As per MRFR Analysis, the Low GWP Refrigerants Market is projected to reach USD 73.7 Billion by 2030, with a CAGR of 11.12% from 2022 to 2030. The market growth is driven by the low environmental impact of these refrigerants, the phase-out of CFC, HCFC, and HFC refrigerants, and the increasing demand for air conditioning globally. Hydrocarbon refrigerants, known for their energy efficiency and thermodynamic properties, are gaining traction despite safety concerns due to their flammability. Regulatory frameworks like the Montreal and Kyoto Protocols are further propelling the market by limiting harmful refrigerants. Europe is expected to lead the market, supported by regulations such as the F-Gas Regulation 517/2014, while Latin America shows promising growth due to rising air conditioning usage. The Middle East & Africa are also emerging markets, particularly in countries like UAE and Saudi Arabia, where cooling demand is high.
The Low GWP Refrigerants Market is witnessing significant regulatory and technological advancements.
Key players include Honeywell International Inc (U.S.), Daikin Industries, Ltd. (Japan), The Linde Group (Ireland), Arkema (France), and The Chemours Company (U.S.).
The hydrocarbon refrigerant has great thermodynamic properties and refrigerating and air-conditioning systems operating using these substances are highly energy-efficient, and hydrocarbon refrigerants are miscible with conventional refrigerating oils and have a relatively great critical temperature. These hydrocarbon refrigerants are flammable in nature and these also can be explosive. This is an important safety concern associated with the use of hydrocarbon refrigerants and hence, requires hermetically sealed systems with explosion protection for electric elements. The Montreal Protocol and Kyoto protocol have led to reducing the use of environmentally harmful refrigerants, especially in commercial refrigeration plants.
Global Low GWP Refrigerants Market Share, by Application, 2017 (%)
Source: MRFR analysis
Asia-Pacific, Europe, Latin America, North America and the Middle East & Africa are the five regions studied for the global low GWP refrigerant Market. In 2017, Europe is projected to lead the market owing to European government regulation such as F-Gas Regulation 517/2014 which controls the usage of fluorinated greenhouse gases and its impact on environment. This regulation is expected to boost the low GWP refrigerants market by restraining the growth of conventional refrigerants during the forecast period. Latin America is projected to witness healthy growth in term of CAGR owing to increasing usage of air conditioners in Brazil and Chile supported by high infrastructure and development activities in the region.
North America and Asia-Pacific have been witnessing significant growth in terms of CAGR during the review period owing to rise in temperature and global warming. In addition, the markets in the Middle East & Africa are projected to witness steady growth during the forecast timeframe. Countries such as UAE and Saudi Arabia are one of the growing markets for air conditioners, around 70% of their electricity is used for cooling purpose owing to warm weather in the region. Thus, rise in temperature across the globe is expected to fuel low GWP refrigerants market during the assessment period.
The global low GWP refrigerant market has been segmented on the basis of types, application and region.
Based on types, the global low GWP refrigerant market has been segregated into types and application.
Global GWP refrigerant market by type is categorized as inorganics, hydrocarbons and fluorocarbons. Based on application the market comprises of industrial refrigeration, commercial refrigeration, domestic refrigeration, mobile air-conditioning, stationary air-conditioning and others.
The global low GWP refrigerant market has been studied with respect to five regions—Asia-Pacific, North America, Europe, Latin America, and the Middle East & Africa.
