Refrigerant Oil Market to Observe a Market Revenue of $13.59 billion in 2023

The changing lifestyles of people and an incremented growth in the refrigeration industry with increasing sales of refrigerators and air conditioners, there is a continuous requirement of refrigerant oil which is a high-temperature formulation used in cooling systems with heat transfer operations. The augmented demand for refrigeration is leading to a demand influx in the refrigerant oil market that will have an impressive market size of $13.59 billion in 2023 as the demand for the product is estimated to grow with a compound annual growth rate (CAGR) of 4.9% during the forecast period of 2018 to 2023, according to IndustryARC’s market analyst. 

The market insights are well-documented in a recent business intelligence report by IndustryARC that contains information pertaining to the growth drivers and challenges in the refrigerant oil market along with the estimations for the most lucrative leading segments. The report is titled, “Refrigerant Oil Market: By Type of Oil (Polyolester Oil (POE), Polyalkylene Glycol (PAG), Polyalphaolefin (PAO) and others); By Refrigerant Type (CFC, HFC, HCFC, Others); By End-user (Automobile, Commercial, others) & By Geography – Forecast (2018-2023).”

According to the geographical analysis by the market analyst, APAC had the maximum refrigerant oil market share of 50% in 2016, and the market share is projected to see an increment through to 2023. This is attributable to the growing urbanization in the countries such as China, India, Japan, and Indonesia which is leading to a definite demand growth for refrigerators and air conditioners. The demand is making OEMs produce more refrigerators and ACs that require refrigerant oil for heat transfer. 

The refrigerant oil is segmented on the basis of type that include CFC, HFC, ammonia, and others. The most prevalently used refrigerant oil is ammonia owing to its properties that enables the compound to absorb a lot of heat without changing the temperature. Additionally, it is the most energy-efficient refrigerant oil. The application of ammonia as a refrigerant oil had observed an impressive market revenue of 2.96 billion in 2018. Furthermore, according to the findings by the analyst, the key application of refrigerant oils is in automobiles.

The food and beverages industry has taken a leap into the frozen food sector, and it’s quite evident in the increasing cold storage requirement in order to ameliorate food losses. Moreover, the incremented sales in the frozen desserts market are largely supporting the refrigeration industry leading to a demand for refrigerant oil. The various distribution channels such as supermarket, grocery store, and convenience store utilize refrigeration which is further flourishing the refrigerant oil market. 

The domestic refrigeration segment has been observing a constant rise in various parts of the world such as North America, the Middle East, Latin America, and some APAC countries such as China and India. This is because of the demand generated in the middle-class strata of society. The need for improved food quality and variety from bourgeois has led to amplified demand for refrigerators in various distribution segments. Moreover, the rise in disposable income has created a favorable pricing environment for refrigerators and air conditioners across the globe. This is leading to a rise in revenues generated in the refrigerant oil market.

Refrigerant oils are found to have a negative impact on the environment as they contribute to global warming and ozone layer depletion. Subsequently, governments worldwide have enforced regulations on the usage of refrigerant oil in order to reduce emission of greenhouse gases. Even though this is reducing the opportunities in the existing segments, the refrigerant oil market is envisioning new horizons in the environment-friendly refrigerants such as refined mineral oil that is not detrimental to the environment. The rise in demand for natural refrigerants is poised to create opportunities for the vendors that produce refrigerant oils that are compatible with natural refrigerants.

Chillers and air-handling units also find applications in the healthcare sector for cooling and air distribution equipment. The use of split systems for heating and cooling in hospitals and clinics is giving rise to a demand for refrigerant oil. Furthermore, education and governmental institutions are also prominent refrigerant oil marketplaces, according to the marketplace analysis by IndustryARC’s analyst.

Some of the key companies identified in the market intelligence report that are currently holding majority shares in the refrigerant oil market are The Lubrizol Corporation, BASF SE, Idemitsu Kosan Company Ltd., Chemtura Corporation, The Dow Chemicals Co., and Fuch Lubricants.