Refrigerant is a type of fluid used in the thermodynamic cycle of air conditioning. The refrigerant undergoes a continuous transition of phase from liquid to gas and then gas to liquid in the refrigeration process. Refrigerants are highly used as coolants in refrigeration systems, chillers, and air conditioning to absorb heat from the surroundings and pump it outside.
In 2020, Asia Pacific held the largest revenue share of the global refrigerant market. High demand for cooling systems from commercial and industrial sectors such as chemical processing, food & beverages, and healthcare is mainly driving the market in Asia Pacific. Additionally, the region consists of countries such as Japan, South Korea, India, and China, which are top manufacturers of refrigeration systems and air conditioning. HFC refrigerants are preferred in industrial chillers due to their perfect thermal stability, minimal toxicity, non-corrosiveness, and non-combustibility. The growing industrialization and urbanization is also the major factor for the rising demand for refrigerants in the region.
The COVID-19 pandemic affected economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. In 2020, various industries had to slow down their operations due to disruptions in value chains caused by the shutdown of national and international boundaries, which led to low demand for refrigerants from various industries. The COVID-19 pandemic caused volatility in the prices of raw materials required to produce refrigerants. The worldwide consumption of refrigerants declined due to the low demand from various industries such as construction and manufacturing. The reduced demand from various industries due to the COVID-19 pandemic negatively impacted the growth of the refrigerant market. However, the demand for refrigerants is expected to rise globally as various economies revive their operations.
Refrigeration is the essential process in the industry and home appliances for the purpose of cooling and maintaining room temperature. The refrigeration system consists of four major components – compressor, condenser, expansion device, and evaporator. Refrigerants are combined with compressor and evaporator to absorb heat from the environment. The increasing demand for refrigeration systems at a larger scale in industrial and commercial sectors is fueling the market growth. Many chemical manufacturing industries use refrigeration systems at a large scale for chemical processing. This has led to an increase in the consumption of refrigerants at a higher rate for industrial applications. For example, HFC refrigerant was used during the Aramco project in Saudi Arabia. The boom in industrialization has led to a rise in demand for various types of refrigerants in refrigeration and air conditioning (RAC) the industry.
Refrigeration systems are used in the large cold chain for storing and distributing goods with the help of refrigerated transport such as refrigerator trucks, rails, cars, and containers. The advancement in the supply chain industry with the introduction of refrigeration systems for maintaining the quality of products during transportation has created lucrative opportunities for the refrigerants market.
Based on type, the global refrigerant market has been segmented into HCFC, HFC, HFO, isobutane, propane, ammonia, carbon dioxide, and others. The HFC segment held the largest market share in the global market in 2020. HFCs are primarily used in refrigeration, air-conditioning, insulating foams, and aerosol propellants, with minor uses such as solvents and fire protection. HFC refrigerants are also used in vehicle air conditioning systems. Thus, the application scope of HFC is held responsible for its dominance in the refrigerant market.
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. are among the major players operating in the global refrigerant market. Players operating in the global market are constantly focusing on strategies such as investments in research and development activities and new product launches.
The regional trends and factors influencing the Refrigerant Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Refrigerant Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 16.46 Billion |
| Market Size by 2028 | US$ 25.53 Billion |
| Global CAGR (2021 - 2028) | 6.5% |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2028 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Refrigerant Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Refrigerant Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The major players operating in the global refrigerant market are The Chemours Company; Arkema; Honeywell International Inc.; Linde plc; Air Liquide; Dongyue Group; SINOCHEM GROUP CO., LTD.; DAIKIN INDUSTRIES, Ltd.; AGC Inc.; Airgas, Inc.
Based on type, the HFC segment accounted for the largest revenue share. HFCs are widely utilized refrigerants in most cooling units across the world.
Growing consumption of eco-friendly refrigerants offers a strong growth opportunity for the refrigerant market in the coming years.
Asia Pacific accounted for the largest share of the global refrigerant market.
The rise in demand for refrigeration systems and an increase in per-capita income in the developing economies are some of the key driving factors for the refrigerant market.
Based on application, the air conditioning system is the fastest-growing segment owing to the increasing use of air conditioning systems in commercial and residential places as they provide cooling or maintain a specific room temperature.