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Overview
The Refrigerant Oil Market size is forecast to reach USD $1.6 billion by 2030, after growing at a CAGR of 4.3% during the forecast period 2024-2030. Refrigerant Oil is a high-temperature formulation of a mixture of oil and additives devised for usage in cooling systems. It acts as a lubricant in refrigeration compressors, derived from both mineral and synthetic oil in order to lubricate or reduce friction of metal parts and wear on the compressor. The product flows under high pressure to turn from liquid to vapor state to generate a cooling effect due to its special characteristics such as better chemical and thermal stability, low contamination, low pour point, high dielectric strength and viscosity. Global environmental regulations, such as the Montreal Protocol and subsequent amendments like the Kigali Amendment, are driving the phase-out of high-GWP refrigerants like hydrofluorocarbons (HFCs). This shift is propelled by the need to curb greenhouse gas emissions and combat climate change. Low-GWP refrigerants, including hydrocarbons, natural refrigerants (like ammonia and CO2), and hydrofluoroolefins (HFOs), are gaining prominence due to their significantly reduced impact on global warming compared to their predecessors. The HVACR (Heating, Ventilation, Air Conditioning, and Refrigeration) sector is witnessing consistent growth globally, driven by urbanization, industrialization, and an increasing focus on indoor comfort and air quality. HVACR systems, including air conditioning units, heat pumps, and refrigeration equipment, rely on Refrigerant Oils for effective operation and lubrication of components like compressors, motors, and heat exchangers. Commercial buildings, industries, hospitals, and data centers require sophisticated HVACR systems for temperature control, preservation of goods, and maintaining optimal working environments.
Market Snapshot:
Report Coverage
The report “Refrigerant Oil Market– Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Refrigerant Oil Market.
By Type of Oil: Mineral Oil, Synthetic Oil and Others.
By Refrigerant Type: Chlorofluorocarbon (CFC), Hydro-chlorofluorocarbon (HCFC), Hydrofluorocarbon (HFC), Ammonia, HFO, Butane and Iso Butane, Propane and Others
By Application: Refrigerator & Freezer, Air conditioners, Automotive AC System, Aftermarket and Others
By Geography: North America, South America, Europe, APAC, and RoW.
Key Takeaways
- Asia Pacific region is expected to maintain its dominance during the forecast period.
- The key factor driving the growth of the global Refrigerant Oil market is the increasing consumption of frozen and packaged food products.
- Refrigerant Oil exhibits high viscosity, low pour point, and is contamination-free due to which the market is expected to grow during the forecast period.
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By Type of Oil - Segment Analysis
Synthetic Oil segment held a significant share in Refrigerant Oil market in 2023. This dominance is attributed to its high performance in extreme conditions, superior viscosity index, high shear stability, and enhanced chemical resistance in comparison to mineral oil. Additionally, synthetic oil lasts longer and is compatible with low GWP and modern refrigerants such as NH3, HFO, and CO2. The growth is attributed to the increasing demand for POE and PGA in ammonia and CO2 refrigeration systems. On the other hand, the mineral oil offers more benefits over the synthetic oil, which leads to its use as a thermal fluid in mechanical and industrial applications.
By Application - Segment Analysis
Building Refrigerator & Freezer segment held a significant share in Refrigerant Oil market in 2023 growing at a CAGR of 4.5% during the forecast period. This growth is attributed to the growing demand for perishable food products due to the changing lifestyle of people in developed and developing regions and growth in trade of food products. The rising sales of refrigerators & freezers are anticipated to drive the growth of the market over the forecast period. Compressor Oil is designed to provide long service life in most compressor applications. Moreover, air conditioners segment is expected to have a significant growth during the forecast period due to installation of air conditioners in vehicles, residences, centralized systems in offices and in industries. However, consumer electronics companies plan to increase prices of refrigerators, air-conditioners, microwave ovens and washing machines due to higher component prices amid short supplies from coronavirus-hit China.
By Geography - Segment Analysis
Asia Pacific dominated the Refrigerant Oil market with a share of more than 32%, followed by North America and Europe. The increasing population in the region and the rising demand for refrigerators, freezers, air conditioners, and automobiles in the emerging markets of APAC, such as China and India, are some of the major factors projected to drive the demand for Refrigerant Oil in the region. Furthermore, the improving lifestyle, increasing employment rate, rising disposable income of the people, and mounting foreign investments in various sectors of the economy are some of the other factors that make APAC an attractive market for Refrigerant Oil manufacturers.
Drivers – Refrigerant Oil Market
Growing Demand for Environmentally Friendly Oils
Stringent EU Consumer and industry preferences are increasingly inclined towards sustainable and eco-friendly products. This extends to refrigeration systems where there's a growing preference for oils derived from renewable sources or with minimal environmental impact. Manufacturers are responding to this demand by developing Refrigerant Oils derived from bio-based or synthetic sources that offer lower GWP, reduced toxicity, and improved biodegradability. Many industries are incorporating sustainability into their operational strategies. This includes using Refrigerant Oils that align with their sustainability commitments and promote environmentally responsible practices.
Cold chain logistics have sparked an interest in refrigeration equipment and in turn Refrigerant Oil
Changing food habits coupled with spending capacity have resulted in a number of licensed and franchised stores of limited services restaurants such as McDonald’s and Subway, KFC and local services and is driving demand for frozen and chilled food products. Moreover, storage of medical products (such as vaccines, other medical products, etc.) is expected to increase demand for refrigeration systems. Hence, it is expected to increase installation of refrigeration equipment in warehouses as well as in vehicles for distribution.
