PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2164986
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2164986
The natural refrigerants market is projected to grow from USD 2.10 billion in 2026 to USD 3.32 billion by 2031, representing a 9.5% CAGR over the forecast period.
| Scope of the Report | |
|---|---|
| Years Considered for the Study | 2022-2031 |
| Base Year | 2025 |
| Forecast Period | 2026-2031 |
| Units Considered | Value (USD Million), Volume (Kilotons) |
| Segments | By type, application, and region |
| Regions covered | Europe, North America, Asia Pacific, Middle East & Africa, and South America |
Hydrocarbons are forecast to hold the top position by value in the natural refrigerants market over the forecast period, due to their low GWP, energy efficiency, and use in both commercial and residential refrigeration applications. Propane, isobutane, and butane are gaining popularity in refrigerators, freezers, heat pumps, and self-contained commercial refrigeration equipment as the industry shifts toward low-GWP refrigerants and away from high-GWP artificial refrigerants. In addition, regulatory constraints on HFCs, rising demand for energy-efficient appliances, and investments in green refrigeration technologies are prompting manufacturers to adopt hydrocarbon refrigerants in next-generation refrigeration and cooling equipment.

''Based on application, domestic refrigeration will be the second fastest-growing application in the natural refrigerants market, in terms of value, during the forecast period.''
According to application, the domestic refrigeration segment is estimated to register the second-fastest growth rate among all application segments of the natural refrigerants market in terms of revenue, supported by the growing requirement for energy-efficient and eco-friendly household refrigeration appliances. Increasing use of hydrocarbon refrigerants such as isobutane and propane is expected to boost the growth of the application segment owing to their low GWP and good energy efficiency. Stricter regulations regarding high-GWP refrigerants are compelling appliance manufacturers to shift toward natural refrigerants. Apart from this, increasing disposable incomes, urbanization, aging appliances, and appliance markets in emerging regions like Asia Pacific are opening new opportunities for natural-refrigerant-based domestic refrigeration applications.
"CO2 will be the second-largest segment in the natural refrigerants market by value during the forecast period."
By type, CO2 refrigerants are expected to hold the second-largest market share in the natural refrigerants market, by value, over the forecast period. The major reason for CO2's large market share is its extremely low GWP, zero ODP, non-flammable nature, and excellent thermodynamic characteristics. The use of CO2 is increasing across commercial and industrial refrigeration applications, including supermarkets, food retail stores, cold storages, food processing plants, and heat pump water heaters. In addition, growing adoption of transcritical CO2 refrigeration systems in Europe, North America, and Asia Pacific is fueling demand.
"By region, Europe is likely to be the second-largest market for natural refrigerants by value during the forecast period."
Europe is anticipated to become the second largest regional market for natural refrigerants in terms of value during the forecast period, backed by the strict regulations against the use of high GWP refrigerants, and the strong inclination towards sustainable cooling technology in this region. The introduction of the EU F-Gas Regulation has led to the decline in the usage of HFCs along with the rising preference for the natural refrigerants including CO2, ammonia, and hydrocarbons. Increased investment in commercial refrigeration, supermarkets, food processing, cold chain, and industrial refrigeration segments is further fuelling the demand for the natural refrigerants.
Prominent companies include Airgas Inc. (US), Linde Plc (UK), Messer Group (Germany), Nippon Sanso (Japan), Evonik (Germany), Engas (Australia), Harp International Ltd. (UK), Puyang Zhongwei Fine Chemical Co., Ltd. (China), A-Gas International Limited (UK), and HyChill Australia (Australia).
Research Coverage
This research report categorizes the natural refrigerants market by type (ammonia, hydrocarbons, CO2, and other refrigerants), by application (commercial refrigeration, industrial refrigeration, domestic refrigeration, stationary air conditioning, mobile air conditioning, and other applications), and by region (North America, Europe, Asia Pacific, Middle East & Africa, and South America). The scope of the report includes detailed information on the major factors influencing the growth of the natural refrigerants market, including drivers, restraints, challenges, and opportunities. A thorough examination of key industry players has been conducted to provide insights into their business overviews, solutions and services, key strategies, contracts, partnerships, and agreements. Product launches, mergers and acquisitions, and recent developments in the natural refrigerants market are covered. This report includes a competitive analysis of upcoming startups in the natural refrigerants market ecosystem.
The report will help market leaders and new entrants in this market by providing the closest available revenue estimates for the overall natural refrigerants market and its subsegments. It will help stakeholders understand the competitive landscape and gain deeper insights to better position their businesses and plan effective go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides information on key market drivers, restraints, challenges, and opportunities.