R123 Refrigerant Market: Low-Pressure Centrifugal Chiller Servicing, HCFC Servicing Allowances Through 2030, and Reclaimed Supply to Sustain Steady Market Growth Through 2036

The global R123 Refrigerant Market was valued at USD 186.2 million in 2025 and is projected to expand at a steady CAGR of 4.3% to reach approximately USD 283.7 million by 2036, driven by servicing demand from the large installed base of low-pressure centrifugal chillers in offices, hospitals, hotels, universities, and industrial plants, the limited production still allowed for servicing under the HCFC phase-out until 2030, and growing use of reclaimed R-123 as new production ends. The market encompasses R-123 refrigerant by product type (refrigerant grade and industrial grade), application, end-use industry, supply type (virgin, recycled, and reclaimed R-123), and distribution channel.

The R123 Refrigerant Market’s steady 4.3% CAGR reflects a specialized refrigerant with a loyal installed base. R-123 (HCFC-123, dichlorotrifluoroethane) is used mainly in low-pressure centrifugal chillers, where it offers high efficiency. Hudson Technologies lists its key characteristics as an ozone depletion potential of 0.02, a GWP of 79, and safety class B1. Because it is an HCFC, US production and import for new equipment ended at the end of 2019, while limited production is allowed for servicing existing equipment until 2030, after which only recycled, recovered, and reclaimed R-123 can be used. Long chiller lives and owner preference for keeping efficient machines running sustain demand.

Executive Snapshot

Why is R-123 used in centrifugal chillers?
R-123 has a low boiling point and operates at pressures below atmospheric in the evaporator, which suits low-pressure centrifugal chillers. These chillers achieve very high efficiency and are common in large commercial buildings, campuses, and industrial facilities that need hundreds or thousands of tons of cooling. Because the system operates under vacuum, leaks tend to draw air in rather than letting refrigerant out, which helps limit emissions when purge units are well maintained. Low-pressure designs also allow large heat exchangers and multi-stage compressors that deliver excellent part-load performance, which matters because most chillers run below full load for much of the year.

What are the phase-out rules for R-123?
In the United States, HCFCs were banned for mass production and import as of 31 December 2019, with limited production allowed for servicing existing equipment until 2030. After 2030, R-123 can still be used through reclamation and recycling. Under the Montreal Protocol, developed countries have a 0.5% servicing allowance during 2020–2030, while developing countries must phase out HCFCs by 2030 with a 2.5% servicing tail until 2040. This creates a defined window during which owners can still buy newly produced R-123 for servicing.

How large is the installed base?
Thousands of large low-pressure centrifugal chillers using R-123 operate in North America, Asia, and the Middle East, many installed in the 1990s and 2000s. Each chiller can hold hundreds to thousands of pounds of refrigerant. These machines often last 25–30 years or more with proper maintenance, so many will remain in service through the 2030s. Many of these chillers serve critical facilities where cooling interruptions are not acceptable, so owners invest heavily in maintenance.

How are manufacturers supporting R-123 owners?
Trane, the leading manufacturer of low-pressure centrifugal chillers, offers a refrigerant availability and price guarantee for R-123 for its CenTraVac chillers and has stated that recycled, recovered, and stockpiled R-123 remains usable without restriction. Trane also offers next-generation options using R-514A and R-1233zd for new chillers, giving owners a path to lower-GWP refrigerants when they replace equipment. Such guarantees are unusual in the refrigerant market and reflect the importance of the installed base to the manufacturer.

What replaces R-123 in new chillers?
The main alternatives are R-1233zd(E) and R-514A, both designed for low-pressure centrifugal chillers. Hudson Technologies lists R-514A and R-1233zd as the common alternatives. These refrigerants have very low GWP and no significant ozone depletion. Most new low-pressure chillers now use one of these alternatives. Some owners also consider converting existing R-123 chillers to R-514A where the manufacturer supports it, which can extend equipment life with a lower-GWP refrigerant.

How important is reclaimed R-123?
As production for servicing ends in 2030, reclaimed R-123 will become the main supply source. Owners decommissioning old chillers can recover R-123 for reclamation, and reclaimers such as Hudson Technologies supply reclaimed product in 100 and 200 lb drums and 1,000 lb tanks. Some owners maintain their own stock to protect against future shortages. Facility managers increasingly include refrigerant inventory planning in long-term capital and maintenance budgets.

