Refrigeration Lubricants Market - Forecast(2023 - 2028)

Report Code: CMR 15754 Report Format: PDF + Excel

Refrigeration Lubricants Market Overview

Refrigeration lubricants market size is forecast to reach $1.9 billion by 2026, after growing at a CAGR of 5.4% during 2021-2026. Refrigeration lubricants are essential for the performance and longevity of refrigeration systems such as air conditioning, chillers, and coolers. One of the major drivers of the refrigeration lubricants market is the rising demand for consumer appliances such as air conditioners and refrigerators as a result of buying power and increasing urbanization. The growth of the refrigeration lubricants market is also being spurred by increasing global cold supply chain demand as a result of the growing food, beverage, and pharmaceutical industries. Rising demand for high-quality and low-viscosity refrigerant fluids and refrigerant compressor oils will further continue to propel the growth of the refrigeration lubricants industry. However, stringent regulations regarding the limited use of refrigerant fluids such as fluorocarbon refrigerants will hinder the market growth during the forecast period.

COVID-19 Impact

The covid-19 outbreak had a significant effect on the oil and gas industry, which in turn affected the supply of raw materials used to make mineral oil, such as naphthalene and paraffin, and thus on the production of refrigeration lubricants. During the covid-19 outbreak, an increase in the consumption of frozen and processed food items had a positive effect on the growth of the refrigeration lubricants industry. The rising government funding for research activities and clinical trials, combined with the demand for laboratory freezers used in the development of biopharmaceuticals and organ transplant procedures, is expected to fuel the growth of the refrigeration lubricants market in the coming years. The automotive and consumer electronics industries have harmed refrigeration lubricant demand. To stop the spread of COVID-19, automakers around the world are taking drastic steps such as plant closures. Ford, Volkswagen, and Fiat Chrysler Automobiles N.V., for example, are among the world's largest automakers. The Federal Communications Commission (FCA) shut down the majority of its plants. Furthermore, a drop in consumer electronics sales resulted in a drop in demand for refrigeration lubricants. With the relaxation of lockdown and trade controls, as well as government support, end-use industries' demand for refrigeration lubricants is likely to grow.

Report Coverage

The report: “Refrigeration Lubricants Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the refrigeration lubricants Industry.
By Base Oil: Mineral Oil Lubricants (Paraffinic Oil, Naphthenic Oil, and Aromatic Oil), Synthetic Lubricants (Synthetic Hydrocarbon, Ester, Polyalkylene Glycols (PAG), and Others), and Bio-Based (Corn, Sunflower, Soybean, and Others).
By Refrigerant Type: Chlorofluorocarbon (CFC), Hydro-Chlorofluorocarbon (HCFC), Hydrofluoro Carbon (HFC), Ammonia, Hydrofluoro-Olefin (HFO), Butane and Iso-Butane, Propane, and Others.
By Application: Coolers, Chillers, Refrigerators/Freezers, Condensers, Air Conditioners, and Others.
By End-Use Industry: Transportation (Automotive, Marine, Aerospace, and Locomotive), and Buildings (Residential, Commercial, and Industrial).
By Geography: North America (U.S., Canada, and Mexico), Europe (U.K, Germany, France, Italy, Netherland, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa).

Key Takeaways

  • Asia-Pacific dominates the refrigeration lubricants market. The rising demand for refrigeration lubricants can be attributed to the increasing usage of air conditioning systems for domestic and industrial applications in the region.
  • According to the UN’s Food and Agriculture Organization (FAO), 40% of food produced in developing countries goes wastage before reaching a market. Thus, there is a growing use of refrigerant fluids and refrigerant compressor oils in transportation applications such as the cold chain, which is expected to provide numerous growth opportunities.
  • Growing consumption of packaged food products and preservation & utilization of vaccines and drugs will propel the demand for refrigerators, freezers, air conditioners, and automobile HVAC systems, positively impacting the market growth.
  • Lifestyle changes, especially in developing regions, are driving the demand for food storage equipment and air conditioning.

