GREEN REFRIGERANTS MARKET ANALYSIS

Global green refrigerants market was valued at US$ 18.8 Billion in 2022 and is expected to reach US$ 32.1 Billion by 2030, exhibiting CAGR of 6.92% over the forecast period (2023-2030).

The collaborative efforts by countries worldwide is contributing to process of suppressing the consumption of synthetic refrigerants such as Chlorofluorocarbons (CFCs) and Hydrochlorofluorocarbons (HCFCs) that leads to depletion of the ozone layer and made climatic changes due to global warming. Moreover, Montreal Protocol, an international treaty finalized in 1987 by nations to protect the ozone layer from depletion, restricted the usage of these synthetic refrigerants  and encouraged development of refrigerants with minimal global warming potential (GWP) and ozone depleting potential (ODP).

Global Green Refrigerants Market: Drivers

Phasing Out of HCFC (Hydrochlorofluorocarbons) and HFC (Hydrofluorocarbons) Refrigerants

Major initiatives aimed at developing new variants of natural refrigerants with better performance qualities and increased functionality is expected to drive the market growth. All these developments are a reaction to phasing out of HCFC (Hydrochlorofluorocarbons) and HFC (Hydrofluorocarbons) refrigerants, and this is expected to boost demand for green refrigerants.

Increasing Awareness Regarding Environmental Issues

Increasing consumer purchasing capacity and awareness regarding environmental issues caused by chemicals are expected to drive the market growth. Increasing demand  for green refrigerants such as saturated and saturated hydrocarbons is expected to drive the market growth, owing to its advantages such as minimum ozone depletion potential and low global warming potential and other benefits combined with high investments for research and development by key market players.

Global Green Refrigerants Market: Restraints

High Cost of Installation and Waste of Energy

Refrigerants is a most important part of a day-to-day activity Increasing demand and initiatives by various non-profit organizations is expected to drive the market growth but factors like the high cost of installation and waste of energy combined with technical glitches is expected to hamper the market growth.

Figure 1. Global Green Refrigerants Market, By Application,2022

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Global Green Refrigerants Market Segmentation

Among product type, carbon dioxide segment held a dominant position due to its demand, as major companies in commercial refrigeration sector are encouraging the development of efficient CO₂ based refrigeration technology. CO₂ is used in transcritical refrigeration systems especially in large supermarkets and energy-efficient buildings, owing to its properties such as odorless, non-toxic, and non-flammable. For instance, in October 2019, Huurre Group Oy, a manufacturer of CO₂ based refrigeration systems, was acquired by Caverion, a Finland-based refrigeration business firm involved in providing sustainable and energy-efficient building solutions.

Among application, transportation refrigeration has high demand due to rising trading of perishable commodities, food, and medical supplies. Green refrigerants are cheap and efficient solutions for transportation across countries. Technological developments in green refrigerants-based systems helps in avoiding harmful effects of synthetic refrigerants. The main aim of this refrigerated transport carriers is to maintain the product quality and minimalize losses due to food spoilage. According to an International Institute of Refrigeration (IIR) report, around 4 million refrigerated vehicles function across the globe. However, lack of infrastructure in emerging economies, expensive product maintenance, and inflation in fuel costs are expected to hamper the segment growth over the forecast period.

Figure 2. Global Green Refrigerants Market, By Region, 2022

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Global Green Refrigerants Market: Regional Analysis

Among region, Europe is the key center for research and development of natural refrigerants that are used in heating, ventilation, air conditioning, and refrigeration (HVAC&R) sector. F-gas regulation implemented by European Union in 2015, with an aim to reduce emissions of Fluorinated greenhouse gases due to refrigerant leaks and degradation of refrigeration and cooling appliances is expected to drive the market growth in this region. Moreover, over 150 F-gases with GWPs were banned in the domestic refrigeration and air conditioning sector of Europe to achieve 21% reduction in usage of F-gases by 2030.

Global Green Refrigerants Market: Recent Developments

• In December 2022, A-Gas’, new separators will be operational in early 2023 and will be more than double the separation capacity at the current site- addressing a critical need highlighted by the NGO report.
• In January 2022, Honeywell, launched a new non-flammable energy-efficient Solstice N71 (R-471A) refrigerant to meet the stringent regulations regarding reducing greenhouse gas emissions
• In April 2021, TEGA GmbH, acquired the Austria-based refrigerants business of Linde. With this acquisition, TEGA will form a closer relationship with Austrian natural refrigerants consumers.
• In February 2020, The Chemours Company, announced the successful installation of the Opteon refrigerant at the Pepsi Center, home of the Colorado Avalanche.

Global Green Refrigerants Market: Key Companies

Key companies operating in the global green refrigerants market include AGC Inc., Arkema SA, ASPEN Refrigerants Inc., Daikin Industries Ltd, Global Refrigerants, Harp International Ltd., Honeywell International Inc., The Linde Group, SRF Limited, Tazzetti S.p.A., and The Chemours Company.

*Definition: Green refrigerants are the refrigerants that have lower global warming potential and ozone depleting properties as compared to the synthetic refrigerants, which possess a major threat to the ozone layer.