Global Automotive Refrigerants Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Refrigerant Type (R-134a, R-1234yf), By Vehicle Type (Passenger Vehicle, Commercial Vehicle), By Sales Channel (Online, Offline), And By Geography - Forecasts From 2022 To 2027

The global automotive refrigerant market size is projected to grow at a CAGR of 3.83% to reach US$54.879 billion by 2027, from US$42.194 billion in 2020.

Automotive refrigerants are used for the proper functioning of the air conditioning system in the vehicle. There has been a rise in the demand for increased comfort in vehicles over the past few years, and having a properly working and efficient air conditioning system in the vehicle adds to that comfort. People desiring increased comfort, coupled with the growing demand for automobiles, which is attributable to the rising disposable income of people, will increase the demand for automotive refrigerants and thus play a role in driving the growth of the automotive refrigerant market over the forecast period.

There are some strict regulations regarding the type of refrigerant to be used in the vehicle in order to minimize the pollution and damage caused to the environment and contribute to global warming. For instance, EPA guidelines state that the usage of R-134a is more dangerous as it contributes to global warming more heavily as compared to the use of R-1234yf, which has a lesser possibility of causing global warming, and with regard to new vehicles, the EPA planned to end the use of R-134a refrigerant in new cars by 2021. Additionally, according to the EU Directive on Mobile Air Conditioning (MAC Directive), from January 2017, all European cars had to use a refrigerant with a global warming potential lesser than 150 such as the R-1234yf. The senior manager of HVAC systems at Jeep also prefers using the R-1234yf refrigerant and agrees with the decisions made and regulations set by the EPA. In addition, in 2013, the Society of Automotive Engineers (SAE International) with the participation of Asian automakers and some other automakers, said that the use of the refrigerant R-134yf was safe and more effective for passenger cars. These strict regulations restrain the market’s growth to some extent.

There are many opportunities for vehicle manufacturers to use other types of refrigerants such as the CO-based R-744 and the Hydrofluoroolefins (HFO’s) based R-152a in the future, which will boost the market’s growth as they have very little impact on the environment and do not cause the depletion of the ozone layer. Furthermore, the increasing investments and participation of market players in order to improve the quality of refrigerants and promote the use of environmentally friendlier refrigerants are also going to bolster market growth over the forecast period.

The automotive refrigerant market has been segmented by refrigerant type, vehicle type, sales channel, and geography. By refrigerant type, the market is segmented as R-134a and R-1234yf. By vehicle type, the market is segmented into passenger vehicles and commercial vehicles. The market has been segmented into online and offline sales channels by sales channel.

The R-1234yf refrigerant type accounts for the major share.

By refrigerant type, R-1234yf is estimated to hold a significant share in the market owing to the fact that it possesses a lesser potential to cause global warming and is more environment-friendly than the R-134a refrigerants, which are commonly used in passenger vehicles.

Passenger vehicles will dominate the vehicle type segment.

By vehicle type, passenger vehicles are expected to hold a significant share in the market owing to their increasing demand, which is facilitated by the rising disposable income of the general population and their desire to own a vehicle.

Online Sales will provide a significant boost in revenues in the coming years.

By sales channel, online is expected to hold a significant share in the market owing to the growing penetration of the internet coupled with the rising popularity and shifting preference of people for ordering products online, which is associated with the convenience and other benefits it provides.

By geography, Asia Pacific is expected to hold a significant amount of market share,  which is attributable to the fact that there has been an increase in the production of passenger vehicles in some countries in this region, like India and China.

Some of the major players covered as a part of this study are DuPont, Arkema, BASF, Daikin, and Linde, among others.

Recent development and expansions

• Chemours Company announced in July 2022 that it will expand its Chemours OpteonTM YF (HFO-1234yf) capacity to help meet customer needs as they continue to transition to lower GWP refrigerants. OpteonTM YF and YF blend refrigerants are now used in millions of vehicles and thousands of retail stores worldwide, with zero ozone depletion potential (ODP) and significantly lower global warming potential (GWP) than legacy refrigerants. Chemours views the $80 million capacity expansion project as a critical growth investment that meets market demands while also aligning with Chemours corporate responsibility targets, delivering high returns, and fulfilling its purpose. OpteonTM YF is a revolutionary refrigerant that is accelerating global sustainability initiatives. They are proud to make the investment that will help their customers navigate the complex regulatory landscape while supporting their bottom line with a high-performing, readily available product as demand grows
• In May 2022 Honeywell Introduces HFO-based Refrigerant For The Automotive Service Sector With A 50% Lower Global Warming Potential. It was introduced in the European automotive aftermarket and has the potential to reduce the greenhouse gas (GHG) emissions footprint of existing vehicle air conditioning systems by more than 50%. Solstice® 456A is a simple, cost-effective drop-in service solution for vehicles manufactured prior to 2017.
• As global warming pushes demand for energy efficiency, Daikin Industries stated its interest in breakthrough green technology to remain the world's top air conditioner producer by sales, as well as a new refrigerant to allow the Japanese company to join the electric car industry, in October 2021. Elon Musk, Tesla's CEO, who has businesses ranging from space travel to brain chips, hinted to shareholders earlier this month that he would start a company that sells home heating, ventilation, and air conditioning (HVAC) systems.

COVID-19 impact on the Automotive Refrigerants Market

Global lockdowns in 2020 and continuing restrictions in 2021 disrupted the Automotive Refrigerant supply chain, posing challenges for manufacturers in the Automotive Refrigerant industry.

The automotive refrigerant market is rapidly approaching pre-COVID levels, and a healthy growth rate is expected over the forecast period, fueled by economic recovery in most developing countries. The frequent suspension of public transportation systems, combined with the virus's highly contagious nature, increased the demand for passenger cars, resulting in a demand for Automotive Refrigerant products.

Global Automotive Refrigerants Market Scope:

Market Segmentation

• By Refrigerant Type
  • R-134a
  • R-1234yf
• By Vehicle Type
  • Passenger Vehicle
  • Commercial Vehicle
• By Sales Channel
  • Online
  • Offline
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Thailand
    • Taiwan
    • Indonesia
    • Others

DuPont

Mexichem S.A.B. de C.V

Linde

Arkema

Dongyue Group

Daikin Industries, Ltd.

BASF

National Refrigerants, Inc.

The Chemours Company

Mariel S.r.l.