The Middle East and Africa Refrigerant Market Size (2024-2030)

The market for refrigerants in the Middle East and Africa was valued at USD 1.389 billion and is projected to reach a market size of USD 1.79 billion by the end of 2030. Over the forecast period of 2024–2030, the market is projected to grow at a CAGR of 3.7%.

A chemical mixture of fluids used as cooling agents in heat pumps and refrigeration cycles is called a refrigerant. Its application as prime working fluids in absorption refrigeration systems or as secondary fluids for transferring thermal energy between media is based on the phase transition principle. Several factors, including rising living standards and the increased use of refrigerants in cars and food goods, are driving the expansion of the refrigerant industry. These are the key elements propelling the market for refrigerants to rapid expansion. It is also expected that mobile air conditioners and chillers will become widely used in commercial refrigeration very quickly. Nonetheless, the environment is seriously harmed by the use of halons like hydrochlorofluorocarbons (HCFC) and chlorofluorocarbons (CFC). As a result, over the past few years, innovative environmentally friendly refrigerant compounds, including R-410A, R-404A, and R-407C, have been produced.

There are two segments in the refrigerant market: type and application. The market is divided into several types, including propane, ammonia, isobutane, CO2, HFC (hydrofluorocarbons), HFO (hydrofluoroolefins), and HCFC (hydrochlorofluorocarbons). Over the years, fluorocarbons have held a significant portion of the market, which can be linked to the increased demand for AC and refrigeration equipment. However, the segment for inorganic refrigerants has also gained popularity. The market is divided into segments based on application, including heat pumps, air conditioners, refrigerators, freezers, and large-scale refrigerators.

Key Market Insights:

Refrigerants are important to many different sectors since they are essential to contemporary cooling systems like refrigerators and air conditioners. Since the Montreal Protocol, fluorocarbons have dominated the market as the preferred refrigerant, displacing ozone-depleting chlorofluorocarbons (CFCs). The industry is impacted by macroeconomic variables such as rapidly expanding economies and changing weather patterns, with the growing consumer electronics sector and the rise of less developed economies being the main drivers of growth. Due to their low global warming potential and low ozone depletion potential (ODP), inorganic refrigerants are widely used in residential, commercial, and industrial settings since they are both economically and environmentally viable. The growing global data center industry, the growing cold storage sector, and the rising use of air conditioning all contribute to the rising need for refrigerants. The rise in refrigerant use is partly due to the cold chain logistics trend, which addresses the requirement for temperature-controlled storage and transportation. This movement is fueled by the expansion of international trade in food and healthcare. Strategic deals, regional expansions, and continuous attempts by global firms to improve efficiency in manufacturing, resource allocation, and emissions reduction are characteristics of the industry.

The Middle East and Africa Refrigerant Market Drivers:

A significant increase in the construction of urban infrastructure has increased the market for refrigerants in the Middle East and Africa.

The industry is also being driven by the global urbanization trend, which is a major component. Buildings, both residential and commercial, are being built at an increasing rate as cities grow. For ventilation and temperature management, integrated cooling systems are typically needed for each of these buildings. Not only residential areas but also shopping centers, office buildings, and transit hubs need dependable and efficient cooling systems. The market is under tremendous pressure to provide safe and efficient cooling agents due to this combined necessity. The need for scalable, effective, and eco-friendly cooling systems grows along with the expansion of metropolitan regions. The ongoing development of urban networks has a cascading influence on several other industries, including retail, electrical systems, and construction, opening up new opportunities for market expansion.

Constant innovation in supply chain networks and retail has increased the demand for refrigerants in the Middle East and Africa.

A key factor in the market's advancement is the growth of the supply chain and retail networks. The majority of these cooling agents have been completely transformed by developments in e-commerce platforms and inventory management system innovations. Previously, a difficult procurement procedure and restricted accessibility prevented the purchase of these drugs. But a wider spectrum of customers may now easily obtain these products thanks to the upgrading of supply networks. In addition, advanced inventory management systems guarantee continuous supply, avoiding any possible bottlenecks that may otherwise hinder market expansion. Modern retail and supply chain technologies' increased accessibility and efficiency thereby draw in a wider range of clients, whether they are businesses or individual customers, and this makes a substantial contribution to the growing market in the Middle East and Africa.

The Middle East and Africa Refrigerant Market Restraints and Challenges:

The market for refrigerants has expanded rapidly in recent times. Since global warming is one of the most important environmental challenges of the present and the future, its potential to cause it should be limited. In the next few years, the market is expected to continue rising due to the increasing need for air conditioning systems, but there are still ways to make them more environmentally and energy-efficient. Because they offer better cooling performance and higher energy economy, manufacturers and customers will both prefer the energy-efficient solutions. One potential issue is the availability of certain particular products. Two things to be concerned about are the imminent demise of ozone-depleting substances and severe environmental regulations. As refrigerants become more widely used in commercial, industrial, and residential contexts, their market seems to be promising, provided that they are made environmentally and energy-efficient.

The Middle East and Africa Refrigerant Market Opportunities:

The refrigerant market has grown significantly in recent years. Its reduced ability to cause global warming in comparison to other refrigerants can be the reason behind this. The increasing need for environmentally friendly air conditioning systems is likely to fuel the market's upward trend in the upcoming years. R32, which is one of the energy-efficient solutions in refrigerant, is well-liked by both manufacturers and customers because it provides superior cooling performance and increased energy efficiency. The gradual elimination of ozone-depleting compounds and stringent environmental restrictions are also driving up demand for R32. With rising use in industrial, commercial, and residential settings, the refrigerant R32 market looks to have a bright future.

THE MIDDLE EAST AND AFRICA REFRIGERANT MARKET REPORT COVERAGE:

The Middle East and Africa Refrigerant Market Segmentation:

The Middle East and Africa Refrigerant Market Segmentation By Type:

• Fluorocarbons
• Hydrocarbons
• Inorganic Refrigerants

Fluorocarbons are odorless, non-toxic, and have an efficient heat transfer rate. Because they are non-flammable, non-explosive, non-ignitable, and chemically stable without being corrosive, their usage as refrigerants in cooling equipment has expanded quickly. In cooling equipment, fluorocarbons are employed as refrigerants. Reusing synthetic fluorocarbon refrigerants can save energy costs and increase the longevity of air conditioning and refrigeration equipment. Inorganic refrigerants are the fastest-growing segment. Clean inorganic substances, such as carbon dioxide (R744) and ammonia (R717), are examples of inorganic refrigerants. The compounds have almost minimal global warming potential and do not damage the ozone layer. These refrigerants have superior thermodynamic characteristics.

The Middle East and Africa Refrigerant Market Segmentation By Applications:

• Chillers
• Heat Pumps
• Air Conditioners
• Refrigerators
• Others

The refrigerators segment has the largest growth in this market. The development of the refrigeration industry, especially in cold-chain logistics, is propelled by the life science and pharmaceutical sectors' demands, consumer demand for frozen and chilled food and drinks, and the surge in the global commerce of perishable commodities. Air conditioners are the fastest-growing segment in the market. Estimates indicate that the sector selling air conditioners generates the most money, and this pattern is not expected to change anytime soon. The growing use of refrigerants in automobiles and food items, together with rising living standards, are some of the factors driving the growth of the refrigerant industry. These are the main factors driving the refrigerant market's explosive growth. Additionally, it is anticipated that transportable air conditioners and chillers will swiftly gain widespread usage in commercial refrigeration.

The Middle East and Africa Refrigerant Market Segmentation By Regional Analysis:

• United Arab Emirates 
• Saudi Arabia
• Qatar
• Israel
• South Africa
• Nigeria
• Kenya
• Egypt
• Rest of MEA

The UAE has the largest market. Due to its ambitious environmental measures, rapidly urbanizing population, and economic developments, the United Arab Emirates (UAE) stands out as one of the refrigerant markets with the quickest pace of growth. HVAC (heating, ventilation, and air conditioning) systems are in great demand due to a growing construction sector, continuing infrastructure projects, and other real estate developments. Due to the UAE's advantageous position as a global business center, the country is increasingly in demand for residential and commercial buildings with effective cooling systems from both foreign corporations and locals. Saudi Arabia is the fastest-growing region. The government in this area has shown significant improvements and is supportive of infrastructure and urban growth. Growth has been stimulated by these advances, which have increased demand for air conditioning equipment. To increase their capacities and take advantage of the profitable prospects provided by end users, several manufacturers have set up production facilities in emerging economies and formed joint ventures with Asian businesses. In addition, the accessibility of inexpensive labor and materials helps lower manufacturing costs and meet lost-cost requirements for the region's refrigeration sector.

COVID-19 Impact Analysis on the Middle East and Africa Market Refrigerant Market:

Manufacturers of refrigerants gradually, but minimally, resumed manufacturing. Meanwhile, getting raw materials becomes extremely difficult because of the restricted production of raw materials and the absence of local infrastructure. In actuality, the cost of nearly all refrigerants has gone up, particularly hydrocarbons. In contrast, the price of the other blended HCFC is more consistent. Providers are optimistic that after the infection has stabilized, things will get back to normal. The delayed supply of refrigerant and other HVARC items will lead to a market shortage.

Latest Trends/ Developments:

Natural refrigerants are gaining market share rapidly because of their remarkable energy efficiency and cooling capabilities. A considerable growth rate is expected in the commercial refrigeration and mobile air conditioning sectors in the United States throughout the projection period due to the phase-out of HFCs and the transition to more environmentally friendly natural and sustainable refrigerants like ammonia and carbon dioxide. In recent years, there has been a surge in the establishment of supermarkets and a rise in the demand for frozen items, which has led to an increase in the market for cooling equipment and supermarket retail chains.

Since environmentally friendly products are coming onto the market, inorganic refrigerants are also widely used substitutes in the refrigerant business. They are used in commercial, industrial, and residential applications because of their nearly zero global warming potential (GWP) and ozone depletion potential (ODP), non-toxicity, and economic viability.

Companies in this industry are motivated to increase their market share by using a range of strategies, including acquisitions, joint ventures, and investments. Companies are spending a lot of money to develop techniques to retain competitive pricing. Further growth has resulted from this.

Key Players:

1. Dongyue Group
2. A-gas international
3. Airgas Inc.
4. Arkema
5. Hychill
6. Sinochem Group
7. Asahi Glass Co.
8. Honeywell International, Inc.
9. The Linde Group
10. Hess Corporation