Hydrofluorocarbon Refrigerant Market Size & Growth Analysis to 2030

The global hydrofluorocarbon (HFC) refrigerant market size is anticipated to register a significant CAGR of around 3% during the forecast period from 2022 to 2030. The market is primarily driven by global environmental regulations aimed at protecting the ozone layer and combating climate change. International agreements, such as the Montreal Protocol, have phased out harmful chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs), leading to increased demand for HFCs due to their lower ozone depletion potential (ODP). Additionally, HFCs are preferred for their energy efficiency and relatively low global warming potential (GWP), aligning with the demand for environmentally friendly and energy-efficient cooling and refrigeration systems.

The market’s growth is further fueled by the rising demand for air conditioning and refrigeration systems, particularly in emerging markets, where urbanization and increasing incomes drive the need for cooling solutions. Advancements in HVAC&R technology, the phasing out of HCFC-22 (R-22), growth in automotive air conditioning, and consumer expectations for comfort and convenience also contribute to the expanding use of HFC refrigerants. Moreover, ongoing technological innovations and research efforts are creating HFC blends with even lower GWPs, addressing environmental concerns while meeting cooling performance requirements.

Market Snapshot:

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Market Drivers:

Environmental Regulations and Phasing Out of HCFCs and CFCs: One of the primary drivers is the global effort to protect the ozone layer and mitigate climate change. International agreements like the Montreal Protocol have led to the phase-out of chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs), creating a demand for HFCs as alternatives due to their lower ozone depletion potential (ODP).

Energy Efficiency and Environmental Performance: HFC refrigerants are chosen for their energy-efficient properties and relatively low global warming potential (GWP) compared to older refrigerants. The need for more environmentally friendly and energy-efficient cooling and refrigeration systems drives the adoption of HFCs.

Rising Demand for Air Conditioning and Refrigeration: The growing global population, urbanization, and increased income levels have led to a surge in the demand for air conditioning and refrigeration systems, especially in emerging markets. HFCs are commonly used in these applications, further boosting the market.

Advancements in HVAC&R Technology: Ongoing advancements in heating, ventilation, air conditioning, and refrigeration (HVAC&R) technology require refrigerants that can meet modern system requirements. HFCs are often chosen for their compatibility with new HVAC&R systems.

Phasing Out of HCFC-22 (R-22): The phase-out of HCFC-22, a commonly used refrigerant, has driven the demand for HFC replacements like R-410A and R-407C in air conditioning systems.

Automotive Air Conditioning Growth: The automotive industry’s growth, especially in emerging markets, has led to increased demand for HFC refrigerants used in automotive air conditioning systems.

Urbanization and Commercial Spaces: Urbanization trends and the expansion of commercial spaces like shopping malls, supermarkets, and data centers drive the need for efficient cooling and refrigeration systems using HFCs.

Consumer Preferences for Comfort and Convenience: Consumer expectations for comfort and convenience in residential and commercial spaces continue to rise, leading to increased adoption of air conditioning systems that use HFC refrigerants.

Market Insights:

The global hydrofluorocarbon (HFC) refrigerant market is bifurcated into type, application and geography. On the basis of application, the market is further segmented into air conditioning, refrigeration, automotive air conditioning, industrial refrigeration, and others. The air conditioning segment dominated the market in 2022 and expected to hold the largest revenue share of around 1/3 market share by 2030. The dominance arises from several key factors. The air conditioning is an essential component of modern life, with applications spanning residential, commercial, and industrial sectors. As the demand for temperature control and indoor comfort remains consistently high, the adoption of air conditioning systems that utilize HFC refrigerants such as R-410A and R-134a continues to grow. The ongoing trend of urbanization and the construction of commercial spaces like shopping centers, office complexes, and hotels contribute significantly to the demand for air conditioning systems, particularly in emerging markets. Additionally, the replacement of older refrigerants like R-22 with HFC-based alternatives in compliance with environmental regulations further solidifies the “Air Conditioning” segment’s dominance.

