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 convert into the liquid to vapor state in order to generate a cooling effect. Moreover, it has excellent viscosity index and high shear stability.
The global refrigeration oil market is projected to surpass US$ 1800 million by the end of 2027, in terms of revenue, growing at CAGR of 5.3% during the forecast period (2020 to 2027).
The booming healthcare industry, advancement in the treatment, and increasing prevalence of chronic disease are projected to fuel the demand for refrigeration systems this 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 the refrigeration oil.
Growth in the food &beverage industry is a prime factor fueling the market growth of the 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 the refrigeration oil. Moreover, increasing the consumption of frozen and packaged food products is another major factor expected to augment the market growth of the refrigeration oil.
Regionally, Asia-pacific dominated the global refrigeration oil market in 2019, reporting 35% market share in terms of revenue, followed by Europe and North America, respectively.
Figure 1. Global Refrigeration Oil Market, Revenue Share (%), By Region, 2019
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 associated with the use of a refrigeration system is expected to be a major challenge for the market growth of the refrigeration oil.
|Base Year:||2019||Market Size in 2019:||US$ 1200 Mn|
|Historical Data for:||2016 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||5.3%||2027 Value Projection:||US$ 1800 Mn|
ExxonMobil Corporation, Royal Dutch Shell Plc, Idemitsu Kosan Co., Ltd., Meiwa Corporation, CPI Fluid Engineering, FUCHS Lubricants, and Performance Chemicals
|Restraints & Challenges:||
The growing use of the refrigeration system in transportation application such as the cold chain is expected to provide numerous growth opportunities. According to the UN’s Food and Agriculture Organisation (FAO), 40% of food produced in the developing countries undergoes wasted before reaching a market. In addition to this, 25% of vaccines go waste in India before reaching to doctors or to patients. Thus, emerging cold chain sector is projected to foster the market growth of refrigeration oil.
Growth in the chemical industry for storing sensitive chemicals that require a proper storage system is expected to augment the demand for refrigeration system which in turn is fueling the market growth. Also, growing demand for low global warming potential (GWP) and ozone depletion potential (ODP) conditioning systems for reducing environmental impact is expected to accelerate the market growth of the refrigeration oil over the forecast period.
Figure 2. Global Refrigeration Oil Market – Opportunity Analysis
Increasing adoption of polyvinyl ether (PVE) as a refrigerant oil a miscible and compatible oil to all types of HFC refrigeration systems is expected to be a major trend in the market. Moreover, PVE oil offers better compatibility with R-410A 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 over the forecast period.
The growing production of alkyl benzene by the manufacturer in order to meet the rising demand for high-performance lubricants is expected to augment the market growth. For instance, in April 2017, Cepsa expands production of linear alkylbenzene in Brazil. The revamping process allows it to increase the plant’s production capacity up to 260,000 metric tons per year (m.t./yr). Thus, the rising production of alkyl benzene will favor market growth over the forecast period.
Figure 3. Global Refrigeration Oil Market, Revenue Share (%), By Application, in 2019
On the basis of application, air conditioners dominated the global refrigeration oil market in 2019 with around 27% of market share in terms of revenue, followed by chillers and refrigerators/freezers, respectively.
Global Refrigeration Oil Market - Impact of Coronavirus (Covid-19) Pandemic
Refrigeration oils market has witnesses a decline in demand from majority of its end use industries for such as power generation, machinery, chemicals, metal manufacturing, and others amidst of government implementation of lockdown in various countries. The global refrigeration oil market is expected to grow at very low cagr till the early quarter of 2021.
Key players are operating in the 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.
The global refrigeration oil market has witnessed significant growth in recent past years, owing to the rising demand for home appliances coupled with shifting preferences for low GWP 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 launchings, research & development and marketing & promotional activities to capitalize on emerging trends in various end-use industries energy, chemicals, manufacturing, and others. This scenario is expected to fuel the market during the forecast period.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective