A refrigerant is a fluid that is used in air conditioners and refrigerators. The function of a refrigerant is to absorb heat from the contents of the refrigerator or the room (in case of ACs) and throw it out into the atmosphere. A typical refrigerant undergoes a phase change from liquid to gas upon absorption of heat, and back to liquid when a compressor compresses it. There are various types of refrigerants available such as chlorofluorocarbon (CFC), hydro fluro carbons (HFC), and hydrochlorofluorocarbon (HCFC). The application of an ideal refrigerant is made on the basis of its thermodynamic properties, non-corrosive nature, and properties such as non-toxicity and non-flammability.
The usage of various refrigerants and their environmental effects causing depletion of the ozone layer have been a constant matter of discussion for the last few decades. Before 1990s, the most common refrigerant used was R-12 (CFC), by Dupont, named Freon. However, in the 1990s and 2000s, CFCs were replaced by HCFCs; the most common being R-22. HCFC refrigerants contain chlorine, which causes the depletion of the ozone layer and hence, are being phased out. The use of R-22 in new units has been outlawed since 2010. The phasing out of HCFC, has been planned, with the U.S. slated to terminate the supply by the year 2020. In emerging economies such as India, 50%to 60% of the ACs operating in the country utilize HCFCs and as per the Government’s plan, it is estimated to be phased out by the year 2030.
Manufacturers created another set of refrigerant called Hydro Fluoro Carbon (HFC) in order to remove the chlorine content from the refrigerant. HFCs have the potential to cause global warming; however, they are still better than HCFCs, as they do not deplete the ozone layer. The most common HFC in use is R-410A, being better in terms of ozone depletion potential and energy efficiency; however, it still causes global warming.
The primary restraint associated with the R-410A refrigerant is still possesses the potential to cause global warming potential. In 2015, the Environmental Protection Agency (EPA) added a new rule to their Significant New Alternatives Policy (SNAP); this new rule was targeted toward the phasing out Hydroflurocarbon refrigerants, including R-410A. Currently, no specific timeline has been issued for the phase out of R-410A refrigerant; however, the scheduled phased out by the EPA is expected to be staggered with respect to different applications. The approach used here is to allow businesses, contractors, and consumers to have time to adapt to the changes. Moreover, the emergence of environment-friendly set of Hydrocarbon (HC) refrigerants such as R-290 and R-600A due to their halogen-free nature, no ozone depletion potential, and lower global warming potential are likely to catastrophe the demand for R-410A refrigerant in the near future.
The driver of the R-410A refrigerant market is that the government had recently planned for the phase out of an important refrigerant R-22. Therefore, it is unlikely for the government to announce the phase out of R-410A in the near future; at least till 2025. This presents significant opportunity for the R-410A refrigerant to capture significant share of the market. R-410A has been approved for usage in new residential air conditioners in 2015 in the U.S. Moreover, newer AC models are being designed to be utilized with R-410A for reliable and more efficient operation. Air conditioning compressors can run cooler, reducing the risk of compressor burnout due to overheating, as R-410A can absorb and release more heat than R-22. Another advantage offered by the R-410A is that it also functions at a higher pressure than R-22, therefore new compressors are built to withstand greater stresses, reducing the chance of cracking. Furthermore, R-410A refrigerant possesses the potential to cause global warming potential and governments are planning to phase out of the same; however, no official announcement has been made; there has not been a defined or clear low Global Warming Potential alternative to R-410A. This certainly doesn’t mean that companies and governments aren’t proactively looking for a suitable alternative; however, at this point in time, no suitable alternative exist, meaning R-410A is going to remain in the market in the near future.
Recently, the prices of R-410A witnessed an increase due to the worldwide shortage of R-125 during the summer of 2017, as R-410A is a blended refrigerant comprising of R-32 and R-125. The majority of R-125 is sourced from China and the chemical Flurospar, a main ingredient in the R-125 refrigerant, witnessed a 40% increase in price at the beginning of 2017. This price increase caused a direct effect on the price of R-125, raising it by 130%, which in turn affected the price of R-410A. The increase in price of Flurospar was due to the strengthening of environmental laws in China, which directly affected the mining industry.
In terms of application, the R-410refrigerant market can be segregated into, refrigerators (domestic, commercial, and transport), large-scale refrigerators, air conditioners, and heat pumps. The air conditioners application segment is projected to expand at a rapid pace. Asia-Pacific is estimated to hold a major share of the refrigerants market during the forecast period due to the growing automotive industry in the region.
Based on geography, the global R-410A refrigerant market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia-Pacific dominated the global R-410A refrigerant market in 2016. Rising population and infrastructural development in the region have led to an increase in the usage of refrigerants for various applications such as refrigerators and air conditioners. Furthermore, the growing populations and industry alliances are expected to boost the R-410A refrigerants market in the region. The presence of large consumer appliances manufacturers such as Daikin (Japan), Samsung (South Korea), LG (South Korea), and Videocon Industries Limited (India) propels the refrigerants market in the region.
Key players operating in global R-410 refrigerant market include Daikin, Chemours, Arkema, Dongyue Group, and Sinochem Group.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.