Global Low GWP Refrigerant Market - Industry Dynamics, Size, And Opportunity Forecast To 2030

The Low GWP Refrigerant Market is experiencing robust expansion, with market size projected to increase from (8.7 Billion) 2024 to (15.7 Billion) 2030, demonstrating a consistent year-over-year growth rate of 6.73%. Low GWP Refrigerant Market Size, Share, Competitive Landscape and Trend Analysis Report, by Types (Inorganics, Hydrocarbons, Fluorocarbons and Fluoro-olefins (HFCs and HFOs)), by Applications (Commercial Refrigeration, Domestic Refrigeration, Industrial Refrigeration, Others) And Regions ({regionNms}) : Industry Forecast and Opportunity Analysis for 2024 - 2030

The low GWP refrigerants market mainly deals with manufacturing and distributing refrigerants having global warming potential significantly lower than the traditional refrigerants. GWP is a measure of the heat a greenhouse gas traps in the atmosphere compared to carbon dioxide within a specific time period. Low GWP refrigerants help alleviate the impacts associated with climate change because they otherwise limit their contribution to the greenhouse effect when released in the atmosphere. Such as in the applications of air conditioning, refrigeration, and industrial cooling. The low GWP transition is appointed funding that countries ratify as part of the legal component of regulation to limit the use of high GWP hydrofluorocarbons (HFC) refrigerants under the major Kigali Amendment to the Montreal Protocol. To add to this push from regulatory sources, the demand for low GWP is further boosted by increasing consumer attention to environmental awareness.

Low GWP Refrigerant Report Highlights

Report Metrics	Details
Forecast period	2019-2030
Base Year Of Estimation	2024
Growth Rate	CAGR of 6.73%
Forecast Value (2030)	USD 15.7 Billion
By Product Type	Inorganics, Hydrocarbons, Fluorocarbons and Fluoro-olefins (HFCs and HFOs)
Key Market Players	Tazzetti S.p.A Messer Group Arkema Daikin Industries Ltd. Honeywell International Inc. Harp International Ltd A-Gas International Ltd. Linde plc GTS SPA Danfoss A/S The Chemours Company
By Region

Low GWP Refrigerant Market Trends

The low GWP refrigerant market is being propelled forward toward much greener and more sustainable alternatives. Increasingly, that push is coming from stricter legislation (for example, the Kigali Amendment) and a more general awareness of the harmful impact of conventional refrigerants on climate change. Thus, we are observing some changes toward refrigerants with much lower GWP values, such as hydrofluoro-olefins (HFOs), hydrocarbons (like propane or isobutane), and even natural refrigerants like carbon dioxide and ammonia. Another noteworthy trend is the ongoing innovations and developments in new low GWP refrigerant blends and technologies. Manufacturers are investing heavily in researching the relevant mix of performance, safety, and environmental impact, from new chemical formulation to efficient energy utilization of refrigeration systems to the safe handling and application of potentially flammable refrigerants.

Low GWP Refrigerant Market Leading Players

The key players profiled in the report are Danfoss A/S, Arkema, Tazzetti S.p.A, Harp International Ltd, Honeywell International Inc., Daikin Industries Ltd., A-Gas International Ltd., GTS SPA, Messer Group, Linde plc, The Chemours Company

Growth Accelerators

The stringent environmental regulations aimed at phasing out hydrofluorocarbons and other refrigerants with high global warming potential are one of the key drivers for the low-GWP refrigerant market. International agreements such as the Kigali Amendment to the Montreal Protocol, together with national and regional regulations, mandate a gradual move towards greener alternatives. Along with legal compliance, industries are now adopting low-GWP refrigerants to also avoid being penalized by regulatory authorities. Another major factor driving the change in the market is the growing awareness of climate change and sustainability. Consumers and businesses are keen to identify possible eco-friendly solutions, thereby demanding products and services that use low-GWP refrigerants. Companies are actively incorporating these refrigerants into their operations to pursue their own sustainability goals and maintain a higher public profile. This emerging trend towards eco-responsibility capitalizes on the further development of the market for low-GWP refrigerants.

