Refrigerant Market Size, Share & Trends Analysis Report By Product (Fluorocarbon, Hydrocarbon, Inorganic), By Application (Industrial Refrigeration, Domestic Refrigeration, Transport Refrigeration), By Region, And Segment Forecasts, 2025 - 2030

Refrigerant Market Size & Trends

The global refrigerant market size was estimated at USD 14.92 billion in 2024 and is projected to grow at a CAGR of 4.7% from 2025 to 2030. The industry is experiencing growth due to increased demand from various end use sectors, particularly the commercial and industrial refrigeration industries. Rapid urbanization in emerging economies, the expansion of cold storage facilities, and the rising preference for environment-friendly refrigerants are expected to fuel global market growth in the coming years.

Refrigerants such as hydrofluorocarbons (HFCs), 1,1,1,2-Tetrafluoroethane, and Ammonia are widely utilized in the beverage and food processing industry due to their minimal contribution to global warming, thus reducing their impact on the ozone layer. These refrigerants are commonly used for storing, producing, and transporting food and beverages.

Food, perishable goods, and medicines can be refrigerated throughout their life. Refrigerated containers, trucks, and trailer systems keep these supplies fresh during transportation and preserve the goods from production to delivery. The growing demand for medicines, frozen foods, and new treatments requiring cold chains has increased the need for reliable refrigerated transport.

The increasing demand for air conditioning applications can be primarily attributed to global warming and the rising global temperatures, leading to warmer climates in many regions. Air conditioning is no longer a luxury but a necessity for maintaining comfort in homes and workplaces. This trend is expected to continue, driven by technological advancements making air conditioning units more energy-efficient, affordable, and environmentally friendly, appealing to a broader market seeking comfort and sustainability.

Flammability and toxicity are significant issues because they directly impact the production and handling of materials' operational and legal aspects. From a production standpoint, stricter safety regulations and measures need to be implemented to mitigate these risks, which can increase costs. For example, additional safety equipment, training for handling hazardous materials, and safer manufacturing processes may be required, all contributing to higher operational expenses.

Carbon Dioxide is another rapidly growing refrigerant in the industry. It is widely utilized in commercial refrigeration, such as supermarkets, vending machines, ice cream freezers, and display cabinets. The demand for carbon dioxide refrigerant has risen over the years owing to its excellent properties, such as energy efficiency, better cooling performance, and considerably low emissions compared with traditional refrigerants.

Market Concentration & Characteristics

The market is significantly fragmented and competitive, as some key companies account for a significant share. Emerging economies such as India and China are expected to provide growth opportunities to refrigerant manufacturers over the forecast period. The raw materials required for producing various types of refrigerants are fluorspar, hydrofluoric acid, chlorinated organic and inorganic compounds, propane, butane, ammonia, and carbon dioxide. The industry has witnessed considerable integration to achieve greater efficiency and control over production costs.

Refrigerant product suppliers have been involved in backward integration to establish refrigerant production. The integration assists in considerably lowering their logistics costs and tackling procurement disturbances. The need for innovative products to address the stringent regulations is another key factor driving the suppliers to integrate themselves into production and invest substantially in research and new product development.

Stringent regulations on fluorocarbon-based refrigerants in developed economies are expected to shrink their domestic refrigeration and air conditioning market size. Revised in March 2024, the EU F-Gas Regulation (EU) 2024/573, tightens the phase-down of fluorinated greenhouse gases (F-gases) with a goal of complete phase-out by 2050, including bans on high-GWP F-gases in various refrigeration, air conditioning, and heat pump systems starting between 2025 and 2032. It also introduces stricter rules on maintenance and certification requirements for technicians and promotes the use of low-GWP alternatives like CO2 and hydrocarbons to reduce climate impact and ensure environmental compliance. This factor is expected to boost the demand for hydrocarbon-based refrigerants as the best alternative.

Product Insights

The fluorocarbon segment dominated in 2024, accounting for 53.3% of the market share during the forecast period. These are primarily used in vapor compression systems, dominating residential, commercial, and mobile air conditioning and refrigeration applications. These systems represent the most significant and impactful segment for refrigerant innovation globally. The near completion of hydrochlorofluorocarbon (HCFC) phaseout in developed countries and the Kigali Amendment’s mandate to phase down high-GWP hydrofluorocarbons (HFCs) have accelerated the development and adoption of advanced fluorocarbon refrigerants with lower environmental impact. U.S. companies, including Honeywell and Chemours, are leading the development of hydrofluoroolefins (HFOs) and blends that reduce GWP while maintaining or improving performance.

The hydrocarbon segment is expected to witness the fastest CAGR over the forecast period. Hydrocarbons are becoming increasingly popular as refrigerants in various cooling and refrigeration systems. This shift towards hydrocarbon-based refrigerants is largely attributed to their low environmental impact, particularly in low global warming potential (GWP) and zero ozone depletion potential (ODP). Hydrocarbons like propane (R290) and isobutane (R600a) are gaining prominence due to negligible GWP (<3) and superior energy efficiency. For instance, Daikin’s Altherma 4 HS-S+ residential heat pumps, showcased at ISH 2025, utilize R290 to achieve seasonal COP values exceeding 5.0, aligning with EU decarbonization targets. The EU’s Eco-design Directive further incentivizes hydrocarbon adoption by linking energy efficiency benchmarks to refrigerant GWP in commercial refrigeration.

Application Insights

The stationary air conditioning, heat pumps, and chillers segment dominated the market in 2024. Stationary air conditioning, heat pumps, and chillers, significant components of the Heating, Ventilation, and Air Conditioning (HVAC) system have significantly influenced the refrigerants industry due to their extensive use in commercial, industrial, and residential settings. These systems rely heavily on refrigerants to facilitate the exchange of heat, which is essential in cooling or heating. Consequently, their dominance in the market is attributed to the increasing need for climate control solutions across various sectors.

Domestic refrigeration is expected to grow at the fastest CAGR over the forecast. It is expected to witness strong growth, supported by rising consumer demand for frozen and chilled food & beverages, particularly within expanding cold-chain logistics. Increasing per capita disposable incomes in developing countries are further driving the adoption of domestic air conditioning systems. In addition, consumers are showing a growing preference for smart appliances that enhance convenience and efficiency. This includes smart refrigerators featuring smartphone-based temperature control and connectivity with home automation systems, which are gaining traction and contributing to the overall advancement of domestic refrigeration solutions.

Regional Insights

North America accounted for a significant revenue share in 2024 owing to high demand in end-use industries such as domestic refrigeration, commercial refrigeration, and mobile air conditioning. Furthermore, growing awareness regarding environment protection and employing energy efficient cooling solutions is also driving natural refrigerant industry growth across the region.

U.S. Refrigerant Market Trends

The U.S. dominated the refrigerants market in 2024. This growth is attributed to the region's rising demand for mobile air conditioning units for automobiles and the growing demand in the region's commercial and industrial sectors. Legislative requirements such as California's CARB 2022 standards further restrict GWP to 750 for new stationary AC, accelerating R-454B adoption in commercial buildings.

Europe Refrigerant Market Trends

Europe is a prominent consumer of refrigerants in the world, with a revenue share of 31.1% in 2024. The market growth in this region can be attributed to the increasing demand for air conditioning units in the automotive, industrial, commercial, and domestic sectors. The rising demand for refrigeration in the food and beverage industry, pharmaceutical cold chains, and retail sectors is a major growth driver in Europe. The development of urban cold chain logistics and the implementation of stricter food safety regulations are further boosting the need for efficient refrigeration solutions. This growth is driven by stringent regulations restricting the use of high-GWP fluorinated gases, such as HFCs and HCFCs, and by the rising adoption of natural refrigerants like hydrocarbons, which offer lower environmental impact and greater energy efficiency.

The Germany refrigerants market has been experiencing steady growth in recent years due to the increasing demand for air conditioning units. This rising demand has resulted in a higher need for refrigerants, which are used in air conditioning units in the region. Germany is one of the leading automobile producers in Europe; due to this, there is an increase in industrial and mobile air conditioning in the region, resulting in rising demand for refrigerants. Germany's commitment to achieving carbon neutrality by 2045, coupled with high consumer awareness of sustainability, is further driving the demand for advanced refrigerants and HVAC systems. In addition, the country's robust industrial base, particularly in the automotive, pharmaceutical, and food and beverage sectors-continues to generate significant demand for environmentally sustainable refrigerants.

Asia Pacific Refrigerant Market Trends

Asia Pacific is expected to grow at the fastest CAGR over the forecast period 2025 - 2030. The increasing need for refrigeration and cooling equipment and rapid industrialization and urbanization will drive market expansion during the forecast period. The Asia Pacific market is anticipated to grow due to the rapid development of countries like China, India, Japan, and Australia.

China refrigerants market is expected to grow significantly during the forecast period. Its large industrial foundation and strong manufacturing capacity drive significant investments in infrastructure and consumer appliances. The country is one of the major producers and consumers of refrigerants. In addition, the increasing number of construction and industrial projects is further driving the demand for refrigerants as energy demand for space cooling in commercial buildings and the growing HVACR industry contribute to rising refrigerant consumption.

Key Refrigerant Company Insights

Some of the key players operating in the market include Honeywell International Inc., Daikin Industries Ltd., and Arkema S A, among others. Organizations are focusing on increasing the customer base to gain a competitive edge in the industry. Therefore, key players are taking several strategic initiatives, such as mergers & acquisition, capacity expansion, and product enhancement to align with changing regulations.

• Honeywell International Inc. offers products such as aerospace systems, turbochargers, energy-saving solutions, specialty refrigerants, advanced materials, oil refining technologies, and security systems. The company is one of the major providers of low-global-warming-potential fluorocarbon technologies, especially through its Solstice line of hydrofluoroolefins and blends.

• DAIKIN INDUSTRIES, Ltd. operates through three segments, Air Conditioning and Refrigeration Business, Refrigerants, and others. The Air Conditioning and Refrigeration business segment is responsible for providing residential and commercial air conditioners, residential and commercial air purifiers, large-sized chillers, marine vessel air conditioners, and marine refrigeration units. The Refrigerants segment manufactures and supplies fluoropolymers, fluorocarbons, fine Refrigerant products, and Refrigerant engineering machinery.

Recent Developments

• In April 2025, Daikin invested around USD 60 million in a new R&D center at Neemrana, Rajasthan, India, to develop HVACR products tailored to energy efficiency standards and refrigerant regulations for export markets. This new facility, located next to Daikin’s manufacturing plant, aims to enhance innovation, manufacturing competitiveness, and export capacity, reinforcing Daikin’s long-term commitment to India and sustainable technology development.

• In March 2025, Honeywell International Inc. announced an agreement to acquire Sundyne LLC for USD 2.16 billion in cash to enhance its Energy and Sustainability Solutions business and support global energy security needs. The acquisition is expected to expand Honeywell’s product portfolio, accelerate innovation through digitalization with Honeywell Forge, and boost sales growth, with the deal closing by the second quarter of 2025.

• In December 2024, Daikin India and Rechi Precision established a joint venture, DAIKIN-RECHI India Pvt Ltd to design, manufacture, and sell rotary compressors for the Indian HVAC market, with operations expected to start by the end of the fiscal year 2025. This partnership aims to ensure a stable supply of high-quality, cost-effective compressors to meet growing demand in India, supporting Daikin’s long-term growth and local manufacturing expansion.

• Hudson Technologies announced the acquisition of USA Refrigerants for USD 20.7 million, aiming to create a dedicated refrigerant acquisition group to source a wide range of refrigerants, including recovered and reclaimed types. This acquisition is expected to enhance Hudson’s purchasing capabilities, expand its customer base, and support growth in higher-margin refrigerant sales amid the phase-down of virgin refrigerants in the market.

• In April 2024, Honeywell and Bosch partnered to incorporate Honeywell’s low-global warming potential Solstice 454B refrigerant into Bosch’s new Florida Heat Pump series, reducing greenhouse gas emissions by 78% compared to traditional refrigerants. They will also provide training for Bosch technicians on the safe installation and maintenance of these advanced refrigerants, supporting the industry’s transition to more sustainable heating and cooling solutions under new EPA regulations.

Refrigerant Market Report Scope

Global Refrigerant Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global refrigerant market report based on product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Fluorocarbon

  • Hydrocarbon

  • Inorganic

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Industrial Refrigeration

  • Domestic Refrigeration

  • Transport Refrigeration

  • Commercial Refrigeration

  • Stationary Air Conditioning, Heat Pumps, Chillers

  • Mobile Air Conditioner

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East and Africa

    • Saudi Arabia