Low GWP Refrigerant Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2025-2034)

The global low GWP refrigerant market reached a value of nearly USD 35.88 Billion in 2024. The market is assessed to grow at a CAGR of 12.10% during the forecast period of 2025-2034 to attain a value of around USD 112.44 Billion by 2034. The market growth can be attributed to the growing focus on sustainability, increasing research and development activities, technological advancements, the growing trend of magnetic refrigeration, the shift towards natural refrigerants, and innovative product launches.

Global Low GWP Refrigerant Market Overview

Key players in the low-GWP refrigerant market have addressed traditional challenges by investing in advanced research and development, creating cost-effective and efficient refrigerant alternatives. They have focused on improving performance while reducing environmental impact, bolstering the low GWP refrigerant demand. To counter high transition costs, solutions such as retrofitting existing systems and developing compatible equipment have been introduced. Collaboration with regulatory bodies has also facilitated smoother compliance with evolving global standards, driving broader market adoption and technological advancements.

A new technology gaining traction in the low-GWP refrigerant market is magnetic refrigeration. This innovative cooling method uses a magnetocaloric effect to cool materials, eliminating the need for traditional refrigerants, thus boosting the low GWP refrigerant market dynamics and trends. Magnetic refrigeration offers significant energy savings, reduced environmental impact, and improved efficiency. Companies like Cooltech Applications are advancing this technology, particularly in commercial refrigeration, where it can replace harmful refrigerants. As the technology matures, it is expected to transform refrigeration across various sectors, contributing to sustainability goals.

Global Low GWP Refrigerant Market Growth

The rising demand for low GWP refrigerant in the commercial sector for air conditioning and refrigerating applications is driving the market growth. This can be attributed to the growing need for efficient refrigeration in industries like food processing, to keep dairy, meat, and fishery products fresh. Meanwhile, the rising application of the product in the residential sector owing to the transition towards eco-friendly refrigeration alternatives, increasing standards of living, and growing need to reduce electricity bills is anticipated to propel the demand for low GWP refrigerants in the forecast period.

Moreover, the growing research and development activities by the major market players aimed towards identifying lower GWP blends and increasing the capacity and efficiency of low GWP refrigerants are likely to invigorate new product launches and innovations in the coming years. Furthermore, the market is anticipated to be aided by technological advancements in the manufacturing sector, which are likely to generate demand for refrigerants with better energy performance.

Key Trends and Developments

Growing adoption of natural refrigerants; rising shift towards integrated systems; increasing focus on sustainability; and technological advancements are favouring the low GWP refrigerant market expansion.

June 2024

Johnson Controls has launched its new line of friendly green residential products optimised for low-GWP refrigerant R-454B. Offers innovative and sustainable solutions for the future, and deliveries are scheduled this quarter.

May 2024

Lennox launched low-GWP light commercial and ducted residential HVAC products that meet 2025 refrigerant regulations, securing sustainability by reducing greenhouse gas impact, while also adhering to its environmental care responsibility and community well-being.

April 2024

Allied Air Enterprises, leader in the manufacturing of heating and cooling solutions to the industry, has launched low GWP residential HVAC solutions to the market. These solutions will come in line with meeting the 2025 Low-GWP Refrigerant regulations. This move of making a far lower impact from harmful greenhouse gas emissions was already a step towards positive sustainability and saving the earth.

February 2023

Johnson Controls launched YORK® YLAA and YVFA chillers featuring R-454B and R-1234ze refrigerants, which are in compliance with EPA 2024 regulations. Low-GWP refrigerants better balance efficiency, performance, and sustainability issues with what was previously their current main concerns regarding regulatory changes.

Growing Adoption of Natural Refrigerants

The growing adoption of natural refrigerants such as ammonia (R-717), carbon dioxide (CO₂), and hydrocarbons (propane - R-290, isobutane - R-600a) is boosting the low GWP refrigerant market value. International agreements such as the Kigali Amendment to the Montreal Protocol and F-Gas Regulations in Europe are leading to the phasing out of high-GWP refrigerants (like HFCs). Natural refrigerants, with GMP values at net zero or close to zero, support businesses and sectors to meet their carbon reduction goals, improve their energy efficiency, and lower operational costs. Moreover, key players are focusing on the development of new refrigeration technologies for use in different applications such as air conditioning systems, commercial refrigeration, and heat pumps, among others.

Increasing Shift Towards Integrated System Solutions

Changing focus of the heating, refrigeration, ventilation, and air conditioning (HVAC) industry to introduce integrated system solutions in almost every area is creating low GWP refrigerant market opportunities. Integrated systems consist of various components like evaporators, condensers, heat exchangers, and controls, which improve the performance and energy consumption along with reduced use of the refrigerants. Low-GWP refrigerants find increasing application in integrated systems due to wide applicability at various temperature and pressure ranges without losing their efficiency. With further growing adoption toward renewable sources, such as geothermal or solar, there is increasing demand for low GWP-friendly integrated solutions reducing dependency on grid power and decreasing carbon footprints.

