International. The global natural refrigerant market is forecast to reach $1.4 billion in 2020, growing at a compound annual growth rate (CAGR) of 11.5% between 2015 and 2020, according to a report published by MarketsandMarkets.
Europe is the largest market for natural refrigerants, followed by Asia-Pacific. Europe is also projected to witness the highest growth from 2015 and 2020. This growth is due to the enforcement of strict environmental regulations for the prohibition of HCFC and HFC refrigerants and promoting the application of natural refrigerants as alternatives.
Ammonia (R-717) continues to be the most widely used natural refrigerant. Ammonia accounted for 60% of the market share for natural refrigerants in 2014. The refrigerant is widely used for industrial refrigeration operations due to its high coefficient of performance (COP), lower leakage rate, low cost, zero ozone depletion potential (ODP), and global warming potential (GWP).
Meanwhile, commercial refrigeration is the fastest growing application area in the natural refrigerant market. Natural refrigerants, mainly CO2 (R-744) and hydrocarbons (R-290, R-1270 and R-600a), are witnessing a high adoption rate by major superstore and food retail chains in the Europe and North America regions. Natural refrigerants are being used in refrigerated display cases, stand-alone refrigerators and for refrigeration during transport.
