Refrigerants are generally in fluid form and are used in a heat pump or refrigeration process. They primarily are of three types: Chlorofluorocarbons (CFC), Hydro-chloro-fluorocarbons (HCFC), and Hydro-fluorocarbons (HFC). All these types are believed to be detrimental to environment. HFCs are third generation of CFCs which do not deplete ozone layer, but are potentially greenhouse gases and are largely used in commercial refrigeration applications.
Increasing demand for cooling products in emerging economies is a key driver for market growth. The growing adoption of HFCs in this region will also drive the innovations in the industry. However, rising environmental concerns, and increasing price of raw materials is expected to restrain growth in both developed and developing economies.
Commercial sector accounts for major share in the market in 2015 due to the extensive use of refrigeration in vending machines, supermarkets, and similar others. The Mobile AC application also witnessed high demand and accounted for 30% in the market for 2015. However, in future, the natural refrigerants would likely replace the HFCs in both these applications owing to the escalating demand for eco-friendly products. The Domestic application share is projected to increase in emerging economies as the demand for cooling products and spending power of the inhabitants grow.