Which end users rely on R-123?
Commercial buildings, including offices, shopping malls, hotels, and hospitals, are the largest users, followed by universities, government buildings, data centers, pharmaceutical and healthcare facilities, chemical plants, and food processing sites. These users need large cooling capacity and value the efficiency of low-pressure chillers. In district energy systems serving campuses and city centers, a single plant may contain several large R-123 chillers.

What other applications use R-123?
R-123 has some use in industrial and commercial heat pumps and in refrigeration applications that need low-pressure refrigerants. It has also been used as a replacement for CFC-11 in older equipment. Industrial grade R-123 is used in some non-refrigerant applications such as fire suppression blends and as a chemical intermediate. Industrial-grade R-123 is sold with different purity specifications and through different channels from refrigerant-grade product.

What challenges face the market?
The end of new production in 2030 will make supply dependent on reclamation, which could lead to price increases. Owners face decisions about whether to continue servicing older chillers or replace them with new equipment using R-1233zd or R-514A. Proper purge unit maintenance and leak management are important to reduce refrigerant losses. Building owners also need to consider operator training and refrigerant monitoring requirements for B1 refrigerants in machine rooms.

Which R123 refrigerant market segments are growing fastest?
Reclaimed R-123; commercial air conditioning in offices, hospitals, and hotels; institutional air conditioning in universities and government buildings; direct sales to large chiller owners; and HVAC&R equipment suppliers supporting chiller servicing are the fastest-growing segments. Reclaimed product sold through direct contracts with large chiller owners is expected to grow fastest after 2030.

Market Dynamics: R123 Refrigerant Market

  • Commercial buildings leading demand: Large offices, hospitals, hotels, and shopping centers use R-123 chillers for central cooling. Their charges and long service lives create steady servicing demand. Many of these buildings were designed around central chilled water plants.
  • Reclaimed supply growing in importance: As virgin production for servicing ends in 2030, reclaimed R-123 will become the main source. Reclaimers are building inventories now.
  • OEM support for existing chillers: Manufacturers offer availability guarantees to reassure owners that R-123 will remain available. This encourages owners to keep efficient chillers running. Distributors are positioning reclaimed R-123 as the long-term supply solution.
  • Next-generation refrigerants in new chillers: R-1233zd(E) and R-514A dominate new low-pressure chiller sales. This reduces new R-123 demand over time. Owners replacing chillers usually select these refrigerants.
  • High efficiency supporting continued use: Low-pressure centrifugal chillers are among the most efficient cooling machines. Owners have little incentive to replace them early.
  • Leak management practices: Purge unit maintenance and leak detection reduce refrigerant losses. Good practice lowers servicing volumes but extends equipment life. Better maintenance practices extend the life of the installed base.
  • Price trends tied to supply: Limited production and reliance on reclaimed product support firm prices. Prices may rise further after 2030.
  • Destruction of unusable stocks: Contaminated R-123 that cannot be reclaimed is sent for destruction. This removes some supply from the servicing pool.
  • Purge unit and leak detection upgrades: Owners are upgrading purge units and refrigerant monitors on older chillers to reduce losses and meet safety requirements for B1 refrigerants. These upgrades lower annual refrigerant consumption and help stretch remaining supply.

Market Segmentation: R123 Refrigerant Market

By Product Type
  • Refrigerant Grade
  • Industrial Grade
 
By Attack Surface
  • Air Conditioning
    • Commercial Air Conditioning
    • Residential Air Conditioning
    • Institutional Air Conditioning
  • Refrigeration
    • Commercial Refrigeration
    • Industrial Refrigeration
  • Heat Pumps
    • Industrial Heat Pumps
    • Commercial Heat Pumps
  • Other Applications
By Type
  • Commercial Buildings
    • Offices
    • Shopping Malls
    • Hotels
    • Hospitals
  • Industrial Manufacturing
  • Chemicals & Petrochemicals
  • Pharmaceuticals & Healthcare
  • Food & Beverage Processing
  • Residential
  • Other Industries
By Geography
  • North America: United States, Canada, and Mexico
  • Europe:  Germany, U.K., France, Italy, Spain, Russia, Benelux, Nordics, and Rest of Europe
  • Asia Pacific: China, Japan, India, South Korea, Australia, New Zealand, Taiwan, South East Asia, and Rest of Asia Pacific
  • Latin America: Brazil, Argentina, Columbia, Chile, Peru, and Rest of Latin America
  • Middle East: Saudi Arabia, United Arab Emirates, Oman, Qatar, and Rest of Middle East
  • Africa: Nigeria, Egypt, Ethiopia, South Africa, and Rest of Africa

