Low GWP Refrigerants Market

Low GWP Refrigerants Market Outlook (2025 to 2035)

The global Low GWP refrigerants market is expected to reach USD 106 billion by 2035, up from USD 31.8 billion in 2024. During the forecast period (2025 to 2035), the industry is projected to grow at a CAGR of 11.5%.

Over the span of next ten year, the industry is poised to grow 3X with an absolute dollar opportunity of USD 70.3 billion. This growth trajectory signals a positive market outlook, emphasizing strong potential for innovation, investment, and sustainable development.

Low GWP chemicals are environmentally friendly chemical alternatives to prevalent high-GWP chemicals used in cooling and refrigeration processes. Low GWP chemicals are created to minimize greenhouse emissions by means of chemical promotion of enhanced energy efficiency.

Low GWP chemicals find industrial use in various industrial applications such as HVAC, automotive, and industrial refrigerating equipment. Low GWP chemicals have a very critical application in satisfying global climatic demands as well as local regulation without environmental impacts of cooling technology.

Metric	Value
Industry Size (2025E)	USD 35.7 billion
Industry Value (2035F)	USD 106.0 billion
CAGR (2025 to 2035)	11.5%

What are the drivers of the Low GWP Refrigerants Market?

A global move towards cleaner air conditioning and refrigeration technology is propelling the Low GWP Refrigerants market. Global green concerns, coupled with efforts like the Kigali Amendment to the Montreal Protocol, are encouraging users and manufacturers to shift away from high-GWP refrigerants to cleaner alternatives. Policy momentum of this kind is one of the key drivers of demand.

Growing demand for residential and commercial HVAC systems has propelled low GWP refrigerant demand because of heightened global warming and urbanization. The automotive sector is also gaining momentum because hybrid and electric vehicles require progressively high-performance, green-friendly cooling systems and corresponding emission controls.

Technological innovation is making it possible to produce the next generation of refrigerants at zero environmental expense and maximum safety and efficiency. Synthetic advanced blends and natural refrigerants like CO₂, ammonia, and hydrocarbons are providing new areas of application in every sector.

Increased commerce and customer demand for sustainability are encouraging manufacturers to introduce green refrigerant in their product ranges. Tax credit and economic ones in some portions of the country, however, are encouraging retrofits of low GWP technology, fueling marketplace adoption. They are all fueling this stratospheric expansion in this environmentally friendly section of the market.

What are the regional trends of the Low GWP Refrigerants Market?

North America is one of the most powerful markets for Low GWP refrigerant adoption supported by encouraging environment regulations and government policy at the phase-out phase of high-GWP products. North America follows the United States and Canada in adapting HVAC efficiency regulation and has a penetration level that is extensively witnessed in commercial, residential, and automotive spaces. North America has a rich technology base for enabling and adopting new-gen refrigerant technologies.

Europe is not far behind, as the Nordics, France, and Germany spearhead the switch to green refrigerants. The key driver for change is EU's F-Gas Regulation which demands significant fluorinated greenhouse gas emissions reductions. Businesses are thus charging headfirst into a phase-out to CO₂, ammonia, and HFOs (hydrofluoroolefins) as a compliance strategy and embracing sustainability practices.

The Asia-Pacific is growing most rapidly in response to its record building boom, stratospheric consumer expenditures, and untrammeled industrialization. China, Japan, and India are all investing vast amounts of capital in more efficient refrigerator technology to facilitate more climate action pledges. Japan, for instance, is leading the way to develop natural refrigerants to retrofit shopping and retail structures.

There is increasing momentum in Mexico and Brazil and in Latin America with policy conditions in place. There is market transformation to cleaner cooling alternatives through city planning and trade policy.

Middle East & Africa market, lagging adoption, is seeing rising adoption of high-efficiency refrigerants, mostly on high-end commercial property and high-end hospitality properties, where energy efficiency matters during hard times.

What are the challenges and restraining factors of the Low GWP Refrigerants Market?

