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Prem Kumar with profound experience and sound knowledge across a wide range of market forecasting methods, demand f.....
Natural Refrigerants Market: By Type By Application and Region Forecast 2020-2031
Natural Refrigerants Market size was valued at US$ 1.7 billion in 2024 and is expected to reach US$ 2.6 billion by 2031, growing at a significant CAGR of 6.5% from 2025-2031. The market refers to the global industry involving the production, sale, and utilization of refrigerants that occur naturally in the environment with little negative environmental impact.
The market is fuelled by increasing environmental consciousness, stringent worldwide regulations to phase down high-GWP synthetic refrigerants, and growing industry need for eco-friendly, energy-efficient cooling solutions in markets such as HVAC, food and beverage, and automotive. Natural refrigerants like ammonia, carbon dioxide, and hydrocarbons have low or zero global warming potential and ozone depletion, aligning with climate targets and regulatory strategies like the Kigali Amendment.
However, there are market limitations, including the large initial capital expenses, complex retrofit requirements for existing systems, flammability, and toxicity implicated in some applications that present safety problems. These can limit take-up, in particular by small-scale end-users, even when long-term operating and environmental benefits are achieved.
Based on the type:
The hydrocarbons segment is anticipated to remain the largest segment during the forecast period. Hydrocarbons are non-toxic refrigerants with no ozone-depleting potential and minimal impact on global warming. They are good for the environment and are as good as or better than HCFC or HFC refrigerants because of their excellent thermodynamic properties in most applications.
Based on the application:
Currently, carbon dioxide refrigeration technology is mainly used in three areas heat pumps, automotive air conditioning, and multi-stage refrigeration systems. Since carbon dioxide is an environmentally friendly refrigerant, carbon dioxide compressors have been developed and manufactured for various industries.
Study Period
2025-2031Base Year
2024CAGR
6.5%Largest Market
EuropeFastest Growing Market
Asia-Pacific
The market is influenced by increasing green consciousness and world-wide phase-down of high-GWP synthetic refrigerants under world policy like the Kigali Amendment. Governments and policymakers are compelling lower emission regulations, prompting industries to transition to green alternatives like ammonia, carbon dioxide, and hydrocarbons. All such refrigerants are showing low or zero ozone depletion potential and much lower global warming potential, and thus sustainability objectives are within reach.
In addition, the greater energy efficiency requirements in end-use applications like cold storage, refrigerated food processing, HVAC, and automotive are driving the use of natural refrigerants, which are more thermodynamically efficient and lower operational costs. Increasing system design resulting from future technology innovation in safety is also increasing natural refrigerant competitiveness for their industrial and commercial uses, driving the market forward.
The market for natural refrigerants is also constrained by a number of factors that may hinder its wider uptake in the face of compelling environmental benefits. Perhaps the greatest impediment is the considerable up-front capital involved in moving away from traditional systems, such as the expense of new equipment and modifying current infrastructure. Other natural refrigerants, for example, ammonia and hydrocarbons, present safety risks through toxicity or flammability and need strict handling procedures and dedicated system design. The absence of standardized rules and restricted training of technicians in some areas also make implementation difficult.
In addition, incompatibility with existing systems and the necessity of larger parts in CO-based systems have the potential to heighten space and design burdens. These combined complications pose obstacles for small and medium-sized businesses, as much as long-term operational and environmental advantages continue to be attractive.
Market for natural refrigerants is strong with companies from across the world shifting towards environmentally friendly cooling solutions based on environmental policy and climate goals. Steady growing usage of green refrigerants in commercial refrigeration, cold chain logistics, and HVAC applications is presenting opportunities for ammonia, CO, and hydrocarbon technology. Green infrastructure funding and phase-down of high-GWP refrigerants by new Asia-Pacific and Latin American economies are providing the stage for expansion. Technological breakthroughs such as improved safety features, lower sizes, and IoT-enabled controls are making natural refrigerants more and more suitable for industrial, commercial, and residential applications.
Natural refrigerants are also being pursued by the automobile sector for automotive air conditioning to assist in reaching emission targets, whereas the food and beverage industry is also adopting natural refrigerants to align with sustainability policies. These trends, combined with growing customer awareness and government incentives, present natural refrigerants as a significant growth potential in the international transition to low-carbon cooling.
