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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

Refrigeration Oil  | Coherent Market Insights

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.

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Refrigeration Oil Market Report Coverage

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:
  • Region: North America, Latin America, Europe, Asia Pacific, Middle East & Africa
Segments covered:
  • By Product Type: Mineral Oil, Synthetic Oil (Polyol Ester, Poly Alpha Olefin, Alkyl Benzene, Polyalkylene Glycol, Polyvinyl ether, Others)
  • By Refrigerant Type: Chlorofluorocarbon (CFC), Hydro-chlorofluorocarbon (HCFC), Hydro-fluorocarbon (HFC), Ammonia, Others
  • By End-user: Industrial, Commercial, Residential
  • By Application: Air Conditioners, Coolers, Chillers, Refrigerators/Freezers, Condensers, Others
Companies covered:

ExxonMobil Corporation, Royal Dutch Shell Plc, Idemitsu Kosan Co., Ltd., Meiwa Corporation, CPI Fluid Engineering, FUCHS Lubricants, and Performance Chemicals 

Growth Drivers:
  • Growth in the food & beverage industry across the globe
  • Rising demand for refrigeration oil is one of the major factors driving growth of the global market
Restraints & Challenges:
  • Strict rules and regulations on the use of fluorocarbon refrigerants system
  • Environmental factors associated with the use of a refrigeration system 

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

Refrigeration Oil  | Coherent Market Insights

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

  • In June 2022, ExxonMobil, an oil and gas company, and QatarEnergy, petroleum company, announced that they signed an agreement to further develop Qatar’s North Field East project, which will expand Qatar’s annual LNG (Liquefied Natural Gas) capacity from currently 77 million tons to 110 million tons by 2026.
  • In May 2022, ExxonMobil, an oil and gas company, announced its plans to grow shareholder value by delivering solutions that help meet the global need for energy and for lower greenhouse gas emissions to address climate change
  • In September 2022, Shell plc, an oil and gas company, agreed to sell its 100% interest in Shell Onshore Ventures LLC which holds a 51.8% membership interest in Aera Energy LLC, a natural gas, oil exploration and production company, to IKAV for a total consideration of approximately US$ 2 billion in cash with additional contingent payments based on future oil prices, subject to regulatory approval.

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:

  • This report provides an in-depth analysis of the global refrigeration oil market, and provides market size (US$ Billion) and compound annual growth rate (CAGR %) for the forecast period (2022-2030), considering 2021 as the base year.
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global refrigeration oil market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study include ExxonMobil Corporation, Royal Dutch Shell Plc, Idemitsu Kosan Co., Ltd., Meiwa Corporation, CPI Fluid Engineering, FUCHS Lubricants, and Performance Chemicals
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up gradation, market expansion, and marketing tactics.
  • The global refrigeration oil market report caters to various stakeholders in this industry including investors, suppliers, refrigeration oil manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global refrigeration oil market

Detailed Segmentation:

  • Global Refrigeration Oil Market, By Product Type:
    • Mineral Oil
    • Synthetic Oil
      • Polyol Ester
      • Poly Alpha Olefin
      • Alkyl Benzene
      • Polyalkylene Glycol
      • Polyvinyl ether
      • Others
  • Global Refrigeration Oil Market, By Refrigerant Type :
    • Chlorofluorocarbon (CFC)
    • Hydro-chlorofluorocarbon (HCFC)
    • Hydro-fluorocarbon (HFC)
    • Ammonia
    • Others
  • Global Refrigeration Oil Market, By End-user:
    • Industrial
    • Commercial
    • Residential
  • Global Refrigeration Oil Market, By Application:
    • Air Conditioners
    • Coolers
    • Chillers
    • Refrigerators/Freezers
    • Condensers
    • Others
  •  Global Refrigeration Oil Market, By Region:
    • North America
      • By Country:
        • U.S.
        • Canada
    • Latin America
      • By Country:
        • Brazil
        • Mexico
        • Rest of Latin America
    • Europe
      • By Country:
        • France
        • Germany
        • Italy
        • Spain
        • U.K.
        • Nordic
        • Benelux
        • Russia
        • Poland
    • Asia Pacific
      • By Country:
        • China
        • India
        • Japan
        • ASEAN
        • South Korea
        • Rest of Asia Pacific
    • Middle East & Africa
      • By Country:
        • GCC
        • South Africa
        • Rest of Middle East & Africa
  • Company Profiles
    • ExxonMobil Corporation*
      • Company Overview
      • Product Portfolio
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Royal Dutch Shell Plc
    • Idemitsu Kosan Co., Ltd.
    • Meiwa Corporation
    • CPI Fluid Engineering
    • FUCHS Lubricants
    • Performance Chemicals

“*” marked represents similar segmentation in other categories in the respective section

Frequently Asked Questions

Global refrigeration oil market was valued at around US$ 1.3 Billion in 2021.
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 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 market.
Strict rules and regulations on the use of fluorocarbon refrigerants system are expected to hamper the market.
Major players operating in the market include ExxonMobil Corporation, Royal Dutch Shell Plc, Idemitsu Kosan Co., Ltd., Meiwa Corporation, CPI Fluid Engineering, FUCHS Lubricants, and Performance Chemicals 
The market is estimated to grow at around 5.5% CAGR in the forecast period (2022-2030).

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