The global refrigerant market is anticipated to grow with a notable CAGR during the forecast period, i.e., 2021-2029. The growth of the market can be attributed to the growing demand for cooling refrigerants from the end-users backed by the growing adoption of residential and commercial cooling equipment, such as heating, ventilation, and air conditioning (HVAC) systems, refrigerators, freezers, air conditioners, and others. The demand for residential cooling equipment, where refrigerants are used widely, has witnessed a significant growth over the past few years. The changing lifestyle of individuals, along with the rise in disposable income are some of the factors that can be attributed to the growing demand for such residential cooling equipment. According to the statistics by the Organization for Economic Co-Operation and Development (OECD), the household disposable income in the United States grew from USD 43929/capita in 2013 to USD 53202/capita in 2018. Moreover, the housing disposable income in the European Union grew from USD 26634/capita in 2013 to USD 32822/capita in 2019. The market is also thriving on account of the growing consumer electronics sector as well as for the growth of the automotive industry.
The global refrigerants market is segmented on the basis of product type into fluorocarbons, inorganic, hydrocarbons and others. Among these segments, the fluorocarbons segment is estimated to hold the largest market share by the end of 2029. The growth of the segment can be attributed primarily to the wide application of hydrofluorocarbons in air conditioning applications, as well as for the environmentally friendly properties of these chemicals. Fluorocarbons, as compared to other refrigerant types, are less toxic and also are non-flammable. Moreover, these chemical compounds do not contribute to the depletion of ozone layers and is less harmful for the atmosphere.
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favourable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labour as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
Regionally, the global refrigerant market is segmented into five major regions including North America, Latin America, Asia Pacific, Europe, and the Middle East & Africa.
The market in the North America is anticipated to hold the largest market share by the end of 2029. The growth of the market can be attributed to the growing demand for cooling equipment to store packaged foods, as well as for the increasing availability of cold storage facilities in the region. The United States, which is known to be the largest consumers of packaged food products around the world, also has several end users who require cooling equipment to support their supply chain requirements. On the other hand, the market in the Asia Pacific is anticipated to grow with the highest CAGR during the forecast period owing to the presence of numerous countries in the region which fall under temperate climate, and hence require cooling equipment in both commercial and residential setting to keep foods and other products fresh.
The global refrigerant market is further classified on the basis of region as follows:
Our in-depth analysis of the global refrigerant market includes the following segments:
FREQUENTLY ASKED QUESTIONS
Rising demand for chillers and freezers, along with the growing automotive industry and consumer electronics sector, are some of the major factors driving the market growth.
The market is anticipated to attain a notable CAGR over the forecast period, i.e., 2021-2029.
Restrictions in the use of several refrigerants is one of the major factors estimated to act as barriers to the growth of the market.
The market in the Asia Pacific is anticipated to grow with the highest CAGR during the forecast period on account of the presence of several countries in the region that fall under the temperate region, and hence require cooling equipment.
The major companies in the market are DuPont de Nemours, Inc., Honeywell International Inc., Airgas, Inc., Arkema Group, Air Liquide advanced Technologies, Shandong Dongyue Chemical Co., and others.
The company profiles are selected based on the revenues generated from segments, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market in the North America is anticipated to hold the dominating share by the end of 2029 owing to the presence of several end users that require cooling equipment to run their supply chain processes.
The refrigerant market is segmented by product type, application type, end-users, and by region.
The fluorocarbons segment under the product type segment is projected to hold the dominating share by the end of 2029 in the global refrigerant market.
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