Figure: Asia-Pacific Refrigeration Lubricants Market Revenue, 2020-2026 (US$ Billion)

Refrigeration Lubricants Market

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Refrigeration Lubricants Market Segment Analysis - By Base Oil

The synthetic lubricants segment held the largest share in the refrigeration lubricants market in 2020 up to 68%. This dominance is attributed to its high performance in extreme conditions, superior viscosity index, high thermal stability, high shear stability, and enhanced chemical resistance in comparison to mineral oil. Synthetic lubricants also increase the service life of the lubricant (typically four to eight times longer than mineral lubricants) and reduce the lubricant consumption due to its low volatility. Furthermore, it also increases wear protection resulting in less frequent maintenance. Additionally, Synthetic oil lasts longer and is compatible with current refrigerants such as NH3, HFO, and CO2 that have a low GWP. These advantages associated with synthetic lubricants are anticipated to be the major factor driving its demand and growth during the forecast period.

Refrigeration Lubricants Market Segment Analysis - By Refrigerant Type

The hydrofluorocarbon (HFC) segment held the largest share of more than 35% in the refrigeration lubricants market in 2020. Hydrofluorocarbons (HFCs) have many good refrigerant properties such as are safe, dependable, effective, accessible, and affordable, and also meet the industrial standards. They are non-ozone depleting, so there is no phase-out due to ozone depletion that is driving the market growth. HFCs are incredibly potent greenhouse gases and their global warming potential (GWP) is thousands of times that of carbon dioxide, owing to which demand for its alternative is increasing. Since, ammonia is impurity-free, environmentally friendly, reliable, and cost-effective option in the market, it is replacing hydrofluorocarbon (HFC) in most of the applications.

Refrigeration Lubricants Market Segment Analysis - By Application

The refrigerators/freezers segment held the largest share of more than 30% in the refrigeration lubricants market in 2020 and is growing at a CAGR of 6.3% during 2021-2026. This increase can be due to rising demand for perishable food items as well as increased food trade. There is an increasing demand for refrigerant fluids and refrigerant compressor oils to store and transport food products. The rising sales of refrigerators & freezers for storage and transportation of food items is also anticipated to drive the growth of refrigeration lubricants market over the forecast period.The air conditioner segment is expected to grow with the highest CAGR of 7.1% during 2021-2026, as its demand is increasing from automobiles, residential houses, and commercial houses. Refrigeration lubricants have multiple purposes in air conditioning such as removing heat, lubricating moving parts, acting as a sealant, cooling the key parts of compressors, and more, owing to which its demand is increasing at a rapid pace for the application of air conditioning during the forecast period.

Refrigeration Lubricants Market Segment Analysis - By End-Use Industry

The building segment held the largest share in the refrigeration lubricants market in 2020 and is growing at a CAGR of 8.6% during 2021-2026, owing to the increasing demand for refrigerant fluids and refrigerant compressor oils from the residential, commercial, and industrial sectors. Refrigeration lubricants provide high oxidation resistance, resistance to thermal degradation, non-foaming, water separation, anti-wear properties, and corrosion resistance properties to refrigerants, owing to which its demand is increasing in the industries. Since some of the main processes are subjected to refrigeration, petroleum refineries which are one of the largest users of refrigeration lubricants. Globally, the increasing consumption of air conditioners for commercial and residential purposes is also estimated to boost the refrigeration lubricants market. The use of refrigerators freezers, chillers, and air conditioners in pharma research labs, food & beverage facilities, and fine chemical industries is also projected to substantially increase with the increasing industrial sector in various regions during the forecast period.

Refrigeration Lubricants Market Segment Analysis - By Geography

Asia-Pacific region held the largest share in the refrigeration lubricants market in 2020 with more than 45% and is expected to grow at a highest CAGR during 2021-2026, owing to the escalating demand for refrigeration lubricants from the food & beverage and Pharma industries. The food & beverage, and pharma industry in Asia-Pacific is growing at the fastest rate, with China, Japan, and India leading the way. The rising demand for refrigeration lubricants from the food and pharmaceutical industries to prolong shelf life would propel the industry further. China's food and beverage (F&B) market are worth $595 billion in 2019, up 7.8% from the previous year, according to the China Chain Store & Franchise Association. In 2018, Japan's food processing industry generated $216.8 billion in food and beverage products, up marginally from 2017. According to Invest India, India is a significant and rapidly expanding player in the global pharmaceutical industry. It is the world's largest supplier of generic drugs, accounting for 20% of global supply by volume, as well as supplying 62 percent of global vaccine demand. With the increasing food & beverage and Pharma industry in Asia-Pacific, the demand for refrigeration is also increasing to store food, beverage, vaccines, and more. And with the increasing demand for refrigeration from these end-uses, the demand for refrigeration lubricants is also substantially rising in Asia-Pacific during the forecast period.

