R1234ze(E) Refrigerant Market, Global Outlook and Forecast

Market, Global Outlook and Forecast 2025

Comprehensive insight into regional dynamics, growth drivers, and market segmentation.

MARKET OVERVIEW:

Global R1234ze(E) refrigerant market size was valued atUSD 157 million in 2024 and is projected to reach USD 309 million by 2032, growing at a CAGR of 10.1%uring the forecast period. R1234ze(E), or trans-1,3,3,3-tetrafluoropropene, is an environmentally sustainable hydrofluoroolefin (HFO) refrigerant with critical applications across industrial, commercial, and domestic cooling systems. As a fourth-generation refrigerant, it offers zero ozone depletion potential (ODP) and an ultra-low global warming potential (GWP) of approximately 6, making it a preferred alternative to high-GWP HFC refrigerants being phased out under the Kigali Amendment.

MARKET INSIGHT & GROWTH DRIVERS:

2024

CAGR 2032

The market growth is driven by increasing gold mining activities, particularly in Asia-Pacific and Africa, where cyanide leaching remains the dominant extraction method. However, environmental concerns and stringent regulations pose challenges to market expansion.

MARKET DYNAMICS

Stringent Environmental Regulations to Fuel Adoption of Low-GWP Refrigerants

Global push for sustainable cooling solutions is accelerating demand for R1234ze(E) as governments implement stricter environmental policies. With a GWP of just 6 compared to traditional refrigerants like R134a (GWP 1430) and R404a (GWP 3922), this HFO refrigerant is becoming the preferred choice for compliance with international agreements. The Kigali Amendment to the Montreal Protocol, ratified by over 150 countries, mandates an 80% reduction in HFC consumption by 2045.

MARKET OPPORTUNITIES

The rapid growth of electric vehicles presents a lucrative new market for R1234ze(E), with projections indicating EV battery cooling applications could capture 12-15% of total refrigerant demand by 2030. Unlike conventional refrigerants, R1234ze(E)'s mild flammability (A2L classification) meets stringent automotive safety requirements while providing superior thermal stability. Major automotive suppliers are already developing compact heat pump systems using this refrigerant, with prototypes demonstrating 25% faster battery preconditioning than current solutions.

COMPANY MISSION

Global R1234ze(E) refrigerant market is experiencing accelerated growth due to stringentenvironmentalregulationsphasingout high-GWP refrigerants. With a Global Warming Potential (GWP) of just 6 and zero Ozone

Depletion Potential (ODP), R1234ze(E) has become a preferred alternative in industrial, commercial, and domestic cooling applications.

The Kigali Amendment to the Montreal Protocol,alongwithregionalpoliciesliketheEU F-Gas Regulation, has mandated a 79% reductioninHFCusageby2030,creatinga$309 million market opportunity for R1234ze(E) by 2032.

REGIONAL MARKET OUTLOOK

North America

The North American market is a frontrunner in adopting R1234ze(E) refrigerants, driven by stringent environmental regulations like the U.S. EPA's SNAP Program and Canada's phasedown of high-GWP refrigerants under the Ozone Regulations. The region's mature HVAC&R industry is rapidly transitioning to low-GWP alternatives, with R1234ze(E) gaining traction in commercial chillers and heat pumps due to its zero ODP and GWP of just 6. While the U.S. accounts for the largest share— estimated at 40% of North American demand—Canada is experiencing accelerated adoption in industrial applications.

Europe

Europe's R1234ze(E) market growth is propelled by the EU's F-Gas Regulation, which mandates a phase-down of HFCs with high GWP. Countries like Germany, France, and Italy are leading the transition, particularly in supermarket refrigeration and industrial heat pumps where R1234ze(E)'s non-flammability (A2L safety classification) is advantageous. The European Green Deal's push for carbon neutrality by 2050 has further accelerated demand, with manufacturers investing in R1234ze(E)-compatible system designs.

COMPETITIVE LANDSCAPE

• Honeywell

• Artesan Chemical

• Quanzhou Yuji

These companies represent some of the major key players driving innovation and growth in the market, contributing significantly to global supply and competitive dynamics.

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