Air Conditioning: The air conditioning segment represents a substantial portion of the HFC refrigerant market. HFCs are commonly used in residential, commercial, and industrial air conditioning systems due to their energy-efficient properties and environmental compliance.

Refrigeration: HFC refrigerants are widely employed in refrigeration systems, including refrigerators, freezers, and other cooling appliances, to maintain low temperatures for food storage and preservation.

Automotive Air Conditioning: Automotive air conditioning relies on HFC refrigerants to provide comfortable cabin temperatures in vehicles. As the automotive industry continues to grow, so does the demand for HFCs in this segment.

Industrial Refrigeration: Industrial refrigeration applications, such as cold storage facilities and processes requiring low temperatures, utilize HFC refrigerants for efficient cooling and preservation of goods.

Others: This category encompasses specialized applications where HFC refrigerants find use. These applications may include heat pumps, chillers, medical refrigeration, and other unique cooling systems.

The hydrofluorocarbon refrigerant market research report presents the analysis of each segment from 2020 to 2030 considering 2022 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2023 to 2030.

Historical & Forecast Period

• 2020-21 – Historical Year
• 2022 – Base Year
• 2023-2030 – Forecast Period

Market Segmentation:

By Type:

• HFC-134a
• HFC-410A
• HFC-32
• HFC-404A
• HFC-407C
• Others

By Application:

• Air Conditioning
• Refrigeration
• Automotive Air Conditioning
• Industrial Refrigeration
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, North America dominated the global hydrofluorocarbon (HFC) refrigerant market in the benchmark year 2022 and expected to grow at a significant CAGR over the forecast period. North America, particularly the United States, has been a dominant region in the HFC refrigerant market. This is due to the widespread use of air conditioning and refrigeration in the region’s residential, commercial, and industrial sectors. Stringent environmental regulations have led to the adoption of HFCs as replacements for ozone-depleting refrigerants like CFCs and HCFCs. The U.S. phase-out of HCFC-22 (R-22) has driven the demand for HFC alternatives.

On the other hand, the Asia-Pacific region is characterized by rapid urbanization, growing middle-class populations, and increasing demand for cooling and refrigeration solutions. This has led to substantial growth in the use of HFC refrigerants in air conditioning and refrigeration systems. Emerging economies like China and India have become major consumers of HFCs due to their expanding infrastructure and manufacturing sectors.

Competitive Assessment:

Some of the major market players operating in the global hydrofluorocarbon refrigerant market are Honeywell, Chemours, Arkema, Daikin, and Mitsubishi Electric. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Recent Developments:

• In 2023, Carrier announced the start of production of the AquaForce® Vision 3100 chiller, which uses the low-GWP refrigerant R-1234ze.
• In 2022, Honeywell launched the Solstice® N40 (R-448A) refrigerant, a low-GWP refrigerant that is intended to replace R-404A in commercial refrigeration and air conditioning applications.
• In 2022, Chemours announced the development of OpteonTM XP40 (R-454B), a low-GWP refrigerant that is intended to replace R-410A in residential and commercial air conditioning and heat pump applications.
• In 2022, Daikin launched the Daikin VRV 5 heat pump system, which uses the low-GWP refrigerant R-32.
• In 2022, Mitsubishi Electric launched the City Multi VRF system, which uses the low-GWP refrigerant R-32.

Key Companies:

• Honeywell
• Chemours
• Arkema
• Daikin
• Mitsubishi Electric
• Johnson Controls
• Carrier
• Trane
• Linde
• Air Liquide
• Dongyue Group

Key Questions Answered by Hydrofluorocarbon Refrigerant Market Report

• Global hydrofluorocarbon refrigerant market forecasts from 2023-2030
• Regional market forecasts from 2023-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2023-2030 covering 15 major countries from the regions as mentioned above
• Hydrofluorocarbon refrigerant submarket forecasts from 2023-2030 covering the market by type, application, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level hydrofluorocarbon refrigerant markets from 2023-2030
• Competitive Landscape and market positioning of top 10 players operating in the market