U.S. Natural Refrigerants Market Demand, Industry Trends & Forecast 2032
- Pallavi Garudkar
- 7 hours ago
- 3 min read
The U.S. natural refrigerants market size was worth USD 259.8 million in 2022 and is projected to grow at a CAGR of 6.5% during the forecast period. Natural refrigerants are produced through natural biochemical processes and include hydrocarbons such as propylene (R-1270), propane (R-290), and isobutene (R-600a), as well as ammonia (R-717), carbon dioxide (R-744), air (R-729), and water (R-718). These refrigerants are widely used in HVACR applications due to their efficiency and low environmental impact.
In the U.S., market growth is primarily driven by the rising preference for environmentally friendly refrigerants that offer strong energy efficiency. Growing concerns over global warming and the harmful effects of synthetic refrigerants like CFCs and HFCs are accelerating the shift toward natural refrigerants.
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Segmentation Analysis:
How is the U.S. natural refrigerants market segmented by type?The market is segmented into hydrocarbons, ammonia, and carbon dioxide. Among these, hydrocarbons hold the largest market share and are expected to grow significantly due to their rising use in air conditioners, refrigerators, heat pumps, chillers, and other HVACR applications. Increasing industrialization and wider adoption across commercial and residential sectors further drive this segment’s growth.
What are the key end-use industries for natural refrigerants in the U.S.?The market is categorized into industrial, commercial, and domestic end-use industries. The industrial segment is projected to dominate during the forecast period. This growth is mainly attributed to the increasing use of ammonia in industrial refrigeration systems due to its strong thermodynamic performance, cost efficiency, and overall reliability. Rapid industrial expansion in the U.S. is further boosting adoption in this segment.
Market Drivers
Strict refrigerant regulations at federal and state levels pushing companies to transition away from high-GWP HFCs.
Lower operating costs and better energy efficiency offered by natural refrigerants, especially in large commercial and industrial systems.
Growth of the cold chain driven by e-commerce, pharmaceuticals, and food & beverage logistics.
Corporate commitments to sustainability and carbon neutrality encouraging adoption of naturally occurring, climate-friendly refrigerants.
Market Restraints
Safety considerations related to ammonia toxicity and hydrocarbon flammability require advanced training and robust system designs.
Higher upfront capital costs for installing natural refrigerant systems, especially during retrofits.
Limited availability of trained technicians experienced in CO₂ and ammonia systems, slowing large-scale rollouts.
Engineering complexity and equipment customization needed for certain natural refrigerant installations.
List of the Key Players in the U.S. Natural Refrigerants Market:
Air Liquide USA (U.S.)
Linde plc (Ireland)
Airgas, Inc. (U.S.)
AGC Inc. (Japan)
Honeywell International Inc. (U.S.)
Copeland LP (U.S.)
Energy Recovery Inc. (U.S.)
Evonik Industries AG (Germany)
Key Industry Development:
September 2020 - Linde plc launched a new line of hydrogen-based refrigeration systems for industrial and commercial applications. These systems used hydrogen, a natural refrigerant, and were designed to provide energy-efficient and environment-friendly cooling solutions.
January 2022 - Honeywell launched a new, non-flammable, energy-efficient refrigerant, Solstice N71 (R-471A), to meet stringent regulations to reduce greenhouse gas emissions.
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