Global low GWP refrigerants market analysis and insights
The global Low Global Warming Potential (GWP) Refrigerants market estimated at US$23.78 billion in the year 2022 is now projected to grow at a CAGR of 15.93% and reach US$66.91 billion by 2028. This growth is driven by a combination of regulatory initiatives, environmental consciousness, and technological advancements. Governments worldwide are increasingly imposing stringent regulations to curb greenhouse gas emissions, prompting industries to transition towards low GWP refrigerants as a more environmentally friendly alternative to traditional high GWP refrigerants like hydrofluorocarbons (HFCs). The Kigali Amendment to the Montreal Protocol is a key driver in this shift, aiming to phase down the production and consumption of HFCs globally.
Furthermore, the growing awareness and concern about climate change are pushing industries to adopt sustainable practices. Low GWP refrigerants, such as hydrofluoroolefins (HFOs) and natural refrigerants like carbon dioxide and ammonia, are gaining prominence due to their lower impact on global warming. Manufacturers are investing in research and development to enhance the performance and efficiency of these alternatives, making them more viable and attractive to various end-users.
Looking ahead, the future growth potential for the global low GWP refrigerants market lies in continued regulatory support, technological innovation, and increasing adoption across various sectors. The ongoing efforts to develop next-generation refrigerants with even lower environmental impact, coupled with a rising demand for energy-efficient and environmentally sustainable cooling solutions, are likely to create significant opportunities for companies in the low GWP refrigerants market. As industries strive to achieve carbon neutrality and sustainability goals, the demand for low GWP refrigerants is expected to soar, presenting a promising landscape for growth and investment.
Low GWP refrigerants regional market insights
North American low GWP refrigerants market is expected to grow significantly over the forecast period 2022-2028. This growth can be attributed to the increased focus on production of advanced refrigerants, including HFOs and their blends. United States contributed around 78% of the total North American low GWP refrigerants market. It is estimated to have a market value of US$6.38 billion in the year 2022. Among the other noteworthy geographic markets are Canada and Mexico, each forecast to grow at 13.74% and 11.90% respectively over the 2022-2028 period.
Asia Pacific low GWP refrigerants market is anticipated to witness an upsurge owing to the rapid industrialization and urbanization in developing countries like China and India. Moreover, the market is being driven by high R&D expenditure by major players, combined with efforts to commercialize low GWP refrigerants at affordable prices. China is expected to dominate the Asia-Pacific market and reach a market size of US$18 billion by 2028.
Within Europe, Germany, France, Italy and the U.K. are the key countries responsible for the significant growth of the regional market. Germany is expected to grow at a fastest CAGR of 14.82% over the forecast period.
Meanwhile, the Middle East & Africa is expected to show limited growth due to the strong presence of under-developed countries in Africa who are still struggling to meet technology standards. However, any growth that the region experiences is expected to come from developing Middle Eastern nations such as Qatar, U.A.E, and Oman due to a similar growth pattern as the Asia Pacific.
Key players profiled in the report include A-Gas; Airgas Inc.; Arkema; Brothers Gas; Chemours; Daikin; Deepfreeze Refrigerants; Ecofreeze International; Engas Australasia; GTS; Harp International; Honeywell; Hychill Australia; Intergas; Linde Group; Mexichem; MK Chemical; Puyang Zhongwei Fine Chemical; Shandong Yueon Chemical Industry; Sinochem Group; SOL Spa; Tazzetti; The Natural Refrigerants Company, among others.
May 23, 2023 – The Chemours Company (“Chemours”), a global chemistry company with leading market positions in Thermal & Specialized Solutions and Advanced Performance Materials, announced a capacity investment in its low global warming potential (GWP) Opteon™ 1100 foam blowing agent and Opteon™ SF33 specialty fluid. The expansion will triple capacity of the ultra-low GWP, hydrofluoroolefin (HFO) solution, enabling customers and value chain partners to meet the escalating demand for sustainable and efficient HFO-1336mzzZ-based fluids.
February 08, 2023 – Honeywell announced that Food City has installed Honeywell’s Solstice N71 (R-471A) refrigerant in its Kodak, Tennessee, store. The solution is being used to cool the store’s beverage line-up while helping increase energy efficiency and reduce environmental impact.
Low GWP refrigerants market scope
- By type
- Hydrofluorocarbons (HFCs)
- Hydrofluoroolefins (HFOs)
- HFCs-HFOs blends
- Hydrocarbons (HCs)
- By application
- Residential refrigeration
- Commercial refrigeration
- Industrial refrigeration
- Transportation refrigeration
- Air conditioning
- Residential air conditioning
- Commercial air conditioning
- Automotive air conditioning systems
- Heat pumps
- By end-use segment
- Automotive and transportation
- By region
- North America
- South America
- Asia Pacific
- Middle East and Africa
|No. of Pages||246|
|Estimated Market Size in 2022||US$23.78 billion|
|Forecasted Market Size by 2028||US$66.91 billion|
|Regions Covered||North America, South America, Europe, Asia Pacific, Middle East and Africa|
|Companies Mentioned||A-Gas; Airgas Inc.; Arkema; Brothers Gas; Chemours; Daikin; Deepfreeze Refrigerants; Ecofreeze International; Engas Australasia; GTS; Harp International; Honeywell; Hychill Australia; Intergas; Linde Group; Mexichem; MK Chemical; Puyang Zhongwei Fine Chemical; Shandong Yueon Chemical Industry; Sinochem Group; SOL Spa; Tazzetti; The Natural Refrigerants Company, among others.|
The research report provides a comprehensive review of market trends (Technology, Product and Application analysis), market growth drivers, PEST Analysis (Political, Economic, Social and Technological Analysis) Market growth inhibitors, and strategic industry activities and SWOT Analysis of key players in the market. The report provides market estimates and forecast for geographic markets such as the North America (United States, Canada, Mexico and Rest of North America), South America (Brazil, Argentina Chile Colombia Peru Venezuela Ecuador and Rest of South America), Europe (Germany, France, U.K., Russia, Italy, Spain, Sweden, Netherlands, Poland, Austria, Belgium, Finland, Norway, Switzerland, Denmark, Czech Republic, Portugal and Rest of Europe), Asia-Pacific (China, Japan, South Korea, Taiwan, India, Australia, Indonesia, Philippines, Malaysia and Rest of Asia-Pacific), Middle East (Iran, Turkey, Kuwait, UAE, Israel, Oman, Bahrain, Saudi Arabia, Qatar, Egypt and Rest of Middle East) & Africa.