Enjoy complimentary customisation on priority with our Enterprise License!
The automotive refrigerant market size is estimated to grow at a CAGR of 9.1% between 2023 and 2028. The market size is forecast to increase by USD 1.57 billion. Several factors play a crucial role in the market's growth, such as higher time spent 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.
The report offers extensive research analysis on the Automotive Refrigerant Market, with a categorization based on Vehicle Type which comprises passenger car and commercial vehicle. Additionally, it categorizes Type into R134a, R1234yf and others and covers regions, including APAC, North America, Europe, South America, and Middle East and Africa. Market size, historical data for 2018-2022, and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
For More Highlights About this Report, Download Free Sample in a Minute
Our researchers analyzed the data with 2023 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.
Higher time spent inside vehicles pushing demand for cabin comfort features is notably driving the market growth. Long-distance travel and rising traffic congestion are the crucial factors leading to the increased time spent inside vehicles. Automotive HVAC systems are standard fitments in passenger cars these days, while commercial vehicles are also increasingly using them. These systems are being adopted at a rapid pace in developing countries such as India, where overall climatic conditions are hot. Hence, countries with hot climatic conditions are expected to contribute the most to the revenue of the automotive refrigerant market.
Moreover, as traffic congestion in metros is on a continuous rise to lengthen the commuting time, the need for convenience features for greater comfort and lower stress levels is on the rise. HVAC systems provide a clean and healthy environment inside vehicles. Hence, more time spent on vehicles will drive the growth of the automotive refrigerant market during the forecast period.
The growing popularity of multi-zone climate control systems is an emerging trend shaping the market growth. Single temperature control for the entire vehicle cabin is a thing of the past, with automotive climate control systems evolving into multi-zone climate control systems. The growing adoption of multi-zone climate control systems bodes well for the growth of the global automotive refrigerant market. Each zone has a separate temperature sensor that reads the existing temperature of a specified area, and appropriate action is taken in terms of warming or cooling. DENSO is the leading vendor of multi-zone climate control systems, with the company developing the first multi-zone climate control system by dividing the vehicle cabin into three zones: driver, front passengers, and rear seat areas.
Moreover, this system is witnessing a high degree of adoption in the luxury car segment, with OEMs such as Lexus, BMW, and Audi creating differentiated multi-zone climate control systems. For instance, Lexus LX 570 offers a four-zone climate control system. These factors are expected to drive the growth of the automotive refrigerant market during the forecast period.
Rising environmental concerns are a significant challenge hindering market growth. Refrigerants used in automobile HVAC systems have a harmful impact on the environment, and this is one of the major challenges faced by the global automotive refrigerant market. The market could face a severe setback as the dominant refrigerant adopted by the automotive industry is R-134a, which has a high GWP of 1,400. The gas used in automotive HVAC systems is a greenhouse gas and, hence, very dangerous for the environment. The global warming potential of HVAC gas is many times higher than carbon dioxide.
Furthermore, the high cost of the R-1234yf refrigerant (10 times that of R-134a) is limiting its adoption on a wider scale since APAC has the highest volume of vehicle sales, and the region is known for its price-sensitive customers. Hence, growing environmental concerns are expected to remain a constant threat to the automotive refrigerant market during the forecast period.
The market research 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
Companies 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.
AGC Inc. - The company offers automotive refrigerants such as AMOLEA 1224yd, AMOLEA 1234yf, and AMOLEA X and Y Series.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The passenger car segment is estimated to witness significant growth during the forecast period. The passenger cars segment is expected to remain the highest during the forecast period, particularly in emerging countries. This will contribute to the high consumption of refrigerants by the automotive industry.
Get a glance at the market contribution of various segments Download the PDF Sample
The passenger car segment was the largest and was valued at USD 1.91 billion in 2018. The 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. The passenger car segment in the market is also driven by government regulations that assess the GWP of refrigerants. Advanced refrigerants have lower GWP but are costly. Hence, regulations mandating the adoption of such refrigerants will drive the growth of the passenger segment of the global automotive refrigerant market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 44% 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. In APAC, the passenger cars segment witnesses almost 100% penetration of HVAC systems. Thus, it is the major revenue-generating segment for the automotive refrigerant market in APAC. The increasing penetration rate of HVAC systems in the commercial vehicles segment is also supporting the growth of the automotive refrigerant market in APAC. The region will witness a rapid adoption of hybrid electric vehicles(HEVs), plug-in hybrid electric vehicles(PHEVs), and battery electric vehicles (BEVs) during the forecast period, especially in China, Japan, and South Korea. In APAC, China is the leading country in terms of the inventory of electric vehicles.
In addition, Japan plans to increase its EV share between 20% to 30% by 2030. This is expected to drive the demand for cooling and ventilation systems, contributing to the growth of the automotive refrigerant market in APAC during the forecast period. For instance, Japan-based automotive refrigerant manufacturers such as Toyota Industries Corp. and Mitsubishi Heavy Industries, Ltd. have increased their production capacities to cater to the rising demand. Due to such factors, the regional market is expected to witness growth during the forecast period.
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 2018 to 2028.
Automotive Refrigerant Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.1% |
Market growth 2024-2028 |
USD 1.57 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.15 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 44% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AGC Inc., Air International Thermal Systems, Arkema Group, Daikin Industries Ltd., DENSO Corp., Dongyue Group Ltd., DuPont de Nemours Inc., Enviro-Safe Refrigerants, Inc, Hanon Systems, HELLA GmbH and Co. KGaA, Hitachi Ltd., Honeywell International Inc., Johnson Electric Holdings Ltd., MAHLE GmbH, National Refrigerants Inc., Sinochem Group Co. Ltd., The Chemours Co., Linde Plc, Toyota Industries Corp., and Valeo SA |
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 the forecast period |
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. |
We can help! Our analysts can customize this market research report to meet your requirements.
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.