Over the years, with an increase in the global population along with the boost in the economic growth, the consumption of refrigeration units, heat pumps, and air conditioners has increased significantly. However, the conventional refrigerants used in these consumer durables, such as Difluoromethane (R32), Chlorodifluoromethane (R22), and 1,1,1,2-Tetrafluoroethane (R134a), among others have high potential to cause ozone depletion, which can adversely affect the environment. This rising concern of environmental impact and global warming propelled the demand for next generation refrigerants in chemicals and advanced material industry.

The next generation refrigerants, such as 2,3,3,3-Tetrafluoropropene (R-1234yf), Ammonia (R-717), and 1,3,3,3-Tetrafluoropropene (R-1234ze), among others have zero ozone depletion and global warming potential (GWP). Considering the increased demand in the market, and the stringent government policies related to environmental impact, more and more companies are adopting new and improved refrigerants. With the introduction of R-1234ze refrigerant, Trane Inc., extended the capacity of its water-cooled screw chiller up to 2,700KW.

In another instance, Japanese retailer Seven-Eleven adopted Honeywell's Solstice® N40 refrigerant (R-448A) as an alternative to the older R-404A refrigerant. The shift will help lower the cost along with a 65% reduction of GWP and will comply with the strict targets set for the Japanese food retail industry.

Also, Emirates Central Cooling Systems Corporation (Empower) completed the expansion of its district cooling plant in Dubai International Financial Centre (DIFC). As part of the expansion, six eco-friendly EcoWise Centrifugal Chillers were installed. These Ingersoll Rand EcoWise products are specifically designed to reduce the impact on the environment with next generation low GWP refrigerants.

Keeping abreast with the latest technological advancements and increasing demand for next generation refrigerants, BIS Research published its market intelligence report, titled ‘Global Next Generation Refrigerant Market – Analysis and Forecast, 2018-2023’. Based on the report, the next generation refrigerant market was estimated at $2.96 billion and 121.5 kilotons in 2017, in terms of value and volume respectively. The market is expected to reach $4.72 billions and 221.3 kilotons by 2023, in terms of value and volume. The market is expected to grow at a CAGR of 8.11% and 10.52% in terms of value and volume respectively, during the forecast period from 2018 to 2023. The major driving factors of the market include increasing conscious demand for environmental friendly products and enforcement of stringent government policies. However, the toxicity and the flammability of the next generation refrigerants, are the biggest challenges that have the possibility of inhibiting the growth of the market.

Further, based on the BIS Research market report, the next generation refrigerant market is segmented by type, by end-user, and by region for the purpose of the study. Each segment, is further bifurcated into sub-segments, for reference, the type segment is bifurcated by natural refrigerants and HFOs; the end-user segment is segregated by refrigeration, air conditioning, and heat pumps; and by region the market is sub-segmented by North America, Europe, South America, Asia-Pacific, and Middle East & Africa. As per the analysis conducted, natural refrigerants are expected to witness the highest growth in the market and the Asia-Pacific region is expected to grow at a CAGR of 9.50% in terms of volume, during the forecast period from 2018-2023.