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Market Summary

The Global Refrigerants Market size is forecast to surpass USD 39.87 billion by 2027 from USD 25.21 Billion in 2019, growing at a CAGR of 5.8%, according to a report by Reports and Data.

Asia Pacific and Latin America are two of the fastest-growing regions and are characterized by rapid urbanization and evolving cold chain sectors. The industry is, however, controlled by regulations and policies of various environmental protection agencies. The air conditioning industry accounts for the largest share by consumption, with mobile air conditioning expected to witness substantial growth. The rising demand for air conditioning in automobiles is a key factor driving this segment.

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An increase in demand for energy-efficient cooling solutions and growing awareness about global warming, as well as ozone depletion, is expected to shape the industry over the forecast period. Fluorocarbon phase-out has led to a resurgence in demand for natural refrigerants. The hydrocarbon and inorganic segments are expected to witness significant growth. Increased industrialization in emerging economies such as China, India, and Japan has led to the establishment of a large number of data centers, subsequently fueling demand for refrigerants. Factors such as the rise in manufacturing units across Asia Pacific and the surge in demand for improved maintenance of industrial equipment will further encourage revenue growth of the global refrigerants market.

Fluorocarbons emerged as the dominant product segment in 2019, accounting for 53% of the overall volume. They are extensively used for domestic purposes and in air conditioning equipment. However, stringent government regulations imposed on the consumption and manufacture of fluorocarbons owing to potential ozone depletion and global warming are likely to hamper the growth of this segment.

Hydrocarbons are energy efficient, low in cost, and eco-friendly, key traits that are driving their demand. They are also increasingly preferred as an ideal substitute for fluorocarbon-based cooling equipment and processes owing to cheap prices and easy availability. Multinational companies in the field are increasingly investing in R&D to develop novel and eco-friendly offerings to ensure a sustainable business model.

The stationary air conditioning, chillers, and heat pumps segment dominated the market by application and accounted for over 47% of the overall volume in 2019. The increased spending power of the middle class on appliances such as refrigeration systems has led to the growth of this segment. Rising demand for cooling equipment due to rapid industrialization, deteriorating weather conditions, and expansion of consumer appliance production has also positively influenced its demand.

Commercial refrigeration is another application witnessing significant growth. Increasing hypermarket, supermarket, and food retail chains, coupled with a rise in consumption of packaged and frozen foods, has boosted the demand for commercial refrigerants.

The mobile air conditioning application segments represent fast-growing and lucrative opportunities owing to the rapid expansion of automotive manufacturing in emerging economies. A significant increase in consumer disposable income has substantially increased passenger car sales in countries such as China, India, Vietnam, Thailand, Venezuela, Argentina, and Indonesia.

Domestic refrigeration demand is fueled by the rising adoption of energy-efficient and environment-friendly products in developed economies like North America and Europe. Across emerging economies such as Asia Pacific and Middle East and Africa, demand for domestic refrigeration is spurred by food wastage concerns, need for improved food quality, and an increase in disposable income, leading the more affluent middle class to spend more on modern appliances.

Growth of cold-chain logistics is driven by the boom in international trade of perishable commodities, consumer demand for frozen and chilled food and beverages, and demand from the life science and pharma industries. The segment is expected to witness substantial growth in Asia Pacific owing to increased healthcare spending, booming trade of fruits and vegetables and confectionery, and increased spending by the middle class on frozen food and beverages.

Air conditioning is observed to be gaining importance as a comfort feature in automobiles, thereby influencing consumer purchasing behavior and generating high demand for mobile air conditioning products and services. Air conditioning has also been considered as a factor resulting in increased efficiency in off-highway automobile applications, which has further boosted its demand.

Asia Pacific emerged as the leading consumer in 2019, accounting for 33% of the total volume. It is also projected to be the fastest-growing regional segment on account of several macro-economic factors such as burgeoning population, rising consumer disposable income, and rapid urbanization and industrialization.

In North America, the inorganic segment has gained a greater share due to technological advancements in the cold chain sector, increased concerns over food wastage, growing demand for refrigerated food and beverages, and stronger penetration of supermarkets. Ammonia held the dominant share in the inorganic segment owing to excellent cooling and efficiency exhibited by the compound.

Europe is the second-largest regional segment in terms of consumption owing to strong demand from mobile air conditioning, industrial, and commercial segments. The region is regulated by numerous legislations, and manufacturers are compelled to adhere to stringent guidelines in order to ensure the overall sustainability of products.

Some of the prominent companies in the industry include Daikin Industries, Ltd., Asahi Glass Corporation, The Chemours Company, Sinochem Group, Honeywell International Inc., Gujarat Fluorochemicals Limited, Airgas Refrigerants Inc., Linde Group, Mexichem, and SRF Limited.

Segments covered in the report:

This report forecasts revenue growth at a global, regional, and country level, and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2027. For the purpose of this report, Reports and Data has segmented the global refrigerants market on the basis of the type of refrigerants, geographical impact, applications, and region:

Type of Refrigerants Outlook (Revenue, USD Billion; 2017-2027)

CFCs

HCFCs

HFCs

Hydrocarbons

Inorganic Refrigerants

Mixtures

Geographical Impact Outlook (Revenue, USD Billion; 2017-2027)

Eco-Friendly

Non Eco-Friendly

Applications Outlook (Revenue, USD Billion; 2017-2027)

Air Conditioners

Refrigerators

Chillers

Heat Pumps

Electronics Devices

Regional Outlook (Revenue, USD Billion; 2017-2027)

North America

U.S.

Europe

U.K.



France

Asia Pacific

China



India



Japan

Latin America

Brazil

Middle East & Africa