The global automotive refrigerants market is projected to grow at a CAGR of 3.56% to reach US$51.323 billion by 2025, from US$41.605 billion in 2019. Automotive refrigerants are used for the proper functioning of the air conditioning system in the vehicle.
There has been a rise in the demand for increased comfort in vehicles over the past few years, and having a properly working and efficient air conditioning system in the vehicle adds to that comfort. People desiring increased comfort coupled with the growing demand for automobiles, which is attributable to the rising disposable income of people, will increase the demand for automotive refrigerants and thus play a role in driving the growth of the automotive refrigerant market over the forecast period.
There are some strict regulations regarding the type of refrigerant to be used in the vehicle in order to minimize the pollution and damage caused to the environment and contribute to global warming. For instance, EPA guidelines state that the usage of R-134a is more dangerous as it contributes to global warming more heavily as compared to the R-1234yf, which holds the lesser possibility to cause global warming, and with regard to new vehicles, the EPA planned to end the use of R-134a refrigerant in new cars by 2021. Additionally, according to the EU Directive on Mobile Air Conditioning (MAC Directive), from January 2017, all European cars had to use a refrigerant with a global warming potential lesser than 150 such as the R-1234yf. The senior manager of HVAC systems at Jeep also prefers using the R-1234yf refrigerant and agrees with the decisions made and regulations set by the EPA. In addition, in 2013, the Society of Automotive Engineers (SAE International) with the participation of Asian automakers and some other automakers said that the use of the refrigerant R-134yf was safe and more effective for passengers cars. These strict regulations restrain the market growth to some extent.
There are many opportunities for vehicle manufacturers to use other types of refrigerants such as the CO-based R-744 and the Hydrofluoroolefins (HFO’s) based R-152a in the future, which will boost the market growth as they have very little impact on the environment and do not cause the depletion of the ozone layer. Furthermore, the increasing investments and participation of market players in order to improve the quality of refrigerants and to promote the use of environment-friendlier refrigerants is also going to bolster the market growth over the forecast period.
The automotive refrigerants market has been segmented by refrigerant type, vehicle type, sales channel, and geography. By refrigerant type, the market is segmented as R-134a and R-1234yf. By vehicle type, the market is segmented as passenger vehicles and commercial vehicles. By sales channel, the market has been segmented into online and offline.
R-1234yf refrigerant type accounts for the major share.
By refrigerant type, R-1234yf is estimated to hold a significant share in the market owing to the fact that it possesses the lesser potential to cause global warming and is more environment-friendly than the R-134a refrigerants, which is used commonly in passenger vehicles.
Passenger vehicles will dominate the vehicle type segment.
By vehicle type, passenger vehicles are expected to hold a significant share in the market owing to their increasing demand, which is facilitated by the rising disposable income of the general population and their desire to own a vehicle.
Online Sales will provide a significant boost in revenues in the coming years.
By sales channel, online is expected to hold a significant share in the market owing to the growing penetration of the internet coupled with the rising popularity and shifting preference of people of ordering products online, which is associated with the convenience and other benefits it provides.
By geography, Asia Pacific is expected to hold a significant amount of share in the market, which is attributable to the fact that there has been an increase in the production of passenger vehicles in some countries of this region like India and China.
Some of the major players covered as a part of this study are DuPont, Arkema, BASF, Daikin, and Linde among others.
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