Hydrofluoroolefins Market Size

Hydrofluoroolefins (HFOs) Market size was over USD 2.65 Billion in 2023 and is poised to exceed USD 16.47 Billion by the end of 2036, witnessing over 15.1% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of hydrofluoroolefins is evaluated at USD 3.01 Billion. The growth of the market can be attributed to the rising sales of automobiles. Hydrofluoroolefins are the organic compounds that are used as a refrigerant in car air conditioning systems.  The largest vehicle market in the world is located in China. Despite a recent drop in passenger car sales in China in April 2022, there were more than 26 million passenger cars sold in 2021. Additionally, China sold around 965,000 passenger automobiles and nearly 216,000 commercial vehicles in April 2022.

In addition to these, factors that are believed to fuel the market growth of hydrofluoroolefins (HFO) include rising concerns about growing global warming. Despite being more reactive than HFCs, HFOs are very stable substances. Due to the decreased global warming potential, this became a efficient option for tackling the growing concerns about climate change. For instance, since their introduction, HFO refrigerants and blowing agents have prevented the emission of 170 million metric tonnes of CO2e into the atmosphere, which is the same number of emissions produced by more than 35 million cars. Additionally, the HFOs have low GWP therefore, it makes great refrigerant fluid for air conditioning systems in buildings. Moreover, they are used in the manufacturing of polyurethane foams, which are highly used in the construction and automobile industry, which in turn is expected to boost the demand for hydrofluoroolefins. In France, the volume of construction activity augmented by around 11 % in 2021 after declining by nearly 14% in 2020. Additionally, total construction investment in Europe climbed by nearly 5% in 2021 to reach about USD 2 trillion, or approximately 11% of EU GDP.