Tuesday, 02 January 2024 12:17 GMT

Carbon-Neutral Refrigerant Market Size To Hit USD 12.96 Billion By 2033 Driven By Rising Regulatory Obligations And Environmental Sustainability Programs SNS Insider


(MENAFN- GlobeNewsWire - Nasdaq) The U.S. Carbon-Neutral Refrigerant Market is estimated at USD 0.73 billion in 2025 and is projected to reach USD 1.92 billion by 2033, growing at a CAGR of 12.96% during the forecast period 2026–2033.

Austin, Oct. 09, 2025 (GLOBE NEWSWIRE) -- Carbon-Neutral Refrigerant Market Size & Growth Insights:

According to the SNS Insider,“The Carbon-Neutral Refrigerant Market size is valued at USD 4.74 Billion in 2025E and is projected to reach USD 12.96 Billion by 2033, growing at a CAGR of 13.43% during 2026-2033.”

Surging Demand for Low-GWP and Environmentally Sustainable Refrigerants across HVAC Drive Market Growth

Growing environmental consciousness and the implementation of laws prohibiting high-GWP refrigerants are the primary factors driving the global market for carbon-neutral refrigerants and transportation. The need is driven by the growing use of HFOs, natural refrigerants, and mixes in industrial cooling, HVAC, and refrigeration systems. Deployments are driven by government assistance, business environmental initiatives, and investments in energy-efficient cooling technologies. The global market is still being driven by factors, such as expanding urbanization, advancements in the commercial cold chain, and increased demands to reduce carbon footprints.

The market for innovative technologies with low-GWP refrigerants, blends, and high energy efficiency cooling has a lot of unrealized promise. New growth factors are presented by the growing use in developing economies, such as those in Asia, Latin America, and the Middle East. The demand for the product has grown due to its usage in cold chain logistics, commercial refrigeration, and eco-friendly HVAC systems. Furthermore, manufacturers and other stakeholders in the worldwide carbon-neutral refrigerant business have a profitable market opportunity owing to the government agencies' supportive actions toward green technology and large firms' investments in research and development for safe and highly efficient refrigerants.

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Leading Market Players with their Product Listed in this Report are:

  • Honeywell International Inc.
  • Daikin Industries, Ltd.
  • The Chemours Company
  • Arkema S.A.
  • Linde plc
  • Air Liquide S.A.
  • Sinochem Group Co., Ltd.
  • Mitsubishi Electric Corporation
  • Johnson Controls International plc
  • Emerson Electric Co.
  • A-Gas International Limited
  • Toshiba Carrier Corporation
  • Panasonic Corporation
  • Trane Technologies plc
  • Gree Electric Appliances Inc.
  • Bitzer SE
  • Danfoss A/S
  • Mayekawa Mfg. Co., Ltd.
  • National Refrigerants, Inc.
  • Shanghai Zhongsu Gas Co., Ltd.

Carbon-Neutral Refrigerant Market Report Scope:

Report Attributes Details
Market Size in 2025 USD 4.74 Billion
Market Size by 2033 USD 12.96 Billion
CAGR CAGR of 13.43% From 2026 to 2033
Report Scope & Coverage Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segmentation . By Product (Hydrofluoroolefins (HFOs), Natural Refrigerants, Blends, and Others)
. By Application (Commercial Refrigeration, Industrial Refrigeration, Residential Refrigeration, Air Conditioning, and Others)
. By End-User (Food & Beverage, Pharmaceuticals, Automotive, Retail, and Others)
. By Distribution Channel (Direct Sales, Distributors/Wholesalers, Online Sales, and Others)

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Key Industry Segmentation

By Product

Natural refrigerants are leading the market with a 37.65% share in 2025E owing to their low GWP and environment-friendly nature, which are increasingly being used in commercial & residential refrigeration systems. Hydrofluoroolefins (HFOs) are the fastest-growing product segment, expected to grow at a CAGR of 10.50% caused by strict environmental norms and increasing use in next- generation air conditioning systems.

By Application

Residential refrigeration dominates the market with a 34.13% share in 2025E as households looking out to comply with energy efficiency norms by adopting green cooling systems. Air conditioning is the fastest-growing application, registering a CAGR of 9.80%. The segment's expansion is driven by urbanization, severe weather and government incentives for low-GWP refrigerants are driving expansion in the air conditioning sector.

By End-User

The food & beverage sector leads with a 35.27% share in 2025E as cold storage, refrigeration, and transportation need proper cooling, which would be efficient and environmentally friendly. Pharmaceuticals are the fastest-growing end-user, growing at a CAGR of 11.53% due to the demand for temperature-controlled storage that vaccines and medications require.

By Distribution Channel

Direct sales hold the largest share at 44.90% in 2025E as commercial customers and industrial end-users maintain strategic partnerships with the manufacturers. Online sales are the fastest-growing channel, with a CAGR of 10.60% owing to the rising e-commerce penetration and small-sized buyers' accessibility to co2 refrigerants and growing awareness of environment-friendly alternatives.

Europe Held the Largest Market Share of 39.54% in 2025E; Asia Pacific is Predicted to Expand with a CAGR of 15.26% over 2026-2033

In 2025E, Europe dominated the Carbon-Neutral Refrigerant Market and accounted for 39.54% of revenue share due to the strict EU laws of refrigerants and emissions. Asia Pacific is expected to witness the fastest growth in the Carbon-Neutral Refrigerant Market over 2026-2033, with a projected CAGR of 14.15% due to rapid industrialization and urbanization.

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Recent News:

  • In April 2025 , Honeywell introduced the Honeywell ProtoniumTM suite, an AI-powered platform designed to enhance the efficiency and scalability of green hydrogen production, aligning with its broader sustainability goals.
  • In March 2025 , At ISH 2025, Daikin showcased innovations, such as the Daikin Altherma 4 generation and CO2 VRV systems, emphasizing low-carbon heating and cooling solutions for diverse building types.

Exclusive Sections of the Carbon-Neutral Refrigerant Market Report (The USPs):

  • IMPORT & EXPORT INSIGHTS – helps you analyze country-wise import/export volumes and trade balances for carbon-neutral refrigerants, revealing global supply-demand dynamics and key trading regions.
  • REGULATORY & POLICY COMPLIANCE – helps you track refrigerants meeting carbon-neutral/low-GWP standards, phase-out regulations across countries, and adoption rates in regulated industries.
  • R&D & INNOVATION METRICS – helps you assess patents, R&D expenditure, and recent technological innovations in carbon-neutral refrigerants to identify leaders and emerging solutions.
  • ENVIRONMENTAL IMPACT METRICS – helps you quantify greenhouse gas reduction, global warming potential comparisons, and carbon footprint reduction per ton, highlighting sustainability performance.
  • MARKET PENETRATION & ADOPTION INDEX – helps you evaluate adoption trends across regions and industries, pinpointing high-growth markets and underpenetrated opportunities.
  • COMPETITIVE LANDSCAPE & STRATEGIC POSITIONING – helps you gauge the strength of key players through innovation, market reach, and regulatory compliance, supporting strategic decision-making and investment planning.

About Us:

SNS Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our company's aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world.

CONTACT: Contact Us: Rohan Jadhav - Principal Consultant Phone: +1-315 636 4242 (US) | +44- 20 3290 5010 (UK)

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