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The Automotive Refrigerant Market Size is estimated to grow at a CAGR of 9.36% between 2022 and 2027. The size of the market is forecast to increase by 100.02 million Kg. The growth of the market depends on several factors, including the higher time spend inside vehicles pushing demand for cabin comfort features, the growing popularity of automotive thermal systems pushing refrigerant consumption, and the rise in safety and comfort due to the adoption of HVAC systems.
This report extensively covers market segmentation by vehicle type (passenger car and commercial vehicle), type (r134a, r1234yf, and others), and geography (Europe, APAC, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The higher time spends inside vehicles pushing demand for cabin comfort features are notably driving the market growth, although factors such as the high costs associated with redesigning automotive HVAC systems may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Automotive Refrigerant Market Driver
The global automotive refrigerant market growth is primarily driven by the increasing demand for cabin comfort features due to longer time spent inside vehicles. As long-distance travel and rising traffic congestion continue to increase the time spent inside vehicles, automotive HVAC systems have become standard features in passenger cars and are increasingly being adopted in commercial vehicles. This trend is particularly prominent in developing countries with hot climatic conditions, such as India, which are expected to contribute significantly to the automotive refrigerant market's revenue during the forecast period. The growing demand for HVAC systems is attributed to the comfort they provide, especially during long-distance travel, leading to increased consumption of refrigerants in the automotive market.
In the US, personal vehicles are a common mode of transportation for long-distance trips and commuting to work, leading to high demand for advanced climate control systems that provide greater comfort and lower stress levels. HVAC systems are known to provide a clean and healthy environment inside vehicles, making them even more appealing to consumers spending significant amounts of time in their vehicles. Thus, the increasing time spent in vehicles is expected to drive the growth of the global automotive refrigerant market during the forecast period.
Significant Automotive Refrigerant Market Trend
The global automotive refrigerant market is expected to experience a positive impact during the forecast period due to the growing preference for R-1234yf refrigerant, which is one of the key market trends. While R-134a refrigerant is widely used in the global automotive refrigerant market, developed regions such as the EU are shifting towards R-1234yf for its lower GWP. The EU has banned refrigerants with more than 150 GWP, making R-1234yf the ideal refrigerant for widescale adoption. The US has also seen about 50% of new vehicles adopting R-1234yf, even though the country has not placed any regulatory ban on R-134a. This growing adoption of R-1234yf is attributed to the Greenhouse Gas Emissions and Corporate Average Fuel Economy Standards program for light-duty vehicles (US EPA, 2012).
Furthermore, the US provides CO2 emissions-reduction compliance credits for improving mobile air conditioning systems, including the use of low-GWP refrigerants. Other developed countries, such as Japan and Australia, have also begun to adopt R-1234yf due to the growing trend of low-GWP refrigerant adoption. Japan has the presence of the prominent R-1234yf supplier, Honeywell International, while the Australian government announced the phase-down of R-134a imports in January 2018. More countries are expected to follow suit and switch to R-1234yf refrigerant, which is expected to drive the growth of the global automotive refrigerant market during the forecast period.
Major Automotive Refrigerant Market Challenge
One of the key challenges to the global automotive refrigerant market growth is the high cost associated with redesigning automotive HVAC systems. HVAC systems are developed to cater to the need for reduced humidity, better ventilation, and controlled temperature. They are thus manufactured with increased features and functionalities, endowing them with quicker heating and cooling processes. Additionally, HVAC systems are designed to provide pollution-free airflow at preferred temperatures with lower energy consumption. The effective installation of these air conditioners also involves several alterations in the entire wiring system of automobiles. Furthermore, the cost associated with such installations, in addition to the cost of the product itself, which is very high, dissuades increased investments in automotive HVAC systems.
Moreover, the changes in the HVAC system result in additional expenditure in terms of the cost of existing refrigerants. Also, the cost of aluminium and other raw materials is getting higher. Regular, scheduled preventive maintenance of HVAC systems with documentation of tuning and repairing such as checking, cleaning, and lubricating the economizer also builds up additional expenses. These factors are expected to hinder the growth of the global automotive refrigerant market during the forecast period.
The market share growth by the passenger car segment will be significant during the forecast period. The global passenger car market is growing significantly, with demand for sedans, coupes, hatchbacks, crossovers, and SUVs getting strong in China, the US, Canada, India, Germany, France, the UK, and Spain. Rising disposable incomes and various convenient and attractive vehicle loan schemes launched by financial institutions and automobile manufacturers are increasing the demand for vehicles. This, in turn, is supporting the growth of the global automotive refrigerant market.
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The passenger car segment was valued at 109.87 million kg in 2017 and continue to grow by 2021. Over the past few decades, passenger cars have transformed from mechanically driven mobility to high-end electronic/electrical-influenced vehicles. They come with advanced features in terms of safety, security, propulsion, connectivity, and environment. These innovations have been introduced due to factors such as increasing consumer expectations, higher competition prompting OEMs to add features to maintain market share, government regulations demanding additional safety, and fuel-efficient and security features. Demand is also high for advanced climate control systems in passenger cars. This has lowered refrigerant consumption volumes in passenger cars as low amounts of refrigerants will do the required work for HVAC systems. However, a high proportion of passenger cars, particularly in emerging economies, are not expected to adopt climate control features due to the cost factor. Hence, growth in the use of new vehicles in emerging countries will drive higher consumption of refrigerants. Such factors will increase the market growth during the forecast period.
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Europe is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Europe accounts for the highest penetration of automotive HVAC systems (both in passenger cars and commercial vehicles). Commercial vehicle manufacturers such as Volvo AB (Volvo), Scania AB (Scania), and MAN Truck and Bus AG (MAN Truck and Bus) are offering HVAC systems in all their vehicle models. Extreme weather conditions in the region support the penetration of HVAC systems across all vehicle segments. Therefore, the growth of the automotive refrigerant market in Europe is highly dependent on the growth of the regional automotive market. Such factors are expected to propel the growth of the market in the region.
The regional market in focus faced another challenge from the COVID-19 pandemic in 2020. However, the initiation of large-scale vaccination drives led to the lifting of nationwide lockdowns in the last quarter of 2020 and the resumption of automotive manufacturing activities in Germany, Italy, and France in 2021. This has increased the sales of automotive components and accessories, including automotive refrigerants. Hence, the regional market is expected to grow at a steady pace during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Refrigerant Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Duracool -The company offers automotive refrigerants such as Hydrocarbon Refrigerants. Also, through this segment, the company offers refrigerants, compressors, tools, and AC solutions.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The automotive refrigerant market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Automotive Refrigerant Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.36% |
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Market growth 2023-2027 |
100.02 mn kg |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
9.95 |
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Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 33% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AGC Inc., Air International Thermal Systems, Arkema Group, Daikin Industries Ltd., Deepfreeze Refrigerants Inc., DENSO Corp., Dongyue Group Ltd., DuPont de Nemours Inc., Hanon Systems, HELLA GmbH and Co. KGaA, Hitachi Ltd., Honeywell International Inc., Johnson Electric Holdings Ltd, Linde Plc, MAHLE GmbH, National Refrigerants Inc., Sinochem Group Co. Ltd., The Chemours Co., Toyota Industries Corp., and Valeo SA |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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