The market for refrigerants is expected to grow at a CAGR of around 3% during the forecast period. One of the major factors driving the market studied will be the expansion of the global cold chain market. However, stringent environmental regulations against fluorocarbon refrigerants are likely to restrain the market.
- Increasing demand for bio-based refrigerants is likely to act as an opportunity for market growth in the future.
- Asia-Pacific dominated the market across the world, owing to the rapidly growing construction and automotive industries.
Key Market Trends
Fluorocarbons to Dominate the Market
- Fluorocarbons have dominated the market owing to the increasing demand for hydrofluorocarbons.
- HFCs are widely utilized in air conditioning applications as they are less harmful to the atmosphere in comparison to other fluorocarbon refrigerants.
- They also serve as the most prominent substitutes for phased-out CFCs and HCFCs. Emerging nations are slowly phasing out fluorocarbon refrigerants and are working on phasing out HCFCs. This will, in turn, result in a high demand for HFCs globally.
- HFCs are non-flammable, recyclable, energy efficient, less toxic, and are chemically stable. They are non-reactive with the environment even upon direct exposure.
- One of the chief advantages of HFCs over chlorofluorocarbons (CFC’s) is that they do not contribute to ozone layer depletion.
- Hence, fluorocarbons segment is likely to account for the highest market share during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific accounted for the highest market share and is likely to witness the highest market share during the forecast period.
- China is one of the fastest growing economies worldwide and almost all the end-user industries have been experiencing a significant growth, owing to the rising population, living standards, and per capita income. However, owing to the international trade turbulences and unfavorable geopolitical affairs, the growth rate is expected to slow down in the initial years of the forecast period. But the growth is expected to speed up in the later part of forecast period, considering the favorable conditions and relations in the future.
- Chinese consumers are increasingly purchasing health and wellness food products, including organics foods that require cold storages, including peas, corn, etc. Packaged frozen foods are also increasingly becoming popular, especially dairy, baby food, and confectionary products.
- Many consumers in China are considering refrigeration appliances as household necessities, owing to increasing usage of ready-to-eat packed food, which paves the way for appliances, to penetrate the market. The scenario further strengthens the growth of the Chinese refrigeration market.
- India is booming economy of modern times, due to significantly rising living standards and per capita income are changing the choices and preferences of an individual. These are resulting in broadening of all major sectors of Indian economy, leading to higher growth prospects in the country.
- Hence, Asia-Pacific is likely to dominate the market during the forecast period.
The global refrigerants market is partially consolidated, with the top five players accounting for a decent share in the market. The global refrigerants market is dominated by Honeywell International Inc., The Chemours Company, Mexichem SAB de CV, and Arkema Group. Other key players in the market include Linde, Daikin Industries Ltd, Sinochem Group Co. Ltd, Messer Group, and Navin Fluorine International Limited, among others.
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