PUBLISHER: The Business Research Company | PRODUCT CODE: 1427918
PUBLISHER: The Business Research Company | PRODUCT CODE: 1427918
Natural refrigerants, derived from natural sources and employed in cooling systems, represent a more environmentally friendly alternative. These refrigerants boast low to no ozone depletion potential (ODP) and a minimal global warming potential (GWP), contributing to their eco-friendly profile.
The primary types of natural refrigerants include ammonia (R-717), carbon dioxide (R-744), hydrocarbons, and other variations. Ammonia, characterized by its pungent, colorless, gaseous alkaline composition of nitrogen and hydrogen, demonstrates solubility in water. Through cold and pressure, it can be condensed into a liquid suitable for use in R717 (ammonia) refrigerant grade. This particular application ensures efficient refrigeration with a 0% global warming potential (GWP), particularly beneficial in low and medium-temperature refrigeration applications. The versatile applications of these natural refrigerants span across various sectors, including refrigerators, air conditioning systems, and others, catering to different end-use industries such as industrial, commercial, and domestic settings.
The natural refrigerant market research report is one of a series of new reports from The Business Research Company that provides natural refrigerant market statistics, including natural refrigerant industry global market size, regional shares, competitors with a natural refrigerant market share, detailed natural refrigerant market segments, market trends and opportunities, and any further data you may need to thrive in the natural refrigerant industry. This natural refrigerant market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The natural refrigerants market size has grown strongly in recent years. It will grow from $1.41 billion in 2023 to $1.53 billion in 2024 at a compound annual growth rate (CAGR) of 8.6%. The expansion observed in the historical period can be attributed to several factors, including environmental regulations, heightened environmental awareness, concerns regarding energy efficiency, cost competitiveness, and an increased demand for HVAC (Heating, Ventilation, and Air Conditioning) systems.
The natural refrigerants market size is expected to see strong growth in the next few years. It will grow to $2.08 billion in 2028 at a compound annual growth rate (CAGR) of 7.9%. The anticipated growth in the forecast period can be ascribed to various factors, including the enforcement of global warming potential (GWP) regulations, adherence to commitments outlined in the Paris Agreement, consumer inclination towards sustainable products, the expansion of cold chain logistics, and awareness and education campaigns. Noteworthy trends expected in the forecast period encompass advancements in refrigeration technologies, the increasing adoption of carbon dioxide (CO2) as a refrigerant, innovative system designs, the integration of Internet of Things (IoT) in refrigeration, and initiatives promoting a circular economy.
The anticipated growth in the natural refrigerants market is driven by the increasing adoption of these substances in cooling systems. Natural refrigerants, sourced from natural origins, offer a more environmentally friendly alternative to synthetic refrigerants. Many production plants are choosing natural refrigerants due to their sustainable and future-proof characteristics, leading to lower energy consumption and reduced maintenance costs compared to chemical refrigerants. Emerson, a US-based company specializing in natural refrigerants, reported in February 2022 that CO2 refrigeration has gained widespread use in Europe, with a growing trend in the United States and other nations. Currently, there are 46,500 CO2 transcritical booster systems in operation globally, including 900 in the United States (1,400 in North America with Canada included), 40,000 in the EU, and 5,000 in Japan. Emerson anticipates a further 50% increase in CO2 adoption by 2025 in the US, highlighting the rising use of natural refrigerants and its impact on market growth.
The expansion of the automotive industry is set to drive the growth of the natural refrigerant market. The automotive sector, encompassing various activities from design and manufacturing to marketing and selling of motor vehicles, relies on natural refrigerants to provide eco-friendly alternatives for air conditioning systems. This helps in reducing greenhouse gas emissions and aligning with sustainability objectives. According to The Society of Motor Manufacturers and Traders Limited, a UK-based trade association, car manufacturing is expected to reach 751,422 units in 2023, marking a significant growth of 16.70% from 643,755 units in the previous period. As the automotive industry expands, the demand for natural refrigerants continues to rise, contributing to the overall growth of the natural refrigerant market.
Product innovation has become a prominent trend in the natural refrigerant market, with major companies strategically focusing on developing innovative products to enhance their market positions. In June 2022, ATMOsphere, a US-based provider of natural refrigerant products and services, introduced the natural refrigerants label. This initiative aims to highlight best-in-class manufacturers of natural refrigerant systems and components, particularly in the rapidly growing and competitive sector, including ammonia/NH3 (R717) products. The label serves to assist qualified producers in marketing their products to new consumers and regions. Additionally, it aids end consumers in identifying top-tier providers, with unauthorized usage being subject to notification.
Leading companies in the natural refrigerant market are intensifying efforts to introduce environmentally friendly refrigerants as part of their strategy to gain a competitive edge. Environmentally friendly refrigerants are substances used in cooling and air conditioning systems that have minimal environmental impact. For instance, in July 2023, Keyter Technologies S.L., a Spain-based provider of heating and cooling products, unveiled the ZIRAN Pro series-an air-to-water heat pump utilizing natural gas R290 (propane) as a refrigerant. These units feature advanced attributes, including an AQUAMATIX programmable electronic control and a Climatix HMI user terminal. Optimized for R290 refrigerant (propane) use, these units, equipped with Full-Inverter technology, offer a robust and sustainable solution for HVAC requirements.
In April 2021, TEGA GmbH, a Germany-based natural gas company, successfully acquired Linde plc for an undisclosed amount. Through this acquisition, TEGA aims to fortify its portfolio and directly serve refrigerant customers in Austria. Linde PLC, based in Ireland, is a chemical company specializing in the production of natural refrigerants.
Major companies operating in the natural refrigerants market report are Sinochem Corporation, Linde PLC, Air Liquide, Emerson Electric Co., Evonik Industries AG, Hess Corporation, Airgas Inc., Alfa Laval AB, TEKO, Carel Industries S.P.A, True Manufacturing Co. Inc., Secop Group Holding GmbH, A-Gas international, Guntner GmbH & Co KG, Casale SA, Tazzetti SpA, Westermeyer Industries, Puyang Zhongwei Fine Chemical Co. Ltd., HyChill Australia Pty Ltd., Natural Refrigerants Company, Shandong Shing Chemical Co Ltd., M&M Carnot, Engas Industries Pty. Ltd., A.S. Trust and Holdings, Nel Hydrogen, GTS S.p.A., Harp International Ltd.
Europe was the largest region in the natural refrigerants market in 2023. Asia-Pacific is expected to be the fastest-growing region in the natural refrigerants market report during the forecast period. The regions covered in the natural refrigerants market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the natural refrigerants market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The natural refrigerants market consists of sales of R50 (methane), R290 (propane), R600 (butane), R600a (isobutane), and R1270 (propylene). Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Natural Refrigerants Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on natural refrigerants market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for natural refrigerants ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The natural refrigerants market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.