Refrigerant Market Share, Size and Growth Analysis By 2029

The refrigerant market was valued at approximately US$ 16,458.3 million in 2021 and is anticipated to grow to US$ 25,534.6 million by 2028, reflecting a compound annual growth rate (CAGR) of 6.5% during the period from 2021 to 2028.

Refrigerants are substances that exist in either liquid or gaseous forms and are essential for absorbing heat from their surroundings. When integrated with components like compressors and evaporators, they facilitate refrigeration and air conditioning through the refrigeration cycle. The desirable characteristics of refrigerants, including thermal stability, low toxicity, non-corrosiveness, and non-flammability, make them ideal for applications in light vehicle air conditioning systems. These substances are widely utilized across various sectors, including manufacturing, chemicals, food and beverages, pharmaceuticals, and more.

Several factors are propelling the growth of the refrigerant market, notably the increasing demand for refrigeration systems and the rise in per capita income in emerging economies. However, the COVID-19 pandemic has negatively impacted the demand for refrigerants due to the economic slowdown experienced globally. Additionally, the expansion of the automotive and electronics sectors in numerous countries is expected to create significant opportunities for the refrigerant market throughout the forecast period. On the downside, fluctuations in raw material prices and stringent regulations targeting fluorocarbon refrigerants may hinder market growth.

The global refrigerant market is categorized by type into several segments, including HCFC, HFC, HFO, isobutane, propane, ammonia, carbon dioxide, and others. Among these, the HFC segment dominated the market in 2020. Commonly used HFC refrigerants include R-404A, R-410A, R-32, R-134a, and R-407C. HFCs are particularly favored in domestic refrigeration and automotive air conditioning applications.

In 2020, the Asia Pacific region accounted for the largest share of revenue in the global refrigerant market. The primary driver of this market in Asia Pacific is the robust demand for refrigerants from sectors such as manufacturing, food and beverages, healthcare, and automotive. The strong electronics and food and beverage industries in countries like Japan, South Korea, China, and India significantly contribute to the demand for refrigerants used in the production of refrigerators and air conditioning units.

The rapid economic development and rising purchasing power in developing nations have led to increased consumption of chillers and mobile air conditioning (MAC) systems. Furthermore, the burgeoning automotive industry in the Asia Pacific region is driving the demand for air conditioning systems, thereby enhancing the growth of the refrigerant market.

Key players in the global refrigerant market include 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.. These companies are actively engaged in strategies such as investing in research and development and launching new products. They are committed to creating high-quality and innovative offerings to meet customer needs.

The overall size of the global refrigerant market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry participants to validate the findings and gain deeper analytical insights. Participants included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the refrigerant sector.