Magnetic Refrigeration Market By Type (Refrigerators, Air Conditioning System & Heat Pumps), By End Use (Domestic, Commercial, Transportation & Industrial), By Region, By Competition Forecast & Opportunities 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 192.47 Million
CAGR (2026-2031)	28.79%
Fastest Growing Segment	Refrigerators
Largest Market	Europe
Market Size (2031)	USD 878.33 Million

Market Overview

The Global Magnetic Refrigeration Market will grow from USD 192.47 Million in 2025 to USD 878.33 Million by 2031 at a 28.79% CAGR. Magnetic refrigeration is a solid-state cooling technology that utilizes the magnetocaloric effect, wherein specific materials undergo temperature changes when exposed to varying magnetic fields, effectively eliminating the need for conventional compressors and gaseous refrigerants. The primary drivers fueling market growth include stringent international environmental regulations mandating the phase-out of high-global warming potential hydrofluorocarbons and the critical industrial requirement to reduce operational energy expenditures. According to the International Institute of Refrigeration, in 2025, the refrigeration sector accounted for approximately 20% of global electricity consumption, underscoring the substantial necessity for energy-efficient alternatives like magnetic cooling.

However, market expansion is significantly impeded by the high production costs and supply chain constraints associated with magnetocaloric materials. These systems frequently rely on rare-earth metals such as gadolinium, which are subject to price volatility and complex extraction processes, creating a barrier to cost-effective mass production and competitive pricing against established vapor-compression technologies.

Key Market Drivers

Stringent international regulations phasing out high-Global Warming Potential (GWP) refrigerants serve as the foremost catalyst for the magnetic refrigeration market. As nations implement binding caps on hydrofluorocarbon (HFC) production, industries are compelled to transition from conventional vapor-compression systems to solid-state alternatives that utilize magnetocaloric materials. According to the U.S. Environmental Protection Agency, October 2024, in the 'Notice of 2025 Allowance Allocations', the consumption allowances for regulated hydrofluorocarbons in the United States were strictly capped at approximately 181.5 million metric tons of exchange value equivalent for the 2025 calendar year. This regulatory tightening creates an immediate commercial imperative for magnetic refrigeration technologies, which inherently operate without volatile gaseous refrigerants, thereby future-proofing cold chain and HVAC operations against escalating compliance risks and quota reductions.

Rising global demand for energy-efficient cooling solutions further accelerates the adoption of magnetic refrigeration systems, which offer superior thermodynamic efficiency compared to traditional compressors. This shift is critical as the rapid expansion of cooling infrastructure threatens to overwhelm electrical grids in both developing and developed economies. According to the International Energy Agency, October 2024, in the 'World Energy Outlook 2024', residential air conditioning alone is projected to require an additional 700 terawatt-hours of electricity globally by 2035. To mitigate this surge, governments and corporations are aggressively pursuing sustainable technologies. According to the United Nations Environment Programme, in November 2024, 71 countries have now joined the Global Cooling Pledge to reduce cooling-related emissions by 68% globally by 2050, creating a substantial market opportunity for low-energy magnetic cooling innovations.

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Key Market Challenges

The heavy reliance on rare-earth metals such as gadolinium for magnetocaloric materials creates a formidable economic barrier for the Global Magnetic Refrigeration Market. These critical raw materials are essential for generating the magnetic fields required for the cooling cycle, yet their supply chain is fraught with geopolitical risks and extraction complexities. Because these metals are difficult to refine and sourced from limited geographical regions, manufacturers face unpredictable input costs that make magnetic refrigeration units considerably more expensive than established vapor-compression systems. This cost disparity discourages widespread adoption in price-sensitive commercial and residential sectors.

The vulnerability of this supply chain is underscored by the high concentration of processing power in a single region, which restricts alternative sourcing options. According to the Global Wind Energy Council, in 2025, China controlled over 80% of global rare earth processing and refining capabilities. This monopolistic market structure limits the ability of magnetic refrigeration manufacturers to negotiate favorable pricing or secure consistent material flows. Consequently, the inability to achieve economies of scale due to these upstream material constraints prevents the technology from achieving the competitive pricing necessary for mass market penetration.

Key Market Trends

Commercial scaling in retail display cabinets is rapidly emerging as a primary trend in the magnetic refrigeration market, shifting the technology from laboratory prototypes to functional supermarket pilots. Manufacturers are increasingly focusing on vertical multideck cabinets and beverage coolers to demonstrate the reliability and quiet operation of magnetocaloric systems in customer-facing environments. This transition is characterized by the development of large-capacity units designed to replace conventional compressor-based systems in grocery chains, directly addressing the sector's need for sustainable cold storage. According to MagnoTherm Solutions, November 2024, in the press release 'Magnetic Cooling Market-Ready', the company commercially launched the ECLIPSE 2D, a magnetic refrigeration cabinet with a substantial capacity of 1,110 liters, marking a pivotal step toward mass adoption in the food retail sector.

