The global low GWP refrigerants market size is expected to reach US$ 22.6 Billion in 2022. Sales of low GWP refrigerants are anticipated to grow at a fast pace owing to the rising demand for air conditioners and surging need to reduce environmental pollution worldwide. As per FMI, the global low GWP refrigerants market is set to be valued at US$ 71.4 Billion in 2032 and exhibit growth at a CAGR of 12.2% in the forecast period (2022-2032).
| Report Attribute | Details |
| Low GWP Refrigerants Market Estimated Base Year Value (2021) | US$ 21.8 Billion |
| Low GWP Refrigerants Market Expected Market Value (2022) | US$ 22.6 Billion |
| Low GWP Refrigerants Market Anticipated Forecast Value (2032) | US$ 71.4 Billion |
| Low GWP Refrigerants Market Projected Growth Rate (2022-2032) | 12.2% CAGR |
Various types of refrigerants are extensively used in a wide range of applications, such as heating, ventilation, air conditioning, and refrigeration (HVAC&R). But, the majority of these refrigerants can have a negative effect on the environment when they are released in the atmosphere.
Thus, increasing concerns regarding the negative impacts of harmful refrigerants on the environment and global warming are compelling end users to adopt eco-friendly solutions.
Surging demand for low GWP refrigerants for usage in ice machines & cold counters, cold displays, condensing units, and refrigerating chambers in centralized units, shops, and supermarkets is set to drive growth. The high energy consumption and refrigerant leakage rate in the commercial sector are also expected to augur well for the market.
The implementation of stringent environmental norms, such as the Paris Agreement, is set to promote the usage of pro-environment practices in the manufacturing and industrial sectors. The emergence of such initiatives and norms are likely to accelerate the ban of specific ozone-depleting substances that are posing serious threats to the environment.
Many leading companies worldwide are putting forward legislation to lower the impact of ozone-depleting refrigerants on the environment, as well as promote the adoption of low GWP refrigerants in numerous industries. In addition to that, the rising demand for frozen food products across the globe is projected to boost the low GWP refrigerants market growth in future years.
Even though various government and private agencies are creating awareness among industries regarding the environmental impacts of high CWG refrigerants, the majority of them are finding this transformation a complex process. The availability of low CWG refrigerants that are ideal for usage in numerous applications still remains limited to a handful of options.
Low toxicity, volumetric capacity (Qvol), environmental acceptance, Coefficient of Performance (COP), and flammability are some of the major factors in the process of selecting the right refrigerant. Options for high-performance solutions are minimal for fluids that have good COP and low toxicity. These factors may hamper the sales of low CWG refrigerants in the upcoming years.
The presence of a well-established construction industry in Germany is estimated to drive the Europe low GWP refrigerants market share in the evaluation period. The rising number of new residential construction activities in this country is expected to bode well for the regional market. This is attributable to the surging migration of people to the country.
As per CEIC Data, in 2020, dwellings in Germany were reported at 306,376.000 units. It exhibited a surge from the previous number of 293,002.000 units in 2019. These numbers are likely to grow at a rapid pace in future years, thereby propelling construction activities in Europe. It is further expected to augment the demand for air conditioners in this region and drive the market.
The ongoing expansion of retail food chains in emerging economies, such as India and China by multinational companies is estimated to spur the demand for low GWP refrigerants in Asia Pacific in the assessment period. The rising international trade owing to trade liberalization is also likely to surge the need for cold chain processes in this region.
Moreover, the presence of a competitive market with low margins is anticipated to boost the regional market. The rapid inclination of food processors, retailers, and distributors towards high bay deep-freeze warehouses from manually operated obsolete facilities is also expected to propel the demand for commercial refrigeration and push the market.
Some of the leading companies present in the global low GWP refrigerants market include Honeywell International Inc., Arkema Inc., Dongyue Group Co. Ltd., Daikin America Inc., Shandong Yuean Chemical Industry Co. LTD., The Chemours Company, Zhejiang Sanmei Chemical Incorporated Company, The Danfoss Group, Zhejiang Quzhou Lianzhou Refrigerants Co., Ltd., and Trust & Holdings, Inc. among others.
The global market is highly competitive and fragmented with the presence of several regional and domestic companies. They are adopting various organic and inorganic strategies, such as partnerships, expansions, and mergers and acquisitions to compete with their rivals. Meanwhile, a few other key players are aiming to launch novel products to strengthen their positions in the market.
| Report Attribute | Details |
| Growth Rate | CAGR of 12.2% from 2022 to 2032 |
| Base Year for Estimation | 2021 |
| Historical Data | 2015-2020 |
| Forecast Period | 2022-2032 |
| Quantitative Units | Revenue in USD Billion, Volume in Kilotons and CAGR from 2022-2032 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis |
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| Customization | Available Upon Request |
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The global low GWP refrigerants market is anticipated to exceed US$ 71.4 Billion in 2032.
Europe is set to lead the low GWP refrigerants market in the forecast period.
Honeywell International Inc., Arkema Inc., Dongyue Group Co. Ltd., Daikin America Inc., and Shandong Yuean Chemical Industry Co. LTD. are some of the renowned companies in the low GWP refrigerants market.
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