Refrigeration Lubricants Market - Drivers

Increasing Automotive Production

Refrigeration lubricants are extensively utilized in the traditional as well as electric automobiles for the proper functioning of automotive air conditioners. Refrigeration is used to cool the driver's or passenger's cabin in motor vehicle air conditioning (MVAC) equipment. The production of the automobile is on an upsurge in various regions. For example, according to OICA, Africa produced 776,967 passenger cars in 2018, which increased to 787,287 in 2019, a 1.3 percent increase. According to the International Energy Agency (IEA), global sales of electric vehicles surpassed 2.1 million in 2019, bringing the total stock to 7.2 million. In 2019, electric vehicles accounted for 2.6 percent of global car sales and about 1% of global car stock, representing a 40 percent rise year over year. Also, governments are launching initiatives to support the growth of the automotive industry. For instance, the Indian government launched Automotive Mission Plan 2016-26 (AMP 2026) to boost the automotive industry in the country. The collective vision of the government on how the automotive sector should grow in terms of size, contribution to national development, technological maturity, global competitiveness, and institutional structure is clearly outlined. Thus, increasing automation production will require more air conditioning systems, which will act as a driver for the refrigeration lubricants market during the forecast period.

Flourishing Food & Beverage Industry

Freezing is the foundation of food preservation and its core technology. Freezing also helps in maintaining the food product's original color, scent, and taste to the greatest degree. Thus, refrigeration is often used in the industry to preserve and improve the shelf-life of food & beverages. The freezing of bakery products, meat, poultry, fish, prepared meals, vegetables, and fruits are major places where refrigeration is used for the food industry. In 2019, revenues from Russia’s food and drink processing sectors reached $102.4 billion. Food production turnover increased 6.5 percent from 2018, while the beverage sector increased 11.9 percent, according to the International Trade Administration (ITA). The Russian food processing industry is growing, driven by strong government support for domestic agricultural production and by an ambitious national goal of increasing food exports by 70 percent by 2024 (to $45 billion). According to the United States Department of Agriculture (USDA), in 2018, the total value of all retail food and beverage sales in Japan was $479.29 billion (¥53,339 billion), an overall increase of 2.3 percent. The rising disposable income has resulted in the increasing demand for the food and beverage industry in various regions, which is further driving the growth of the refrigerant lubricants market.

Refrigeration Lubricants Market - Challenges

Stringent Rules and Regulations

Refrigeration lubricants are being phased out because of evidence that they damage the ozone layer and lead to global warming. Environmental factors associated with the use of a refrigeration system are expected to pose a significant challenge to the refrigeration lubricant market's development. India completed the phase-out of hydrochlorofluorocarbon (HCFC)-141 b in January 2020. The management of fluorinated greenhouse gases is being heavily regulated. H-CFCs have been barred from commercialization worldwide since 2015, thanks to the Montreal Protocol and its modifications. According to the 2016 Kigali Amendment to the Montreal Protocol, developed countries must reduce their use of H-FC by 45 percent by 2024 and 85 percent by 2036, relative to 2011-2013 levels, starting in 2019. Beginning in 2024, developing countries will begin to limit and reduce their H-FC intake. As a result, it is expected that HCFC production will end in 2020 (HCFC-22) or 2030. (HCFC-123). This means that, while equipment using these refrigerants will work fine for 20 or 30 years, new or recycled refrigerants to service it may not be accessible. Over the forecast period, stringent rules and regulations on the use of fluorocarbon refrigerants are expected to stifle market development. 

Refrigeration Lubricants Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the refrigeration lubricants market. Major players in the refrigeration lubricants market are JXTG Group, BASF SE, Idemitsu Kosan Co., Ltd., Royal Dutch Shell plc, ExxonMobil Corporation, BP p.l.c., PETRONAS, Chevron Corporation, Total S.A., Sinopec Group, FUCHS PETROLUB SE, Johnson Controls, and The Lubrizol Corporation (CPI Fluid Engineering Services).

Acquisitions/Technology Launches

  • In May 2019, due to the rising global demand for long-life lubricant additives, BASF SE increased its capacity for antioxidants for lubricants in China and Mexico.