Even though the market for Low GWP Refrigerants is evolving at an astronomic rate of speed, there will be specific reasons limiting its use. The strongest restraint is cost. Low-GWP refrigerants, especially natural ones like CO₂ and ammonia, differ significantly from traditional options, requiring specialized equipment, advanced insulation, and strict safety protocols, which together contribute to substantially higher installation and operational costs.

Ineffective harmonization of law in an industry restrains market access. Just as the unbending requirement in the North American and European case hinders technology uptake, incompatible regimes in developing countries impedes technology uptake as well as mislead producers and suppliers.

Technological challenges of retrofitting commissioned HVAC equipment are the second barrier. Quantities installed on large-scale infrastructure networks can't be rebalanced with low-GWP refrigerants and thus are costly to re-design. It is therefore not simple for small and medium-scale enterprises to switch over without costly capital expenditures.

Insufficient technical training of the technicians and safety concerns are also areas of concern. Flammability or toxicity to some degree occurs in certain low-GWP refrigerants which demand specific safety precautions and safe installations. Supply chain limitation, particularly for global perturbation, affects primary components availability to build and deploy low-GWP systems.

Shifts in the Low GWP Refrigerants Market from 2020 to 2024 and Future Trends 2025 to 2035

During the period 2020 to 2024, the global market for low GWP refrigerants saw incremental and controlled growth due to the increasing burden on the environment due to more and more, mounting pressure on the environment, substitute regulatory demands, rising environmental awareness with the climatic history of high-GWP chemicals.

Worldwide standard acceptance such as the Kigali Amendment and bridging by national F-gas legislation precipitated later replacement by less climate concerned alternatives such as HFOs, CO₂, and ammonia. Technology development in refrigerant chemistry and system design enabled early use in commercial refrigeration, mobile air conditioning, and industrial chilling.

Efficiency at the end use and regulatory compliance were also cornerstones, paving the way for low-emission and retrofit technology. Disadvantages were costly R&D and low-emission, but industry change platforms were available throughout the decade. Net-zero policy is driving transformational disruption with global built property decarbonization, smart thermal management systems, and industrial infrastructure with the market decade 2025 to 2035.

Market Shift	2020 to 2024
Regulatory Landscape	Regional regulations like EU F-Gas Phase-down and Kigali Amendment compliance began steering the shift to low GWP alternatives.
Technological Advancements	Rise of mildly flammable HFOs, secondary loop systems, and enhanced refrigerant blends.
Industry-Specific Demand	High demand from commercial refrigeration, automotive AC, and stationary AC systems.
Sustainability & Circular Economy	Emphasis on reducing direct emissions; improved refrigerant recovery and recycling initiatives.
Production & Supply Chain	Transition phase with limited supply of new refrigerants, R&D-intensive manufacturing pipelines.
Market Growth Drivers	Environmental regulations, end-user pressure for green solutions, and climate awareness.

Market Shift	2025 to 2035
Regulatory Landscape	Stricter global compliance with sustainability mandates; EPR (Extended Producer Responsibility) and carbon neutrality frameworks will dominate.
Technological Advancements	Integration of AI-based leak detection, energy-efficient systems, and next-gen low-GWP blends designed for high ambient climates.
Industry-Specific Demand	Rapid uptake in heat pump technologies, green buildings, data center cooling, and electric vehicle thermal management.
Sustainability & Circular Economy	Full-scale implementation of circular refrigerant use models, with a focus on zero-leakage systems and refrigerant reclamation markets.
Production & Supply Chain	Diversified production with localized supply hubs, automation-driven manufacturing, and streamlined distribution networks.
Market Growth Drivers	Rise of net-zero infrastructure, electrification of HVAC systems, smart cooling integration, and increasing demand in Asia-Pacific and Africa.

Future Outlook (2025 to 2035)

Low GWP refrigerant market will totally transform in 2025-2035 with supremacy of all other general climate control applications, technology innovation, and innovation in other application area growth. Thermal efficiency and the application of artificial intelligence with self-detector leak and life cycle management will create efficiencies at the system level.

