minimal toxicity, non-corrosiveness, and non-combustibility, make it suitable for use in light vehicle air conditioning. Refrigerants are used in refrigeration systems for manufacturing, chemicals, food & beverages, pharmaceuticals, and various other industries. The major factors driving the refrigerant market are the rise in demand for refrigeration systems and the increase in per-capita income in developing economies. The COVID-19 pandemic has further decreased the demand for refrigerants due to the slowdown of major economies across the globe. Furthermore, the growth in the automotive and electronics industries in various countries across the globe is projected to offer lucrative opportunities for the refrigerant market during the forecast period. However, the fluctuations in the prices of raw materials and stringent regulations against fluorocarbon refrigerants are expected to hamper the refrigerant market growth during the forecast period.
Based on type, the global refrigerant market has been segmented into HCFC, HFC, HFO, isobutane, propane, ammonia, carbon dioxide, and others. The HFC segment held the largest share in the global refrigerant market in 2020. The most commonly used HFC refrigerants are R-404A, R-410A, R-32, R-134a, and R-407C. HFCs are refrigerants that are highly preferred in domestic refrigeration and automotive air conditioning systems.
In 2020, Asia Pacific held the largest revenue share of the global refrigerant market. The major factor driving the refrigerant market in the Asia Pacific region is the high demand for refrigerants from manufacturing, food & beverages, healthcare, and automotive industries.
Strong electronics and food & beverages industries in countries such as Japan, South Korea, China, and India create a strong demand for refrigerants used in refrigerator and air conditioner manufacturing. The fast economic growth, coupled with an increase in purchasing power, especially in developing economies, has led to a surge in the consumption of chillers and mobile air conditioning (MAC). The growing automotive industry creates a massive demand for air conditioning systems in the Asia Pacific, further contributing to the refrigerant market growth in the region.
The Chemours Company; Arkema; Honeywell International Inc.; Linde plc; Air Liquide; Dongyue Group; SINOCHEM GROUP CO., LTD.; DAIKIN INDUSTRIES, Ltd.; AGC Inc.; and Airgas, Inc. are among the major players operating in the global refrigerant market. Players operating in the global refrigerant market are constantly focusing on strategies such as investments in research and development activities and new product launches. These market players are highly focused on developing high-quality and innovative product offerings to fulfill the customer’s requirements.
The overall global refrigerant market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the refrigerant market.