The global refrigerant market size is expected to reach USD 30.37 billion by 2025, according to a new report by Grand View Research, Inc., expanding at a CAGR of 5.3% during the forecast period. Development of eco-friendly alternatives, as a result of environmental policies aimed at ozone depletion and GHG emissions, is a key factor driving market growth.
Regulations across EU, Japan, China, and U.S. have prompted consumers to shift toward hydrocarbon and inorganic refrigerants, with its demand predicted to increase drastically over the forecast period. The fluorocarbons segment accounted for over 50% of the overall consumption in 2016.
Inorganics emerged as the second-largest product segment in terms of revenue. Thermal efficiency of the product has enabled its penetration across industrial applications. Low cost, easy availability, and eco-friendly characteristics are key factors boosting its demand in industrial areas.
The Asia Pacific market for refrigerants has reported strong demand in recent times. Growth in industrial activity and productivity across China and India will continue to spur demand for refrigeration across residential, industrial, and commercial sectors. China represented more than one fifth of the global consumption in 2016.
Companies are constantly striving to consolidate their presence through product development, regional expansions, and application diversification strategies. Innovative and cost-effective products that meet both end-user specifications and regulatory standards are key determinants for competitive edge.
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Further key findings from the report suggest:
- The global refrigerant demand was estimated at 1.73 million tons in 2016 and is expected to rise at a CAGR of 5.4% from 2017 to 2025
- The United Nations Framework Convention on Climate Change has played a pivotal role in regulating the use of refrigerant products and has compelled industry participants to develop alternative sources
- Europe is the second largest consumer, with the mobile air conditioning, industrial, and commercial refrigeration sectors exhibiting strong demand. A standard environmental policy across EU has impelled regional manufacturers to invest extensively in R&D
- The hydrocarbon refrigerant segment is expected to witness a CAGR of 8.9% in terms of volume over the forecast period. Energy efficiency, low cost, and ecofriendly nature of the product are key traits positively influencing demand
- Domestic refrigeration is estimated to emerge as the most promising segment in terms of volume, exhibiting a CAGR of 6.2% over the forecast period
- Some of the key players in the market are Honeywell International, Daikin Industries Limited, Arkema S.A., Linde Group, and The Chemours Company.
Grand View Research has segmented the global refrigerant market on the basis of product, application, and region:
Refrigerant Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014–2025)
- Fluorocarbon
- Hydrocarbon
- Inorganic
- Others
Refrigerant Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014–2025)
- Industrial Refrigeration
- Domestic Refrigeration
- Transport Refrigeration
- Commercial Refrigeration
- Stationary Air Conditioning, Chillers & Heat Pumps
- Mobile Air Conditioning
