The refrigeration oil market size is projected to be valued at USD 1,425.9 million in 2023 and is expected to rise to USD 2,332.9 million by 2033. The sales of refrigeration oil are expected to grow at a significant CAGR of 4.9% during the forecast period.
Increased consumption of refrigeration oil in different applications such as in air conditioning systems, refrigerating systems, freezers, coolers, chillers & others, is expected to push sales. Considering this, Future Market Insights (FMI) estimates the global refrigeration oil market will reach a valuation of USD 2,209.9 Million by 2032.
As consumption of packaged food products and sales of frozen meat surges across the globe, the adoption of refrigeration systems is predicted to burgeon in the food & beverage industry. These frozen food products require low temperatures as they are perishable items. To ensure product quality, end users are increasing the adoption of refrigeration oil, fueling sales.
As per Future Market Insights (FMI), in terms of end users, the industrial segment is anticipated to witness the fastest growth over the forecast period, followed by the commercial sector. However, with the burgeoning adoption of energy-efficient air conditioners in residences, the demand for refrigeration oil in the residential segment will rise at a robust pace.
Attribute | Details |
---|---|
Refrigeration Oil Market Estimated Size (2023) | USD 1,425.9 million |
Refrigeration Oil Market CAGR (2023 to 2033) | 4.9% |
Refrigeration Oil Market Forecasted Size (2033) | USD 2,332.9 million |
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
As per FMI, the sales of refrigeration oil increased at a 4.1% CAGR between 2018 and 2022. Growth in the market is underpinned by surging applications in the industrial and residential sectors. Also, the rising utilization of refrigeration oil in coolers, condensers, and refrigerators in residential and industrial sectors will fuel the sales in the market.
In the forecast period (2023 to 2033), the air conditioning segment is expected to lead the global refrigeration oil market, followed by refrigerating systems and coolers & chillers. Also, the expansion of the food & beverage industry coupled with the rising application of warehouses and logistics are expected to drive the demand in the market.
Some of the key factors expected to boost demand for refrigeration oil over the forecast period include an increase in food and beverage production and an expansion of cold chain capacities to reduce food loss at the production and distribution levels.
Increasing demand for meat products is mainly attributed to changing food preferences and demand for pre-cooked meals across the globe. This is anticipated to expand the cold storage capacities and expansion of refrigerated distribution to minimize loss at the distribution level. This, in turn, is fueling the demand for various refrigerated systems such as large refrigerated trucks and trailers.
Moreover, refrigeration oil plays an important role such as lubrication in refrigeration systems for better performance. Thus, the growing demand for refrigeration systems is expected to spur sales in the refrigeration oil market during the forecast period.
Growing Adoption of HVAC & R Systems in the Healthcare Sector to Push Sales
Advancements in treatment, increasing prevalence of chronic diseases, and favorable government initiatives to improve healthcare infrastructure are some of the factors accelerating sales in the refrigeration oil market.
In line with this, pharmaceutical companies, biotechnology research companies, and hospitals are involved in research and development (such as vaccine development, drug designing, and development) to reduce the global burden of diseases such as AIDS, diabetes, etc. s, and biotechnology research companies, and hospitals are involved in research and development (such as vaccine development, drug designing, and development) to reduce the global burden of diseases such as AIDS, diabetes, etc.
Hence, leading healthcare organizations and companies are developing clean rooms which are operated under controlled environments with very low levels of pollutants. To maintain a clean environment, clean rooms are connected with HVAC & R (heating, ventilation, air conditioning, and refrigeration) systems.
Hence, in research labs where HVAC & R systems are in operation, refrigeration oil is needed to maintain the operation of systems. Backed by the increasing number of HVAC & R systems in the healthcare sector, the refrigeration oil market will gain impetus over the forecast period.
Complexity & Incompatibility of Refrigeration Systems Might Impede the Growth
Refrigeration oil is primarily used for reducing friction losses and transferring heat and also acts as a sealant. For the proper functioning of compressor systems, refrigeration oil compatibility with refrigerants is necessary in terms of viscosity, solubility, miscibility, and chemical stability. Moreover, the choice of refrigeration oil depends on the design of air conditioners, refrigerators, chillers, and compressors.
In addition to this, some synthetic oil is not miscible with natural refrigerants, while some mineral oils are not miscible with synthetic refrigerants. Thus, while designing a refrigeration system, the process becomes complex due to the compatibility of refrigeration oil with refrigerants. This can be one of the major challenges for the growth of the refrigeration oil market during the forecast period.
HFCs (hydro-fluorocarbons) play a crucial role in the refrigeration oil market, holding a significant share of 36.3%, and are widely used refrigerants in various cooling and refrigeration systems. HFCs are chosen as alternatives to ozone-depleting substances due to their lower environmental impact. The demand for refrigeration oil is closely linked to the adoption of HFCs, as lubricants specifically formulated for HFC-based systems are essential for proper lubrication and efficient operation. These refrigeration oils offer excellent lubrication properties, thermal stability, and compatibility with HFC refrigerants. With increasing environmental regulations and a focus on sustainable refrigeration solutions, the demand for refrigeration oils compatible with HFCs is expected to remain strong. Manufacturers continue to develop high-quality refrigeration oils that provide optimal performance while complying with environmental standards.
These essential appliances require proper lubrication to ensure efficient and reliable operation. Refrigeration oil plays a vital role in lubricating compressors and other system components, facilitating heat transfer, and maintaining optimal performance. In the residential sector, refrigerators are crucial for preserving food and extending its shelf life. Similarly, the commercial sector, including restaurants, supermarkets, and cold storage facilities, heavily relies on refrigerators and freezers to maintain perishable goods at the required temperatures. With increasing consumer demand for energy-efficient and environmentally friendly appliances, there is a growing need for high-quality refrigeration oil in refrigerators and freezers. Manufacturers are developing lubricants that offer excellent performance, improved energy efficiency, and compatibility with various refrigerants. Moreover, stringent regulations and standards focusing on energy efficiency and environmental impact have further influenced the demand for suitable refrigeration oils in these applications.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
Increased Research and Development in Automotive and Oil & Gas Sectors to Boost the USA Refrigeration Oil Market
According to FMI, the USA is expected to account for a substantial share of the North American refrigeration oil market. Over the forecast period, the USA is expected to emerge as an attractive market in North America owing to the ongoing investment & development in the country.
With surging investment for research in diverse industries such as automotive, oil and gas, infrastructure, chemical, and electronics, among others. Continuous advancements and increased research and development (R&D) in the pharmaceutical industry are driving the demand for laboratory refrigeration systems.
Furthermore, these systems are critical in extending the life of vaccines, drugs, and other medicinal supplies. On the back of these factors, the USA is expected to hold a prominent value share of 15.3% in the refrigeration oil market in 2022.
Germany Refrigeration Oil Market to Gain from Extensive Spending on Drug Development
Germany is projected to hold around 6.1% of the demand share in the Europe refrigeration oil market, as per FMI. Germany is expected to present stiff competition for global manufacturers in terms of export quantities and pricing. Germany is one of the developed countries in Europe, where the healthcare system and pharmaceutical industry are continuously expanding with extensive research & development.
Factors such as increased spending on drug development will aid the demand for refrigeration systems to store drugs and vaccines. Further, the need for air conditioner systems and refrigerators will cushion the growth in the refrigeration oil market during the forecast period. Furthermore, the rising emphasis of manufacturers on R&D activities to develop innovative products at low cost is expected to create numerous opportunities for the market.
Manufacturers have shifted their focus to emerging countries in recent years to meet the growing demand for refrigeration oil. Several key players are focusing on improving their manufacturing capabilities, Research and Development investments, collaborative partnerships, and expansion of production capacities.
Furthermore, these key players are focusing on strengthening their sales channels to meet the growing demand for refrigeration oil around the world.
Attribute | Details |
---|---|
Growth Rate | CAGR of 4.9% from 2023 to 2033 |
Base Year of Estimation | 2023 |
Historical Data | 2018 to 2022 |
Forecast Period | 2023 to 2033 |
Quantitative Units | Revenue in US$ Billion and Volume in Units and F-CAGR from 2022 to 2032 |
Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, growth factors, Trends, and Pricing Analysis |
Key Segments Covered | Technology, Product Type, Refrigerant Type, Application, End User, By Region |
Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Middle East & Africa; Oceania |
Key Countries Profiled | USA, Canada, Brazil, Mexico, Germany, Italy, France, United Kingdom, Spain, Russia, China, Japan, India, GCC Countries, Australia |
Key Companies Profiled | ExxonMobil Corporation; Shell Plc; Idemitsu Kosan Co., Ltd.; MEIWA CORPORATION; CPI Fluid Engineering (Part of The Lubrizol Corporation); FUCHS Lubricants (Part of FUCHS Petrolub SE); Chevron Phillips Chemical Company LLC; Performance Chemicals (Division of BASF SE) |
Customization & Pricing | Available upon Request |
The global market is estimated to be valued at US$ 1,425.9 million in 2023.
The market is likely to grow at a CAGR of 4.9% from 2023 to 2033.
The market is projected to reach a valuation of US$ 2,209.9 million by 2033.
Explore Chemicals & Materials Insights
View Reports