Natural Refrigerants Market Report 2026

The natural refrigerants market size has grown strongly in recent years. It will grow from $1.63 billion in 2025 to $1.76 billion in 2026 at a compound annual growth rate (CAGR) of 8.3%. The growth in the historic period can be attributed to stricter environmental regulations on synthetic refrigerants, rising adoption of ammonia-based industrial refrigeration, growth of commercial cold storage infrastructure, increasing awareness of ozone depletion impacts, availability of natural refrigerant technologies.

The natural refrigerants market size is expected to see strong growth in the next few years. It will grow to $2.42 billion in 2030 at a compound annual growth rate (CAGR) of 8.3%. The growth in the forecast period can be attributed to expansion of sustainable cooling regulations, rising demand for eco-friendly hvac systems, increasing adoption in supermarkets and cold chains, growth of low-carbon building infrastructure, advancements in natural refrigerant safety systems. Major trends in the forecast period include increasing adoption of low-gwp refrigerants, rising shift toward natural cooling systems, expansion of co2-based refrigeration technologies, growing use of hydrocarbon refrigerants, enhanced focus on energy-efficient cooling.

The expanding automotive industry is expected to drive the growth of the natural refrigerant market going forward. The automotive sector involves companies engaged in the design, development, manufacturing, marketing, sale, repair, and modification of motor vehicles. Natural refrigerants provide environmentally friendly alternatives for automotive air conditioning systems, helping reduce greenhouse gas emissions and meet sustainability targets. For instance, in October 2023, according to The Society of Motor Manufacturers and Traders Limited, a UK-based trade association, total car production in 2023 reached 751,422 units, up from 643,755 units in 2022, marking a 16.7% increase. Therefore, growth in the automotive industry is boosting the natural refrigerant market.

Leading companies in the natural refrigerant market are intensifying efforts to introduce environmentally friendly refrigerants as part of their strategy to gain a competitive edge. Environmentally friendly refrigerants are substances used in cooling and air conditioning systems that have minimal environmental impact. For instance, in July 2023, Keyter Technologies S.L., a Spain-based provider of heating and cooling products, unveiled the ZIRAN Pro series - an air-to-water heat pump utilizing natural gas R290 (propane) as a refrigerant. These units feature advanced attributes, including an AQUAMATIX programmable electronic control and a Climatix HMI user terminal. Optimized for R290 refrigerant (propane) use, these units, equipped with Full-Inverter technology, offer a robust and sustainable solution for HVAC requirements.

In March 2023, Panasonic Holdings Corporation, a Japan-based electronics company, acquired the air-conditioning business from Systemair AB for an undisclosed amount. The acquisition aims to strengthen Panasonic's presence in the European air-conditioning market by integrating Systemair's commercial hydronic systems and enhancing its development and production capabilities. This deal allows Panasonic to meet growing environmental regulations with energy-efficient and sustainable solutions for air conditioning, heating, and hot water supply systems. Systemair AB is a Sweden-based company that produces natural refrigerant equipment.

Major companies operating in the natural refrigerants market are Johnson Controls International plc, Danfoss A/S, Carrier Global Corporation, Emerson Electric Co., Daikin Industries, Ltd., GEA Group Aktiengesellschaft, BITZER Kühlmaschinenbau GmbH, MAN Energy Solutions SE, Mayekawa Mfg. Co., Ltd., Sabroe A/S, Lennox International Inc., Trane Technologies plc, Panasonic Holdings Corporation, Haier Group Corporation, Midea Group Co., Ltd., Blue Star Limited, Godrej Appliances, Kirloskar Pneumatic Company Limited, Refplus Inc., Officine Mario Dorin S.p.A.

Europe was the largest region in the natural refrigerants market in 2025. Asia-Pacific is expected to be the fastest-growing region in the natural refrigerants market report during the forecast period. The regions covered in the natural refrigerants market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the natural refrigerants market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The natural refrigerants market consists of sales of R50 (methane), R290 (propane), R600 (butane), R600a (isobutane), and R1270 (propylene). Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.