Low GWP Refrigerants Market is expected to hold the highest CAGR of around 11.8% by 2027

26 July 2021

Low GWP Refrigerants Market is expected to hold the highest CAGR of around 11.8% by 2027

Global Low GWP Refrigerants Market is expected to hold the highest CAGR of around 11.8% during the forecast period 2019-2027. The report study has analyzed the revenue impact of COVID-19 pandemic on the sales revenue of market leaders, market followers, and market disrupters in the report, and the same is reflected in our analysis.

The low global warming potential (GWP) refrigerants are used in a varied range of types including ventilation, heating, air conditioning, and refrigeration (HVAC&R) equipment. The low GWP refrigerants are used to maintain the high level of system efficiency and show considerably lower flammability characteristics, than much more flammable hydrocarbons. The growing importance of global warming mitigation has encouraged the interest in low GWP refrigerants.

A refrigerant is a mixture that is used in a cooling mechanism, such as an air conditioner. They act as a heat carrier that changes gas to liquid and back to gas in the refrigeration cycle. One of the most common commercial refrigerants is chlorofluorocarbons or CFCs because they have high ozone damaging potential. Ammonia, Sulphur dioxide, and non-halogenated hydrocarbons are other refrigerants that are used in other applications. Refrigerants have favorable thermodynamics properties that are free from toxicity and flammability. It has also been witnessed that low GWP refrigerants have also helped refrigeration equipment in achieving high levels of energy efficiency.

Increasing consciousness about global warming, environmental concern, and mandated regulations to decrease the carbon footprint has led to an increase in the adoption of low GWP refrigerants in the global air conditioning and refrigeration industry, thus boosting the growth of the low GWP refrigerants market. Also, implementation of the regulation, government incentives, and policies has supported the R&D projects to ensure quick and effective development of alternate refrigeration technologies, like low GWP refrigerants driving the low GWP refrigerants market growth.

On the other hand, the high capital cost required for manufacturing low GWP refrigerants, flammability, and toxicity issues associated with its production are some of the key factors that may hamper the growth of the low GWP refrigerants market in the future.

By the type, the hydrocarbons registered with the largest market share in 2019. It is mainly because of its superb thermodynamic properties, refrigerating, and air-conditioning systems. Likewise, hydrocarbon refrigerants are miscible with conventional refrigerating oils and have a comparatively high critical temperature.

According to the application, the commercial refrigerants held the largest market share in 2018 and are expected to produce at the highest CAGR in the future. Commercial refrigeration contains refrigerating chambers, ice machines & cold counters and is generally used in supermarkets, shops, and centralized units. Cold storages in supermarkets rely on hydrocarbons and CO2 that have been available for a few years. In supermarkets, refrigeration (centralized systems) CO2 cascade systems are a substitute for common HFC systems in cold and moderate climates. Therefore, the demand for refrigeration in the supermarket is pushing the segment's growth in the market.

Region-wise, Europe is expected to hold the largest market share of the global low GWP refrigerants market by 2027.Producers across Europe have adopted hydrogen technology and a new energy proficient appliance is based on hydrocarbons. North America's low GWP refrigerants market is expected to witness reasonable growth during the forecast period driven by eco-friendly regulations and policies. Asia Pacific's low GWP refrigerant market is expected to witness substantial growth, thanks to the strong growth of refrigeration and air conditioning industry.

Key Developments in the Market:

In November 2018, Mitsui launched new low-GWP refrigerants R463A and R454C. R463A is made for freezers and fridges while R454C is used for industrial heat pumps. Both the products realize less GWP.

In July 2018, Honeywell launched new non-flammable and low GWP refrigerant, Solstice N41 for stationary air conditioning systems. It is energy-efficient and environmentally preferable as it has GWP that is 65% lower than R-410A.