At a compound annual growth rate of 9.5%, the size of the worldwide next generation refrigerants market is projected to reach  $ 4.51 billion in 2028.

The demand for refrigerants has been increasing at a noticeable rate from industries namely food industry, pharmaceutical, chemical manufacturing, automotive industry, building & construction and many more.  Air conditioning has been one of the major application of refrigerants. Stringent regulations pertaining to global warming potential (GWP) from these products is the major reason for invention next generation refrigerants. Due to Kyoto Protocol of 1997 and Montreal Protocol of 1987, there has been a shift in the usage of various grades of refrigerants. GWP of R-410A still remains an issue even though it has zero ozone depletion potential (ODP).  In the European F-gas legislation which was issued in 2014, HCF consumption was planned to be reduced by 79% in Europe whereas Montreal Protocol included an amendment to reduce HCF production as well as consumption by 85% from 2016-35.
Products namely R-32 has zero ODP, it has 1/3rd GWP of R-410A. R-32 till now was very difficult to handle but Daikin became the pioneer in introducing the refrigerants in air conditioners. Such interventions are likely to increase the penetration of next generation refrigerants in coming years. As of now, R-410A is the most commonly widely used refrigerant in developed nations. However, if all R-410A was converted to R-32, the impact to global warming from these gases can be reduced by 19% instead of using R-410A till 2030.
 

Emphasis on reducing GWP from refrigerants

Various regional governments have proposed plans to reduce global warming potential from various sources of which refrigerants play an important role. The European Parliament has implemented an agreement, December 2013, reduce the usage of hydrofluorocarbons. Furthermore, the European Union has announced a complete ban on HFC in newly launched refrigeration units in commercial applications. As a result of which, refrigerants namely as R410A and R134a have seen reduction in market volume. To meet the updated requirements, TurboChill chillers were launched by Airedale Air Conditioning which had low GWP compared to previously used products.

Talking about regulations, the Kigali agreement proposed in the year 2016, which is an extension of Montreal Protocol, reduction in consumption of harmful HFC’s by 80% over the next 30 years has been implemented in some of the countries. Innovation unlocks the ability of new coolants to create a future with low GWP. Important developments include: the use of CO2 refrigerant thermodynamics especially due to its expansion energy and heating properties to make CO2 even more feasible for commercial refrigeration.

Air conditioning segment likely to dominate the global market

The air conditioning segment is likely to show lucrative growth on account of increasing number of AC installations in residential complexes in Asian countries. High spending on lifestyle from middle income groups has resulted in a noticeable increase in purchases of split AC’s within this region. The air conditioner market in India is likely to show double digit growth in coming years. Advancements in air conditioners has resulted in reduction in electricity consumption in almost all the models. Introduction of inverter technology as well as 100% copper coil has been a strategy used by manufacturers to tap potential buyers to increase sales.

Asia Pacific will lead the growth in this market

Asia Pacific is likely to show lucrative growth on account of china being the largest producer of air conditioning units. Lucrative demand from India, Japan, Thailand, Singapore and other tourist destinations where hotel industry is performing well, the demand for next generation referents is anticipated to increase in coming years. Under construction residential as well as commercial buildings are likely to support the demand for air conditioners directly benefiting the market growth for next generation refrigerants in coming years.

Key Market Players

• DAIKIN INDUSTRIES, Ltd.
• DuPont
• AGC Inc.
• ASPEN Refrigerants, Inc.
• Arkema S.A.
• Linde
• Atco Atmospheric & Speciality Gases Private Limited
• A-Gas
• Carnot Refrigeration
• Honeywell International Inc.

next generation refrigerants market Scope

Market Segments: Next Generation Refrigerants Market

• By Type
  • • Natural
    • Hydrofluoroolefins
    • Others
• By Application
  • • Air Conditioning
    • Refrigeration
    • Heat Pump
    • Others
• By End-Use
  • • Industrial
    • Residential
    • Commercial
    • Transportation
• By Region (tentative)
  • North America
    • US
    • Canada
  • Europe
    • Germany
    • France
    • UK
  • Asia Pacific
    • China
    • India
    • Japan
  • Middle East and Africa
    • UAE
    • South Africa
  • Central & South America
    • Brazil

Key Sources

• Industry Associations
• Company Annual Reports
• Company Websites
• Key industry leaders
• Technology consultants
• Others

Key Questions Answered

• What are the key growth regions and countries?
• What are the important types and technologies being used?
• What are the market players doing, in terms of research and development?
• Which are the new product grades for this market?
• What are the integrations happening?
• What is the recent news, developments, mergers, or large value deals?
• Where will the industry go in the long run?

Key Stakeholders

• Global/regional food associations
• Raw material manufacturers
• Regulatory Authorities
• Research and Innovation Organizations
• Technocrats
• Suppliers and Distributors
• Other Channel Partners
• Quality Control Organizations