Ultra-low GWP alternatives will be driven and compelled by greater regulation, pushing the company towards non-synthetic refrigerants in certain applications. The construction sector is expected to play a leading role, with heat pumps, electricity transmission infrastructure, and the cold storage chain emerging as the most effective applications for supporting the energy transition.

Low GWP refrigerants will find their place in ESG reporting systems and strategically becoming an integral part of industries. Green policy, digitalization, and infrastructure upgrades will reshape the market as a central pillar of sustainable development. Companies embracing product innovation and lifecycle circularity with regulation will thrive by steering competitive prosperity through a well-managed and performance-based system.

Country-Wise Insights

Country	CAGR (2025 to 2035)
United States	10.3%
Germany	12.8%
China	11.9%

United States (U.S.)

U.S. low GWP refrigerants market is evolving rapidly, driven largely by stringent environmental regulations and industry-wide transition to green cooling technology. EPA phasedown of hydrofluorocarbons (HFCs) under the AIM Act has been one of the most critical drivers for transition to environment-friendly, next-generation low global warming potential refrigerants.

The primary market uses are HVAC, automotive air conditioning, and commercial refrigeration. Growing progression in green building certification and investment in energy-efficient infrastructure is driving the need for low GWP substitutes. Rising consumer consciousness towards sustainability and business imperative to become net-zero emitters are also driving industries to transition to refrigerants such as R-1234yf, R-744 (CO₂), and ammonia-based systems.

Technological innovation in leak detection technology and refrigerant mixtures is making the alternatives increasingly more economically viable and safe for use. R&D and strategic partnering are becoming increasingly appealing to companies as they put themselves in advantageous position in the low-carbon economy.

Germany

Germany is a pioneer country in European low GWP refrigerant manufacturing through strict environmental conservation efforts and highly energy-efficient culture. German industry and service sectors offer high-GWP and low-GWP solutions based on the framework of the EU's F-Gas Regulation and Green Deal program.

Supermarket, transport, and industrial cold chain retailers combined are the strongest individual drivers of market growth. Green cold chain logistics policy and heat pump installations through public policy also encourage increased use of green refrigerants.

German industry is at the forefront of using natural refrigerants such as CO₂ (R-744), hydrocarbons (R-290, R-600a), and ammonia (R-717). Heat pumps and magnetic refrigeration are also gaining traction. The development of refrigeration technology will be a German-focused trend with sound engineering tradition backed by the government.

China

China's low-GWP refrigerant market is expanding quickly with rising green conscience and global response to climate, namely the Kigali Amendment to the Montreal Protocol. The government's double-carbon policy (peak carbon in 2030, carbon neutrality in 2060) is speeding up HFC phase-down with green substitutes.

These are car air conditioning, industrial air conditioning, and commercial air conditioning. Residential HVAC majors are making significant investments in R&D of low-carbon refrigerants such as R-32, R-290, and CO₂ and increasing capacities to meet expanding domestic and international markets

Besides that, Chinese supremacy in refrigeration equipment manufacturing is a challenge for low GWP products to be used on a large scale. Benefits of cold chain center and green building are also stimulating the market growth. Policy support, industry coordination, awareness of technology, and industry size place China in the world's top position in shifting to sustainable refrigerants.

Category-Wise Analysis

Carbon Dioxide - By Type

The Carbon Dioxide is a fast-expanding product of the Low GWP Refrigerants Market on account of its very low GWP value (~1) and increasing global regulatory support of natural refrigerants. CO₂ is gaining firm grounds in commercial refrigeration, i.e., supermarket transcritical and subcritical applications, cold chains, and food retailing. CO₂ is ozone-depletion free, trace amount non-toxic, and under zero-waste and decarbonization regulations over conventional HFCs.

