Refrigerant R32 Market By Application (Residential Air Conditioning, Commercial Air Conditioning, Industrial Refrigeration, Heat Pumps, Others [e.g., automotive air conditioning]); By End-use Industry (HVAC [Heating, Ventilation, and Air Conditioning], Automotive, Commercial Buildings, Industrial Manufacturing, Residential); By Geography, Segment revenue estimation, Forecast, 2024-2032.

The refrigerant r32 market was worth USD 4.5 billion in 2023 and will be worth USD 7.2 billion by 2030, growing at a CAGR of 6.8% during the forecast period.

 

The Refrigerant R32 market is driven by the need for environmental concerns and trends to reduce the usage of high GWPs refrigerants, including R410A & R22, for lower GWP, including R32. The Montreal Protocol amendment signed in Kigali in 2023 increased the countries’ commitments to reduce hazardous refrigerant components, thus increasing the use of R32, GWP 675, lower than R410A, with GWP of 2088. This transition is particularly prominent in the HVAC sector, where R32 is widely adopted due to its efficiency and reduced environmental impact. The latest trend is that Japan has shifted towards R32-based air conditioning systems, and major players like Daikin have incorporated R32 into their products with a view to cutting emissions and adhering to environmental norms. This shift is expected to continue as more countries implement regulations to phase out high-GWP refrigerants.

 

One of the key trends and opportunities in the Refrigerant R32 market is a higher requirement to make cooling systems more environmentally friendly and energy-efficient, especially in new end-use segments in regions such as India and Southeast Asia as HVAC becomes more widespread there. Such regions included five countries in 2023 where the demand for air conditioning expanded by 20%, requiring low-GWP refrigerants such as R32. One example is the exertion by Indian manufacturers to adopt R32 based air conditioning systems to abide by the environmental laws in the country. One of these is that Daikin has recently entered India, offering R32 air conditioners that meet efficiency and environmental requirements for growth through the green cooling market.

 

 

Market Segmentation

By Application:

• Residential Air Conditioning
• Commercial Air Conditioning
• Industrial Refrigeration
• Heat Pumps
• Others (e.g., automotive air conditioning)

 

By End-use Industry:

• HVAC (Heating, Ventilation, and Air Conditioning)
• Automotive
• Commercial Buildings
• Industrial Manufacturing
• Residential

 

By Region

North America

• US

• Mexico

• Canada

• Rest of North America

 

Europe

• Switzerland

• Russia

• France

• Germany

• U.K

• Finland

• Turkey

• Netherlands

• Belgium

• Spain

• Italy

• Rest of Europe

 

 

Asia Pacific

• India

• China

• South Korea

• Japan

• Singapore

• Thailand

• Indonesia

• Malaysia

• Philippines

• Australia

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• Argentina

• Uruguay

• Saudi Arabia

• Rest of LAMEA

 

 

Asia-Pacific dominates the Refrigerant R32 market, driven by the rapid adoption of energy-efficient air conditioning systems and increasing regulatory pressures to reduce high-GWP refrigerants. In 2023, the Asia-Pacific region, led by countries like China, India, and Japan, accounted for a significant share of global R32 consumption, with more than 50% of the global demand for air conditioning units coming from this region. For example, Japan has been a pioneer in promoting the use of R32 refrigerants, with companies like Daikin and Panasonic switching to R32 in their product lines to meet both environmental goals and efficiency standards. A recent development includes China's plan to phase out high-GWP refrigerants as part of its commitment to the Kigali Amendment, further accelerating the region's shift towards R32-based systems. This positions Asia-Pacific as the key market for R32 refrigerant, driven by both environmental regulations and growing urbanization.

 

Key Players

• Daikin Industries Ltd.

• Honeywell International Inc.

• The Chemours Company

• Arkema S.A.

• Linde plc

• Mexichem S.A.B. de C.V.

• Sinochem Group Co., Ltd.

• Dongyue Group Co., Ltd.

• Asahi Glass Co., Ltd. (AGC Inc.)

• Mitsubishi Chemical Corporation