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This article is based on a published insight by Amit Panday on AutoTechInsight. Existing subscribers to the platform can read the detailed analysis by logging into their account.

The automotive refrigerants market is shifting from a stable, overlooked commodity to a high-tech product that is expected to fuel a niche, multi-billion-dollar industry amid global adoption of electric vehicles (EVs).

The increasing valuation of the global automotive refrigerants market—which is projected to grow from $60 billion currently to approximately $100 billion by 2035—is no longer just about maintaining optimal temperature in the passenger cabin; it is now driven by the need to ensure efficient thermal management of the sophisticated batteries that power EVs.

Thermal management solutions driving demand for automotive refrigerants

On average, a car powered by a combustion engine uses about 500 g to 600 g of refrigerant for cabin cooling. This average is expected to significantly increase to 800 g – 1.2 kg in high-end electric cars. Thermal management systems used in cars for air conditioning and heat pumps utilize a range of refrigerants with varying thermodynamic properties, safety classifications, environmental profiles, system requirements and market trajectories. 

Even though R-134a is used in the largest number of cars on the road, R-1234yf is the most dominant refrigerant in new vehicle production globally. The following table shows how the refrigerants’ properties compare.

Automotive refrigerants codes

Data compiled Jan. 30, 2026.​

  • GWP = global warming potential; ODP = ozone depletion potential, IUPAC = International Union of Pure and Applied Chemistry.​
  • Note1: GWP of refrigerant is a measure of its relative impact on atmospheric heat over a period when compared with CO2. It is measured over a period of 20/100/500 years. Meanwhile, ODP measures a chemical’s harm to the ozone layer relative to an equivalent mass of trichlorofluoromethane (CFC-11), which has a baseline ODP of 1.​
  • Note 2: Orbia claims R-444A has minimal environmental impact despite not being completely PFAs free.​
  • Sources: S&P Global Mobility; the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE); The California Air Resources Board, Orbia, SK Enmove.​

R-1234yf and PFAS regulation risks

R-1234yf, the current industry-standard automotive refrigerant used in car A/C systems, faces growing regulatory scrutiny. The European Chemicals Agency (ECHA) is evaluating potential restrictions on its use, including a complete ban in cars, as part of its broader proposal to ban per- and polyfluoroalkyl substances (PFAS) under the REACH (registration, evaluation, authorization and restriction of chemicals) regulation. If the universal PFAS restriction passes without a long-term exemption for refrigerants, the automotive industry may be forced to abandon hexafluoropropylene (HFPs) entirely in the 2030s.

Notably, PFAS is a class of over 10,000 man-made chemicals characterized by a carbon-fluorine bond — one of the strongest in organic chemistry. The bond is said to be so stable that it does not break down or degrade, earning it the nickname ‘forever chemicals.’ These chemicals are used in synthetic refrigerants such as R-134a and R-1234yf.

Once released into the environment, either through a leaking air conditioning (A/C) system or when an old car is scrapped, these chemicals migrate into the soil and water tables and eventually accumulate in the human body over time. Long-term exposure to PFAS is reported to cause hormone disruption, immune system suppression, developmental issues in children and increased risk of certain types of cancer.

Natural refrigerants as next-generation thermal management solutions

The global policy landscape for refrigerants is shifting from eliminating ozone-depleting substances to reducing global warming potential (GWP) via HFOs (the adoption of R-1234yf) to a complete ban on forever chemicals, while focusing on natural refrigerants. 

Europe, seen as the most aggressive regulator of climate and chemical safety laws, is shifting its focus from reducing GWP to addressing PFAS's long-term environmental impacts. While the MAC (mobile air-conditioning system) Directive has already banned refrigerants with a GWP of more than 150 for passenger cars, the F-Gas Regulation aims for a total phaseout of HFCs by 2050. That said, the ECHA is evaluating a ban on PFAS, and PFAS-based R-1234yf is under scrutiny. However, the latest draft (August 2025) suggests “essential use” derogations or a transition period of 5–12 years for the transport sector, where safer alternatives are not yet ready for series production. 

