The global refrigerants market size was valued at USD 21.74 billion in 2021. It is projected to reach USD 40.31 billion by 2030, growing at a CAGR of 7.10% during the forecast period (2022-2030).
Refrigerants are working fluids that absorb and transmit heat in a refrigeration system. The ability of the refrigerants to absorb heat at low pressure and low temperature and release heat at a higher pressure and temperature makes it a preferred material for cooling purposes. The thriving cold supply chain, and the increasing demand for consumer durables, owing to the improving global economy and disposable incomes, are the primary factors driving the growth of the global refrigerants market during the forecast period. Moreover, the flourishing automotive and food beverage industries are further anticipated to fuel the global refrigerants market growth.
The stringent regulations, on the other hand, laid by the governments and environmental organizations due to the refrigerants’ negative environmental impact such as ozone layer depletion and global warming have adversely affected the refrigerants market growth. Furthermore, change in the phase-out of the synthetic refrigerants has brought forth lucrative growth opportunities for the market players in the natural refrigerants sector to expand their businesses and meet the growing demand of the consumers.
A number of environmental and safety concerns are some of the factors that are hampering the growth of refrigerants market demand in the last two decades. According to the Montreal Protocol, an environmental agreement that regulates the production and consumption of ozone-depleting substances (ODS), the refrigerants should have zero ozone-depleting-potential and minimum global warming potential. As per the Montreal protocol, refrigerants that have non-zero ODP have either been phased-out such as R-11 and R-12 or will be phased-out in upcoming years; for example, R-22.
Apart from the Montreal Protocol, various agreements across the world have been signed to phase-out the chemicals that have a negative impact on the ozone layer. Some of the international environmental agreements leading to the phase-out of such chemical are Montreal Adjustment (2007), the Beijing Amendment (1999), the Montreal Amendment (1997), the Copenhagen Amendment (1992), the London Amendment (1990), Montreal Protocol on Substances that Deplete the Ozone Layer (1987), and Vienna Convention for the Protection of the Ozone Layer (1985).
The fluctuating customer behavior and the growing desire to live a better and luxurious lifestyle has influenced the consumer durables sector in the last few decades. Thus, to meet these demands and explore new avenues, the prominent players in the markets are expanding their businesses by investing in new markets.
As individuals are getting aware of the negative impacts of global warming, they are shifting their preference toward energy-efficient and environmentally friendly products. In light of this shift in consumer preference and rising temperature change, the manufacturers in the industry are also focusing on environment-friendly products and are reducing waste by promoting product recycling.
The burgeoning population and flourishing urbanization, especially in developing countries such as Argentina, Brazil, China, and India, have engendered an escalating demand for more refrigerators and air conditioning systems. Moreover, improving disposable income is further allowing individuals to spend more on these items to have a better lifestyle. Thus, leading to the growth of the refrigerants across the residential sector. Furthermore, various initiatives and plans undertaken by the government of developing economies, facilitating significant investment opportunities in the rural electrification are further expected to accelerate the demand of these consumer durables across the rural sector. According to the Indian brand equity Foundation (IBEF), in 2017, the refrigerator market in India was valued at around USD 3.03 billion and is expected to reach USD 5.34 billion by 2022.
In the commercial sector, refrigerants are primarily used in the HVAC systems to control the temperature of the buildings. The architectures and builders are focusing on implementing better and efficient HVAC systems in these buildings.
Over the last two decades, a significant growth trend in the urban population throughout the world has been observed, especially in the Asia-Pacific region. More population traveling to metro cities for the IT and other jobs created a need for a large number of commercial buildings. Due to the dense placement of buildings and traffic, city temperature is generally higher than that of rural areas, which creates the need for a strong HVAC system to maintain healthy air-flow in the building. Thus, this increase in the demand for the HVAC systems across the commercial sector is further likely to fuel the global refrigerant market growth during the forecast period.
The air conditioning systems used in the automotive are referred to as motor vehicle conditioning systems (MVAC). In the automobiles, the air conditioning systems are used for four applications such as cooling, circulating, purifying, and also to humidify the air. According to India brand equity Foundation (IBEF), in October 2018, Honda Motors Company announced to build its third factory in India, with an investment to the tune of USD 1.31 billion, for launching hybrid and electric vehicles. It is the most significant investment in the automotive sector of India so far. Thus, this rise in demand for automobiles is further expected to propel the growth of the global refrigerants market during the forecast period.
Refrigerants are extensively used across the food processing, pharmaceutical, and storing and distributing sectors. The cooling systems used in the industrial industry differ from their use in other areas by size and operating temperatures. In the industrial sectors, these refrigerants are utilized in the chiller and HVAC systems. As the world is growing through a rapid pace of industrialization and trade expansion, due to the increasing demand from end consumers. The industrialist is rapidly adopting and implementing technologies that create the optimum and controlled condition in manufacturing plants.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|