Global Large-scale Natural Refrigerant Heat Pump Market Size Study & Forecast, by Refrigerants (Ammonia (R717), Carbon Dioxide (R744), Hydrocarbons), by Capacity (20-200 kW, 200-500 kW, 500-1,000 kW, Above 1,000 kW), by End Use (Commercial, Industrial) an

The Global Large-scale Natural Refrigerant Heat Pump Market is valued at approximately USD 6.94 billion in 2024 and is poised to grow at a promising CAGR of 9.40% during the forecast period from 2025 to 2035. As global industries are being nudged toward sustainability and low-carbon operations, large-scale natural refrigerant heat pumps have swiftly risen to the forefront of the transition. Unlike synthetic refrigerants which are associated with high global warming potential (GWP), natural alternatives such as ammonia (R717), carbon dioxide (R744), and hydrocarbons are proving to be highly efficient and environmentally responsible. The convergence of rising energy efficiency standards, escalating carbon neutrality goals, and breakthrough innovations in heat pump technology has generated an inflection point for market expansion. Industries are actively shifting to systems powered by natural refrigerants to capitalize on not only regulatory incentives but also long-term energy cost reductions.

A considerable rise in commercial and industrial demand for sustainable heating and cooling solutions has fueled the adoption of natural refrigerant heat pumps. With global energy systems rapidly decarbonizing, these heat pumps are finding enhanced favor due to their superior thermodynamic performance, low operational costs, and compliance with emerging F-gas regulations. Ammonia systems, for instance, have gained momentum across food processing and cold chain logistics due to their unmatched efficiency in high-capacity setups. Similarly, carbon dioxide-based systems are becoming popular in urban district heating applications. Moreover, as energy managers look to future-proof their infrastructure against tightening legislation and carbon pricing mechanisms, the push toward natural refrigerants is no longer optional—it’s strategic. However, factors such as the toxicity of certain refrigerants (e.g., ammonia), safety concerns in densely populated zones, and the higher initial capital investment may temper rapid adoption in some markets.

From a regional standpoint, North America leads the charge, buoyed by robust regulatory frameworks, utility-led incentive programs, and strong penetration in food and beverage processing facilities. The United States is witnessing an upward trend in CO₂-based systems used for supermarket refrigeration and district energy systems. Europe follows closely, bolstered by aggressive energy transition policies, including the EU’s Fit for 55 package and national-level decarbonization targets. Germany, France, and the Nordic countries have particularly emerged as front-runners in deploying large-scale systems. Meanwhile, the Asia Pacific region is positioned to deliver the most dynamic growth through 2035. Nations like Japan and South Korea are focusing on phasing out HFCs in commercial refrigeration, while China is scaling up investments in district heating infrastructure utilizing ammonia- and CO₂-based heat pumps. Additionally, Latin America and the Middle East & Africa are gradually adopting natural refrigerant systems, driven by increasing awareness and modernization of industrial heating and cooling facilities.

Major market player included in this report are:
• BASF SE
• Trican Well Service Ltd.
• Chevron Phillips Chemical Company
• Croda International Plc.
• Aubin Group
• Halliburton Company
• Schlumberger Limited
• Impact Fluid Solutions
• M&D Industries Of Louisiana, Inc.
• Baker Hughes Company
• Daikin Industries, Ltd.
• Mayekawa Mfg. Co., Ltd.
• Johnson Controls International plc
• GEA Group AG
• Danfoss A/S

Global Large-scale Natural Refrigerant Heat Pump Market Report Scope:
• Historical Data – 2023, 2024
• Base Year for Estimation – 2024
• Forecast period – 2025-2035
• Report Coverage – Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
• Regional Scope – North America; Europe; Asia Pacific; Latin America; Middle East & Africa

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players.

The detailed segments and sub-segments of the market are explained below:

By Refrigerants:
• Ammonia (R717)
• Carbon Dioxide (R744)
• Hydrocarbons

By Capacity:
• 20-200 kW
• 200-500 kW
• 500-1,000 kW
• Above 1,000 kW

By End Use:
• Commercial
• Industrial

By Region:

North America
• U.S.
• Canada

Europe
• UK
• Germany
• France
• Spain
• Italy
• Rest of Europe

Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• Rest of Asia Pacific

Latin America
• Brazil
• Mexico

Middle East & Africa
• UAE
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Key Takeaways:
• Market Estimates & Forecast for 10 years from 2025 to 2035.
• Annualized revenues and regional level analysis for each market segment.
• Detailed analysis of geographical landscape with Country level analysis of major regions.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of competitive structure of the market.
• Demand side and supply side analysis of the market.

Please note:The single user license is non-downloadable and non-printable. Global Site license allows these actions. Show more