Refrigeration Oil Market

Refrigeration Oil Market Size-(2023-2028)

The refrigeration oil market size is anticipated to reach $ 1.8 billion in 2028, from $ 1.4 billion in 2022, at a CAGR of 4.9%.

It is formulated by mixing oil and additives designed for use in cooling systems. The purpose of refrigeration oil is to effectively lubricate the moving parts of the refrigerant compressor. Oil flows under high pressure to change from liquid to vapor and generates a cooling effect due to its high chemical and thermal stability. In addition, it has a high viscosity, and a low pour point and is free from contamination. The refrigeration oil market is anticipated to grow during the forecast period owing to the escalating call for consumer devices. The growing call from the refrigerated and frozen food and pharmaceutical industries, coupled with the escalating call for low GWP refrigerants, has driven the growth of the refrigeration oils market. However, strict regulations to limit the use of fluorocarbon refrigerants could limit the growth of the refrigeration oils market. On the other hand, the escalating call for high-quality and low-viscosity refrigeration oil is anticipated to present growth opportunities for the refrigeration oil market during the forecast period.

Refrigeration Oil Market Trends:

In addition, one of the main trends observed in the market is the growing call for ammonia and CO2-based refrigeration systems in the food and beverage, chemical, plastics processing and medical industries because of their superior benefits and warming potential global low / zero (GWP) and ozone depletion potential (ODP) compared to conventional refrigerants such as HCFCs and HFCs, especially in developed countries, however, some challenges associated with natural refrigerants result in incompatibility problems with existing refrigeration oil. This has resulted in escalated spending on the development of the latest oils compatible with ammonia and CO2. POE and PAG are synthetic oils commonly used in systems using natural refrigerants. In addition, the growing call for low GWP and PDO car air conditioning systems to reduce emissions to the environment is likely to drive the call for synthetic refrigeration oils compatible with the latest refrigerants, especially in developed countries like the United States, Germany, France, United Kingdom, Japan, Italy, and Spain.

Refrigeration Oil Market Drivers:

An important factor in the growth of the global refrigeration oil market is the escalating use of frozen and packaged food products, which has escalated the call for refrigeration systems to store the products at the required temperature, boosting the call for refrigeration oil. In addition, the expanding healthcare sector, with escalated spending on the latest drug development, will likely increase the need for a refrigeration system to store drugs and vaccines and thus driving the rise of the worldwide refrigeration oil market. The escalating call for air conditioning systems and refrigerators especially in developing countries coupled with escalating population and urbanization is anticipated to drive the growth of the global market at a remarkable rate during the forecast period. In addition, escalating regulations to reduce environmental pollution have led to a shift towards environmentally friendly products, which will likely result in the manufacture of air conditioners using more environmentally friendly alternatives, that is, natural refrigerants such as ammonia, CO2, and hydrocarbons, and hence, contribute to the growth of the synthetic refrigeration oil market.

Restraints in the Refrigeration Oil Market:

Strict rules and regulations on the utilization of fluorocarbon refrigeration systems are anticipated to restrain the market growth during the forecast period. Various environmental factors linked with the utilization of refrigeration systems are anticipated to be a major challenge to the growth of the refrigeration oil market.

Opportunities in the Refrigeration Oil Market:

The growing market call for refrigerant oil from the food and pharmaceutical industries to increase shelf life will boost the industry. In addition, the growing call for consumer devices and the growing preference for low GWP refrigerants are some of the key factors that are anticipated to drive the refrigeration oil market. The escalating consumption of packaged food products and the storage and use of vaccines and drugs will drive the call for refrigerators, freezers, air conditioners, and HVAC systems for automobiles. The transportation sector and the development of the latest products by major manufacturers are also anticipated to open up the latest opportunities in the global refrigeration oil market.

Challenges in the Refrigeration Oil Market:

However, stringent government regulations pertaining to CFC emissions are anticipated to challenge the growth of the global refrigeration oil market.

REFRIGERATION OIL MARKET REPORT COVERAGE:

Refrigeration Oil Market Segmentation:

Based on the Type:

• Synthetic Oil

• Mineral Oil

Based on the Application:

• Refrigerator & Freezer

• Air Conditioner

• Automotive AC System

• Aftermarket

Refrigeration Oil Regional Analysis:

The Refrigeration Oil Report includes the segmentation of Regions with their respective Countries.

• North America

• Europe 

• Asia Pacific

• Latin America

• Middle East & Africa

The refrigeration oil market in APAC region is anticipated to experience the fastest growth rate of 6.2% during the forecast period. Strong economic growth in India and China, which will result in a large number of retail stores and outlets, will support the growth of the market. The increase in the level of disposable income of the population of this region plays a fundamental role in stimulating the call for compressors. The dominance of the Asia-Pacific region can be attributed to the growing call for compressor oil from the automotive, oil and gas, construction, and petrochemical sectors. It is seen that industries in the region are expanding their production facilities and therefore need sufficient manufacturing equipment to meet the call of end-users, thus escalating the market call.

The North American market is anticipated to grow at a rate of 4.3% during the forecast period. Call in the region is mainly driven by the rapid industrialization of Mexico, which over the years has become a hub of automotive production. The growth of the petrochemical industry in the United States and Canada is also anticipated to influence calls during the forecast period.

Refrigeration Oil Market Recent Developments in the Industry

• In Nov 2019, Kirloskar Group launched a series of chillers with the country’s first oil-free centrifugal compressor.

Refrigeration Oil Key Players:

1. JXTG Group (Japan), BASF SE (Germany)
2. Idemitsu Kosan Co., Ltd. (Japan)
3. Royal Dutch Shell plc (Netherlands)
4. ExxonMobil Corporation (US)
5. BP p.l.c. (UK)
6. PETRONAS (Malaysia)
7. Chevron Corporation (US)
8. Total S.A. (France)
9. Sinopec Group (China)
10. FUCHS PETROLUB SE (Germany)
11. Johnson Controls (Ireland)
12. The Lubrizol Corporation (CPI Fluid Engineering Services) (US)