Challenges – Refrigerant Oil Market
Inadequate Source: Expert Insights & IndustryARC Analysis
Stringent regulations Various government organizations are trying to enforce amendments over the industries to reduce the use of HCFCs and CFCs in refrigeration system until 2030 by A5 countries in order to identify such refrigerants as obsolete. Thus, stringent government regulations are expected to hinder the Refrigerant Oil market. Moreover, ammonia is not compatible with copper, so it cannot be used in any system with copper pipes. Release of ammonia due to excess water within the system freezing, causes broken pipes and equipment.
Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Refrigerant Oil market. in 2023, The major players in the Refrigerant Oil market are Exxon Mobil Corporation, Shell PLC, FUCHS, Idemitsu Kosan Co. Ltd, Petronas International Limited, BP p.l.c., Sinopec Group, Johnson Controls, Japan Sun Oil Company, Ltd., Isel Inc. and Others.
Developments:
- In August 2023, The Japanese lubricating oil manufacturer Sun Oil Co. launched a mineral Refrigerant Oil that works with most refrigerants.
- In September 2022, Tata Motors announced the launch of the 5W30 synthetic engine oil, which is specifically intended to enhance the performance of the BS6 diesel engines.
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1. Refrigerant Oil Market- Overview
1.1. Definitions and Scope
2. Refrigerant Oil Market- Executive Summary
3. Refrigerant Oil Market- Comparative Analysis
3.1. Company Benchmarking - Key Companies
3.2. Global Financial Analysis - Key Companies
3.3. Market Share Analysis - Key Companies
3.4. Patent Analysis
3.5. Pricing Analysis
4. Refrigerant Oil Market- Start-up Companies Scenario
4.1. Key Start-up Company Analysis by
4.1.1. Investment
4.1.2. Revenue
4.1.3. Venture Capital and Funding Scenario
5. Refrigerant Oil Market– Market Entry Scenario Premium
5.1. Regulatory Framework Overview
5.2. New Business and Ease of Doing Business Index
5.3. Case Studies of Successful Ventures
6. Refrigerant Oil Market- Forces
6.1. Market Drivers
6.2. Market Constraints
6.3. Market Challenges
6.4. Porter's Five Force Model
6.4.1. Bargaining Power of Suppliers
6.4.2. Bargaining Powers of Customers
6.4.3. Threat of New Entrants
6.4.4. Rivalry Among Existing Players
6.4.5. Threat of Substitutes
7. Refrigerant Oil Market– Strategic Analysis
7.1. Value Chain Analysis
7.2. Opportunities Analysis
7.3. Market Life Cycle
8. Refrigerant Oil Market– by Type of Oil (Market Size – $Million/$Billion)
8.1. Mineral Oil
8.2. Synthetic Oil
8.3. Others
9. Refrigerant Oil Market– by Refrigerant Type (Market Size – $Million/$Billion)
9.1. Chlorofluorocarbon (CFC)
9.2. Hydro-chlorofluorocarbon (HCFC)
9.3. Hydrofluorocarbon (HFC)
9.4. Ammonia
9.5. HFO
9.6. Butane and Iso Butane
9.7. Propane
9.8. Others
10. Refrigerant Oil Market– by Application (Market Size – $Million/$Billion)
10.1. Refrigerator & Freezer
10.2. Air conditioners
10.3. Automotive AC System
10.4. Aftermarket
10.5. Others
11. Refrigerant Oil Market– by Geography (Market Size – $Million/$Billion)
11.1. North America
11.1.1. U.S
11.1.2. Canada
11.1.3. Mexico
11.2. Europe
11.2.1. Germany
11.2.2. France
11.2.3. UK
11.2.4. Italy
11.2.5. Spain
11.2.6. Belgium
11.2.7. Netherlands
11.2.8. Rest of Europe
11.3. Asia-Pacific
11.3.1. China
11.3.2. Japan
11.3.3. South Korea
11.3.4. India
11.3.5. Australia & New Zealand
11.3.6. Indonesia
11.3.7. Malaysia
11.3.8. Taiwan
11.3.9. Rest of Asia-Pacific
11.4. South America
11.4.1. Brazil
11.4.2. Argentina
11.4.3. Chile
11.4.4. Colombia
11.4.5. Rest of South America
11.5. Rest of The World
11.5.1. Middle East
11.5.2. Africa
12. Refrigerant Oil Market– Entropy
13. Refrigerant Oil Market– Industry/Segment Competition Landscape
13.1. Market Share Analysis
13.1.1. Market Share by Product Type – Key Companies
13.1.2. Market Share by Region – Key Companies
13.1.3. Market Share by Country – Key Companies
13.2. Competition Matrix
13.3. Best Practices for Companies
14. Refrigerant Oil Market– Key Company List by Country Premium
15. Refrigerant Oil Market- Company Analysis
15.1. Exxon Mobil Corporation
15.2. Shell PLC
15.3. FUCHS
15.4. Idemitsu Kosan Co. Ltd.
15.5. Petronas International Limited.
15.6. BP p.l.c.
15.7. Sinopec Group
15.8. Johnson Controls
15.9. Japan Sun Oil Company, Ltd.,
15.10. Isel Inc.
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