Next Generation Refrigerants Market to Grow with a CAGR of 3.48% through 2030
Rising Demand for Energy-Efficient Cooling Solutions and Expanding
Commercial and Industrial Infrastructure are expected to drive the Global Next
Generation Refrigerants Market growth in the forecast period, 2026-2030
According to TechSci Research report, “Next
Generation Refrigerants Market – Global Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2030F”, the Global Next
Generation Refrigerants Market stood at USD 4.15 Billion in 2024 and is
anticipated to grow with a CAGR of 3.48% in the forecast period.
International frameworks such as the Kigali Amendment
to the Montreal Protocol are mandating the phasedown of
high-global-warming-potential (GWP) hydrofluorocarbons (HFCs), pushing
countries toward the adoption of environmentally sustainable alternatives. This
regulatory shift is accelerating the use of hydrofluoroolefins (HFOs), natural
refrigerants including CO₂, ammonia, and
hydrocarbons, as well as low-GWP blends enabling compliance while significantly
reducing environmental impact.
Manufacturers are developing advanced HVAC and
refrigeration technologies optimized for these next-generation refrigerants,
including variable refrigerant flow (VRF) systems, inverter-driven compressors,
and integrated smart controls. These systems enhance energy efficiency, improve
operational flexibility, and in many cases, achieve peak performance only when
paired with low-GWP refrigerants further driving market uptake. Government
initiatives, such as tax incentives, subsidies, and funding programs, are also
expediting the transition, while corporations are embedding refrigerant
selection into broader ESG strategies, prioritizing low-environmental-impact
solutions to meet sustainability commitments.
The supply landscape for next-generation refrigerants particularly
HFOs remains in the development phase. Limited production capacity, dependence
on a small pool of global suppliers, and complex manufacturing processes
continue to keep unit costs above those of conventional refrigerants. This
pricing gap is especially challenging in emerging markets, where additional
logistics expenses, import tariffs, and certification requirements amplify
costs. Moreover, uneven regulatory implementation timelines across different
regions are creating market fragmentation, slowing global harmonization and
delaying large-scale adoption.
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The Global Next Generation Refrigerants Market is
segmented into type, application, end use, regional distribution, and company.
Based on the category of End Use, the Commercial
segment emerged as the dominating segment in the market for Next Generation
Refrigerants in 2024. This is due to widespread demand for sustainable and
energy-efficient cooling solutions across retail, hospitality, healthcare,
office complexes, and institutional facilities. Commercial spaces require
large-scale, continuous cooling for applications such as central air
conditioning, cold storage, data centers, and display refrigeration, creating
substantial and recurring demand for advanced refrigerant solutions.
The shift toward low-global-warming-potential (GWP)
and ozone-friendly refrigerants is particularly strong in the commercial sector
due to stringent environmental regulations and corporate sustainability goals.
Retail chains, supermarkets, hotels, and healthcare institutions are
increasingly transitioning to hydrofluoroolefins (HFOs), natural refrigerants,
and hybrid blends to comply with regulatory frameworks such as the Kigali
Amendment and to meet consumer expectations for eco-conscious operations. The
commercial sector benefits from significant investment in retrofitting existing
HVAC and refrigeration systems to accommodate next-generation refrigerants, as
well as in deploying new high-performance systems designed for optimized energy
consumption and reduced environmental impact. Rapid growth in urban
infrastructure, expansion of organized retail, and the rising adoption of green
building standards globally further strengthen the segment’s market position.
Collectively, these factors establish the commercial segment as the largest and
most influential end-use category in the global next-generation refrigerants
market.
North America is expected to record the highest growth
rate, supported by early and aggressive regulatory measures to phase down HFCs,
strong adoption of sustainable building standards, and rapid technological
upgrades in HVAC and refrigeration systems. The United States and Canada are
leading the transition through stringent federal and state-level policies,
substantial investment in R&D, and widespread adoption of advanced
refrigerant-compatible technologies such as variable refrigerant flow (VRF)
systems, inverter-driven compressors, and IoT-enabled performance monitoring.
Additionally, corporate ESG commitments, growing demand for retrofits in aging
infrastructure, and strong consumer preference for eco-friendly solutions are
fueling accelerated uptake of next-generation refrigerants across residential,
commercial, and industrial applications.
Major companies operating in Global Next
Generation Refrigerants Market are:
- Honeywell International Inc
- Zhejiang Juhua Co Ltd
- Arkema
- DAIKIN INDUSTRIES Ltd
- The Chemours Company
- SRF Limited
- Tazzetti S.p.A
- ASPEN Refrigerants Inc
- Linde PLC
- Harp International Ltd.
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“The global next-generation refrigerants market is set
to play a pivotal role in shaping the future of sustainable cooling, driven by
regulatory mandates, technological innovation, and growing environmental
awareness. While challenges such as higher transition costs, technical
complexities, and supply chain limitations persist, the market’s long-term
outlook remains highly positive. Companies that can align product development
with evolving environmental standards, deliver cost-efficient solutions, and integrate
refrigerants into advanced, energy-efficient systems will be best positioned to
capture opportunities in this rapidly transforming landscape.,” said Mr. Karan
Chechi, Research Director of TechSci Research, a research-based management
consulting firm.
“Next Generation
Refrigerants Market - Global Industry Size, Share, Trends, Opportunity
& Forecast, Segmented By Type (Natural Refrigerants, Hydrofluoro Olefins,
Others), By Application (Air Conditioning, Refrigeration, Heat Pump, Others), By
End Use (Residential, Industrial, Commercial & Transportation), By Region, & Competition, 2020-2030F”, has evaluated
the future growth potential of Global Next Generation Refrigerants Market and
provides statistics & information on market size, structure and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Global Next Generation Refrigerants Market.
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