R507 refrigerant is an environmentally friendly refrigerant and its market demand will shrink in the future.

R502 refrigerant is a medium-temperature and medium-pressure refrigerant, but it is prone to produce ozone-destroying substances such as HCFC and CFC during use. R507 refrigerant is a substitute for R502 refrigerant and refers to a mixed refrigerant produced with 50% R125 refrigerant and 50% R143a refrigerant as raw materials. R507 refrigerant has the advantages of good chemical stability, high refrigeration efficiency, stable low-temperature performance, non-flammable, green and environmentally friendly, and is widely used in many fields such as cold chain logistics and industrial refrigeration.

According to the “2023-2028 China R507 Refrigerant Industry Market In-depth Research and Development Prospects Forecast Report released by the Industrial Research Center, R507 refrigerant has excellent comprehensive properties and is an environmentally friendly refrigerant. It is widely used in transportation, industrial refrigeration, commercial refrigeration equipment, food refrigeration, air conditioning, petrochemical and other fields. In the field of industrial refrigeration, R507 refrigerant can be used in industrial air conditioning units; in the field of food refrigeration, R507 refrigerant can be used to ensure food quality and freshness. Benefiting from the expansion of application scope and strong market demand, the development speed of my country’s R507 refrigerant industry has accelerated.

According to the relevant regulations of the Montreal Protocol on Substances that Deplete the Ozone Layer, my country will freeze the production and sales of third-generation refrigerants HFCs in 2024. R507 refrigerant belongs to the third generation refrigerant. Although its environmental protection is better than traditional R22 refrigerant and R502 refrigerant, it still contains toxicity and can cause the greenhouse effect. In the future, due to factors such as stricter environmental protection policies, my country’s R507 refrigerant market share will decrease.

Major players in the global R507 refrigerant market include Honeywell, Chemours, ARKEMA, etc. The above three companies all have large-scale production capabilities of high-performance R507 refrigerant. Honeywell is my country’s largest supplier of R507 refrigerant. Its products are widely used in many scenarios such as refrigerated trucks, marine refrigeration equipment, supermarket refrigeration cabinets, refrigeration and condensing units, and commercial low-temperature refrigeration.

The main manufacturers of R507 refrigerant in my country include Sanmei Co., Ltd., Yonghe Co., Ltd., Dongyue Chemical Co., Ltd., Juhua Co., Ltd., etc. Sanmei Co., Ltd. is my country’s leading fluorine refrigerant company, with large-scale production capabilities for hydrofluorocarbon refrigerants (HFCs), hydrochlorofluorocarbon refrigerants (HCFCs), inorganic fluorine products and fluorine foaming agents, including R507, R404A, Hydrofluorocarbon blended refrigerants such as R410A and R407C are its main products. According to the semi-annual report of Sanmei Co., Ltd., in the first half of 2023, the company achieved revenue of 1.74 billion yuan.

Industry analysts said that as the prosperity of the third-generation refrigerant industry increases, the market demand for R507 refrigerant continues to grow. At present, the global R507 refrigerant market is mainly concentrated in European and American countries, and my country’s high-end demand still relies on imports. It is expected that in the future, with the tightening of environmental protection policies, the market demand for R507 refrigerant will gradually shrink, and the fourth-generation refrigerant with the advantages of low greenhouse effect and non-destruction of the ozone layer will become the mainstream of the refrigerant market.