-Market.webp)
Hydrofluoroolefins (HFOs) Market size was over USD 2.65 Billion in 2023 and is poised to exceed USD 16.47 Billion by the end of 2036, witnessing over 15.1% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of hydrofluoroolefins is evaluated at USD 3.01 Billion. The growth of the market can be attributed to the rising sales of automobiles. Hydrofluoroolefins are the organic compounds that are used as a refrigerant in car air conditioning systems. The largest vehicle market in the world is located in China. Despite a recent drop in passenger car sales in China in April 2022, there were more than 26 million passenger cars sold in 2021. Additionally, China sold around 965,000 passenger automobiles and nearly 216,000 commercial vehicles in April 2022.
In addition to these, factors that are believed to fuel the market growth of hydrofluoroolefins (HFO) include rising concerns about growing global warming. Despite being more reactive than HFCs, HFOs are very stable substances. Due to the decreased global warming potential, this became a efficient option for tackling the growing concerns about climate change. For instance, since their introduction, HFO refrigerants and blowing agents have prevented the emission of 170 million metric tonnes of CO2e into the atmosphere, which is the same number of emissions produced by more than 35 million cars. Additionally, the HFOs have low GWP therefore, it makes great refrigerant fluid for air conditioning systems in buildings. Moreover, they are used in the manufacturing of polyurethane foams, which are highly used in the construction and automobile industry, which in turn is expected to boost the demand for hydrofluoroolefins. In France, the volume of construction activity augmented by around 11 % in 2021 after declining by nearly 14% in 2020. Additionally, total construction investment in Europe climbed by nearly 5% in 2021 to reach about USD 2 trillion, or approximately 11% of EU GDP.
Growth Drivers
Challenges
|
Base Year |
2023 |
|
Forecast Year |
2024-2036 |
|
CAGR |
15.1% |
|
Base Year Market Size (2023) |
USD 2.65 Billion |
|
Forecast Year Market Size (2036) |
USD 16.47 Billion |
|
Regional Scope |
|
The global hydrofluoroolefins (HFOs) market is segmented and analyzed for demand and supply by product type into HFO-1234ze, HFO-1234yf, and others. Out of the three types of products, the HFO-1234yf segment is estimated to gain the largest market share at the end of 2036, by growing at a CAGR of 14.7% over the projected time frame. The growth of the segment can be attributed to the increasing use of hydroflouroolefin HFO-123yf in automobiles. In just ten years, the amount of hydrofluoroolefin HFO-1234yf refrigerant used in the automotive sector has increased from 0 to 190 million units. Nearly all light automobiles sold in the United States, Canada, and Europe are using the HFO-1234yf refrigerant, which is less harmful to the environment. More than 95% of light vehicles sold in Japan and South Korea are anticipated to use HFO-1234yf by the end of 2023.
The global hydrofluoroolefins (HFOs) market is also segmented and analyzed for demand and supply by application into refrigeration, foam-blowing agents, mobile air-conditioning systems, and others. Amongst these three segments, the mobile air-conditioning systems segment is expected to garner the largest share at the end of 2036, growing at a CAGR of 14.6% over the forecast period. All forms of transportation, including vehicles, buses, trucks, and trains, use mobile air conditioning systems. Therefore, the growth of the segment is expected on the account of rising investment in the automotive sector, followed by rising sales of cars. The Investment in Infrastructure and Jobs Act, approved by President Joe Biden, could give up to $100 billion for the national network over the following five years. Moreover, Jim Costa, the U.S. Representative representing California's 16th congressional district, has filed a bill that would authorize USD 32 billion in annual high-speed rail spending through 2024, the bill emphasized the electrified trains. Furthermore, in 2021, there were nearly 12 million electric cars deployed in the world, moreover, it is expected that around 54 million electric cars likely to be added to the world by 2025.
Our in-depth analysis of the global hydrofluoroolefins (HFOs) market includes the following segments:
|
By Product Type |
|
|
By Application |
|
Asia Pacific Market Forecast
The Asia Pacific hydrofluoroolefins (HFOs) market is projected to hold 43% industry share by 2036. The growth of the market in the Asia Pacific can be attributed majorly to a growing network of trains with air conditioning systems and rising production and sales of automobiles in the region. China is at the forefront of a worldwide trend with its approximately 24,000 miles of high-speed lines and is further projected to invest around USD 46 billion over the next ten years. In India, sales of passenger cars rose by 14% during the 2022 fiscal year. Additionally, around 3 million passenger cars were sold in the south Asian nation in 2022. Furthermore, the market growth in the region is also expected to be boosted on the back of the growing earth surface’s temperatures which is likely to drive the use of hydrofluoroolefins. In the next half of the century, Singapore, which has warmed up 80% faster than the rest of the area during the past 70 years, plans to attain net-zero emissions.
The Chemours Company announced the opening of a new manufacturing line for the expansion of its OpteonTM 1150, also known as HFO-1336mzzE, a non-ozone depleting, low GWP hydrofluoroolefin (HFO) platform. The plant of the new production line is located in El Dorado, and was inaugurated on January 1, 2022.
Honeywell International Inc., unveiled, a new hydrofluoroolefin (HFO)-based refrigerant, Solstice 456A, for the automotive market in Europe. The refrigerant has the ability to cut off over 50% of greenhouse gas emissions
Author Credits: Rajrani Baghel
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?