Refrigeration oil can be derived from either synthetic or mineral oil. It has excellent thermal and chemical stability and is completely contamination-free. It is used in the refrigeration system to lubricate the moving parts and reduce the friction of the metal components. It flows under high pressure to get converted into the liquid to vapour state in order to generate a cooling effect. Moreover, it has excellent viscosity index and high shear stability.
Global refrigeration oil market was valued at US$ 1.3 Billion in 2021 in terms of revenue, exhibiting a CAGR of 5.5% during the forecast period (2022 to 2030).
Drivers
The booming healthcare industry, advancement in the treatment, and increasing prevalence of chronic disease are projected to fuel demand for refrigeration systems, which is, in turn, propelling the market growth. Increasing use of refrigeration systems due to growing need for storing drugs and vaccines along with the growing development of novel drugs is further anticipated to accelerate the market growth of refrigeration oil.
Growth in the food &beverage industry is a prime factor fueling the market growth of refrigeration oil. Rising demand for perishable food products coupled with the increasing trade of food around the globe is also contributing to the market growth of refrigeration oil. Moreover, increasing consumption of frozen and packaged food products is another major factor expected to augment the market growth of refrigeration oil.
The refrigeration oil industry got affected negatively by the COVID-19 pandemic. Owing to the pandemic situation, several countries around the world went into lockdown, to curb the spread of the virus. Due to this the supply and demand chain got disrupted affecting market. The industries, manufacturing units and mining operations stopped from 2020 due to the pandemic situation leading to the reduced sales in electronics and automobiles. The fluctuating price of raw materials used to make refrigeration oil and COVID-19 pandemic have hindered growth of the refrigeration oil market. The refrigeration oil companies on a positive note are expecting the situations to get back to normal.
Figure 1. Global Refrigeration Oil Market Value Share (%), By Region, 2021
Market Restraints
Strict rules and regulations on the use of fluorocarbon refrigerants system are expected to hamper the market growth over the forecast period. Various environmental factors (such as depletion of ozone layer) associated with the use of a refrigeration system are expected to be a major challenge for the market growth of refrigeration oil.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 1.3 Bn |
| Historical Data for: | 2017-2020 | Estimated Year: | 2022 |
| Forecast Period 2022 to 2030 CAGR: | 5.5% | Forecast Period: | 2022-2030 |
| Geographies covered: |
|
||
| Segments covered: |
|
||
| Companies covered: |
ExxonMobil Corporation, Royal Dutch Shell Plc, Idemitsu Kosan Co., Ltd., Meiwa Corporation, CPI Fluid Engineering, FUCHS Lubricants, and Performance Chemicals |
||
| Growth Drivers: |
|
||
| Restraints & Challenges: |
|
||
Market Trends
Increasing adoption of polyvinyl ether (PVE) as a refrigerant oil, a miscible and compatible oil to all types of HFC (hydrofluorocarbon) refrigeration systems is expected to be a major trend in market. Moreover, PVE oil offers better compatibility with R-410A (a zeotropic but near-azeotropic mixture of difluoromethane and pentafluoroethane that is used as a refrigerant in air conditioning and heat pump applications) as compared to poly olester (POE) oils. Thus, rising adoption of polyvinyl ether (PVE) as a refrigeration oil is expected to foster the market growth of refrigeration oil over the forecast period.
Figure 2. Global Refrigeration Oil Market Value Share (%), By Application, 2021
On the basis of application, air conditioners dominated the global refrigeration oil market in 2021 with around 27% of market share in terms of revenue, followed by chillers and refrigerators/freezers, respectively.
Recent Developments
Competitive Section
Key players operating in global refrigeration oil market are ExxonMobil Corporation, Royal Dutch Shell Plc, Idemitsu Kosan Co., Ltd., Meiwa Corporation, CPI Fluid Engineering, FUCHS Lubricants, and Performance Chemicals
Refrigeration oil is derived from formulating a mixture of oil and additives at high-temperature devised for usage in cooling systems. Refrigeration oil is widely used for lubrication purpose in refrigeration compressors and other systems in order to reduce friction between metal parts and wear in the compressor.
Market Dynamics
The global refrigeration oil market has witnessed significant growth from 2019, owing to the rising demand for home appliances coupled with shifting preferences for low GWP (Global Warming Potential) refrigerants due to growing concerns regarding global warming. This scenario is expected to provide lucrative growth to the global Refrigeration oil market over the forecast period.
Major players in the global refrigeration oil market are increasing their investment on innovative product launches, research & development and marketing & promotional activities to capitalize on emerging trends in various end-use industries, chemicals, manufacturing, and others. This scenario is expected to fuel the market growth during the forecast period.
The current market demand is concentrated on refrigeration oils that are cost-effective and meet the minimum standards or regulations mandated in the region. With changing nature of applications, customers demand more functions of refrigeration apart from cooling. Customers are becoming more focused on multi-functional refrigerators & freezers, air conditioners and also for automobile industry.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients