Refrigeration Oil Market Report

The current market demand is focussed on refrigeration oils that are cost-effective and fulfil the region's minimum standards or laws. Consumers now want additional functionalities than cooling as a result of the changing nature of applications. Consumers are getting interested in multi-functional refrigerators and freezers, air conditioners, and automobiles. As a result, the growing demand for new and innovative gadgets drives technological and product innovation.

The refrigeration oil industry is expected to be dominated by the air conditioner segment. The usage of energy-efficient air conditioners in residential and commercial buildings is expanding as a result of changing climate and rising levels of humidity and temperature in many regions. Smart, linked air conditioning systems are gaining popularity in parallel with the expanding trend of smart homes. Due to continued technology breakthroughs and the introduction of sustainable AC systems, future product demand will be robust.

The growth prospects are anticipated to be hindered in the forecast due to strict regulations and laws regarding the use of fluorocarbon refrigerants. Different environmental issues inclusive of the use of a refrigeration system like the depletion of the ozone layer pose a great threat to the growth of refrigeration oil industry. Today, more than 147 countries are Article 5 Parties, Thailand, China, Kuwait, Malaysia, India, Singapore, and Turkey belong to emerging countries. Again according to the Montreal Protocol, HCFCs should be cut by 97 percent it’s in the basement of the pyramid. It aims that both anthropogenic emitted GHG shall be reduced by 5% by the period of 2030-2040, 0% by the period of 2030-2040 for Article 5 Parties, and fully eliminated by 2040. Governments and other regulatory authorities across the world are enacting measures that would assist in banning the use of these substances and use of better friendly substances. This shift is expected to reduce greenhouse gas emissions and fulfill the needs of the industry to adapt to climate change through the proper usage of low-effective refrigerate. As a result, there is a growing emphasis on establishing and implementing environment-friendly technologies in refrigerators and materials.

ExxonMobil, an oil and gas firm, and QatarEnergy, a petroleum company, announced in June 2022 that they had signed a deal to advance Qatar's North Field East project, which will increase Qatar's annual LNG (Liquefied Natural Gas) capacity from 77 million tonnes to 110 million tonnes by 2026. Additionally, ExxonMobil, an oil and gas giant, revealed plans in May 2022 to increase shareholder value by offering solutions that assist fulfil the global need for energy while also lowering greenhouse gas emissions to address climate change. Furthermore, Shell plc, an oil and gas company, agreed to sell its 100% interest in Shell Onshore Ventures LLC, which owns a 51.8% membership interest in Aera Energy LLC, a natural gas, oil exploration and production company, to IKAV in September 2022 for a total consideration of approximately US$ 2 billion in cash, plus additional contingent payments based on future oil prices, subject to regulatory approval.

APAC is an emerging market for refrigeration oil, owing to high economic growth and heavy investment in industries such as oil and gas, automotive, infrastructure, chemical, and electronics, among others. With economic contraction and saturation in Europe and North America, demand is shifting to the Asia-Pacific region. Refrigeration oil industry is focusing on this region due to it being the most important regional market for a variety of applications, including automotive, electronics, and home appliances, among others. The benefit of shifting production to Asia is that production costs are less here. Additionally, it is easier to serve the regional emerging market.