PUBLISHER: Allied Market Research | PRODUCT CODE: 1365648
PUBLISHER: Allied Market Research | PRODUCT CODE: 1365648
According to a new report published by Allied Market Research, titled, "Natural Refrigerant Market," The natural refrigerant market was valued at $1.5 billion in 2022, and is estimated to reach $2.7 billion by 2032, growing at a CAGR of 6.2% from 2023 to 2032.
A natural refrigerant is a substance derived from natural sources such as ammonia, water, or carbon dioxide that possesses favorable thermodynamic properties for heat transfer and is used in refrigeration and air conditioning systems. It is characterized by having low or zero ozone depletion potential (ODP) and low global warming potential (GWP), making it an environmentally friendly alternative to synthetic refrigerants. Natural refrigerants have minimal impact on climate change and thus serve as a sustainable and energy-efficient cooling solution.
Frozen food is gaining popularity among working women and families with increasing spending abilities. Preservation of food through freezing retains the quality of food products for long storage periods. As an approach to the long-term preservation of vegetables and fruits, freezing is considered superior to dehydration and canning of food & beverages to retain the nutritive properties and sensory attributes. In recent years, owing to changing consumer profiles, the frozen food & beverages industry has witnessed a significant change. The rapid increase in the number of working women and the reduction in the overall family size globally has resulted in a decrease in time spent cooking/preparing food. This has further led to an increase in the variability of frozen or ready-to-eat food and dairy products. In addition, the global frozen food industry is expanding exponentially to cater to the increasing demand for frozen food and dairy products and their variability. Harmful and relatively less efficient fluorocarbon refrigerants are being replaced by ammonia, carbon dioxide, hydrocarbons, and other natural refrigerants by increased industry players. Approximately two-thirds of multinational supermarkets use natural refrigerants. Thus, the surge in demand for frozen food and dairy products along with an increase in the demand for a variety of frozen food products is a key factor that boosts the market growth.
Synthetic refrigerants have been extensively utilized in the refrigeration industry. Hydrofluorocarbons (HFCs), chlorofluorocarbons (CFCs), and hydrochlorofluorocarbons (HCFCs) are the most commonly used synthetic refrigerants in the modern world. Natural refrigerants are not preferred for effective residential and small business refrigeration as they are highly susceptible to microbial decay. This is attributed to their high toxicity, corrosiveness, high pressures, flammability, and, in some instances, lower operating efficiencies. As a consequence of extensive R&D, the first synthetic refrigerants were developed. Initially, due to technological limitations, synthetic refrigerants outperformed natural refrigerants. Another advantage that synthetic refrigerants have over their natural counterparts is their stability. These factors significantly influenced the global expansion of the market. Thus, the presence and widespread acceptance of synthetic refrigerants restrain the market expansion.
Green cooling technologies are currently available and utilized in numerous industries. 50% of newly manufactured refrigerators already utilize natural refrigerants such as R600a (isobutane) and R290 (propane). Unitary air conditioning is the fastest-growing subsector of the Rent-A-Center (RAC) sector in a number of countries and is undergoing numerous positive changes. This is attributed to the increasing popularity of inverter technology as major manufacturing countries such as China and India introduce R290-based UAC systems to the market. Major corporations are further opting to use green cooling technologies, particularly due to their substantial cost reductions. For instance, Coca-Cola has already acquired 1.7 million units free of climate-damaging hydrofluorocarbons (HFCs) and has reduced electricity consumption by up to 35% by implementing intelligent energy management features. As the demand for cooling rises, it is imperative to implement climate-friendly and sustainable cooling strategies. Using the most energy-efficient technologies and a product with a very low global warming potential (GWP), the "green cooling" strategy reduces the negative environmental effects of RAC appliances and reduces energy costs. Thus, technological advances in green cooling are expected to open new avenues for market expansion during the forecast period.
The global natural refrigerant market is segmented into gas, application, and region. By gas, the market is divided into carbon dioxide, ammonia, hydrocarbons, and others. On the basis of application, it is categorized as refrigerators, air conditioning systems, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The major players operating in the global natural refrigerant market are Danfoss, Linde Plc, A-Gas International Ltd., Daikin Industries Ltd., Evonik Industries AG, AGC Inc., Air Liquide, HyChill Australia Pty Ltd., Johnson Controls, and Puyang Zhongwei Fine Chemical Co., Ltd.
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