Ammonia Refrigerant Market was valued at USD 6.84 Billion in 2022 and is projected to reach USD 10.13 Billion by 2030, growing at a CAGR of 5.0% from 2024 to 2030.
The global ammonia refrigerant market is currently experiencing a significant phase of growth, driven by increasing demand for environmentally friendly and efficient refrigerants. The market size is estimated to be valued at approximately USD 10 billion in 2024 and is projected to expand at a compound annual growth rate CAGR of 6 8% over the next 5 10 years. This growth is largely attributed to the rising need for sustainable refrigeration solutions, particularly in industrial sectors like food processing, HVAC heating, ventilation, and air conditioning, and chemicals.
Ammonia NH3, also known as R 717, is a natural refrigerant that is being increasingly adopted as a replacement for synthetic refrigerants like hydrofluorocarbons HFCs, due to its low global warming potential GWP and zero ozone depletion potential ODP. The refrigeration industry's shift toward low GWP alternatives, in line with international environmental regulations, is expected to drive the ammonia refrigerant market forward. Innovations in ammonia refrigeration systems are also playing a vital role in enhancing the efficiency and safety of these systems.
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Environmental Regulations: Stringent environmental regulations such as the Kigali Amendment to the Montreal Protocol and various national policies are a significant driver of the ammonia refrigerant market. These regulations focus on reducing the use of high GWP refrigerants, thereby creating a conducive environment for ammonia adoption.
Sustainability and Energy Efficiency: Ammonia's energy efficient properties make it an attractive choice for commercial refrigeration and industrial applications. As the world moves towards energy efficiency and sustainability, ammonia refrigerants have become a viable alternative to traditional refrigerants.
Increasing Demand for Natural Refrigerants: With rising awareness about the environmental impact of synthetic refrigerants, there is a growing shift towards natural refrigerants like ammonia, CO2, and hydrocarbons. Ammonia is particularly favored due to its high energy efficiency and minimal environmental impact.
Safety Concerns: One of the major challenges faced by the ammonia refrigerant market is its toxicity and flammability. Although ammonia has a long history of safe use in industrial applications, its use in residential and commercial spaces requires strict safety protocols, limiting its widespread adoption in non industrial settings.
Initial Investment Cost: The installation of ammonia refrigeration systems can be more expensive compared to synthetic refrigerants. High upfront costs associated with setting up ammonia based systems may deter small and medium sized businesses from adopting the technology.
Technological Advancements: Innovations in ammonia refrigeration technologies, such as the development of low charge ammonia systems and more efficient heat exchangers, present a significant opportunity to drive the market forward. Additionally, improvements in system design and monitoring technologies are expected to enhance the safety and efficiency of ammonia based systems.
Emerging Markets: With the industrialization of emerging markets in Asia Pacific, Latin America, and the Middle East, there is growing demand for energy efficient refrigeration solutions, providing ample opportunities for ammonia refrigerants to capture market share.
Phasing Out of HFCs: The ongoing phase out of hydrofluorocarbons HFCs in line with global environmental treaties presents a key opportunity for ammonia to establish itself as a prominent alternative refrigerant.
Industrial Refrigeration: Ammonia refrigerants are widely used in industrial refrigeration systems, particularly in sectors like food and beverage, chemical processing, and pharmaceuticals. In food processing plants, ammonia is used for chilling, freezing, and storing products, providing efficient and cost effective refrigeration solutions.
Commercial Refrigeration: Supermarkets, cold storage facilities, and convenience stores are increasingly adopting ammonia refrigerants for large scale refrigeration applications. Ammonia's low operating cost and efficiency make it a preferred choice for commercial cooling.
Transport Refrigeration: Ammonia is also used in refrigerated transport systems for the logistics of perishable goods. The growing demand for cold chain logistics, particularly in the pharmaceutical and food industries, is driving the demand for ammonia refrigerants in transport refrigeration systems.
Food and Beverage Industry: The food and beverage industry is one of the largest consumers of ammonia refrigerants, primarily for industrial refrigeration. Ammonia is used extensively in food processing, storage, and distribution facilities to maintain proper temperatures and extend product shelf life.
Chemicals and Pharmaceuticals: Chemical and pharmaceutical manufacturing facilities require efficient temperature control, where ammonia refrigeration is utilized to maintain process temperatures within strict parameters.
HVAC Industry: The heating, ventilation, and air conditioning industry also uses ammonia as a refrigerant for large scale air conditioning systems, particularly in commercial and industrial buildings.
North America: North America represents a key market for ammonia refrigerants, particularly in the U.S. and Canada. The region is witnessing a shift towards natural refrigerants driven by regulatory pressures and increased focus on energy efficient solutions.
Europe: Europe is a prominent player in the ammonia refrigerant market due to its strict environmental regulations and the rapid adoption of low GWP refrigerants. Countries like Germany, Sweden, and the Netherlands are leading the way in ammonia refrigeration technologies.
Asia Pacific: The Asia Pacific region, particularly China, India, and Japan, is expected to experience significant growth in the ammonia refrigerant market. Industrial expansion, along with growing demand for refrigeration systems, is driving market adoption in this region.