The market is driving growth with a global transition to environmentally sustainable cooling technology and increasingly stringent environmental regulations. One of the leading trends is the increased use of hydrocarbons such as propane (R-290) and isobutane (R-600a) for industrial and domestic refrigeration owing to their low GWP and high energy efficiency. Ammonia and CO? are making inroads in industrial uses like cold storage, food processing, and heat pumps on the strength of their better thermodynamic properties and regulatory acceptance. Technology advancement—transcritical CO systems, inverter compressors, and Internet-of-Things-based control, for instance—is propelling improved system performance and safety, and natural refrigerants are ever more viable across sectors.
In addition to this, large corporations are also making investments in green cooling technologies and initiatives such as the introduction by Coca-Cola of HFC-free equipment and growing commercialization of R-290-based air conditioners in Asia. Government policies, customer demand, and business sustainability targets are also boosting the shift from artificial to natural refrigerants and making them a pillar of climate-neutral HVAC and refrigeration technology.
Report Benchmarks |
Details |
Report Study Period |
2025-2031 |
Market Size in 2024 |
US$ 1.7 billion |
Market Size in 2031 |
US$ 2.6 billion |
Market CAGR |
6.5% |
By Type |
|
By Application |
|
By Region |
|
According to PBI Analyst, the market is in a state of crucial crossroads as companies around the world accelerate the use of cleaner cooling technologies. According to analysts, this tide is largely being fueled by ambitious global regulation phasing out high-GWP synthetic refrigerants, combined with growing environmental awareness and corporate sustainability commitments. Natural refrigerants such as ammonia, carbon dioxide, and hydrocarbons are gaining traction due to low or even zero global warming and ozone depletion potential, ideal in addressing arrangements such as the Kigali Amendment. Europe is the leading pioneer in adoption, supported by firm policy frameworks and initial infrastructure readiness, while Asia-Pacific is the fastest-growing market, fueled by hot industrialization, cold chain expansion, and government-supported green initiatives.
Regardless of challenges such as high upfront costs, safety concerns, and retrofitting difficulties, innovations in mini system design, IoT-control based innovations, and safety engineering are boosting the business attractiveness of natural refrigerants for industrial, commercial, and domestic applications. As commercial leaders put money into R&D, global supply chains keep evolving based on sustainability forces, natural refrigerants have the potential to become a mainstay of climate-resilient refrigeration and HVAC systems.
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The natural refrigerants market size was valued at US$ 1.7 billion in 2024 and is projected to grow at a significant CAGR of 6.5% from 2025-2031.
The Linde Group, A-Gas International, Hess Corporation, Shecco, Sinochem, Puyang Zhongwei Fine Chemical Co. Ltd., HyChill, Engas Australasia, Tazzetti SpA, Deepfreeze Refrigerants Inc., Shandong Yuan Chemical Co. Ltd.
Asia Pacific is the fastest-growing region for the market
Key drivers include global regulations phasing out high-GWP synthetic refrigerants, rising environmental awareness, and increasing demand for energy-efficient, climate-friendly cooling solutions across HVAC, food processing, cold chain logistics, and automotive sectors.
Barriers include high initial investment costs, safety concerns related to flammability or toxicity (especially with ammonia and hydrocarbons), retrofitting complexities, and limited technician training in some regions.
