Refrigerant Market to Reach $75 Billion by 2031, with Rapid Growth in the Chemicals and Materials Industry: Research by The Insight Partners

Growing Automotive Industry Accelerates Demand for Refrigerant

New York, NY, April 15, 2026 (GLOBE NEWSWIRE) -- A new comprehensive market research report published by The Insight Partners reveals that the Global  Refrigerant Market is projected to grow from US$ 47.04 billion in 2024 to US$ 75.62 billion by 2031, registering a CAGR of 7.0% during the forecast period from 2025 to 2031.

Market Growth Highlights:

• Asia Pacific held the largest market share in 2024, followed by North America. 

• The US is one of the most significant market for refrigerants globally, accounting for a CAGR of 6.7% from 2025 to 2031. The growing demand for commercial cooling systems in the FMCG sector is boosting the US economy.
• The notable rise in upgrading cold storage systems has sped up market growth. However, high energy needs for operation and large spending on maintaining industrial cooling systems limit this growth. Increased household incomes in the developed states of the US have led to more people using air conditioning systems.
• The United States Environmental Protection Agency (EPA) has put strict rules in place to manage pollution and protect the ozone layer through the Significant New Alternatives Policy (SNAP). This regulation has encouraged the development of innovative and environmentally friendly products. Refrigerants like Solstice N41 and HFO-1234YF, which have low global warming potentials (GWP), could replace R-410A and other refrigerants with high GWP.
• Primary Growth Driver:Favorable Government Policies and Initiatives. 

• Key Segment: The HFCs segment remains dominant, while the ammonia segment exhibits the highest CAGR (17.9%). 

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Favorable government policies and initiatives drive the refrigerant market by encouraging the use of environmentally friendly and energy-efficient cooling technologies. Regulations aimed at phasing out ozone-depleting substances and refrigerants with high global warming potential push manufacturers and end-users to switch to sustainable options. Incentives, subsidies, and support programs for low-GWP refrigerants and modern HVAC systems further speed up market growth. Additionally, stricter energy efficiency standards in commercial, industrial, and residential sectors boost the demand for new refrigeration solutions. By creating a regulatory and financial environment that supports greener technologies, governments play an important role in increasing the adoption of compliant refrigerants around the world.

Market Momentum Driven by Expanding Automotive Industry:

Rising vehicle production volumes, growth in the middle-class population, and increasing demand for personal mobility are leading to higher installation rates of HVAC units in passenger and commercial vehicles. Regulatory bodies worldwide are requiring low-GWP refrigerants in automotive air-conditioning systems. This change speeds up the shift from older refrigerants, like R-134a, to more environmentally friendly options such as R-1234yf. These regulations have created a need for next-generation refrigerants that meet strict safety, performance, and environmental standards. Electric vehicles need efficient thermal-management solutions for cabin comfort, battery cooling, power electronics, and integrated heat-pump systems. Each aspect needs specialized refrigerants.

As more people adopt electric vehicles, the need for high-efficiency refrigerant formulations that work across a wider temperature range also increases. Furthermore, the trend toward connected and autonomous vehicles is driving manufacturers to develop more compact, energy-efficient thermal systems. This trend is boosting demand for innovative refrigerants. With global automotive production on the rise and rapid technological advances, the industry continues to be a growing market for refrigerants.

Major Refrigerant Companies Include:

• A-Gas International Limited
• Eastman Chemical Co
• The Chemours Co
• Arkema SA
• Linde Plc
• Honeywell International Inc
• Daikin Industries Ltd
• Air Liquide
• Orbia
• Quimobasicos SA de CV

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Refrigerant Market Segmentation Analysis:

HFCs Segment to Hold the Largest Market Share

HFCs, or hydrofluorocarbons, are commonly used refrigerants in cooling units around the world. The most widely used HFC refrigerants include R-404A, R-410A, R-32, R-134a, and R-407C. HFCs appear in home air conditioners, cars, and industrial refrigeration. New commercial refrigeration systems employ various HFC refrigerants, such as R-410A, R-134a, R-404A, R-32, and R-407C. Some of these refrigerants are not limited to commercial use; others are found in smaller residential systems. Although they make up a small portion of greenhouse gas emissions, their use is likely to increase as air conditioning becomes cheaper and more common in developing countries.

