The global Secondary Refrigerants Market was valued at USD 945.8...
Read MoreThe 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.
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.
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
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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