Refrigerants Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (CFCs, HCFCs, HFCs, Inorganic Refrigerants, Others), By Application (Air Conditioners, Refrigerators, Electronics Devices, Chillers, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 6.51 Billion
CAGR (2026-2031)	4.81%
Fastest Growing Segment	Chillers
Largest Market	Asia Pacific
Market Size (2031)	USD 8.63 Billion

Market Overview

The Global Refrigerants Market will grow from USD 6.51 Billion in 2025 to USD 8.63 Billion by 2031 at a 4.81% CAGR. Refrigerants are chemical compounds capable of undergoing phase transitions from liquid to gas and back, primarily used within heat cycles to transfer thermal energy in air conditioning, refrigeration, and heat pump systems. The market is fundamentally driven by the escalating global demand for cooling solutions in residential, commercial, and industrial sectors, underpinned by rapid urbanization and rising ambient temperatures. This expansion is further supported by the growing necessity for efficient cold chain logistics to ensure food security and pharmaceutical safety. According to the Japan Refrigeration and Air Conditioning Industry Association (JRAIA), in 2024, the world's total air conditioner demand was estimated at 131,638 thousand units, underscoring the substantial equipment volume necessitating refrigerant supply.

Despite this robust demand, the market faces a significant impediment regarding the complex transition to low-global warming potential alternatives mandated by international environmental accords. The phase-out of hydrofluorocarbons presents a substantial challenge as the industry must balance regulatory compliance with the higher costs, flammability risks, and technical retrofitting requirements associated with next-generation eco-friendly substitutes. This regulatory pressure compels manufacturers to invest heavily in research and development, potentially straining profit margins and slowing the adoption rate of compliant technologies in price-sensitive developing regions.

Key Market Drivers

The surging demand for air conditioning and HVAC systems serves as a primary catalyst for market expansion, particularly as rising global temperatures and urbanization necessitate reliable climate control. This driver is intensifying refrigerant consumption as manufacturers ramp up production of residential and commercial cooling units to meet critical infrastructure needs. As new installations rise to combat thermal stress, the corresponding initial charge and subsequent servicing requirements for these systems create a sustained revenue stream for refrigerant producers. According to the Air-Conditioning, Heating, and Refrigeration Institute, March 2025, the total combined shipments of central air conditioners and air-source heat pumps in the United States increased by 11.8% throughout 2024 compared to the previous year, highlighting the robust equipment installation rates that directly correlate with increased chemical volume requirements.

Concurrently, the rapid expansion of cold chain infrastructure for food and pharmaceuticals is propelling the market forward, ensuring the integrity of perishable goods across complex global supply networks. This sector relies heavily on advanced refrigerants to maintain precise temperature controls in storage facilities and transport logistics, effectively reducing spoilage and extending product shelf life. According to the Global Cold Chain Alliance, April 2025, the total temperature-controlled capacity operated by its global members grew by over 10% to reach 231 million cubic meters compared to the 2024 listing. This infrastructure growth underscores the rising reliance on cooling technologies, a trend further validated by the financial performance of key material suppliers; for instance, according to Facilities Dive, October 2025, Honeywell’s Solstice Advanced Materials business generated $3.8 billion in net sales in 2024, largely driven by the adoption of next-generation refrigerants in these critical applications.

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Key Market Challenges

The complex transition to low-global warming potential (GWP) alternatives, mandated by international environmental accords, acts as a primary constraint hampering the growth of the Global Refrigerants Market. This regulatory shift forces manufacturers to divert substantial capital toward the research and development of compliant substitutes rather than capacity expansion. The high costs associated with technical retrofitting and managing the flammability risks of next-generation refrigerants inflate final product prices, creating a barrier to entry in price-sensitive sectors. Furthermore, the uncertainty surrounding the availability and performance of these new chemical compounds causes hesitation among end-users, delaying the replacement of legacy systems.

This disruption is visibly contracting demand in key application segments, which directly reduces the volume of refrigerant required for new installations. According to the European Heat Pump Association (EHPA), in 2024, heat pump sales across 13 major European countries declined by 23%, falling to approximately 2 million units from 2.6 million in the previous year. Such a significant downturn in equipment deployment limits the primary market for refrigerant charging, thereby stifling the industry's overall revenue potential and growth trajectory.

Key Market Trends

The retail sector is aggressively pivoting toward natural refrigerants, specifically carbon dioxide (R-744), to mitigate the regulatory risks associated with phasing out hydrofluorocarbons. This transition represents a strategic alignment with long-term sustainability, as transcritical CO2 systems offer immunity to future environmental bans and superior thermodynamic efficiency. Consequently, retailers are accelerating the retrofit of existing cold storage infrastructure to accommodate these high-pressure natural solutions, effectively replacing legacy synthetic blends. According to the International Institute of Refrigeration (IIR), March 2025, in the 'Increase in the use of natural refrigerants in commercial refrigeration' report, approximately 30% of food retail outlets in Europe have adopted transcritical CO2 systems, totaling around 90,700 locations, signaling a definitive departure from chemical coolants.

