India Refrigerants Market Outlook to 2028

India Refrigerants Market Overview

• The India Refrigerants Market size was valued at USD 1.5 billion in 2023. The growth is propelled by urbanization, increased disposable income, and the burgeoning middle class, which has led to higher consumption of cooling appliances. The adoption of advanced technologies in refrigeration systems also contributes significantly to market expansion.
• The India Refrigerants Market is highly competitive with key players including SRF Limited, Gujarat Fluorochemicals Limited, Navin Fluorine International Limited, Chemours Company, and Honeywell International Inc. These companies are investing in R&D to develop environmentally friendly refrigerants, complying with regulatory norms and meeting consumer demands for energy-efficient cooling solutions.
• In 2023, SRF Limited announced a significant investment of INR 550 crores to expand its refrigerant manufacturing capacity in India. This expansion is expected to meet the growing domestic demand and increase export capabilities.
• The southern region climate conditions and the presence of a robust manufacturing sector have driven the demand for refrigeration systems. The growth of the IT and hospitality industries in cities like Bengaluru and Chennai has also boosted the market.

India Refrigerants Market Segmentation

The India refrigerants market can be segmented in various factors like products, application and region.

By Products: India refrigerants market is segmented by product type into fluorocarbons, hydrocarbons, and inorganic refrigerants. In 2023, fluorocarbons held the dominant market due to the widespread use of fluorocarbons in various applications, including air conditioning and refrigeration systems, is driven by their high efficiency and thermal stability.

By Application: India refrigerants market is segmented by application into residential, commercial, and industrial refrigeration. In 2023, residential refrigeration held a market share driven by the rising disposable income, urbanization, and the increasing adoption of air conditioning systems in households. The growing middle class is also contributing to the demand for residential refrigeration.

By Region: India refrigerants market is segmented by region into north, south, east, and west. In 2023, the western region dominated the market with the presence of major industrial hubs and a high concentration of commercial establishments the region's favorable business environment and infrastructure have attracted substantial investments.

India Refrigerants Market Competitive Landscape

• Honeywell International Inc.: In June 2023, Honeywell announced the launch of its new low-global-warming-potential (GWP) refrigerant Solstice N41 (R-466A) for stationary air conditioning and heat pump applications in Europe. Solstice N41 is a non-flammable, low-GWP refrigerant that can replace high-GWP refrigerants like R-410A in new equipment.
• Chemours Company: In May 2023, Chemours announced the expansion of its Opteon refrigerant production capacity in Corpus Christi, Texas to meet growing global demand for its low-GWP solutions. The expansion will significantly increase the company's production of Opteon YF (HFO-1234yf) used in automotive air conditioning.

India Refrigerants Market Analysis

India Refrigerants Market Growth Drivers

• Expansion of the Cold Chain Industry: The growth of the cold chain industry is a significant driver for the refrigerants market. India currently has over 10,000 fully frozen vehicles and roughly 8,000+ cold storage with a collective capacity exceeding 32 million metric tons. As per the National Centre for Cold Chain Development (NCCD), India requires 35-40 million metric tons of cold storage. The government's focus on improving the cold chain infrastructure, including the allocation of INR 15,000 crores in the Union Budget 2023-24, is boosting the demand for industrial refrigeration systems, thereby increasing the consumption of refrigerants.
• Surge in the Automotive Industry: The automotive industry in India is witnessing a rapid expansion, with vehicle production projected to exceed 5 million units in 2024. The increasing production of passenger and commercial vehicles equipped with air conditioning systems is driving the demand for refrigerants. The rising automotive sales, supported by favorable government policies and an increase in disposable income, are contributing to the growth of the refrigerants market.
• Increase in Pharmaceutical Industry Demand: The pharmaceutical industry in India is reach USD 65 billion in 2024, driven by the rising demand for vaccines, biologics, and other temperature-sensitive drugs. The need for reliable refrigeration solutions to ensure the safe storage and transportation of pharmaceuticals is fueling the demand for refrigerants. Government initiatives to boost pharmaceutical exports and the establishment of new manufacturing units are further supporting market growth.

India Refrigerants Market Challenges

• Regulatory Compliance and Environmental Concerns: The refrigerants market in India faces challenges due to stringent regulatory requirements aimed at reducing the environmental impact of refrigerants. The phasedown of hydrofluorocarbons (HFCs) under the Kigali Amendment to the Montreal Protocol necessitates the adoption of low-GWP refrigerants. Compliance with these regulations requires significant investment in research and development, increasing the cost burden on manufacturers.
• High Cost of Advanced Refrigerants: The transition to environmentally friendly refrigerants, such as HFOs and natural refrigerants, is associated with higher costs compared to conventional refrigerants. The cost of manufacturing and retrofitting existing systems to accommodate new refrigerants poses a financial challenge for small and medium-sized enterprises. This cost factor can hinder the widespread adoption of advanced refrigerants in the market.

India Refrigerants Market Government Initiatives

• Pradhan Mantri Kisan Sampada Yojana (PMKSY): The PMKSY scheme, with an allocation of INR 6,000 crores, aims to create a robust cold chain infrastructure for the agricultural sector. The scheme includes financial assistance for setting up cold storage facilities, processing units, and refrigerated transport. This initiative is expected to drive the demand for industrial refrigerants used in cold storage and transportation of agricultural produce.
• National Cooling Action Plan (NCAP): The NCAP, launched in 2023, focuses on promoting energy-efficient and low-GWP refrigerants in the cooling sector. The plan aims to reduce cooling demand and improve the efficiency of cooling appliances, thereby reducing the environmental impact. The government’s target to reduce cooling energy requirements by 2037-38 is expected to boost the adoption of advanced refrigerants in the market.

India Refrigerants Market Future Outlook

The India refrigerants market is growing over the next five years, driven by increasing demand of cooling reduce technology, automotive and pharmaceutical sector expansion, government initiatives, and cold chain industry expansion.

• Adoption of Natural Refrigerants: In the coming years, the Indian market is expected to witness a significant shift towards natural refrigerants, such as ammonia, CO2, and hydrocarbons. These refrigerants offer high energy efficiency and low environmental impact. The adoption of natural refrigerants is anticipated to grow, driven by stringent environmental regulations and increasing consumer awareness about sustainability.
• Development of Smart Refrigerants Systems: The integration of IoT and AI in refrigeration systems is expected to gain momentum, leading to the development of smart refrigeration solutions. These systems will enable real-time monitoring, predictive maintenance, and enhanced energy efficiency. The market is projected to see a rise in demand for smart refrigeration systems in both residential and commercial applications.