Low GWP Refrigerants Market is expected to reach US$ 49.89 Billion by 2028

Rise in Environmental Government Norms Catalyzing Low GWP Refrigerants Market Growth

According to our latest market study on "Low GWP Refrigerants Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Category and Application," the market is expected to grow from US$ 22.99 billion in 2021 to reach US$ 49.89 billion by 2028 with an estimated CAGR of 11.7% from 2022 to 2028.

Source: The Insight Partners Analysis

Various types of refrigerants are extensively used in various applications, such as refrigeration and heating, ventilation, and air conditioning. However, most of these refrigerants can negatively impact the environment when released into the atmosphere. Thus, the growing concerns related to the adverse effects of hazardous refrigerants on the environment are convincing customers to adopt environment-friendly refrigerants.

The peaking demand for low GWP refrigerants for use in supermarkets, shops, centralized units, refrigerating chambers, condensing units, cold displays, cold counters, and ice machines is set to drive the market. The high energy consumption in the industrial sector is also expected to augment the product demand.

The deployment of strict environmental guidelines, including the Paris Agreement, is expected to promote practices favorable for the environment in the manufacturing and industrial sectors. The rise of such norms and initiatives is expected to fast-track the prohibition of several ozone-depleting refrigerants that pose serious threats to the environment in the long term.

Many key players across the globe are complying with the guidelines to promote the adoption of low GWP refrigerants in numerous industries and reduce the impact of harmful refrigerants on the environment. Additionally, the growing consumption of frozen food products worldwide is expected to fuel the low GWP refrigerants market growth over the forecast period.

The current growth of cold chains in emerging economies, such as China and India, is expected to spike the consumption of low GWP refrigerants in Asia Pacific. The rise in globalization and related trade, owing to liberalization of regulations, is also likely to propel the requirement for cold chains in Asia Pacific.

Additionally, the existence of low margins and high competition is expected to fuel the regional market. The rapid inclination of distributors, retailers, and food processors from manually-operated obsolete facilities to warehouses with deep-freeze refrigeration is anticipated to fuel the consumption of industrial refrigeration and drive the market further.

Even though various private and government agencies are generating awareness among end users regarding the negative impacts of traditional GWP refrigerants, most mainstream end users find this transformation complex. As low CWG refrigerants are available for use in limited applications, the factor is expected to restrain the growth of refrigerants.

Flammability, coefficient of performance (COP), environmental acceptance, volumetric capacity (Qvol), and low toxicity are a few of the important aspects considered in selecting an ideal refrigerant. Fluid refrigerants contain fewer high-performance solutions that have low toxicity and good COP. These reasons may hinder the consumption of low GWP refrigerants during the forecast period.

Honeywell International Inc., Arkema Inc., Dongyue Group Co. Ltd., Daikin America Inc., and Shandong Yuean Chemical Industry Co. LTD. are among the key market players profiled during the study. Several other major companies were studied and analyzed during this research study to get a holistic view of the low GWP refrigerants market and its ecosystem.

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