Some of the prominent players in the global low GWP refrigerant market are Honeywell International Inc (U.S.), Daikin industries, Ltd. (Japan), The Linde Group (Ireland), Arkema (France), The Chemours Company (U.S.), SOL Spa (Italy), GTS SPA (Italy), Harp International Ltd (UK), Mexichem S.A.B de C.V. (Mexico), HyChill (Australia), Puyang Zhongwei Fine Chemical Co. Ltd (China), Tazzetti S.p.A (Italy), Airgas, Inc (U.S.), The natural refrigerants company Pty ltd (Australia), A-Gas International (UK), Brothers Gas (UAE), E.F. International (U.S.), engas Australasia (Australia) and Sinochem Lantian co., Ltd (China).Recent Development
Plug-in equipment, like vending machines used in small stores and supermarkets that depend on hydrocarbons and CO2, have been there for a few years, and in large supermarkets, refrigeration (centralized system) CO2 cascade systems are an alternative to common HFC systems in moderate and cold climates. Hydrocarbon has also proven to be a highly efficient alternative in most uses under great ambient temperatures, except for large condensing units. The market for the low GWP refrigerants in Europe is projected to face a high increase in growth during the forecast period on account of the recent F-gas regulations phase-out plan that dictates the reduction of the use of HFC refrigerants by almost half by 2025. The areas also enjoy the greatest number of end-users who have already switched to refrigeration systems based on low GWP refrigerants.
The European Union (EU) announced a ban on the use of HFC refrigerants in new air conditioners and heat pumps from 2023. This is a major step towards phasing out HFCs, which are potent greenhouse gases.
The United States Environmental Protection Agency (EPA) issued a rule requiring the use of low GWP refrigerants in new commercial refrigerators and freezers from 2024. This rule is expected to reduce greenhouse gas emissions by an estimated 1.3 billion metric tons over the next 30 years.
The Chinese government announced a plan to phase out HFCs by 2030. This is a major commitment from China, which is the world's largest consumer of HFCs.
The Kigali Amendment to the Montreal Protocol, which aims to phase down HFCs, came into force in India. This is a major milestone for the global effort to reduce greenhouse gas emissions.
| Report Attribute/Metric | Details |
| Market Size | 2030 : USD 73.7 Billion |
| CAGR | 2030: 11.12% CAGR |
| Base Year | 2021 |
| Forecast Period | 2022 to 2030 |
| Historical Data | 2019 & 2020 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Basis of types, application and region. |
| Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
| Key Vendors | Honeywell International Inc (U.S.), Daikin industries, Ltd. (Japan), The Linde Group (Ireland), Arkema (France), The Chemours Company (U.S.), SOL Spa (Italy), GTS SPA (Italy), Harp International Ltd (UK), Mexichem S.A.B de C.V. (Mexico), HyChill (Australia), Puyang Zhongwei Fine Chemical Co. Ltd (China), Tazzetti S.p.A (Italy), Airgas, Inc (U.S.), The natural refrigerants company Pty ltd (Australia), A-Gas International (UK), Brothers Gas (UAE), E.F. International (U.S.), engas Australasia (Australia) and Sinochem Lantian co., Ltd (China). |
| Key Market Opportunities | Rising air conditioner demand across the globe is expected to boost low GWP refrigerant market |
| Key Market Drivers | Growing demand for air conditioners and limited environmental impact is boosting market growth. |
Low GWP Refrigerants Market Highlights:
Frequently Asked Questions (FAQ) :
The low GWP refrigerants market is projected to grow at a 11.12% CAGR between 2024 to 2032
E.F. International (U.S.), Sinochem Lantian co., Ltd (China), engas Australasia (Australia), Brothers Gas (UAE), The natural refrigerants company Pty ltd (Australia), A-Gas International (UK), Airgas, Inc (U.S.), Puyang Zhongwei Fine Chemical Co. Ltd (China), Tazzetti S.p.A (Italy), HyChill (Australia), Harp International Ltd (UK), Mexichem S.A.B de C.V. (Mexico), SOL Spa (Italy), GTS SPA (Italy), Arkema (France), The Chemours Company (U.S.), The Linde Group (Ireland), Honeywell International Inc (U.S.), and Daikin industries, Ltd. (Japan).
Europe is predicted to command the largest share in the low GWP refrigerants market.
Growing demand for air conditioners and limited environmental impact is boosting market growth.
Some of the major applications of low GWP refrigerants include stationary air-conditioning, mobile air-conditioning, commercial refrigeration, domestic refrigeration, and industrial refrigeration.
Low GWP Refrigerants Market is projected to be worth USD 73.7 Billion by 2030, registering a CAGR of 11.12% during the forecast period (2021 - 2030).
$73.7 Billion
11.12%
Asia-Pacific
2021-2030
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Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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