The global next generation refrigerants market is anticipated to reach USD 4.72 billion by 2023 and expected to grow at a CAGR of 8.11 percent and 10.52 percent between 2018 to 2023 in terms of value and volume, respectively.
The next generation refrigerants industry is in the process of constant evolution. A surge in demand for environment-friendly products among consumers and fueled by a stringent regulatory environment, industries are moving toward products that have minimal impact on the environment. The existing conventional refrigerants, such as R32, R22, R134a, and R544, have high global warming potential (GWP) and ozone depletion potential (ODP). However, the next generation refrigerants, such as Ammonia (R-717), 2,3,3,3-Tetrafluoropropene (R-1234yf), and 1,3,3,3-Tetrafluoropropene (R-1234ze), among others have minimal to zero GWP and ODP.
Natural refrigerant and Hydrofluoroolefins (HFO) are the two types of next generation refrigerants. The demand for natural refrigerants in the global market is expected to grow significantly, owing to their zero ODP and GWP, and the rise in the stringent government regulations, such as Significant New Alternative Policy (SNAP), Montreal Protocol, F-Gas regulations, and others. Ammonia or R717 is one of the preferred choices for large installations, whereas ozone depleting substances such as CFCs, HCFCs, and other high GWP refrigerants, have been ruled out. There has been a swift growth in the research and development activities leading to an increase in the number of business expansions over the last 3 years. Out of the total development, 38.89 percent of the developmental strategies have been product launches.