These are subsequently tackled by Asia-Pacific and North America through retrofitting and incentive programs. Parallel compressors and ejector systems are also overcoming past efficiency issues through technology. Business-to-consumer retailing through sustainability theme, carbon dioxide-based systems will remain dominant in new supermarket installations and retrofitting globally.

Supermarket Refrigeration - By Application Type

Supermarket Refrigeration is the biggest growth driver for the Low GWP Refrigerants Market as shopping malls are shifting towards the use of energy-efficient and eco-friendly refrigeration systems in the store. As there is growing regulatory pressure on high-GWP refrigerants, owners of supermarkets are shifting towards natural and low-GWP refrigerants such as CO₂ and hydrocarbons. They possess improved refrigeration capacity, operating efficiency, and global policy compliance on emission reduction.

Transcritical CO₂ systems are retro-fitted by retail chains, especially in Europe and Japan, while North American markets ratchet down step-wise with phasedown provisions under the AIM Act and California HFC regulations.

In addition to being climatically controlled, supermarkets are also encouraged by costing less over their lifecycle and being recognized as an environmentally friendly retailer. Adoption in the future will be encouraged by innovation in central systems and by energy efficiency, and this is an appropriate driver of sustainable refrigeration markets.

Less than 150 GWP - By GWP Index

The "Less than 150 GWP" segment is a growth engine for the market, driven by changing environmental norms like the EU F-Gas Regulation and Kigali Amendment goals. CO₂, Hydro-Fluoro Olefins (HFOs), and some Hydrocarbons are a few refrigerants in the "Less than 150 GWP" segment that meet severe climate requirements without compromising integrity of performance.

Increased applications in refrigeration and motor vehicle air conditioning uses are inspired by requirements to meet national phasedown plans as well as carbon-neutrality objectives. Invention development for new systems, including low-charge design and safer alternative generation, has prompted use in supermarket, cold chain, and transport markets.

The segment is gaining its full speed in Europe and will expand in Asia and North America due to policy developments and OEM alliances. As businesses avoid legacy infrastructure, low-GWP refrigerants with a GWP less than 150 will dominate the market, incentivizing long-term compliance as well as sustainability.

Competitive Analysis

Key players in the Low GWP Refrigerants Market include The Chemours Company, Honeywell International Inc., Daikin Industries, Ltd., Arkema S.A., Orbia (formerly Mexichem), Emerson Electric Co., Danfoss, A-Gas Americas, Air Liquide, and Zhejiang Sanmei Chemical Incorporated Company.

Market is growing with increasing demand for green refrigerants driven by global environmental legislations like the Kigali Amendment and F-Gas legislation. Growth in the application of low GWP refrigerants across HVAC, refrigeration, and transportation is pressurizing the companies to develop at a fast rate.

New technology on low GWP non-flammables blend, synthetic replacement for increased performance, and long term CO₂ system is revolutionizing the industry face. Sustainability is emerging as a prominent factor among the companies with the investment in reclamation business, circular economic approaches, and new refrigerant chemistry with the performance at zero environmental security cost. Increased energy-saving systems and regulations drive the competitive business.

Market Share Analysis by Company

Company Name	Estimated Market Share (%), 2024A
Top 5 Players	~50-60%
Tier II Players	~25-35%
Other Players	~5-15%

Key Company Offerings and Activities

Company Name	Key Offerings/Activities
The Chemours Company	Offers Opteon™ low GWP refrigerants for automotive and commercial use; focuses on innovation and regulatory compliance.
Honeywell International Inc.	Provides Solstice® refrigerants; emphasizes non-flammable, energy-efficient, eco-friendly solutions.
Daikin Industries, Ltd.	Developer of R-32 and next-gen refrigerants; integrates HVAC systems and refrigerants with high energy efficiency.
Arkema S.A.	Produces Forane® refrigerants for A/C and heat pumps; strong focus on resource optimization and safety.
Orbia (Mexichem)	Offers Klea® brand refrigerants for automotive and cooling industries; targets cost-effective, scalable solutions.
Emerson Electric Co.	Supplies compressors and systems designed for low GWP refrigerants; invests in product compatibility and performance.
Danfoss	Develops components optimized for CO₂ and low GWP refrigerants; focuses on energy-saving and sustainable systems.
A-Gas Americas	Specializes in refrigerant recovery and reclamation; promotes lifecycle refrigerant solutions.
Air Liquide	Produces low GWP synthetic refrigerants; expanding global infrastructure to meet demand.
Zhejiang Sanmei Chemical Inc.	Manufactures new low GWP blends for refrigeration; emphasizes innovation and efficiency in chemical synthesis.

The Chemours Company

Chemours Company is a leader in its Opteon family of products having low GWP refrigerants in stationary A/C, automotive, and refrigeration applications. It has a robust investment in R&D in long-term environmental regulation and non-flammable mixtures of refrigerants lowering greenhouse emissions.

Honeywell International Inc.

Honeywell Solstice refrigerants are low GWP and non-ozone depleting. Honeywell, the world leader in sustainable cooling, keeps innovating with solutions for residential, commercial, and mobility cooling and energy efficiency and safety improvement.

Daikin Industries, Ltd.

Daikin, the world's leading HVAC company, produces low-GWP refrigerants with improved performance like R-32. It operates on green refrigerants in its solutions and is investing in ultra-low GWP technology to address global carbon savings in refrigeration.

Arkema S.A.

Arkema produces the Forane line of refrigerants for a variety of applications and is in research phase for even more effective refrigerants. It continues to advance research and development to assist long-term F-gas regulation objectives and enhance air-conditioning and heat pump system efficiency.

Orbia (Mexichem)

Orbia distributes or distributes Klea refrigerants worldwide with commercial and automotive refrigeration know-how. Orbia expands in developing markets with sustainable, efficient solutions and develops capacity to meet evolving refrigerant needs.

Recent Development

• In April 2024, Johnson Controls launched a low-GWP residential HVAC portfolio using R-454B refrigerant. The new air conditioners, heat pumps, and furnaces offer high efficiency with reduced environmental impact, aligning with future regulations while delivering sustainable, reliable comfort for modern homes.
• In February 2024, Lennox announced the rollout of low-GWP refrigerants across its commercial and residential HVAC products. Featuring R-454B and R-32 refrigerants, the new systems support regulatory compliance, reduce environmental impact, and maintain high performance, reinforcing Lennox’s commitment to sustainable, energy-efficient climate solutions.
• In February 2024, Mitsubishi Electric Trane HVAC US unveiled a new low-GWP product collection featuring R-454B refrigerant. The lineup enhances energy efficiency and environmental performance, supporting sustainability goals and regulatory compliance while delivering reliable comfort and innovative climate control for residential and light commercial spaces.

Fact.MR has provided detailed information about the price points of key manufacturers of Low GWP Refrigerants Market positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Low GWP Refrigerants Market

• By Type :

  • Inorganics
    • Ammonia
    • Carbon Dioxide
    • Sulfur Dioxide
    • Ethyl Chloride
    • Methyl Chloride
    • Others
  • Fluorocarbons
    • Chlorofluorocarbons
    • Hydro-Chlorofluorocarbons
    • Hydro-Fluorocarbons
    • Hydro-Fluoro olefin
  • Hydrocarbons
    • Propane
    • Isobutane
    • Propylene
    • Others

• By Application Type :

  • Refrigeration
    • Residential Refrigeration
    • Small Self-Contained Refrigeration
    • Large Self-Contained Refrigeration
    • Walk-in Refrigeration
    • Supermarket Refrigeration
    • Transport and Industrial Refrigeration
  • Air Conditioning
    • Residential Air Conditioning
    • Commercial Air Conditioning
    • Mobile Air Conditioning
  • Chillers
    • Centrifugal Chillers
    • Scroll/Screw Chillers

• By GWP Index :

  • Less than 150 GWP
  • 150 to 700 GWP
  • More than 700 GWP

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa