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Stringent Government Regulations to Lower the Carbon Impact is Driving the HFO Refrigerant Market
HFO Refrigerant Market
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For instance, in February 2024, the Regulation (EU) 2024/573 for F-gases, was adopted as the EU legislative revision. The rules vary according to 23 F-gas (such as HFC, HCFC, and PFC, among others). Additionally, it clarifies and strengthens rules on F-gas production, use, recovery, recycling and destruction, and certification and training. Furthermore, it strengthens conditions on the import, export, and placing on the market of F-gases and equipment (including parts thereof) containing F-gases or whose functioning relies upon those gases.
The global HFO market is segmented by type (R-1234YF, R-1234ZE, R-1234ZD), by application (refrigeration, air-conditioning), by end-user (commercial, domestic, transportation, and industrial), and geography (into North America, Europe, Asia-Pacific, and the Rest of the World).
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The air conditioning segment is projected to grow at a considerable rate during the forecast period, owing to the increased use of air conditioning in the automotive. Some of the models using HFO-1234yf include Cadillac XTS, Chevrolet Spark EV, BMW i3 and i8, Chrysler 200, Chrysler 300, Dodge Challenger, Dodge Charger, Dodge Dart, Dodge Durango, Jeep Cherokee, Jeep Wrangler, Ram 1500, Fiat 500, and 500L, Alfa Romeo 4C, Honda Fit EV, Tesla Model S, Range Rover, and Range Rover Sport.
The major companies serving the global HFO refrigerant market include A-Gas, Harp International Ltd., The Linde Group, Climalife Groupe Dehon, and Dupont Inc., among others. The market players are considerably contributing to the market growth by adopting various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, among others.
Recent Developments
· In October 2024, Honeywell announced a plan to spin off its Advanced Materials business, which includes Solstice-branded HFO refrigerants technology, into an independent, publicly traded US company. The spinoff would be completed by the end of 2025 or early 2026.
· In September 2024, the Chemours Company announced the development of a low Global Warming Potential (GWP) refrigerant retrofit approach for the automotive aftermarket to support the global phasedown of higher GWP hydrofluorocarbon (HFC) refrigerants. The low GWP Opteon™ YF (R-1234yf) will replace R-134a in new mobile HVAC systems.
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