Refrigeration oil is produced by using either synthetic oil or mineral oil by mixing additive into the oil. This oil is developed for use in the cooling system where it is used to lubricate the moving parts of the refrigeration systems. Refrigeration oil possesses low pour point, have better chemical & thermal stability, high viscosity, and is completely contamination-free. This oil reduces the friction of the metal parts and wears on the refrigeration components.
The global refrigeration oil market was estimated to be valued more than US$ 1200 million in terms of revenue in 2019 and is predicted to grow at a CAGR of 5.3% during the forecast period (2020 to 2027).
Growing demand for HVAC&R systems across both residential as well as commercial sectors is projected to augment the market growth of the refrigeration oil. A growing number of research centers where HVAC&R is required for maintaining the operations systems is also expected to augment the market growth. Thus, the growing demand for air conditioning systems and refrigerators around the globe is projected to accelerate the market growth of refrigeration oil over the forecast period.
The growing focus of the manufacturer in the development of low viscosity and high-quality refrigeration oil is expected to provide lucrative opportunities to the market. For instance, in July 2017, ExxonMobil has launched its most advanced mineral-based oil for ammonia compressors used in refrigeration systems. Mobil GargoyleTM Arctic 68 NH has been designed to help improve system efficiency and offers cost benefits for industrial refrigeration operators.
Designing compatible refrigeration oil with the refrigeration system is a complex process. This is a major challenge for the market growth of the refrigeration oil over the foreseeable period.
On the basis of refrigerant type, hydro-fluorocarbon (HFC) dominated the global refrigeration oil market in 2019 with around 17% of market share in terms of revenue, followed by others and hydro-chlorofluorocarbon (HCFC) respectively.
The growing installation of air conditioners in the vehicle is expected to accelerate the market growth of the refrigeration oil. The rising use of air conditioners in pharmaceutical research laboratories coupled with the growth in the various manufacturing industries is also expected to foster the market growth of the refrigeration oil. In addition to this growth in the retail sectors around the globe is also expected to accelerate the market growth of the refrigeration oil.
Partnership and collaborations are one of the major trends observed in the market. The growing adoption of such strategic alliances by the government for business expansion is expected to foster the market growth of the refrigeration oil. For instance, in December 2019, Honeywell announced a strategic partnership with Midea Group, to replace R-410A with Solstice N41 (R-466A) in HVAC applications, including variable refrigerant flow (VRF) and chiller systems. R-466A is a nonflammable and lower global-warming-potential (GWP) refrigerant for stationary air conditioning systems.
Global Refrigeration Oil Market - Impact of Coronavirus (Covid-19) Pandemic
The global refrigeration oil market is expected to witness a decline in growth in demand owing to disruptions in functioning of companies in various end-user industries such as energy, manufacturing, chemicals, commercial offices during a period till 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
Few Recent Developments
By Product Type
By Refrigerant Type
By End User