Rising Focus on Sustainability

Countries are increasingly setting stringent regulations requiring end-users to use refrigerants with low GWP. Governments and regulatory bodies are offering grants, financial incentives, and subsidies to encourage the adoption of low-GWP refrigerants and energy-efficient systems. For instance, the EU’s LIFE Program includes funding for organisations and businesses to adopt low GWP refrigerants and energy-efficient technologies. With corporations in the food and beverage, automotive, and retail sectors increasingly integrating sustainability in their business strategies and setting ambitious goals to reduce their carbon footprint, the adoption of low GWP refrigerants is surging. The growing trend of sustainability in the low GWP refrigerant market is prompting key players to develop energy-efficient and eco-friendly refrigeration systems. Companies are also investing in research and development activities to improve the performance of low-GWP refrigerants and make them more commercially viable.

Technological Advancements

Technological advancements improving the efficiency, performance, and safety of refrigeration and air conditioning systems are revolutionising the low GWP refrigerant market landscape. Key players are incorporating energy-efficient components, such as high-efficiency heat exchangers and variable speed compressors, into GWP refrigerants to ensure optimal performance while minimizing energy consumption. In addition, the rising development of IoT-enabled systems and smart building technologies is driving the demand for intelligent and efficient HVAC systems combined with low GWP refrigerants to minimize operational costs and environmental impact. The leak detection technologies are the real-time monitoring systems and infrared sensors. Low GWP refrigerants integrated with AI-driven predictive maintenance tools, which are likely to help detect anomalies and refrigerant leaks during the forecast period, will propel the market.

Global Low GWP Refrigerant Market Trends

Blended refrigerants like R-454B and R-452B balance efficiency and low environmental impact.

Amongst the new trends in the low GWP refrigerant market is blended refrigerants, the combination of the different refrigerant with the hopes of arriving at a lower GWP while keeping high efficiency. Some varieties of R454B and R452B already find wide alternative versions of the traditionally used refrigerant in what can be marketed to be more in balance between the performance, the energy efficiency as well as to the environmental impacts, thus giving way to these trends in low GWP refrigerant market. Blended refrigerants are becoming increasingly popular in residential, commercial, and industrial HVAC applications as the market shifts toward sustainability.

Opportunities in the Low GWP Refrigerant Market

Regulations, innovation, eco-consciousness, and emerging markets create significant opportunities for low-GWP refrigerants.

• Stricter environmental regulations, like the Kigali Amendment, create demand for low-GWP refrigerants.
• Innovations in refrigerant blends and cooling technologies open new market avenues.
• Increasing consumer preference for energy-efficient, environmentally friendly HVAC and refrigeration solutions.
• Rising infrastructure development in regions like the Asia Pacific and Latin America boosts refrigerant demand.

Market Restraints

High transition costs and regulatory variations hinder widespread adoption of alternatives.

Global Low GWP Refrigerant market challenges include high up-front costs, limiting adoption by smaller and medium-sized businesses. Complexity in technology within the Low GWP Refrigerant and the integration of acoustic and thermal imaging is yet another inhibitor. There lacks professional operation personnel and industry-specific limitations such as possible regulatory constraint and environmental factors that limit use in general. Also, established noise monitoring tools have remained a challenge for growth in the market.

Low GWP Refrigerant Industry Segmentation

“Low GWP Refrigerant Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

On the basis of type, the market can be divided into the following:

• Inorganics
• Hydrocarbons
• Fluorocarbons and Fluoro-olefins (HFCs and HFOs)

On the basis of application, the market can be divided into the following:

• Commercial Refrigeration
• Industrial Refrigeration
• Domestic Refrigeration
• Others

Based on region, the market can be segregated into:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

By Type Analysis

Inorganics, hydrocarbons, and low-GWP HFCs/HFOs will gain traction through sustainability and efficiency.

The inorganics, including CO2 and ammonia, are expected to be in more demand because of their low environmental impact and higher efficiencies, especially in industrial and commercial refrigeration applications. As per low GWP refrigerant market analysis, hydrocarbons, including propane and butane, are also considered due to their low GWP, efficiency, and low cost for small-scale applications in refrigeration and HVAC applications. As transitional uses in Fluorocarbons and Fluoro-olefins (HFCs and HFOs), they offer alternatives that offer less GWP, even with conventional performance. Thereby pushing its use among all the types under pressure.

Market Analysis by Application

Far-field measures large-scale noise; near-field provides detailed, close-range sound source analysis.

Commercial refrigeration is gaining traction these days, as energy-conscious business entities look to operate their plants within environmental limits and cut the cost of operation. Low-GWP industrial refrigerants are rapidly being taken up for widespread cooling applications in food processing, chemicals, and other such industries, largely driven by sustainability regulations. As per low GWP refrigerant industry analysis, domestic refrigeration incorporates low-GWP alternatives such as R-600a or isobutane for similar reasons so that it remains in conformity with global environmental standards and performance and energy efficiency. Others, such as transport refrigeration, are using low-GWP refrigerants, while it becomes increasingly tightened in terms of emissions regulation and environmental awareness.

Low GWP Refrigerant Market Regional Insights

North America Low GWP Refrigerant Market Opportunities

The North America low GWP refrigerant market presents significant opportunities driven by stricter environmental regulations and increasing demand for sustainable solutions. For example, the United States Environmental Protection Agency's phase-out of high-GWP refrigerants under the SNAP program is accelerating the adoption of alternatives like R-32 and R-454B. The rising demand for energy-efficient HVAC systems in residential, commercial, and automotive sectors further fuels growth, creating a strong market for low-GWP refrigerant innovations.

Europe Low GWP Refrigerant Market Dynamics

In Europe, the low GWP refrigerant market is heavily influenced by the F-Gas Regulation, which aims to reduce fluorinated greenhouse gases by 79% by 2030. This regulation mandates a gradual phase-out of high-GWP refrigerants, driving demand for alternatives like R-32 and R-454B in HVAC and refrigeration applications. Companies are adapting by investing in low-GWP technologies to meet compliance, creating strong market growth for sustainable refrigerants across the region.

Asia Pacific Low GWP Refrigerant Market Trends

In the Asia Pacific region, the low GWP refrigerant market is experiencing growth driven by increased environmental awareness and regulatory pressure. A key trend is the adoption of natural refrigerants, such as CO2 (R-744) and ammonia (R-717), due to their minimal environmental impact. For example, Mitsubishi Electric has pioneered the use of CO2 in commercial refrigeration systems, offering energy-efficient and eco-friendly solutions. This shift towards natural refrigerants is expected to gain momentum as governments tighten environmental regulations.

Latin America Low GWP Refrigerant Market Insights

In the Latin America low GWP refrigerant market, this market is driven by growing government regulations aimed at reducing greenhouse gas emissions. For example, Brazil's adoption of the Kigali Amendment to the Montreal Protocol mandates a reduction in HFC usage, prompting the shift to low-GWP alternatives. Companies like Embraco are leading the way by developing energy-efficient solutions using refrigerants like R-290 (propane) for refrigeration systems. This aligns with both local regulations and the global move towards more sustainable cooling technologies.

Middle East and Africa Low GWP Refrigerant Market Drivers

In the Middle East and Africa, the low-GWP refrigerant industry is being driven by increasing environmental consciousness, rising focus on energy efficiency, and regulatory shifts. Governments in the region are increasingly adopting stringent policies aligned with global climate agreements, such as the Kigali Amendment. For instance, the UAE's efforts to reduce carbon emissions have spurred the transition to low-GWP refrigerants. Companies like Emirates Refrigerants are embracing eco-friendly refrigerants such as R-32 and R-454B, supporting sustainable development in the region's HVAC and refrigeration sectors.

Competitive Landscape

Low GWP refrigerant market players are focusing on adopting environmentally friendly alternatives for high-GWP substances as part of the global drive toward environmental regulations and carbon reduction measures. They are also actively involved in developing energy-efficient solutions with lower harmful emissions, offering cost-effective applications in the HVAC, refrigeration, and automotive sectors. These innovations by low GWP refrigerant companies are expected to meet the surging demand for eco-friendly alternatives to traditional refrigerants.

Danfoss A/S

Danfoss was established in 1933 and has its headquaters in Nordborg, Denmark. Danfoss provides R-454B and R-32 low-GWP refrigerants for residential and commercial HVAC applications that help minimise carbon emission without affecting performance.

Arkema

Based in Colombes, France, Arkema was founded in 2004 and offers low-GWP refrigerants such as Forane® 1234ze and Forane® 1233zd. These are some of the alternatives offered by the company to ensure a market with more environmentally friendly alternatives for refrigeration and air conditioning systems in various types of industries.

Honeywell International Inc.

Founded in 1906, Morris Plains, New Jersey, Honeywell's company provides the following low-GWP refrigerants such as Solstice L-41b and Solstice N40. They are in order intended for application at different stages of industries for an easy transition to greener alternatives without sacrificing efficiency and performance of cooling systems.

GTS SPA

GTS SPA was founded in 1981 and is headquartered in Milan, Italy. GTS works mainly with low-GWP refrigerants R-1234yf and R-452A, mainly for use in the automotive, commercial refrigeration, and HVAC segments.

Other key players in the global low GWP refrigerant market are Linde plc, among others.