Refrigeration Oil Market size was valued at USD 1.49 billion in 2023 and is anticipated to reach USD 2.74 billion by the end of 2036, expanding at around 4.8% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of refrigeration oil is assessed at USD 1.55 billion.
The growth of the market can be attributed to the increasing demand for electronic appliances, including air conditioners, and refrigerators. The growth in the food & beverages industry, along with the increasing demand for perishable food items, such as, sea food, fruits, and vegetables, has raised the demand for refrigerators and deep freezers. The growing food & beverages industry is estimated to drive the market growth. Moreover, increasing demand for deep freezers for the storage of drugs and vaccines, is further estimated to boost the market growth. On the other hand, growing automotive industry, with the constantly increasing demand for vehicles, is estimated to boost the demand for refrigeration oil. In 2020, more than 61 million cars were sold globally, and the sale of passenger cars is further estimated to cross 70 million in 2021.
Growth Drivers
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
4.8% |
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Base Year Market Size (2023) |
USD 1.49 billion |
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Forecast Year Market Size (2036) |
USD 2.74 billion |
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Regional Scope |
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The global refrigeration oil market is segmented by refrigerant type into CFC, HFC, and others, out of which, the HFC segment is anticipated to hold the largest share in the market during the forecast period owing to its increasing use in new refrigerators and air conditioners, as it is a green alternative for CFC, and other gases used previously. Manufacturers of refrigerators and other applications, are opting for HFC for the upcoming generation of these electronics, owing its lower ozone depletion potential (ODP). On the basis of application, the market is segmented into refrigerators, deep freezers, air conditioners, automotive AC, and others, among which, the air conditioners segment is anticipated to lead the market in terms of revenue, over the forecast period, on the back of growing demand for air conditioners backed by changing lifestyle and increasing disposable income of the middle class. More than 90 million AC units were sold in 2018, globally.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Refrigerant Type |
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Application |
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Regionally, the global refrigeration oil market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America industry is expected to dominate majority revenue share by 2036, owing to presence of major key players manufacturing electronic devices, including refrigerators, freezers, and air conditioners. Moreover, the growing sale and manufacturing of automobiles, with inbuilt AC systems is estimated to boost the demand for refrigerant oil in the region. More than 3.5 million cars were sold in the U.S. in 2020, including passenger and commercial cars. The market in the Asia Pacific region is estimated to witness highest CAGR over the forecast period, owing to the growing manufacturing sector, in countries, such as, Japan, South Korea, China, and India. Moreover, the escalating demand for Air Conditioners in these countries, with over 90% households in Japan using air conditioners, is estimated to boost the market growth.
Author Credits: Rajrani Baghel
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