The global refrigeration oil market is projected to grow from USD 1.38 billion in 2024 to USD 2.01 billion by 2032, according to SNS Insider. The market is expected to expand at a compound annual growth rate (CAGR) of 4.86% between 2025 and 2032, driven by the adoption of eco-friendly refrigerants, stricter emission regulations, and increased digitization in the cold-chain sector.
Growth is supported by a shift toward synthetic refrigeration oils, which accounted for 48% of the global market in 2024. These oils are favored for their thermal stability and compatibility with low-GWP refrigerants. Chevron Phillips Chemical has developed PAO blends to improve compressor efficiency, while U.S. data from the Energy Information Administration reported a 22% rise in synthetic oil use across hospitals and data centers. Mineral oils are increasingly being replaced by biodegradable alternatives.
Refrigerators represented the largest application segment in 2024 with a 32% market share. This is attributed to the increased adoption of energy-efficient models in North America and Asia Pacific. U.S. refrigerator sales grew by 8%, and manufacturers such as Whirlpool and LG integrated inverter compressors requiring high-performance lubricants.
Asia Pacific led the global refrigeration oil market in 2024 with a 39% share, driven by industrial growth and expansion of cold-chain infrastructure in China and India. China increased synthetic oil output by 18%, while India expanded exports by 12%. Daikin opened a synthetic oil production facility in Malaysia, further strengthening regional supply.
North America recorded the highest CAGR at 6.25% over the forecast period. Growth is fueled by EPA regulations phasing out high-GWP oils and rising retrofits in commercial refrigeration. Emerson introduced chlorine-free PAOs in response, while synthetic oil usage in Canadian data centers rose by 10%.
Key companies in the refrigeration oil market include Shell plc, ExxonMobil Corporation, Phillips 66 Company, Chevron Phillips Chemical Company LLC, Rompetrol Rafinare S.A., Sumitomo Chemical Co., Ltd., Honeywell International Inc., Junyuan Petroleum Group, Merck KGaA, and Indian Oil Corporation Limited.