Natural Refrigerants Market: By Type By Application and Region Forecast 2020-2031

Natural Refrigerants Market Size, Share, Growth, Trends, and Global Industry Analysis: By Type (Ammonia, Carbon dioxide, Hydrocarbons) By Application (Industrial, Commercial, and Domestic) 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.

Facts & Figures

  • GWP: Natural refrigerants like ammonia, hydrocarbons, and CO2 have GWPs ranging from 0 to near zero, while many synthetic refrigerants have GWPs in the thousands.
  • ODP: Natural refrigerants have zero or near-zero ODP, meaning they do not contribute to ozone depletion.
  • Flammability Range: Hydrocarbons have a flammability range between 1 and 10%, meaning they need to mix with air in a specific ratio to be flammable.
  • Toxicity: Carbon dioxide can be toxic at concentrations above 2% and deadly at 25%

Natural Refrigerants Market

Key Developments:

  • In March 2023, Danfoss announced that it acquired BOCK GmbH, a carbon dioxide and low-GWP compressor manufacturer. BOCK GmbH has one of the largest portfolios of compressors for natural refrigerants such as hydrocarbons, CO2 (R744), and other low-GWP refrigerants. The deal will accelerate energy efficiency and the global transition to natural and low-GWP refrigerants.
  • In February 2023, Linde signed a long-term agreement and invested around US$ 1.8 billion to supply clean hydrogen and nitrogen to OCI’s new world-scale blue ammonia plant located in Beaumont, Texas. The Beaumont facility aims to build and strengthen the world-leading blue ammonia and clean fuels platform.
  • In October 2022, A-Gas International Ltd. has announced that it has become a Climate and Ozone Protection Alliance (COPA) member. The joining aims to bring the cooling sector to more sustainable refrigerants and implement efficient refrigerant lifecycle management. The strategy will drive the growth of natural refrigerants and bring effective environmental solutions to the global market.

Natural Refrigerants Market Segmentation:

Based on the type:

  • Hydrocarbons
  • Ammonia
  • Carbon dioxide

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:

  • Industrial
  • Commercial
  • Domestic

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.

Natural Refrigerants Market Summary

Study Period

2025-2031

Base Year

2024

CAGR

6.5%

Largest Market

Europe

Fastest Growing Market

Asia-Pacific

Natural Refrigerants Market Dynamics

Drivers

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.

Restraints

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.

Opportunities

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.

Trends

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.

Natural Refrigerants Market Segmentation Analysis

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

  • Hydrocarbons
  • Ammonia
  • Carbon dioxide

By Application

  • Industrial
  • Commercial
  • Domestic

By Region

  • North America (U.S., Canada)
  • Europe (Germany, U.K., France, Italy, Russia, Spain, Rest of Europe)
  • Asia-Pacific (China, India, Japan, Australia, Southeast Asia, Rest of Asia Pacific)
  • Latin America (Mexico, Brazil, Argentina, Columbia, Rest of Latin America)
  • Middle East & Africa (GCC, Egypt, Nigeria, South Africa, Rest of Middle East and Africa)

Analyst Review

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.

Key Features of the Report

  • The natural refrigerants market report provides granular level information about the Market size, regional Market share, historic Market (2020-2024), and forecast (2025-2031)
  • The report covers in-detail insights about the competitor’s overview, company share analysis, key Market developments, and key strategies.
  • The report outlines drivers, restraints, unmet needs, and trends that are currently affecting the Market.
  • The report tracks recent innovations, key developments, and start-up details that are actively working in the Market.
  • The report provides a plethora of information about Market entry strategies, regulatory framework, and reimbursement scenarios.
  • The report analyses the impact of the socio-political environment through PESTLE Analysis and competition through Porter's Five Force Analysis 

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Frequently Asked Questions

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.

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Author

Prem Kumar

Prem Kumar with profound experience and sound knowledge across a wide range of market forecasting methods, demand f.....

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

  • The Linde Group
  • Airgas Inc.
  • A-Gas International
  • Puyang Zhongwei Fine Chemical Co. Ltd.
  • Sinochem
  • Engas Australasia
  • Tazzetti S.p.A
  • Shangdong Yueon Chemical Co. Ltd.

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