REFRIGERATION OIL MARKET ANALYSIS

The global refrigeration oil market is projected to reach US$ 2.6 Billion by the end of 2030, in terms of revenue, growing at CAGR of 7.1% during the forecast period (2023-2030).

Global Refrigeration Oil Market- Impact of Coronavirus (Covid-19) Pandemic

The global refrigeration oil industry was hampered by the COVID-19 pandemic. Owing to the pandemic situation, several countries worldwide imposed strict lockdowns to curb the spread of the virus. Due to this, the supply and demand chain got disrupted, thus affecting the market growth. Various industrial activities, manufacturing units, and mining operations stopped due to the pandemic leading to the reduced sales of electronics and automobiles. The fluctuating prices of raw materials used to make refrigeration oil and the COVID-19 pandemic hindered the global refrigeration oil market growth. The refrigeration oil companies are expecting the situations to get back to normal after pandemic.

Global Refrigeration Oil Market:  Drivers

Growth in the food and beverage industry across the globe

Growth in the food & beverage industry is a prime factor fuelling the market growth of Global refrigeration oil Market. The rising demand for perishable food products coupled with the increasing trade of food worldwide is boosting the market growth. Increasing consumption of frozen and packaged food products is also driving the global refrigeration oil market growth.

Figure 1. Global Refrigeration Oil Market Share (%) in terms of Value, By Region, in 2022

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Global Refrigeration Oil Market: Restraints

Strict rules and regulations on the use of fluorocarbon refrigerant systems

Strict rules and regulations on the use of fluorocarbon refrigerant systems 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 systems are expected to be a major challenge for the market growth of Global Refrigeration oil Market.

Market Opportunity:

 The global refrigeration oil market is increasingly  

The global refrigeration oil market is increasingly investing on innovative product launches, research and development, and marketing and promotional activities to capitalize on emerging trends in the chemical and manufacturing industries. This scenario is expected to fuel the market growth during the forecast period.

Figure 2. Global Refrigeration Oil Market Share (%) in terms of Value, By Application Type, in 2022

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Market Trends:

The growing installation of air conditioners

The growing installation of air conditioners in vehicles is expected to accelerate the market growth of Global Refrigeration Oil Market. The rising use of air conditioners in pharmaceutical research laboratories coupled with growth in various manufacturing industries is also expected to foster the market growth. In addition to this, growth in the retail sector around the globe is also expected to accelerate the Global Refrigeration oil Market growth.

Global Refrigeration Oil Market: Key Developments

• In June 2022, ExxonMobil, an oil and Gas Company, and Qatar Energy, a petroleum company, announced that they signed an agreement to further develop Qatar’s North Field East project, which will expand its annual Liquefied Natural Gas (LNG) capacity from the current 77 million tons to 110 million tons by 2026.
• In September 2022, Shell plc. an oil and gas company, agreed to sell IKAV its 100% stake in Shell Onshore Ventures LLC, which owns a 51.8% stake in Aera Energy LLC, a natural gas and oil exploration and production company, for a total consideration of about US$ 2 billion in cash and additional contingent payments based on future oil prices.
• On the basis of refrigerant type, hydro-fluorocarbon (HFC) dominated the global refrigeration oil market in 2021 with around 17% of market share in terms of revenue, followed by others and hydro-chlorofluorocarbon (HCFC) respectively.

 Global Refrigeration Oil Market: Market Segmentation

 Global Refrigeration Oil Market Share (%) in terms of Value, By Region, in 2022

Asia Pacific dominated the global refrigeration oil  market in 2022, accounting for a 45% share in terms of value, followed by Europe and North America.

Global Refrigeration Oil Market: By Application

On the basis of application, in 2022, their conditioners segment accounted for the largest market share of 28%.

 Global Refrigeration Oil Market Key Players

The key companies operating in the market are ExxonMobil Corporation, Royal Dutch Shell Plc, Idemitsu Kosan Co., Ltd., Meiwa Corporation, CPI Fluid Engineering, FUCHS Lubricants, and Performance Chemicals. 

*Definition: 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 .