The refrigerants market is projected to reach US$18.05bn by 2022, at a CAGR of 4.5 per cent between 2017 and 2022
The drivers for this market are the increasing demand for consumer appliances such as refrigeration and air-conditioning equipment and growing cold chain market.
Factors such as growth in organised retail framework, shift towards horticultural crops, and growth in the processed food sector also contribute to the growth in demand for refrigerants. Increasing regulations against the use of fluorocarbon refrigerants and flammability and toxicity issues are expected to be restraints for the refrigerants market. Owing to increasing regulations on the use of fluorocarbons, the refrigerants market is expected to witness an increase in demand for natural refrigerants, which in turn, is expected to be an opportunity in the refrigerants market.
The refrigerants market in the Middle East & Africa is projected to grow at the fastest rate from 2017 to 2022. In the Middle East & Africa, growth in applications such as large-scale refrigerators and chillers are driving the growth of the refrigerants market. Macroeconomic factors such as massive economic growth, steady population growth, increasing tourism, and economic diversification (for instance, shifting dependency from the oil & gas industry to the retail and service industry) are responsible for the increase in the use of refrigerants in various applications. Increasing economic prosperity, growing populations, and rising disposable incomes are attributed to the increase in overall consumer expenditure in the region.
Fluorocarbon refrigerants lead the overall refrigerants market. However, with several countries agreeing to completely phase out the usage of fluorocarbons by 2047, the market for this segment is expected to witness a decline. The European Union (EU) has already stopped the usage of HCFCs in cooling equipment manufactured after 2000. Thus, the hydrocarbon refrigerants segment is expected to be the fastest-growing refrigerant type owing to its low environmental impact and long term viability.
Air conditioners lead the overall refrigerants market. The MAC sub-application of air conditioners is projected to be one of the fastest-growing applications in the refrigerants market. The Asia-Pacific leads the refrigerants market in the MAC application segment due to the growing automotive industry in the region. Factors such as low cost of labor, shifting of manufacturing facilities from Europe to the Asia-Pacific, and rising spending power of consumers are driving the automotive industry, which in turn, is driving the refrigerants market in the MAC application segment.