Ammonia Segment to Grow at the Highest CAGR

Ammonia (NH3) is a gas made of nitrogen and hydrogen. It is colorless and has a strong, unpleasant odor. It is used as a refrigerant and in making textiles, plastics, medicines, dyes, insecticides, and other chemicals. Additionally, it serves as a neutralizer, stabilizer, and nitrogen source in wastewater treatment, rubber production, pulp and paper manufacturing, food and beverages, and cold storage. The demand for ammonia is increasing, especially in the fertilizer and temperature-controlled logistics sectors. It is now mainly used for large-scale cooling needs such as office buildings, hospitals, airports, and hotels.

Air Conditioning Systems Segment to Dominate the Application Segment

Refrigerants are vital for air conditioning systems because they allow heat transfer that cools indoor spaces. They absorb heat from indoor air while evaporating in the evaporator coil, then release it outside as they condense in the condenser coil. This ongoing cycle of phase changes, powered by a compressor and expansion device, keeps a consistent indoor temperature. Today, refrigerants are chosen based on their efficiency, safety, environmental impact, and adherence to global regulations. As environmental issues become more pressing, manufacturers are turning to refrigerants with low global warming potential, such as HFOs, CO₂, and natural options.

Asia Pacific to Witness the Fastest Growth:

Asia Pacific is expected to have the fastest growth in the global refrigerant market during the forecast period. This growth is supported by:

• Large manufacturing base, including electronics, food processing, cold storage, and pharmaceuticals.
• Significant investments in infrastructure, retail growth, and the rise of organized food distribution improve cold-chain needs.
• Growing automotive industry.
• Favorable government policies and initiatives.

The end-use industries in countries such as China, India, Japan, and South Korea are increasingly demanding refrigerants with growing investments in the automotive industry, a large manufacturing base, rising disposable income, and favorable government initiatives supporting market demand.

Refrigerant Market Dynamics:

Driver: Rising Demand for Energy Efficiency and Technology Innovation

As electricity prices rise and energy use becomes a high cost for commercial buildings, industrial facilities, and homes, companies are focusing on refrigerants that improve cooling and heating systems. High-efficiency refrigerants help manufacturers reduce compressor load, improve heat transfer, and extend system life. Consumers and businesses are increasingly aware of the energy impact of cooling. This awareness drives a preference for HVAC systems that meet strict efficiency standards like ENERGY STAR, MEPS, and LEED.

Opportunity: Expansion of Low-GWP and Natural Refrigerants

As regulations become clearer, manufacturers and system integrators are looking into refrigerants that have a minimal environmental impact. These options include CO₂, ammonia, hydrocarbons, and low-GWP synthetic blends. This change is driving the development of new products for commercial refrigeration, residential air conditioning, industrial cooling, and heat pump applications.

Challenge: Technical Barriers to Retrofit and Replacement

Existing systems were originally designed to work with old refrigerants that differ greatly in pressure characteristics, thermodynamic properties, and lubricant compatibility when compared to modern low-GWP options. Because of this, replacing refrigerants might require changes to components like compressors, heat exchangers, valves, and seals.

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Recent Developments:

• In March 2025, A-Gas International Limited acquired Canadian Refrigerant Services Inc. This improved its refrigerant reclamation abilities and showed its commitment to managing refrigerants sustainably and supporting circular economy principles in Canada's growing market.
• In April 2024, A-Gas International Limited increased its refrigerant separation capacity at its US facilities. This expansion meets the rising demand for reclaimed refrigerants and boosts the company's presence in the sustainable refrigerant management market. 

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About The Insight Partners

The Insight Partners is a global market research and consulting firm delivering in-depth analysis and actionable insights across technology, media, telecommunications, healthcare, and industrial sectors. The firm supports organizations in identifying growth opportunities, understanding market dynamics, and making informed strategic decisions.

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