EMEA Compressor Oil for Refrigeration Market Size, Share & Industry Analysis, By Oil Type (Mineral, Synthetic, and Semi-synthetic), By Gas Type (Hydrochlorofluorocarbon (HCFC), Hydrofluorocarbon (HFC), Hydrofluoro-olefins (HFO), Isobutane, Ammonia, Carbon Dioxide (CO2), and Others), By Application (Refrigerated Transport, Cold Storage Warehouses, Commercial Ice Machines, Industrial Process Refrigeration, and Others), and Regional Forecast, 2024-2032

The EMEA compressor oil for refrigeration market size was valued at USD 406.8 million in 2023 and is projected to grow from USD 418.0 million in 2024 to USD 526.3 million by 2032 at a CAGR of 2.9% during the 2024-2032 forecast period. Europe dominated the EMEA compressor oil for refrigeration market with a market share of 85.94% in 2023.

Compressor oil for refrigeration is a type of lubricant that is specifically designed for use in refrigeration compressors. These compressors are used in refrigeration systems to compress refrigerant gases, which are then circulated through the system to cool or freeze products. The oil is used to lubricate the compressor's moving parts, reduce friction, and prevent wear and tear. It also helps remove heat from the compressor and transfer it to the refrigerant, which improves the efficiency of the system. Refrigeration compressor oil is typically formulated to withstand the high pressures and temperatures that are present in refrigeration systems and to resist breakdown from exposure to refrigerants and other chemicals. The rising demand for energy-efficient refrigeration systems, coupled with the growing food & beverages industry, is driving the market growth.

The COVID-19 pandemic had a substantial influence on the EMEA compressor oil for refrigeration market, causing supply chain interruptions, decreased industrial activity, and fluctuating demand. Many compressor oil companies were forced to decrease their production capacity due to labor shortages and to maintain social distance, resulting in lower production. In addition, travel restrictions and border closures hampered the transfer of commodities, further influencing market dynamics.  However, as economies gradually reopened and industrial activity resumed, the market reflected signs of recovery, owing to increased investments in infrastructure development and a rise in demand for refrigeration solutions in industries such as food & beverages, logistics, and pharmaceuticals.

EMEA Compressor Oil for Refrigeration Market Trends

Transition to Eco-Friendly Refrigerants and Energy Efficiency Drive Compressor Oil Innovation

Stringent environmental restrictions, such as the EU’s F-Gas Regulation, are driving the transition to natural refrigerants such as hydrocarbons, carbon dioxide, and ammonia. As these alternative refrigerants frequently require specific compressor lubricants to assure optimal performance and compatibility, this transition presents a substantial market opportunity for compressor oil manufacturers.

The EMEA region, particularly the European Union, has been at the forefront of phasing out the use of hydrofluorocarbons (HFCs), which are potent greenhouse gases, in refrigeration systems. The EU’s F-Gas regulation intends to cut HFC emissions by 79% by 2030, compared to 2015 levels. This has prompted the use of alternative refrigerants such as hydrocarbons, carbon dioxide, and ammonia, which have lower environmental impact. Europe is at the forefront of adopting environmentally friendly refrigerants, creating a significant demand for compatible compressor oils.

Moreover, rising energy costs and growing concerns about environmental sustainability are driving up demand for energy-efficient refrigeration systems in the EMEA region. Energy-efficient refrigeration systems help minimize energy consumption, operational expenses, and environmental impact. These systems frequently require specialist compressor oil that is designed to improve efficiency, reduce friction, and reduce energy losses. Compressor oil manufacturers can capitalize on this opportunity by developing and marketing high-performance compressor oil tailored to energy-efficient refrigeration systems.

The UAE and Saudi Arabia, have established legislation and programs to encourage energy efficiency in building and industrial sectors, including refrigeration. The UAE’s Energy Strategy 2050 seeks to enhance the contribution of sustainable energy sources and improve energy efficiency by 40% by 2050. This opens up chances for compressor oil manufacturers to provide products that help energy-efficient refrigeration systems in the region.