1.Executive Summary |
2.Global Natural Refrigerants Market Introduction |
2.1.Global Natural Refrigerants Market - Taxonomy |
2.2.Global Natural Refrigerants Market - Definitions |
2.2.1.Type |
2.2.2.Application |
2.2.3.Region |
3.Global Natural Refrigerants Market Dynamics |
3.1. Drivers |
3.2. Restraints |
3.3. Opportunities/Unmet Needs of the Market |
3.4. Trends |
3.5. Product Landscape |
3.6. New Product Launches |
3.7. Impact of COVID 19 on Market |
4.Global Natural Refrigerants Market Analysis, 2020 - 2024 and Forecast 2025 - 2031 |
4.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
4.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) |
4.3. Market Opportunity Analysis |
5.Global Natural Refrigerants Market By Type , 2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
5.1. Hydrocarbons |
5.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
5.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
5.1.3. Market Opportunity Analysis |
5.2. Ammonia |
5.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
5.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
5.2.3. Market Opportunity Analysis |
5.3. Carbon dioxide |
5.3.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
5.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
5.3.3. Market Opportunity Analysis |
6.Global Natural Refrigerants Market By Application, 2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
6.1. Industrial |
6.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
6.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
6.1.3. Market Opportunity Analysis |
6.2. Commercial |
6.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
6.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
6.2.3. Market Opportunity Analysis |
6.3. Domestic |
6.3.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
6.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
6.3.3. Market Opportunity Analysis |
7.Global Natural Refrigerants Market By Region, 2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
7.1. North America |
7.1.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.1.3. Market Opportunity Analysis |
7.2. Europe |
7.2.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.2.3. Market Opportunity Analysis |
7.3. Asia Pacific (APAC) |
7.3.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.3.3. Market Opportunity Analysis |
7.4. Middle East and Africa (MEA) |
7.4.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.4.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.4.3. Market Opportunity Analysis |
7.5. Latin America |
7.5.1. Market Analysis, 2020 - 2024 and Forecast, 2025 - 2031, (Sales Value USD Million) |
7.5.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
7.5.3. Market Opportunity Analysis |
8.North America Natural Refrigerants Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
8.1. Type Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
8.1.1.Hydrocarbons |
8.1.2.Ammonia |
8.1.3.Carbon dioxide |
8.2. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
8.2.1.Industrial |
8.2.2.Commercial |
8.2.3.Domestic |
8.3. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
8.3.1.United States of America (USA) |
8.3.2.Canada |
9.Europe Natural Refrigerants Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
9.1. Type Analysis and Forecast by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
9.1.1.Hydrocarbons |
9.1.2.Ammonia |
9.1.3.Carbon dioxide |
9.2. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
9.2.1.Industrial |
9.2.2.Commercial |
9.2.3.Domestic |
9.3. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
9.3.1.Germany |
9.3.2.France |
9.3.3.Italy |
9.3.4.United Kingdom (UK) |
9.3.5.Spain |
10.Asia Pacific (APAC) Natural Refrigerants Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
10.1. Type Analysis and Forecast by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
10.1.1.Hydrocarbons |
10.1.2.Ammonia |
10.1.3.Carbon dioxide |
10.2. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
10.2.1.Industrial |
10.2.2.Commercial |
10.2.3.Domestic |
10.3. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
10.3.1.China |
10.3.2.India |
10.3.3.Australia and New Zealand (ANZ) |
10.3.4.Japan |
10.3.5.Rest of APAC |
11.Middle East and Africa (MEA) Natural Refrigerants Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
11.1. Type Analysis and Forecast by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
11.1.1.Hydrocarbons |
11.1.2.Ammonia |
11.1.3.Carbon dioxide |
11.2. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
11.2.1.Industrial |
11.2.2.Commercial |
11.2.3.Domestic |
11.3. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
11.3.1.GCC Countries |
11.3.2.South Africa |
11.3.3.Rest of MEA |
12.Latin America Natural Refrigerants Market ,2020 - 2024 and Forecast 2025 - 2031 (Sales Value USD Million) |
12.1. Type Analysis and Forecast by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
12.1.1.Hydrocarbons |
12.1.2.Ammonia |
12.1.3.Carbon dioxide |
12.2. Application Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
12.2.1.Industrial |
12.2.2.Commercial |
12.2.3.Domestic |
12.3. Country Analysis 2020 - 2024 and Forecast 2025 - 2031 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) |
12.3.1.Brazil |
12.3.2.Mexico |
12.3.3.Rest of LA |
13. Competition Landscape |
13.1. Market Player Profiles (Introduction, Brand/Product Sales, Financial Analysis, Product Offerings, Key Developments, Collaborations, M & A, Strategies, and SWOT Analysis) |
13.2.1.The Linde Group |
13.2.2.Airgas Inc. |
13.2.3.A-Gas International |
13.2.4.Puyang Zhongwei Fine Chemical Co. Ltd. |
13.2.5.Sinochem |
13.2.6.Engas Australasia |
13.2.7.Tazzetti S.p.A |
13.2.8.Shangdong Yueon Chemical Co. Ltd. |
14. Research Methodology |
15. Appendix and Abbreviations |
Key Market Players