According to Cognitive Market Research, The global R407C Refrigerant market size will grow at a compound annual growth rate (CAGR) of 5.80% from 2023 to 2030.

The demand for autonomous cars, R407C refrigerant is rising due to the growing demand for air conditioning and refrigeration systems, coupled with the influence of environmental regulations.
Demand for industrial grade remains higher in R407C refrigerant market.
The household refrigeration category held the highest R407C refrigerant market revenue share in 2023.
North America will continue to lead, whereas the Asia Pacific R407C refrigerant market will experience the strongest growth until 2030.

Demand for Eco-friendly Cooling Solutions to Provide Viable Market Output

The R407C refrigerant market is the global demand for eco-friendly cooling solutions. With increasing environmental concerns and stringent regulations related to greenhouse gas emissions, there has been a significant shift away from traditional refrigerants with high global warming potential (GWP). R407C, with its lower GWP than many other hydrofluorocarbons (HFCs), has emerged as a preferred choice for various applications, including air conditioning and refrigeration systems.

In May 2022, Honeywell International Inc. introduced Solstice 456A, a fresh hydrofluoroolefin (HFO) refrigerant designed for the European automotive aftermarket. This innovative solution can significantly decrease the greenhouse gas (GHG) emissions generated by air conditioning systems in current vehicles, potentially surpassing a 50% reduction.

(Source:pmt.honeywell.com/us/en/about-pmt/newsroom/press-release/2022/05/honeywell-introduce-hfo-based-refrigerant-for-the-automotive-service-sector-with-reduced-global-warming-potential-of-more-than-50-percent)

Both regulatory mandates and consumer preferences spur this demand. As countries and regions implement stricter regulations to curb environmental impact, industries and consumers opt for refrigerants like R407C that have a relatively lower impact on climate change. This trend drives the demand for R407C and fuels research and development efforts to enhance its efficiency and applicability in diverse cooling systems.

Rapid Expansion in HVACR Sector to Propel Market Growth

The R407C refrigerant market is the rapid expansion of the Heating, Ventilation, Air Conditioning, and Refrigeration (HVACR) sector. The continuous growth in the construction industry, particularly in emerging economies, has led to a surge in demand for HVACR systems in residential, commercial, and industrial spaces. As HVACR systems become ubiquitous in various applications, the need for compatible and efficient refrigerants like R407C has intensified. Industries are adopting advanced cooling technologies, creating a robust market for R407C.Moreover, ongoing urbanization, coupled with rising disposable incomes in developing countries, is driving the adoption of air conditioning and refrigeration systems, thereby increasing the demand for R407C.

Market Dynamics of R407c Refrigerant

Regulatory Challenges and Phase-Out Policies to Hinder Market Growth

The R407C refrigerant market is the stringent regulatory landscape and phase-out policies related to high-GWP refrigerants. Many countries and regions are phasing out hydrofluorocarbons (HFCs), including R407C, due to their significant contribution to global warming. Regulatory bodies like the Environmental Protection Agency (EPA) in the United States and the European Union's F-Gas Regulation have established strict guidelines to limit the use of high-GWP refrigerants. As a result, manufacturers, suppliers, and end-users face challenges transitioning from R407C to alternative, low-GWP refrigerants. This transition necessitates significant investments in research, development, and infrastructure modifications, posing financial burdens on businesses, especially small and medium-sized enterprises.

Impact of COVID–19 on the R407c Refrigerant Market

The COVID-19 pandemic significantly impacted the R407C refrigerant market, causing disruptions in the supply chain, production slowdowns, and fluctuations in demand. During lockdowns and restrictions, many construction projects were delayed or halted, leading to reduced installations of new air conditioning and refrigeration systems. Additionally, manufacturing facilities faced closures or operated at limited capacities, affecting t...

The smart thermostat market is predicted to expand to USD 14.8 billion in 2025 and USD 30.2 billion by 2035 with a CAGR of 7.9% over the forecast period.

Metrics	Values
Industry Size (2025E)	USD 14.8 Billion
Industry Value (2035F)	USD 30.2 Billion
CAGR (2025 to 2035)	7.9%

Contracts and Deals Analysis

Company	Google Nest and XYZ Energy Solutions
Contract/Development Details	Google Nest partnered with XYZ Energy Solutions to supply products for a large-scale residential energy efficiency program, aiming to install 50,000 units over the next two years.
Date	March 2024
Contract Value (USD million)	Approximately USD 15 million
Estimated Renewal Period	2 years

Company	Ecobee and ABC Property Management
Contract/Development Details	Ecobee secured a contract with ABC Property Management to equip 10,000 apartment units with products, enhancing energy efficiency and tenant comfort across their properties.
Date	July 2024
Contract Value (USD million)	Approximately USD 3 million
Estimated Renewal Period	3 years

Company	Honeywell Home and DEF Commercial Real Estate
Contract/Development Details	Honeywell Home entered into an agreement with DEF Commercial Real Estate to install products in 500 office buildings, aiming to reduce energy consumption and operational costs.
Date	October 2024
Contract Value (USD million)	Approximately USD 10 million
Estimated Renewal Period	5 years

Country-Wise Analysis

Country/Region	CAGR (2025 to 2035)
USA	9.0%
UK	8.7%
European Union	8.8%
Japan	8.9%
South Korea	9.2%

Competitive Outlook

Company Name	Estimated Market Share (%)
Google Nest	20-25%
Ecobee	15-20%
Honeywell Home	12-17%
Emerson Electric	8-12%
Johnson Controls	5-9%
Other Companies (combined)	30-40%