The global low-GWP refrigerants market is projected to grow from USD 8.17 billion in 2026 to USD 13.06 billion by 2031, representing a compound annual growth rate (CAGR) of 9.8%, according to a report by MarketsandMarkets. Growth is driven by environmental regulations, the phase-down of high-GWP refrigerants, and increasing demand for energy-efficient refrigeration and air-conditioning systems.
Asia Pacific accounted for 42.2% of global market revenue in 2026 and is expected to be the fastest-growing region through 2031. Expansion of cold-chain infrastructure, food processing, industrial refrigeration, and air-conditioning systems is supporting demand across China, India, Japan, South Korea, and Southeast Asia. North America represents the second-largest regional market.
Fluorocarbons accounted for 66.6% of market value in 2026, supported by their use in refrigeration and air conditioning and the availability of lower-GWP HFOs and HFC blends. Inorganic refrigerants, including ammonia (NH3) and carbon dioxide (CO2), are expected to be the fastest-growing refrigerant type, with applications in industrial refrigeration, food processing, cold chains, and commercial cooling.
Commercial refrigeration represented 42.0% of market value in 2026 and is forecast to be the fastest-growing application segment. Demand is linked to supermarkets, retail outlets, restaurants, and food-service facilities using display cases, reach-in refrigerators, centralized refrigeration systems, and cold rooms.
The report also identifies manufacturing investments in low-GWP refrigerants. Chemours invested approximately USD 80 million to expand Opteon YF production capacity in Texas by around 40%, while Arkema invested approximately USD 60 million in a Forane 1233zd production unit in Kentucky with an annual capacity of 15,000 tonnes (approximately 33.1 million lb). Major market participants include Solstice Advanced Materials, Chemours, Daikin Industries, Arkema, Orbia, Linde, AGC, Dongyue Group, Sinochem Holdings, and Zhejiang Juhua.