Simultaneously, the market is shifting toward circular economy practices as the production of virgin hydrofluorocarbons is capped by international quotas. To bridge the gap between restricted supply and the maintenance demand of the installed base, the industry is industrializing the recovery and purification of used gases. This valorization of waste turns reclaimed refrigerant into a vital commodity, reducing reliance on diminishing virgin stocks. According to the U.S. Environmental Protection Agency (EPA), September 2025, in the 'Summary of Refrigerant Reclamation Trends', the total volume of hydrofluorocarbons reclaimed in the United States rose by approximately 30% in 2024 compared to the previous year, highlighting the rapid transition to regenerated material sources.

Segmental Insights

The Chillers segment represents the fastest-growing category within the Global Refrigerants Market, driven by the rapid expansion of commercial infrastructure and industrial sectors, such as data centers, pharmaceuticals, and district cooling. This robust growth is further accelerated by stringent regulatory frameworks, including the Montreal Protocol, which mandate the phase-out of high-Global Warming Potential (GWP) substances. As industries modernize to comply with these environmental standards, there is a substantial shift toward energy-efficient chiller systems that utilize low-GWP alternatives, thereby significantly boosting refrigerant demand in this segment.

Regional Insights

Asia Pacific leads the Global Refrigerants Market, primarily due to the extensive chemical manufacturing sector in China and India. The region sees sustained demand from the construction and automotive industries, which necessitate comprehensive air conditioning and refrigeration infrastructure. Moreover, the expanding cold chain network for food and pharmaceutical logistics further supports market expansion. Regional production is also evolving to meet standards set by the United Nations Environment Programme, fostering a transition to compliant substances. This alignment of production capacity with rising industrial consumption establishes the region as the key global supplier and consumer.

Recent Developments

• In October 2025, Honeywell finalized the spin-off of its Advanced Materials business into an independent, publicly traded entity named Solstice Advanced Materials. This strategic separation resulted in a new company focused exclusively on specialty chemicals and sustainability technologies, including the market-leading Solstice line of low-global warming potential hydrofluoroolefin refrigerants. The completion of this transaction allowed the newly formed business to operate with a distinct capital allocation strategy and a sharpened focus on its core markets, such as automotive, construction, and appliance sectors. The move was intended to unlock greater value and agility for the business in the evolving global regulatory landscape.
• In May 2025, Arkema announced a significant expansion of its refrigerant portfolio through a new commercial arrangement with Honeywell. This collaboration enabled Arkema to produce and distribute a wider range of hydrofluoroolefin (HFO) blends, including R-454B, R-448A, and R-449A, under its Forane brand. The agreement was designed to strengthen global supply chains and address the escalating market demand for lower global warming potential solutions in the heating, ventilation, air conditioning, and refrigeration sectors. By securing this access, the company aimed to ensure a reliable supply of next-generation refrigerants consistent with international phase-down schedules for high-carbon legacy products.
• In December 2024, Daikin Applied introduced enhanced versions of its air-cooled scroll chillers, packaged rooftop systems, and water source heat pumps, all optimized for R-32 refrigerant. This strategic move was part of the manufacturer's initiative to support building decarbonization by utilizing an ultra-efficient, low-global warming potential working fluid. The company reengineered these product lines to leverage the specific thermodynamic properties of R-32, resulting in equipment that delivered higher full- and part-load efficiencies. This launch expanded the firm's portfolio of sustainable HVAC solutions available to engineers and facility owners seeking to comply with evolving environmental mandates.
• In September 2024, Orbia’s Fluor & Energy Materials business, Koura, launched a new refrigerant aimed at the automotive aftermarket in the United Kingdom and European Union. The product, branded as Klea Edge 444A, was introduced as a direct replacement for R-1234yf in vehicle air conditioning systems. Designed to meet strict environmental regulations, this lower global warming potential alternative offered an economical solution for service technicians while maintaining compatibility with existing equipment. The company highlighted that the refrigerant demonstrated faster cabin cooling times and improved energy efficiency in independent laboratory testing compared to the standard R-1234yf.

Key Market Players

• Daikin Industries, Ltd.
• Asahi Glass Corporation
• The Chemours Company
• Sinochem Group Co Ltd
• Honeywell International Inc.
• Gujarat Fluorochemicals Limited
• Airgas Refrigerants Inc.
• Linde PLC
• Mexichem America Inc.
• SRF Limited

By Type	By Application	By Region
CFCs HCFCs HFCs Inorganic Refrigerants Others	Air Conditioners Refrigerators Electronics Devices Chillers Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Refrigerants Market, By Type:

• CFCs
• HCFCs
• HFCs
• Inorganic Refrigerants
• Others

• Refrigerants Market, By Application:

• Air Conditioners
• Refrigerators
• Electronics Devices
• Chillers
• Others

• Refrigerants 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