Middle East and Africa: The growing demand for refrigeration and air conditioning systems in the Middle East and Africa is opening up new opportunities for ammonia refrigerants. Industrial growth and increasing investments in infrastructure are driving the adoption of ammonia systems.
Daikin Industries Ltd.: A global leader in the refrigeration market, Daikin manufactures ammonia based refrigeration systems and is known for its energy efficient and eco friendly solutions.
Carrier Global Corporation: Carrier is another key player in the ammonia refrigerant market, offering ammonia based systems for industrial refrigeration applications, including food processing and storage facilities.
Johnson Controls International: Johnson Controls provides advanced refrigeration systems utilizing ammonia, with a focus on energy efficiency and sustainability. The company has a strong presence in both the industrial and commercial sectors.
BITZER Kühlmaschinenbau GmbH: BITZER is known for its innovative compressor technologies for ammonia refrigeration, offering solutions for a variety of industries, including food and beverage and pharmaceuticals.
Frascold S.p.A.: Frascold specializes in refrigeration and air conditioning systems, providing ammonia based products to support industrial applications like cold storage and chemical processing.
The ammonia refrigerant market is witnessing several emerging trends and innovations, including:
Low Charge Ammonia Systems: The development of low charge ammonia systems is reducing the risk of leaks and improving system safety. These systems use smaller amounts of ammonia, thus lowering the overall environmental impact.
Modular Refrigeration Systems: Modular refrigeration systems are becoming increasingly popular in both industrial and commercial sectors. These systems offer scalability and flexibility, allowing businesses to easily adjust capacity based on demand.
Smart Refrigeration Technologies: The integration of Internet of Things IoT and AI technologies into ammonia refrigeration systems is enabling remote monitoring, predictive maintenance, and enhanced energy efficiency, providing added value to end users.
Despite the advantages of ammonia refrigerants, several challenges persist:
Supply Chain Issues: The supply of ammonia refrigerants can sometimes be inconsistent, particularly in remote regions. Solutions such as localized production and better distribution networks are being explored to address these issues.
Safety and Toxicity: Safety concerns surrounding ammonia's toxicity and flammability are a barrier to its widespread adoption. Advances in safety technologies and stricter regulations on ammonia handling can mitigate these risks.
Regulatory Barriers: Different regulatory frameworks across countries can create challenges in the global adoption of ammonia refrigerants. Standardized global regulations and certifications can ease this challenge.
The future of the ammonia refrigerant market looks promising, driven by increasing demand for sustainable refrigeration solutions, technological advancements, and global regulatory pressure on high GWP refrigerants. The market is expected to continue its growth
Danfoss Group
The Linde Group
Aditya Air Products
Dehon Group
National Refrigerants
Jai Maruti Gas Cylinders
Amixo
Intergrated Packaged Systems
Aurochem Laboratories
Brooktherm Refrigeration
Sinochem Group
Engas Australasia
Harp International
Tazzetti
Puyang Zhongwei Fine Chemical
Shandong Yueon Chemical Industry
A-Gas International
Hychill Australia
GTS
A.S. Trust and Holdings
By the year 2030, the scale for growth in the market research industry is reported to be above 120 billion which further indicates its projected compound annual growth rate (CAGR), of more than 5.8% from 2023 to 2030. There have also been disruptions in the industry due to advancements in machine learning, artificial intelligence and data analytics There is predictive analysis and real time information about consumers which such technologies provide to the companies enabling them to make better and precise decisions. The Asia-Pacific region is expected to be a key driver of growth, accounting for more than 35% of total revenue growth. In addition, new innovative techniques such as mobile surveys, social listening, and online panels, which emphasize speed, precision, and customization, are also transforming this particular sector.
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Growing demand for below applications around the world has had a direct impact on the growth of the Global Ammonia Refrigerant Market
Industrial Refrigeration
Heavy Commercial Refrigeration
Transport Refrigeration
Based on Types the Market is categorized into Below types that held the largest Ammonia Refrigerant market share In 2023.
PurityAbove 99%
PurityAbove 99.8%
Global (United States, Global and Mexico)
Europe (Germany, UK, France, Italy, Russia, Turkey, etc.)
Asia-Pacific (China, Japan, Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia and Vietnam)
South America (Brazil, Argentina, Columbia, etc.)
Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)
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1. Introduction of the Global Ammonia Refrigerant Market
Overview of the Market
Scope of Report
Assumptions
2. Executive Summary
3. Research Methodology of Verified Market Reports
Data Mining
Validation
Primary Interviews
List of Data Sources
4. Global Ammonia Refrigerant Market Outlook
Overview
Market Dynamics
Drivers
Restraints
Opportunities
Porters Five Force Model
Value Chain Analysis
5. Global Ammonia Refrigerant Market, By Type
6. Global Ammonia Refrigerant Market, By Application
7. Global Ammonia Refrigerant Market, By Geography
Global
Europe
Asia Pacific
Rest of the World
8. Global Ammonia Refrigerant Market Competitive Landscape
Overview
Company Market Ranking
Key Development Strategies
9. Company Profiles
10. Appendix
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