Hydrofluoroolefins (HFOs) Market Size & Share, by Product Type (HFO-1234ze, HFO-1234yf); Application (Refrigeration, Foam Blowing Agents, Mobile Air-Conditioning Systems) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2033

Global Hydrofluoroolefins (HFOs) Market Definition

Hydrofluoroolefins are organic compounds. These are unsaturated olefins or alkenes as they remain carbon bonded with double bonds. Hydrofluoroolefins consist of hydrogen, carbon, and fluorine. These are the environmentally friendly alternatives of hydrofluorocarbons as they have low global warming potential (GWP) and almost zero effect on the ozone layer. Hydrofluoroolefins are refrigerants, that is a working fluid used in air conditioning systems and heat pumps. Moreover, they are the fourth generation of refrigerants that does not deplete the ozone layer.

Hydrofluorocarbons and other fluorinated compounds are been rapidly replaced by hydrofluoroolefins. Environmental rules and regulations have reduced the usage of hydrofluorocarbons (HFCs) and hydrochlorofluorocarbons (HCFCs). However, regulatory bodies are more inclined towards the usage of HFOs as they break down the trifluoroacetic acid (TFA) in the atmosphere, which is further driving the preference for hydrofluoroolefins. Furthermore, investors are drawn to the HFO industry because of the rising use of HFO in foam, refrigeration, and mobile air conditioning.

There are different types of hydrofluoroolefins, that serves different purposes. For instance, HFO-1234ZE is utilized as an aerosol propellant since it is non-flammable and naturally less hazardous, moreover, it does not have the restrictions that are imposed on volatile organic compounds. The other products, such as low GWP HFO-1234yf is a refrigerant that is utilized in auto air conditioning systems. Numerous end-user industries, such as electrical, automobile, and construction use hydrofluoroolefins.

Global Hydrofluoroolefins (HFOs) Market: Key Insights

Global Hydrofluoroolefins (HFOs) Market Size, Forecast, and Trend Highlights Over 2022 - 2033

The global hydrofluoroolefins (HFOs) market is estimated to garner a revenue of USD 10,516.6 million by the end of 2033 by growing at a CAGR of 15.1% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of USD 2,301.1 million in the year 2022. 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.

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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.

Global Hydrofluoroolefins (HFOs) Market: Growth Drivers and Challenges

Growth Drivers

• Burgeoning Population in Urban Areas – Refrigerant usage is increasing as a result of rising living standards, which is in turn fueling the need for air conditioners and boosting the HFO industry. Approximately 4 billion people, or 56% of the world's population, now reside in cities. Additionally, by 2050, approximately 7 out of 10 people will live in cities, with the urban population predicted to get double its current count.

• Growing Levels of Global Warming– Based on the thermometer monitoring, the decade from 2012 to 2011 was the warmest, with 2020 being the second warmest. Since 1901, the average increase in the global average surface temperature has been 0.17°F per decade.

• Rapidly Escalating Automotive Industry – In 2021, the market for the manufacturing of automobiles was worth of around 3 trillion dollars. In 2022, the market rose to more than 3 trillion dollars.

• Worldwide Increase in the Number of Patents Authorized – The market growth of HFO is driven by many new HFOs developed in the market. Regarding the use of HFO-1234yf in automobiles, there are around seven patents found in the United States.

• Higher Development of Infrastructures – According to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development statistics, nearly 1,427,000 house construction were started in 2022, moreover, around 1,342,000 house permits were approved in the same year.

Challenges

• Harmful effect of hydrofluoroolefins - Hydrofluoroolefins is easily decomposable at high temperatures, just like all halogenated hydrocarbons, and their high solubility creates acid, which can irritate the skin, eyes, and throat and even be lethal.
• Hydrofluoroolefins are slightly more expensive than other fluoride compounds
• As a propellant, hydrofluoroolefins are highly flammable

Market Segmentation

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 of USD 5060.9 million at the end of 2033 by growing at a CAGR of 14.7% over the projected time frame. In addition to this, the segment garnered a revenue of USD 1,149.8 million in 2022. 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 of USD 4,743.6 million at the end of 2033 by growing at a CAGR of 14.6% over the forecast period. Moreover, the segment generated a revenue of USD 1090.8 million in 2022. 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:

Global Hydrofluoroolefins (HFOs) Market Regional Synopsis

The Asia Pacific hydrofluoroolefins (HFOs) market, amongst the market in all the other regions, is projected to generate the highest market revenue of USD 4,490.6 million by the end of 2033. Furthermore, the region held a market share of USD 925 million in 2022. Moreover, it is expected to grow at a CAGR of 15.7% over the forecast period. 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.

Top Featured Companies Dominating the Global Hydrofluoroolefins (HFOs) Market

• Honeywell International Inc.
  • Company Overview
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• Arkema
• DuPont de Nemours Inc.
• The Chemours Company
• Danfoss
• Linde plc