Key Growth Drivers: R123 Refrigerant Market

  1. Long chiller lifespans: Chillers built with R-123 can operate for 25–30 years or more, sustaining demand. Each chiller represents decades of servicing demand.
  2. Servicing allowance until 2030: Limited HCFC production for servicing is allowed until 2030 under Montreal Protocol rules.
  3. Large commercial and institutional buildings: Growth in hospitals, universities, and data centers increases reliance on central chillers. New buildings in these sectors often still choose central chilled water systems.
  4. Reclamation market: Recovery from decommissioned chillers supplies reclaimed product for servicing. Recovered refrigerant from retired chillers is a growing supply source.
  5. OEM guarantees: Trane’s R-123 availability and price guarantee supports owner confidence.
  6. Energy efficiency priorities: Owners keep efficient chillers running to control energy costs.
  7. Developing-country demand: Older chillers in Asia and the Middle East continue to need R-123 during the HCFC phase-out period.
  8. Critical cooling reliability: Hospitals, data centers, and laboratories cannot tolerate cooling interruptions. These owners keep refrigerant reserves and maintain chillers carefully.
  9. Capital budget constraints: Replacing a large centrifugal chiller requires major capital spending and building works. Many owners prefer to extend the life of existing machines.

Regional Outlook: R123 Refrigerant Market

  • North America: The United States has the largest installed base of R-123 low-pressure centrifugal chillers, in commercial buildings, universities, hospitals, and government facilities. Production for servicing is allowed until 2030, after which reclaimed product will be the main supply. Reclaimers and OEMs are preparing for this transition, and owners are planning replacements with R-1233zd(E) or R-514A chillers. Universities and hospitals in particular are planning chiller replacement programmes spread over several budget cycles.
  • Europe: EU rules banned the use of HCFCs, including R-123, for servicing from 2015, so R-123 demand in Europe is minimal. Most chillers have been replaced or converted, and recovered R-123 is reclaimed or destroyed. Owners of older buildings that still operate HCFC chillers have generally converted or replaced them to comply with EU rules.
  • Asia-Pacific: China, India, Southeast Asia, and Japan have significant numbers of R-123 chillers in commercial buildings and industrial plants. Developing countries have until 2030 to phase out HCFCs, with a servicing tail to 2040, so demand continues. New chillers in the region increasingly use low-GWP alternatives. Large office towers and industrial parks in China and Southeast Asia are significant users of low-pressure centrifugal chillers.
  • Middle East & Africa: Gulf countries have many large chillers in commercial buildings, malls, and district cooling plants, some using R-123. High cooling loads and long operating hours support servicing demand, while new projects choose lower-GWP refrigerants. District cooling providers are increasingly specifying low-GWP refrigerants for new plants while maintaining older equipment.

Competitive Landscape: R123 Refrigerant Market

Key Players: Chemours, Arkema, Solstice Advanced Materials, Daikin Industries, Ltd., Orbia (Koura), Hudson Technologies, A-Gas, National Refrigerants, Inc., Airgas, Linde plc, Climalife, Trane Technologies, Carrier Global Corporation, Johnson Controls, Harp International

  • Hudson Technologies [August 2026] — reported second-quarter 2026 revenue of USD 78.3 million, up 8%, and said it is developing extractive distillation technology to recover more saleable product from returned refrigerant.
  • Arkema [October 2026] — launched Forane 516A, a GWP-below-150 refrigerant for chillers, commercial refrigeration, data center cooling, and high-temperature heat pumps, adding to the range of low-GWP options available for new chiller projects.

Consultant POV

The R123 Refrigerant Market’s steady 4.3% CAGR from USD 186.2 million in 2025 toward approximately USD 283.7 million by 2036 is anchored in a large installed base of efficient low-pressure centrifugal chillers, limited servicing production until 2030, and a growing reclaimed supply. Reclaimers and manufacturers such as Hudson Technologies, Trane Technologies, and A-Gas are supporting owners through availability guarantees and reclamation. Over the forecast period, new chillers will use R-1233zd(E) and R-514A, while reclaimed R-123 sustains servicing demand for existing machines. Owners of R-123 chillers should secure reclaimed supply arrangements and plan replacements in line with equipment age, while suppliers that can guarantee reclaimed volumes will gain an increasingly important role after 2030.

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