Global Low GWP Refrigerant Market Expected to Reach USD 15.7 Billion by 2033 - IMARC Group

Global Low GWP Refrigerant Market Statistics, Outlook and Regional Analysis 2025-2033

The global low GWP refrigerant market size was valued at USD 8.7 Billion in 2024, and it is expected to reach USD 15.7 Billion by 2033, exhibiting a growth rate (CAGR) of 6.73% from 2025 to 2033.

The increased use of innovative lubricants formulated for low-GWP refrigerants is driving the market demand. These new formulations increase performance in systems utilizing R-1234ze and R-515B, ensuring compatibility with non-flammable refrigerants while also promoting energy efficiency and climate neutrality. For example, in November 2024, LANXESS introduced Everest ESR 220, a synthetic ester lubricant designed for refrigeration systems that utilize the low-GWP refrigerant. Developed in collaboration with a leading OEM and supported by a Department of Energy grant, this lubricant enables effective performance in screw compressors, when conventional synthetic oils for HFCs have been unsatisfactory. Everest ESR 220 is also compatible with R-515B, a non-flammable, low-GWP refrigerant blend containing R-1234ze and R-227ea. This invention coincides with LANXESS's objective to become climate neutral by 2040.

Furthermore, the surging need for energy-efficient air conditioning systems is driving manufacturers to develop new production facilities. These facilities focus on advanced technologies in order to meet sustainability goals while also fulfilling the growing need for environmentally friendly cooling systems. In August 2023, Daikin Industries Ltd, an air conditioning manufacturer, announced its plan to build a new production center to accommodate rising demand for innovative air conditioning systems. The facility would focus on energy-efficient and environmentally friendly technologies. Also, to meet with severe environmental regulations, low-GWP refrigerant providers in the HVAC and refrigeration industries work with worldwide sustainability initiatives. Companies that use refrigerants such as R-32 and R-290 reduce their cooling systems' carbon footprint while increasing energy efficiency. Additionally, the aftermarket low GWP refrigerant industry offers tremendous development potential as firms replace older systems to meet new environmental criteria. Consumers are increasingly opting for low-GWP refrigerants because as are more energy efficient and have a lower environmental impact. Also, in Asia Pacific, there is an increasing need for low-GWP refrigerants, especially in China and Japan, where leading brands like Daikin and Mitsubishi Electric have integrated R-32 refrigerants into their product lines to meet local environmental regulations and international sustainability objectives.

Global Low GWP Refrigerant Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia-Pacific dominates the overall market owing to the strong demand for energy-efficient coolants in various applications.

North America Low GWP Refrigerant Market Trends:

The region's growth is supported by the escalating demand for ecologically friendly refrigeration systems. In addition, US policies, like the American Innovation and Manufacturing Act of 2020, aim to phase out high-GWP refrigerants. Besides this, major firms, like Carrier, are driving the shift by developing eco-friendly refrigeration systems for HVAC and automotive applications that address both environmental and regulatory issues.

Europe Low GWP Refrigerant Market Trends:

The growth of the region is driven by EU regulations F-Gas Regulation and the Montreal Protocol. The increasing penetration towards sustainable cooling systems in industries such as HVAC, and automotive, further propels the market growth. Also, Germany and France seeing rapid growth due to the surging focus on low-GWP alternatives air conditioning systems. The United Kingdom, Italy, and Scandinavian countries are also switching to environmentally benign refrigerants owing to climate-conscious legislation. 

Asia-Pacific Low GWP Refrigerant Market Trends:

Asia-Pacific dominates the overall market driven by surging demand for energy-efficient cooling systems and compliance with international climate rules, especially in China and Japan. Daikin has promoted the use of R-32 in domestic and commercial air conditioning units in Japan. Also, in China, local governments are offering various incentives to replace high-GWP refrigerants with environmentally friendly alternatives, further escalating the market demand.

Latin America Low GWP Refrigerant Market Trends:

Low GWP refrigerants are in high demand in Brazil and Mexico, due to the growing need for sustainable solutions in the food storage business. Additionally, Brazil implemented legislation to phase out HCFCs, allowing for the shift to natural refrigerants. Also, Carrier and Johnson Controls are increasing their product portfolios in the region. They prioritize low-GWP solutions to meet regulatory standards and satisfy environmentally sensitive consumers.

Middle East and Africa Low GWP Refrigerant Market Trends:

Low-GWP refrigerants are becoming more popular in the region due to the increasing demand for energy efficiency and environmental sustainability in commercial refrigeration industries. Saudi Arabia and the UAE are switching to R-32 and R-290 because to their efficiency and low environmental impact. Emirates Refrigeration and Trane are adding these refrigerants into their products to meet global climate requirements while also focusing on the region's boosting cooling demands in hot weather.

Top Companies Leading in the Low GWP Refrigerant Industry

Some of the leading low GWP refrigerant market companies include A-Gas International Ltd., Arkema, Daikin Industries Ltd., Danfoss A/S, GTS SPA, Harp International Ltd, Honeywell International Inc., Linde plc, Messer Group, Tazzetti S.p.A, The Chemours Company, among many others. In September 2024, The Chemours Company launched a low-GWP refrigerant retrofit solution for the automotive aftermarket. This enabled the shift from the legacy R-134a refrigerant to the more ecologically friendly Opteon YF (R-1234yf). It is designed to be used in new mobile HVAC systems in place of R134a.

Global Low GWP Refrigerant Market Segmentation Coverage

• On the basis of the type, the market has been bifurcated into inorganics, hydrocarbons, and fluorocarbons and fluoro-olefins (HFCs and HFOs), wherein hydrocarbons represent the most preferred segment. They are widely accepted due to their outstanding thermodynamic qualities, minimal environmental impact, and compatibility with existing refrigeration and HVAC equipment.
• Based on the application, the market is categorized into commercial refrigeration, industrial refrigeration, domestic refrigeration, and others, amongst which commercial refrigeration dominates the market. This dominance is driven by the need for energy-efficient and more sustainable cooling solutions in a variety of industries, including retail, food storage, and cold chain logistics.