San Francisco, 06 March 2024: The Report Refrigeration Oil Market Size, Share & Trends Analysis Report By Type (Mineral, Synthetic), By Application (Refrigerators, Air conditioner, Automotive), By Region, And Segment Forecasts, 2024 - 2030

The global refrigeration oil market is expected to reach USD 1.96 billion by 2030, and it is projected to grow at a CAGR of 4.7% from 2024 to 2030, according to a new report by Grand View Research, Inc. Refrigeration oil is an essential component in the refrigerant industry, serving a variety of applications. One of its primary roles is to lubricate and cool the moving parts of compressors, which are responsible for compressing the refrigerant gas. By reducing friction and preventing wear and tear, it helps to maintain the optimal performance of compressors.

Moreover, it finds applications across various industries, including food processing, cold storage, pharmaceuticals, chemical manufacturing, and HVAC systems. Its presence is crucial for maintaining the performance and reliability of refrigerant equipment in these sectors. Manufacturers develop specific formulations of refrigeration oil to meet the diverse requirements of different systems, considering factors such as temperature range, refrigerant compatibility, and environmental considerations.

However, the shift towards alternative cooling technologies and refrigerants, such as natural refrigerants and electric cooling systems, can impact the demand for traditional refrigeration oil. The growing focus on energy efficiency and the adoption of greener alternatives may reduce the reliance on conventional systems that require refrigeration oil.

This growth is attributed to the rising demand for new and innovative electronics, such as refrigerators, air conditioners, and automotive AC systems. This growth in the electronics industry leads to technological advancements and product innovation, which in turn increases the demand for refrigeration oil. Moreover, the rising demand for frozen food, especially in countries like China and the U.S., is driving the need for efficient refrigeration systems and refrigeration oils. This presents an opportunity for manufacturers and suppliers in the product market.

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According to Gentlemen Marketing Agency (GMA), the frozen food market in China is anticipated to reach USD 26,492.8 million in 2024 witnessing a growth of over 12%. Moreover, according to the American Frozen Food Institute, frozen food sales in the U.S. reached over USD 72 billion in 2022. Thus, the advancing demand for frozen food is anticipated to drive the product market growth over the forecast period.

Refrigeration Oil Market Report Highlights

• The product market is anticipated to witness growth with a CAGR of 4.7% from 2024 to 2030. This is attributed to the increasing demand for deep freezers for the storage of drugs, vaccines, and frozen foods worldwide
• Mineral type segment is anticipated to witness growth over the forecast period. This growth is attributed to its compatibility with a wide range of refrigerant oils. Mineral oil exhibits good solubility and miscibility with various refrigerants, making it suitable for use in different types of refrigeration systems.
• Air conditioners in the application segment is anticipated to witness growth over the forecast period. The growth is attributed to the growing demand for air conditioners, particularly in emerging economies like India, China, and Indonesia, is contributing to the increased need for refrigeration oil. As global temperatures rise and heatwaves become more frequent, the demand for air conditioning is on the rise to provide cooling and comfort. This trend is further fueled by the increasing urbanization and improving living standards in these countries
• North America region is anticipated to witness growth over the forecast period. This growth is attributed to the increasing demand for refrigeration and cooling systems in various industries, including food and beverage, pharmaceuticals, and logistics. The growth of these industries, coupled with the need for temperature-controlled storage and transportation, has led to a higher demand for the product in the region
• According to the European Federation of Pharmaceutical Industries and Associations, the North American pharmaceutical market, including Canada and the U.S., remained the world’s largest market with 49.1% of the global pharmaceutical share in 2021. Thus, the advancement of the pharmaceutical industry is anticipated to drive the product demand in the region.

However, increasing emphasis on energy efficiency and environmental sustainability has led to the development of regulations and standards that govern the use of refrigerants and refrigeration systems. These regulations often require the use of environmentally friendly refrigerants with lower global warming potentials (GWP). As a result, there is a shift towards alternative refrigerants, such as natural refrigerants or low-GWP synthetic refrigerants, which may impact the demand for traditional refrigeration oils.

The U.S. is a major consumer of the product in North America with a revenue share of over 71% in 2023. The growth of the product market during the forecast period can be attributed to the increasing industrialization in the country, particularly in the manufacturing and chemical sectors, which has led to a higher demand for refrigeration systems and equipment. As these industries expand, the need for refrigeration oil to ensure smooth operation and maintenance of the systems becomes crucial.

Moreover, the growing demand for frozen food, both domestically and for export, has contributed to the rise in product demand. The U.S. is a major player in the frozen food industry, and with the increasing consumption of frozen food products, the requirement for reliable and efficient refrigeration systems has surged, subsequently boosting the demand for refrigeration oil.

Refrigeration Oil Market Report Scope

Refrigerators in application segment dominated the market with a revenue share of over 30% in 2023. This is attributed to the fact that refrigeration oil is used in refrigerators for lubrication and heat transfer purposes. It plays a crucial role in ensuring the smooth operation of various moving parts in refrigerator systems, such as compressors, motors, and fans. By reducing friction and wear, the oil keeps these components running efficiently. Additionally, it aids in the heat transfer process by absorbing heat from the evaporator and releasing it in the condenser. It also helps in sealing the system, preventing refrigerant leaks, and maintaining the overall efficiency of the refrigeration cycle.

List of Key Players in Refrigeration Oil Market

• INEOS
• Idemitsu Kosan Co., Ltd
• Exxon Mobil Corporation
• Shell Global
• TotalEnergies
• China Petroleum & Chemical Corporation
• FUCHS
• PETRONAS Lubricants International
• Jhonson Controls