HFOs are composed from hydrogen, fluorine and carbon compounds similar to HFCs, but they are structurally different. HFOs have very short atmospheric life leading to distinct environmental benefits. HFOs are subject to all the legislation that applies to the supply and use of chemicals, including REACH in the EU. HFOs are the fourth generation of refrigerants, with each generation being a step-change improvement on the previous generation. HFOs possesses same qualities as of HFCs, but with very low GWPs (Global Warming Potential) and zero ODP. European Directive on mobile air-conditioning systems (MACs) to reduce emissions of fluorinated greenhouse gases has led to the use of HFOs as potential refrigerants in air-conditioning of all new vehicle type, which in-turn bolstered the overall market growth.
In terms of application, air-conditioning and refrigeration are the two leading application of HFO refrigerants. Rising global economy and per capita disposable incomes in especially developing nations, the demand for refrigerants is expected to flourish in the coming years. Moreover, increasing consumption of refrigerants in end-use industry such as food & beverages and automobiles sector coupled with improved living standards leading to surging demand for air conditioning are some major factors propelling the growth of the global HFO market. Further, increasing usage of mobile air-conditioning and high-pressure chillers especially in commercial refrigeration is another major factor driving the overall growth. Further, the environmental concerns such as ozone layer depletion and global warming associated with the use of traditional refrigerants have led to the formation of strict protocols and regulations, this is will also support the growth of low GWP alternative such as HFOs.
Based on type, HFO-1234yf segment dominated the global market in 2020 and is expected to maintain its position throughout the forecast period owing to increasing consumer awareness towards environment protection coupled with strict regulations on the use of hazardous and toxic refrigerants in mobile air-conditioning and refrigeration. HFO-1234yf segment is followed by HFO-1234ze in terms of market value share. Increasing demand from chillers and blowing agent applications is projected to drive the HFO-1234ze segment over the forecast period.
North America is projected to account for the largest share owing to growing demand for refrigeration and air conditioning equipment from the commercial sector coupled with presence of environment regulatory bodies compelling market players to use low GWP alternative prompting the market growth in this region. Asia Pacific is also expected to be the lucrative region owing to factors such as increasing urbanization, presence of favorable market conditions and improving living standards has bolstered the overall demand for cooling appliances and refrigeration in the commercial and residential sectors. Also, cheap labor, availability of raw materials, supportive government policies and increasing domestic demand of low GWP alternative in China are some other aspects motivating market players to invest to increase production facility. However, factors such as mild flammability, high cost, production of toxic by-product and availability of natural refrigerants is projected to hamper the market growth over the forecast period.
HFO-1234yf blend accounted for the largest share in the global hydrofluoroolefins market by type in 2020 and is estimated to sustain its dominance over the forecast period from 2021 to 2029. This is owing to high demand for efficient replacement of traditional refrigerants with low impact on environment especially from air conditioning and refrigeration applications. Moreover, HFO-1234yf refrigerant is preferred over other types by automobile manufacturers such as Honda, Cadillac, Chevrolet for mobile air-conditioning due to its similar performance to HFC-134a, is further fueling the growth of this segment. However, flammability issue raised by the automotive giant Daimler AG led other manufacturers to switch to other alternatives, which has impacted the market growth. Further, lower volumetric capacity and flammability is expected to impede the market growth during the forecast period. HFO-1234ze accounted for the second largest market value share in 2020. HFO-1234ze is easy to manufacture and cheaper than HFO-1234yf. This blend finds its application mainly in large chillers, blowing agent and propellants owing to its non-ozone-depleting, non-flammable and very low GWP properties which is further supplementing the overall market growth. Others include blends such as HFO-1233zd, HFO-1336mzz, etc. has very niche application and are not widely used in end-use industry.
By application, air conditioning segment dominated the global hydrofluoroolefin market in 2020 and is expected to maintain its dominance over the forecast period. This is primarily due to rising demand for efficient air conditioning systems across several end use industry. HFO’s are the most viable emerging alternative for traditional refrigerants used in air-conditioning application with very low GWP and ODP. Moreover, increase in global temperature and improvisation in living standards of consumers especially in developing economies are some other major aspects driving the growth of the global air-conditioning market, leading to increased adoption of HFO’s globally. Air-conditioning segment is followed by refrigeration systems, HFO’s finds its application in domestic and commercial refrigeration. With eventual HFCs phase-down in North America and European region as it is detrimental to the environment, HFOs are considered as a viable replacement in refrigeration systems in these regions. Therefore, fuelling the demand of HFO across the globe. Use of low-GWP alternatives in aerosols propellant and blowing agents is further expected to push the overall demand for HFO’s worldwide.
In 2020, North America held the largest market value share and is projected to remain dominant during the forecast period. Strict regulations laid down by U.S. EPA to eliminate HFC from different applications and replace it with other low GWP alternatives such as HFO, CO2, natural refrigerants etc. is the major aspect driving the market growth in this region. Investment in new production facility of HFO to cater increasing demand for low GWP alternative coupled with U.S. automobile manufacturer’s commitment to use HFO-1234yf in chillers and commercial refrigeration also boosting the demand in the region. North America is followed by European region in terms of market value share in 2020. European regulation on mitigating the emission of fluorinated greenhouse gases has triggered the development and use of environmental friendly refrigerants. As per EU MAC Directive, all new vehicle types are restricted to use a refrigerant with a global warming potential (GWP) of more than 150, consequently has propelled the demand of HFOs in the region. Asia Pacific is also one of the lucrative region in the global hydrofluoroolefin market due to increasing demand from growing application. Moreover, availability of cheap and skilled labor as well as favorable governmental policies are attracting several HFO’s manufacturers to set up their facilities in Asia-Pacific countries, thus driving the growth of Asia Pacific HFOs market. For instance, in July 2019, Chemours doubled its supply capacity of HFO-1234yf to cater the domestic demand of Low GWP refrigerants from mobile air-conditioning and refrigeration. Latin America and Middle East & Africa region is expected to witness slow growth rate compared to other regions owing to lenient environmental policy and low awareness of environmental issues related with the use of HFCs in end-use industry.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Hydrofluoroolefins market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
