Global Refrigeration Oil Market: Snapshot
The future of the global refrigeration oil market is prosperous, with the demand estimated to increment at a CAGR of 5.8% during the forecast period of 2017 to 2025. Some of the key factors favoring the global refrigeration oil market are: increasing preference of low-GWP refrigerants, rebates offered by government and NGOs to promote energy-efficient product and services, technological advancement such as advent of HVAC&R systems in the healthcare sector, and expanding refrigeration application. The transportation sector and new product development by the leading vendors are also expected to open new opportunities in the global refrigeration oil market, which on the other hand is facing obstruction from compatibility issues and complexity of oil control function. The refrigeration oil market is projected to reach a global valuation of US$1.77 bn by the end of 2025.
Synthetic Oil Most Identified as Profitable Product Segment of Refrigeration Oil Market
On the basis of product type, the global refrigeration oil market has been bifurcated into mineral oil and synthetic oil. The latter currently serves the maximum demand and is estimated to be worth US$1,314.5 mn by 2025. This potent demand for synthetic oil can be attributed to its compatibility with refrigerant used in the system. 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. Polyol ester, ploy alpha olefins, alkyl benzene, ploy alkylene glycols, polyvinyl ether and phenolpropoxylate oil are some of the other types of refrigeration oil. Based on refrigerant type, the global refrigeration oil market has been segmented into hydrocholoroflurocarbon (HCFC), chlorofluorocarbon (CFC), hydro fluorocarbon (HFC), and ammonia. By the end of 2025, hydro fluorocarbon segment is estimated to be worth US$476.1 mn, which is considerably more than any other segments. However, ammonia is anticipated to experience the best CAGR of 6.2% during the forecast period of 2017 to 2025.
Application-wise, the global refrigeration oil market has been categorized into air conditioner, coolers, chillers, refrigerators, and condensers, with air conditioners contributing the most prominent chunk of the overall demand. By 2025, the air conditioners category of the global refrigeration oil market is estimated to be worth US$535.3 mn, expanding at a strong CAGR of 7.7% during the said forecast period. Based on end-use, residential and commercial sectors serve the maximum demand, with residential segment projected for an above-average growth rate.
Asia Pacific Emerges as Highly Lucrative Region
The developed country of the U.S. continues to be the main consumer of refrigerant oils, owing to high demand for refrigerant based products such as air conditioners, residential and commercial refrigerators, and medical freezers. The North America refrigeration oil market is also driven by the increased demand for food storage equipment, growing urbanization, and growth in the consumer electronics market. With increasing usage of air conditioners and refrigerators, there will be augmentation in the demand for high performance and longer life of these systems. Since these oils add long life to the refrigerant systems, the market for the same will flourish consistently. On the other hand, the Asia Pacific region is the major shareholder of the global refrigeration oil market, accounting for more than 35% share of the overall market. This is a reflection of the presence of numerous refrigerants and refrigerant oil providers and end user sectors. The APAC refrigeration oil demand continues to be high due to emerging markets such as India and China, which are projected to grow significantly in the cold storage warehousing and frozen food sectors.
Competitive Landscape to Remain Consolidated Among a Few Players
The global refrigeration oil market is concentrated among five major players, viz. Idemitsu Kosan Co, Ltd., Royal Dutch Shell plc, BASF, Exxon Mobil Corporation, and MEIWA, who collectively accounted for 94.8% of the market in 2016. These companies have a strong product portfolio as well as presence in a number of countries, and are expected to maintain their dominance in the near future too.
Global Refrigeration Oil Market: Overview
Refrigeration oil is a high-temperature formulation oil composed of additives and oil which provides lubrication to compressors. This oil is basically derived from either synthetic or mineral oil. Mineral oils are the prime oils used in the refrigeration systems; however, they are no longer suitable for the new refrigerants, mainly due to their insufficient lubricity and miscibility.
Refrigeration is the process of cooling a substance or an area below the temperature of the atmospheres. The refrigerants follow a cycle which includes: vapor-compression, absorption, steam ejection and air. Refrigeration oil play an important role in the area of lubricants and lubrication technology. It has a large influence on industry, lifestyle, agriculture and settlement patterns.
Global Refrigeration Oil Market: Trends and Opportunities
The shift towards frozen and chilled products is predicted to increase the demand for compressors, thus rising demand for food and beverages industry is likely to drive the refrigeration oil market. The globally varying food habits have resulted into demand of stores like Subway, and McDonald’s, KFC moreover the rising need for storage of medical products such as HVAC&R systems and vaccines in the health care sector is projected to motivate the refrigeration oil market.
With the increase in the usage of air conditioners and refrigerators, there will be a continuous growth in the refrigerant oil market for the high performance and longer life of these systems as these oils add long life to the refrigerant systems. Global Synthetic oil market is around 71% and rest of the market is shared by the mineral oil, thus many refrigerant oil manufacturing companies are producing more synthetic oil based products.
Global Refrigeration Oil Market: Segmentations
The refrigeration oil market has been segmented by product type into the synthetic and mineral varieties. The synthetic oil segment is estimated to increase and hold a significant share in the market during the forecast period, thus creating more opportunities compared to mineral oil in the near future. Based on refrigerant type, the market has been divided into the following categories: hydro-chlorofluorocarbon (HCFC), chlorofluorocarbon (CFC), ammonia, hydro-fluorocarbon (HFC), and others. On the basis of application, the refrigeration oil market has been classified into the following sections: coolers, air conditioners, chillers, condensers, refrigerators/freezers, and others. The air conditioners segment is assessed to witness considerable growth in the near future.
In terms of the end-user sector, the refrigeration oil market has been divided into the commercial and residential sectors. The industrial segment is predicted to be a key contributor in the market. The global refrigeration oil market has been distributed geographically over North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Asia Pacific is one of the key consumers of refrigeration oil globally. The India and China are the key countries expected to propel the demand in the forecast period.
Report offers comprehensive study of Refrigeration Oil types that include Mineral Oil and Synthetic Oil. The total oil market is segmented into oil type, refrigeration type, application and region. Based on the type of oil, market is segmented into oil type, refrigeration type, application and region.
Companies Mentioned in Report
In the refrigeration oil by type segment includes mineral oil, alkyl benzene oil, Polyolester Oils, Polyalkylene Glycol, & PAO Oils. On the basis of refrigeration type, the market can be segmented into CFC, HCFC, HFC & Others. In the forecast period HFC, and Ammonia due almost no greenhouse potential is expected to grow at a fast pace in comparison to other oil by type segment. Based on the end user segment report is divided into three segments such as industrial, commercial, residential in end use segment residential type is expected to grow at a fast pace due to rise in use of chillers, refrigerators, and air conditioners in pharmaceutical research laboratories, research and development department of food & beverage.
The global Refrigeration Oil market has been segmented as follows:
Refrigeration Oil Market: Product Type
- Mineral Oil
- Synthetic Oil
Refrigeration Oil Market: By Refrigerant Type
- Hydro Chlorofluorocarbon (HCFC)
- Chlorofluorocarbon (CFC)
- Hydro Fluorocarbon (HFC)
Refrigeration Oil Market: by Application
- Air conditioners
Refrigeration Oil Market: by End Use
Refrigeration Oil Market: Regional Analysis
- North America
- Rest Of Europe
- Asia Pacific
- Rest Of Asia Pacific
- Latin America
- Rest of South America
- Middle East & Africa (MEA)
- South Africa
- Rest of MEA