This leads automakers to consider using natural refrigerants, such as CO2-based R-744 and propane-based R-290, as they are immune to the effects of PFAS bans. 

R-744 has already been used by German automakers such as Volkswagen and Mercedes-Benz in their respective EV models. While R-744 is non-flammable, it operates at around 10 times the pressure of R-1234yf, requiring a complete redesign of the heating, ventilation and air conditioning system in cars. This adds to the overall cost, which is hard to justify for a standard internal combustion engine model. It appears that the industry has largely reserved this refrigerant for high-end EVs where its superior heating performance justifies the high system hardware costs. 

propane-based R-290 is a natural hydrocarbon seen as the ultimate PFAS-free solution. With superior thermodynamic properties, R-290 can deliver efficient cooling and heating. Unlike R-744, which requires heavy, expensive, high-pressure components, R-290 operates at pressures similar to those of R-134a, allowing for lightweight system designs and lower manufacturing costs for associated components. Tier 1 component suppliers such as Mahle, ZF and Valeo are now actively demonstrating the R-290 prototypes. However, R-290 is highly flammable, and to address this, engineers use a secondary loop to prevent propane from entering the passenger cabin. 

In short, R-290 is positioned as a future-proof EV refrigerant, particularly for manufacturers looking for a middle ground between the high-pressure complexity of CO2 and the regulatory risks associated with synthetic HFOs.

The emergence of refrigerant blends

Even as the industry seeks alternatives to R-1234yf, chemical blends such as R-444A, R-494B and R-4101A are emerging as critical bridge technologies. These blends are essentially cocktails of different gases designed to balance cooling performance, flammability and cost. While R-494B and R-4101A are PFAS-free, the supplier of R-444A, Orbia, claims that it has minimal environmental impact despite not being completely PFAS-free. While these blends are seen as a drop-in replacement for existing A/C refrigerants, behavioral stability and price are areas of concern, thanks to limited competition and a limited supply base.   

Automotive refrigerant market trends and outlook

According to S&P Global Mobility, the uptake of natural refrigerants (R-290 and R-744) in cars is expected to remain insignificant relative to the widely used R-1234yf, even in 2035, due to associated technical hurdles and high system costs. However, we expect natural refrigerants will begin to see marginal adoption toward 2035, hinting at increased research and development (R&D) activities in this direction. R-290 uptake will be mainly in BEVs, whereas R-744 uptake will be across BEVs and PHEVs. 

Global automotive refrigerants uptake

As of Feb. 06, 2026.
BEV = Battery electric vehicle; PHEV = Plug-in hybrid electric vehicle; REEV = Range extended electric vehicle; ICE = Internal combustion engine.
Note: BEV* includes BEV and REEV volumes; ICE* includes volume of all vehicles with an IC engine except PHEVs and REEVs.
Source: S&P Global Mobility.
© 2026 S&P Global.

According to Matteo Martini, Associate Director, Thermal, S&P Global Mobility, “ECHA is expected to complete its scientific evaluation by the end of 2026, followed by the European Commission’s final decision on a complete ban on refrigerants with PFAS chemicals (R-1234yf). It is assumed that if the ban is approved, it will probably come with a 5 to 10-year transition period for automakers, as it is the most widely used refrigerant in cars globally.” 

He added, “If the ban is approved, automakers will be forced to increasingly look at alternatives, including blends (such as R-4101A and R-494B) and natural refrigerants (such as R-290 and R-744). This will drive increased R&D on the development and optimization of alternative refrigerants as well as the global supply chain.”

Martini says the current regulatory uncertainty is the reason companies like SK Enmove have developed blends that are PFAS-free and have a low GWP to offer future-proof refrigerants as alternatives to automakers who want to avoid the risk of a ban on R-1234yf. 

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This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.


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