Low GWP Refrigerant Market Segmentation analysis

The Global Low GWP Refrigerant is segmented by Type, Application, and Region.
By Type, the market is divided into Distributed Inorganics, Hydrocarbons, Fluorocarbons and Fluoro-olefins (HFCs and HFOs) . The Application segment categorizes the market based on its usage such as Commercial Refrigeration, Domestic Refrigeration, Industrial Refrigeration, Others. Geographically, the market is assessed across key Regions like {regionNms} and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

Industrial refrigerants with the lowest GWP represent a well-integrated younger field where established multinational chemical companies hold sway against the backdrop of smaller specialized players. Honeywell, Chemours, Arkema, and Daikin are other major players under development by heavy R&D for a range of new low GWP refrigerant solutions. These firms usually boast an all-round portfolio of refrigerants ranging from residential air conditioning to industrial refrigeration. Recent and new players are entering the market and are interested in niche refrigerant technologies or tailored solutions for specific industries. This thereby increases competition and might encourage innovation. The competition is on the basis of GWP of refrigerants, energy efficiency, safety, cost-effectiveness, and compatibility with existing equipment.

Challenges In Low GWP Refrigerant Market

The Low GWP (Global Warming Potential) Refrigerant Market is encountering several challenges, although there is a growing demand for eco-friendly cooling solutions. One major hurdle is the high initial costs of the low-GWP refrigerants and the equipment needed for their adoption. Many firms are unwilling to make the change because of the costs of retrofitting alternatives and compatibility with existing systems. Moreover, some low-GWP refrigerants, such as hydrocarbons and ammonia, face issues of flammability and toxicity, which create an added burden of safety standards and special handling procedures. Another significant problem is that there are no universal standards or regulatory inconsistencies worldwide for different regions. As some countries have enforced strict phase-out procedures for high-GWP refrigerants, others have stayed behind, thus fragmenting the market. Certain low-GWP refrigerants are also not widely available for purchase or production, limiting their scaling and affordability.

Risks & Prospects in Low GWP Refrigerant Market

With the increase in regulations and public awareness, the low GWP refrigerant market presents fantastic opportunities for growth. Low GWP refrigerants are fast gaining acceptance in the marketplace, which is expected to reach USD 86 billion by 2035, as more industries are switching to low GWP substances from high GWP substances like HFCs because of their negative impact on climate change. Factors propelling this market include harsh regulations such as the F-Gas Regulation of the European Union and initiatives like the Paris Agreement, aimed at phasing out harmful refrigerants and advocating sustainable practices. In so doing, this transition meets global climate targets while encouraging some degree of further development in refrigerant technology.

Key Target Audience

The key constituency for low GWP refrigerants consists of manufacturers of HVAC and refrigeration equipment. They have been directly affected by regulations phasing out high GWP refrigerants; thus, they will have to change their product line to accommodate low GWP alternatives. They constitute a major consumer group on account of requiring larger volumes of new refrigerants for both new equipment production and servicing existing systems.,, The market also targets end-users or consumers from vast sectors. Commercial enterprises (e.g., supermarkets, restaurants, and hotels), large district cooling from industrial facilities, and people buying air conditioners for their personal homes are all given consideration. In this transition towards low-GWP refrigerants, they stand to gain reduced operating costs and similar environmental benefits.

Merger and acquisition

Markets for refrigerants with low global warming potential have witnessed considerable activity among mergers and acquisitions as firms look to strengthen their sustainability offerings and allow for greater technological gains on their part. Johnson Controls acquired M&M Carnot in 2023. M&M specialises in natural refrigeration solutions and brings with it strong expertise in carbon dioxide-based refrigeration systems. Thus, this acquisition allows Johnson Controls to tap into the growing demand for energy-efficient and environmentally friendly technologies, especially in industrial applications. The same applies to Danfoss acquiring BOCK GmbH, known for its CO2 compressors, to solidify its position in the low-GWP segment and provide more green cooling solutions. These strategic moves indicate the continuing trend in using advanced technology as well as sustainable practices in the industry. Evapco's acquisition of Systèmes LMP looks to combine ammonia and CO2 refrigeration's advanced expertise in natural refrigerants. Such mergers provide a gateway not only to comply with stringent environmental regulations but also to deliver what low-impact refrigerants consumers are asking for. >

Analyst Comment

The demand for the Low GWP Refrigerants Market is driven primarily by the fast expansion of environmental regulations and calls to reduce greenhouse gas emissions. Traditionally, hydrofluorocarbons (HFCs) are part of refrigerants contributing significantly to global warming; this calls for industries to shift to low-GWP alternatives such as hydrofluoro-olefins (HFOs), natural refrigerants (CO₂, ammonia, hydrocarbons), and advanced blends. Policy-driven drivers of the market include the Kigali Amendment to the Montreal Protocol and rising public awareness of comparatively environmentally friendly solutions for industries, including HVAC, refrigeration, and automotive air conditioning.