Hydrofluoroolefin (HFO) Market Regional Analysis

Hydrofluoroolefin (HFO) Market size was valued at USD 1372.43 Million in 2023 and is poised to grow from USD 1622.21 Million in 2024 to USD 6180.8 Million by 2032, growing at a CAGR of 18.2% during the forecast period (2025-2032).

Hydrofluoroolefin (HFO) manufacturers continue to prioritize technological advancements in the product. Such developments, combined with competitive pricing, are likely to help them increase their market share during the forecast period. Companies are investing heavily in R&D to overcome the challenges associated with using Hydrofluoroolefin (HFO) and to improve product quality. There are currently a limited number of HFO producers supplying in the global market, which is driven by regulation and incentives, as well as the existence of patents for the production process. HFO application (use) patents held by a small number of producers limit market competition and the ability of new players to enter. Based on our research, we discovered that majority of these patents will expire after 2023, creating a lucrative opportunity for new players to enter the global Hydrofluoroolefin market. 'Honeywell International Inc. (US) ', 'Arkema S.A. (France) ', 'The Chemours Company (US) ', 'Daikin Industries, Ltd. (Japan) ', 'Central Glass Co., Ltd. (Japan) ', 'AGC Inc. (Japan) ', 'Mitsubishi Corporation (Japan) ', 'Dow Inc. (US) ', 'Climalife (Dehon Group) (France) ', 'Danfoss A/S (Denmark) ', 'SRF Limited (India) ', 'Gujarat Fluorochemicals Limited (GFL) (India) ', 'Zhejiang Huanxin Fluoro Material Co., Ltd. (China) ', 'Shanghai 3F New Materials Co., Ltd. (China) ', 'Mexichem S.A.B. de C.V. (Mexico) ', 'Harp International Ltd. (United Kingdom) ', 'Zhejiang Yonghe Refrigerant Co., Ltd. (China) '

Hydrofluoroolefins (HFO) has emerged as the next-generation standard in mobile air conditioning. According to the EU MAC Directive, all new vehicle types are prohibited from using a refrigerant with a global warming potential (GWP) greater than 150, which has increased the demand for HFOs. Although the vast majority of automobile manufacturers in developed countries have already switched to HFO-1234yf or are planning to do so, there is still some interest in other alternatives, particularly for heavy trucks and off-road vehicles. In addition, two German automakers (Audi and Daimler) have announced plans to use R-744 (carbon dioxide, GWP=1) as a coolant in a number of their larger vehicle models. In India, TATA Motors Limited (TML)/MAHLE/IGSD has received funding for a demonstration project of a secondary loop MAC (SL-MAC) system using either HFC-152a (GWP=138) or HFO-1234yf (GWP1).

The manufacturing of HFO-1234yf is still a relatively new industry, the majority of information on its production is still regarded as proprietary and confidential. The major producers of HFO-1234yf have filed patents that reveal a large portion of the relevant intellectual property. There were around 83 new patents granted in the year 2020 which is around 2 times of patents granted in the year 2019. The number of patents granted has increased to 150 in the year 2021, with a whopping 80% increase in the numbers.  The higher number of patents will indirectly affect the freedom of entrance of new players in the global Hydrofluoroolefin market.

The global HFO market is segmented based on region as North America, Europe, Asia-Pacific, South America, and Middle East & Africa. Among these, the North American segment dominated the market with a 38% share in 2021. The region was valued at USD 441.2 million in 2021 which is projected to reach USD 1688.9 million by 2029, growing at a CAGR of 18.3% during the forecast period. In addition, the region registered a volume of 5566.4 tonnes in 2021 which is projected to reach up to 23586.7 tonnes in 2029, with a CAGR of 19.8% during the forecast period 2022-2029. The introduction and adoption of environmental regulations to control global warming, such as the EPA's Significant New Alternatives Policy (SNAP) Program, is increasing the demand for HFOs in North America, particularly in the United States.