Simultaneously, the utilization of additive manufacturing for heat exchangers is revolutionizing the production of active magnetic regenerators (AMRs) to optimize thermal performance. By employing binder jetting and other 3D printing techniques, engineers can now fabricate magnetocaloric materials with complex, high-surface-area geometries that were previously impossible to cast, significantly enhancing fluid dynamics and heat transfer rates. This manufacturing innovation is critical for maximizing the thermodynamic cycle's efficiency while reducing material waste. According to 3DPrint.com, October 2024, in the article '3D Printed Materials Enable MAGNOTHERM's Next Gen Magnetic Cooling Tech', recent demonstrations of 3D-printed lanthanum-iron-silicon regenerators have enabled magnetic cooling systems to achieve energy consumption reductions of up to 30% compared to traditional gas-compression alternatives.

Segmental Insights

The Refrigerators segment is recognized as the fastest-growing category within the Global Magnetic Refrigeration Market due to the increasing demand for eco-friendly cooling solutions. This growth is primarily supported by stringent international regulations, such as the Kigali Amendment to the Montreal Protocol, which mandate the phase-down of harmful traditional refrigerants. Manufacturers are shifting toward magnetic cooling technology to comply with these environmental standards and to benefit from reduced energy consumption. This transition in commercial and residential refrigeration highlights the industry focus on meeting regulatory requirements while optimizing operational efficiency.

Regional Insights

Europe maintains a dominant position in the Global Magnetic Refrigeration Market, primarily driven by the European Union’s rigorous environmental mandates. The EU's F-gas regulation strictly limits the use of fluorinated greenhouse gases, compelling industries to transition away from traditional vapor-compression systems toward sustainable, low-emission alternatives. This legislative pressure necessitates the rapid adoption of eco-friendly technologies like magnetic cooling. Furthermore, the region benefits from a concentrated ecosystem of research institutions and technology developers dedicated to green energy solutions, creating a favorable environment that accelerates both the innovation and commercialization of magnetic refrigeration systems throughout the continent.

Recent Developments

• In September 2025, MAGNOTHERM and the Helmholtz-Zentrum Dresden-Rossendorf (HZDR) inaugurated a pilot plant for magnetic hydrogen liquefaction in Dresden. The collaboration focused on a highly efficient magnetocaloric system capable of liquefying hydrogen using a superconducting magnet, a process designed to be more energy-efficient than conventional compression methods. This facility was established to demonstrate the scalability of magnetic cooling for industrial applications, particularly in the growing hydrogen economy. The project represented a breakthrough in applying the magnetocaloric effect to cryogenic temperatures and industrial gas processing.
• In November 2024, MAGNOTHERM launched the ECLIPSE 2D, a commercial refrigerator designed for the gastronomy and food retail sectors. The German company unveiled the double-door unit, which features a capacity of 1,110 liters and operates without any compressors or conventional refrigerants. By utilizing magnetocaloric materials, the refrigerator achieves cooling through the magnetization and demagnetization of solid alloys, offering a sustainable alternative to gas-based systems. This product launch marked a significant step toward the mass-market commercialization of magnetic cooling technology for everyday business use.
• In October 2024, Magnoric debuted a new magnetocaloric display cabinet prototype at the Chillventa trade fair in Nuremberg, Germany. The French-German company, formerly known as Ubiblue, demonstrated the unit's ability to cool beverages using a magnetic field instead of a traditional compressor and refrigerant gases. During the event, the company announced that it was entering the pre-industrialization phase for larger cooling units exceeding 6 kW. This development aimed to address high-demand commercial applications, including supermarkets and data centers, with a focus on energy efficiency and environmental sustainability.
• In January 2024, Camfridge was highlighted at the Consumer Electronics Show (CES) in Las Vegas through a collaboration with Samsung Electronics. The UK-based company was displayed at the Samsung Sustainability Zone as the winner of the Climate and Circularity Tech Challenge. This recognition underscored the industry's interest in Camfridge’s magnetic cooling technology, which eliminates the need for gas refrigerants and offers a circular, recyclable solution. The event demonstrated the growing partnership between established electronics giants and specialized magnetic refrigeration developers to promote sustainable cooling innovations.

Key Market Players

• Camfridge Ltd
• Whirlpool Corporation
• BASF SE
• Samsung Electronics Co., Ltd
• Vacuumschmelze GmbH & Co. Kg
• Cooltech Applications
• Astronautics Corporation of America
• Qingdao Haier Co., Ltd
• Eramet S.A.
• Toshiba Corporation

By Type	By End Use	By Region
Refrigerators Air Conditioning System & Heat Pumps	Domestic Commercial Transportation & Industrial	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Magnetic Refrigeration Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Magnetic Refrigeration Market, By Type:

• Refrigerators
• Air Conditioning System & Heat Pumps

• Magnetic Refrigeration Market, By End Use:

• Domestic
• Commercial
• Transportation & Industrial

• Magnetic Refrigeration Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE