United States Natural Refrigerant Market Research Report 2023

In Business Insights
September 23, 2025

The United States Natural Refrigerant Market continues to demonstrate strong growth, with its valuation reaching USD 0.42 billion in 2023. According to the latest industry analysis, the market is projected to grow at a CAGR of 11.5%, reaching approximately USD 1.15 billion by 2032. This growth is largely fueled by increasing applications in refrigeration and air conditioning systems, particularly driven by stringent environmental regulations and a push toward sustainable cooling solutions in commercial, industrial, and residential sectors across the country.

Natural refrigerants, such as carbon dioxide, ammonia, and hydrocarbons, are gaining traction as eco-friendly alternatives to synthetic refrigerants like HFCs, which are being phased out under federal policies including the AIM Act. Their low global warming potential and zero ozone depletion make them highly desirable in industries committed to reducing carbon footprints. As regulatory pressures mount and consumer demand for green technologies rises, manufacturers and policymakers are increasingly backing innovations that promote energy efficiency and environmental stewardship.

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Market Overview & Regional Analysis

In the United States, the natural refrigerant market is experiencing robust expansion, particularly in key economic hubs where manufacturing and retail sectors thrive. The Midwest and South regions lead adoption due to their concentration of food processing plants and large-scale supermarkets that require reliable cooling systems. These areas benefit from established infrastructure for industrial applications, where natural refrigerants like ammonia have long been utilized in cold storage facilities.

The West Coast, including California, stands out for its progressive environmental policies that incentivize the shift to low-GWP alternatives in commercial refrigeration. Meanwhile, the Northeast faces unique challenges with urban density but shows promise through retrofitting initiatives in hospitality and healthcare. Overall, while logistical hurdles persist in rural areas, the nationwide trend toward sustainability is accelerating market penetration across diverse applications.

Key Market Drivers and Opportunities

Several factors are propelling the United States natural refrigerant market forward. Foremost among them is the escalating commitment to climate goals, with federal and state regulations mandating reductions in hydrofluorocarbon emissions. This regulatory environment, combined with rising energy costs, encourages businesses to adopt natural options that offer superior efficiency in heat transfer processes. Furthermore, advancements in system design, such as transcritical CO2 boosters, are making these refrigerants more viable for a broader range of uses, from supermarkets to transport refrigeration.

Opportunities abound in emerging sectors like electric vehicle cooling and data center climate control, where natural refrigerants can provide safe, non-toxic solutions. The residential market also presents untapped potential, especially with incentives for heat pump installations using hydrocarbons. Additionally, partnerships between equipment manufacturers and refrigerant suppliers are fostering innovation, positioning the U.S. as a leader in sustainable HVAC technologies and opening doors for exports of American-developed systems.

Challenges & Restraints

Despite the positive outlook, the natural refrigerant market in the United States encounters several obstacles that could temper its trajectory. Safety concerns surrounding flammable hydrocarbons and toxic ammonia require stringent handling protocols, which can increase upfront costs for installation and training. Moreover, the transition from legacy synthetic systems demands significant capital investment, particularly for small businesses struggling with compliance timelines.

Supply chain disruptions, exacerbated by global events, have occasionally limited access to high-purity natural refrigerants, while varying state-level building codes create inconsistencies in adoption rates. However, ongoing research into hybrid systems and improved leak detection technologies is addressing these issues, helping to build confidence among end-users. Trade dynamics also play a role, as import dependencies for certain components highlight the need for domestic production ramp-up to mitigate risks.

Market Segmentation by Type

  • Inorganic refrigerants
  • Hydro carbons

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Market Segmentation by Application

  • Domestic
  • Commercial
  • Transportation
  • Industrial

Market Segmentation and Key Players

  • Honeywell International Inc.
  • Daikin Industries Ltd.
  • Arkema S.A.
  • Linde plc
  • Emerson Electric Co.
  • Danfoss A/S
  • Carrier Global Corporation
  • Trane Technologies plc
  • Johnson Controls International plc
  • Airgas Inc.
  • Messer Group GmbH
  • Praxair Inc.
  • Climalife Group
  • A-Gas International Ltd.
  • Engas Ltd.

Report Scope

This report presents a comprehensive analysis of the United States market for Natural Refrigerant, covering the period from 2023 to 2032. It includes detailed insights into the current market status and outlook across various regions and states, with specific focus on:

  • Sales, sales volume, and revenue forecasts

  • Detailed segmentation by type and application

In addition, the report offers in-depth profiles of key industry players, including:

  • Company profiles

  • Product specifications

  • Production capacity and sales

  • Revenue, pricing, gross margins

  • Sales performance

It further examines the competitive landscape, highlighting the major vendors and identifying the critical factors expected to challenge market growth.

As part of this research, we surveyed Natural Refrigerant companies and industry experts. The survey covered various aspects, including:

  • Revenue and demand trends

  • Product types and recent developments

  • Strategic plans and market drivers

  • Industry challenges, obstacles, and potential risks

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