Low GWP Refrigerants Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Low GWP Refrigerants Market is segmented By Type (Hydrocarbons, Inorganics, Fluorocarbons, Others), By Application (Commercial refrigeration, Industrial refrigeration, Domestic refrigeration, Others), By End User (Health Care, Automotive, Transportation, Infrastructure, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031.

Low GWP Refrigerants Market Overview

Global Low GWP Refrigerants market is estimated to grow at a CAGR Of 4.2% during the forecast period 2024-2031.

A refrigerant is a substance or mixture which is used in a cooling mechanism like an air conditioner or refrigerator. They act as a heat carrier which changes gas to liquid and back in the refrigeration cycle. Ammonia, Sulphur dioxide, and non-halogenated hydrocarbons are a few refrigerants that are used in daily applications. Whereas low global warming potential (GWP) refrigerants have a low environmental impact and it is ruling out all the CFC, HCFC, and HFC refrigerants, increasing demand for refrigerants and air conditioners worldwide is expected to drive the market growth at a high CAGR in the forecast period.

Low GWP Refrigerants Market Summary

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Low GWP Refrigerants Market Growth Trends

• Growth in the end-user industries such as transportation, automotive, oil & gas, and others are boosting the global low GWP refrigerants market growth. Because low GWP refrigerants such as ammonia, hydrocarbons, and CO2, and Hydrofluoroolefins (HFO), among others, have zero Ozone Depletion Potential (ODP) and very low GWP along with higher energy efficiency and low cost.
• Additionally, the implementation of various environmental legislations over HCFC and HFC refrigerants are driving the market further.
• For instance, in 2014, the US, Canada, and Mexico proposed an amendment to reduce the production and consumption of HFCs by 85% during 2016 to 2035 in developed countries. Besides, the European F-gas legislation was issued in 2014, which proposed to reduce HFC consumption by 79% over the period 2016-2030.
• However, factors like a high initial investment of low GWP refrigerant-based systems, low volume demand along flammability and toxicity issues are hindering the global low GWP refrigerants market growth.

Low GWP Refrigerants Market Segmentation Analysis

• Based on the application the global low GWP refrigerant market is broadly segmented as commercial refrigerants, industrial refrigerants, domestic refrigerants, and others. Among all these commercial refrigerants accounted for a major market share in 2018 and are predicted to grow at a high CAGR. Commercial refrigeration includes refrigerating chambers, ice machines & cold counters these are commonly used in supermarkets, shops, and centralized units. Cold storages in supermarkets rely on hydrocarbons and CO2 that have been available for a few years. In supermarkets, refrigeration (centralized systems) CO2 cascade systems are an alternative to common HFC systems in cold and moderate climates. Thus, an increase in the demand for refrigeration in the supermarket is propelling the segment's growth in this market.
• Based on the type the global low GWP refrigerants market is segmented into hydrocarbons, inorganic, fluorocarbons, and others. Of all hydrocarbons occupied the major market share and are expected to grow over the forecast period. It is owing to its excellent thermodynamic properties and refrigerating, and air-conditioning systems operating using these substances are highly energy-efficient. Also, hydrocarbon refrigerants are miscible with conventional refrigerating oils and have a relatively high critical temperature.

Low GWP Refrigerants Market Geographical Share

• The global low GWP refrigerants market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa.
• Asia Pacific occupies the dominant share in the low GWP market and is expected to grow at a CAGR of XX% in the forecast period. It is owing to the growth in the major end-user industries such as infrastructure, industrial, oil & gas, and automotive.
• Also, increase in the usage of refrigerants & air conditioners in this region, owing to high population growth. Additionally, due to excess climate changes. According to Asia Pacific Forum on Environment and Development (APFED), in 2013, China and Japan alone made up 82% of Asia Pacific air conditioner usage in order to deal with changing weather conditions.

Low GWP Refrigerants Market Key players 

• Significant players of the global low GWP refrigerants market are Linde Group, Honeywell, Engas Australasia, A-Gas, Tazzetti, HyChill Australia, Chemours, Mexichem, Mitsui, Daikin, Arkema, and others.
• Majority of these players are adopting a few key strategies like product developments, merger & acquisition, and others. Also, geographical expansion by manufacturers to maintain their position in the competitive market.
• For instance, in November 2018, Mitsui developed two low GWP refrigerants R463A and R454C. R463A is made for freezers and fridges while R454C is used for industrial heat pumps. In July 2018, Honeywell launched its new non-flammable and low GWP refrigerant, Solstice N41 for stationary air conditioning systems. In November 2017, Mexichem announced a tie-up with Daikin to develop R407H, a lower GWP alternative to R404A.