Relevant Reports

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Report Code: CMR 0128

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1. Refrigeration Lubricants Market- Market Overview
    1.1 Definitions and Scope
2. Refrigeration Lubricants Market - Executive Summary
    2.1 Key Trends by Base Oil
    2.2 Key Trends by Refrigerant Type
    2.3 Key Trends by Application
    2.4 Key Trends by End-Use Industry
    2.5 Key Trends by Geography
3. Refrigeration Lubricants Market – Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Refrigeration Lubricants Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Refrigeration Lubricants Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Refrigeration Lubricants Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Refrigeration Lubricants Market – Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Refrigeration Lubricants Market – By Base Oil (Market Size -$Million/Billion)
    8.1 Mineral Oil Lubricants
        8.1.1 Paraffinic Oil
        8.1.2 Naphthenic Oil
        8.1.3 Aromatic Oil
    8.2 Synthetic Lubricants
        8.2.1 Synthetic Hydrocarbon
            8.2.1.1 Polyalphaolefin (PAO)
            8.2.1.2 Alkylated Aromatics
            8.2.1.3 Polybutene
        8.2.2 Ester
            8.2.2.1 Diester
            8.2.2.2 Polyol Ester
            8.2.2.3 Phosphate Ester
            8.2.2.4 Polymer Ester
        8.2.3 Polyalkylene Glycols (PAG)
        8.2.4 Others
    8.3 Bio-Based
        8.3.1 Corn
        8.3.2 Sunflower
        8.3.3 Soybean
        8.3.4 Others
9. Refrigeration Lubricants Market – By Refrigerant Type (Market Size -$Million/Billion)
    9.1 Chlorofluorocarbon (CFC)
    9.2 Hydro-Chlorofluorocarbon (HCFC)
    9.3 Hydrofluoro Carbon (HFC)
    9.4 Ammonia
    9.5 Hydrofluoro-Olefin (HFO)
    9.6 Butane and Iso-Butane
    9.7 Propane
    9.8 Others
10. Refrigeration Lubricants Market – By Application (Market Size -$Million/Billion)
    10.1 Coolers
    10.2 Chillers
    10.3 Refrigerators/Freezers
    10.4 Condensers
    10.5 Air Conditioners
    10.6 Others
11. Refrigeration Lubricants Market – By End-Use Industry (Market Size -$Million/Billion)
    11.1 Transportation
        11.1.1 Automotive
            11.1.1.1 Passenger Vehicles
            11.1.1.2 Light Commercial Vehicles
            11.1.1.3 Heavy Commercial Vehicles
        11.1.2 Marine
        11.1.3 Aerospace
            11.1.3.1 Military
            11.1.3.2 Commercial
            11.1.3.3 Others
        11.1.4 Locomotive
    11.2 Buildings
        11.2.1 Residential
            11.2.1.1 Apartments
            11.2.1.2 Private Dwellings
            11.2.1.3 Others
        11.2.2 Commercial
            11.2.2.1 Banks
            11.2.2.2 Hotels
            11.2.2.3 Airports
            11.2.2.4 Supermarkets
            11.2.2.5 Others
        11.2.3 Industrial
            11.2.3.1 Textile
            11.2.3.2 Food Processing
            11.2.3.3 Chemical
            11.2.3.4 Others
12. Refrigeration Lubricants Market - By Geography (Market Size -$Million/Billion)
    12.1 North America
        12.1.1 U.S
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 Netherland
        12.2.6 Spain
        12.2.7 Russia
        12.2.8 Belgium
        12.2.9 Rest of Europe
    12.3 Asia-Pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia and New Zealand
        12.3.6 Indonesia
        12.3.7 Taiwan
        12.3.8 Malaysia
        12.3.9 Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Colombia
        12.4.4 Chile
        12.4.5 Rest of South America
    12.5 Rest of the World
        12.5.1 Middle East
            12.5.1.1 Saudi Arabia
            12.5.1.2 U.A.E
            12.5.1.3 Israel
            12.5.1.4 Rest of the Middle East
        12.5.2 Africa
            12.5.2.1 South Africa
            12.5.2.2 Nigeria
            12.5.2.3 Rest of Africa
13. Refrigeration Lubricants Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. Refrigeration Lubricants Market – Market Share Analysis Premium
    14.1 Market Share at Global Level - Major companies
    14.2 Market Share by Key Region - Major companies
    14.3 Market Share by Key Country - Major companies
    14.4 Market Share by Key Application - Major companies
    14.5 Market Share by Key Product Type/Product category - Major companies
15. Refrigeration Lubricants Market – Key Company List by Country Premium Premium
16. Refrigeration Lubricants Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10 and more
"*Financials would be provided on a best efforts basis for private companies"