EMEA Compressor Oil for Refrigeration Market Growth Factors

Expansion of the Cold Chain Industry is Anticipated to Drive Compressor Oil for Refrigeration Market Growth

The expansion of the cold chain industry is a significant driver for the growth. According to a report published by GCCA Refrigerated Warehouse Capacity in 2020, the U.K., Spain, the Netherlands, Germany, France, Italy, Poland, Belgium, and Portugal had a combined 115 million cubic meters of refrigerated warehouse capacity.  The cold chain plays a crucial role in preserving the high quality and safety of temperature-sensitive products, such as perishable goods, pharmaceuticals, and chemicals.

The pharmaceutical sector heavily relies on cold chain logistics to transport and store temperature-sensitive drugs and vaccines. As advancements in healthcare and pharmaceuticals continue, there is a parallel increase in the need for reliable and energy-efficient refrigeration systems. High-quality compressor oils play a crucial role in maintaining the optimal performance of these systems, contributing to the expansion of the cold chain industry within the pharmaceutical industry.

Growing consumer awareness of food safety and the desire for fresh and high-quality products have led to a shift in consumer preferences. This shift has, in turn, driven retailers and suppliers to invest in advanced cold chain infrastructure. Compressor oils contribute to the reliability and efficiency of refrigeration systems, ensuring that products meet consumer expectations for safety and quality. The expansion of the cold storage industry and its growing adoption in various aforementioned industries is expected to drive the EMEA compressor oil for refrigeration market growth during the forecast period.

RESTRAINING FACTORS

Environmental Regulations and Compliance is Anticipated to Hinder Market Growth

The stringent environmental regulations governing the use of refrigerants and lubricants in refrigeration systems pose a significant challenge for the compressor oil market. As concerns about climate change intensify, regulatory bodies impose strict standards to reduce the environmental impact of refrigeration systems. It can limit the choice of compressor oils as manufacturers strive to develop formulations that meet these regulations without compromising performance. Environmental regulations often impose strict emission standards on refrigeration systems to curb the release of harmful substances into the atmosphere. Compressor oils must adhere to these standards, which can limit the choice of formulations available to manufacturers. Meeting stringent emission requirements adds complexity to the development and manufacturing processes, potentially increasing costs for companies.

In Europe, the F-gas Regulation (EU) No. 517/2014 aims to phase down the use of hydrofluorocarbons (HFCs), as it is among the significant greenhouse gas contributors and primarily used in refrigeration systems. This regulation has resulted in a shift toward alternate refrigerants such as hydrocarbons, ammonia, and carbon dioxide, which frequently necessitate specialist compressor lubricants to maintain performance and compatibility.

Moreover, several regulations pertaining to the environment emphasize phasing out Ozone-Depleting Substances (ODS), including certain types of refrigerants and compressor oils. While this is a positive step for environmental protection, it places a burden on manufacturers to reformulate their products and invest in alternative solutions. The transition away from ODS-compatible oils requires significant research and development efforts, impacting both time and resources.

Furthermore, regulations increasingly focus on reducing the Global Warming Potential (GWP) of refrigeration systems. Compressor oils with lower GWP are driving the industry to develop and adopt alternative formulations. However, the transition to low GWP oils may involve challenges such as compatibility issues with existing equipment and potentially costly modifications and replacements.

EMEA Compressor Oil for Refrigeration Market Segmentation Analysis

By Oil Type Analysis

Mineral Segment Dominated Due to Low Cost and Compatibility with Various Refrigerants

Based on oil type, the market is classified into synthetic, mineral, and semi-synthetic.

The mineral segment held the largest share of the EMEA compressor oil for refrigeration market in 2023. Mineral oils have traditionally been used in older refrigeration systems due to their low cost and compatibility with various refrigerants such as Hydrochlorofluorocarbon (HCFC), Hydrofluorocarbon (HFC), Hydrofluoro-olefins (HFO), and other natural refrigerants. These oils are used in various industrial refrigeration applications where system retrofitting is not economically viable. It also has low wax content and low pour point, and is sold at very low prices as compared to synthetic oils, making it an ideal choice among refrigeration oil consumers.

Synthetic oils, such as polyol esters and polyalphaolefins, are gaining prominence due to their better lubrication properties, such as low moisture absorption and compatibility with HFCs and HFOs. These oils are widely adopted in automotive air conditioning systems and are increasingly being used in commercial refrigeration units. The European Commission recommends the use of polyol ester oils with low Global Warming Potential (GWP) refrigerants such as hydrocarbons. The segment is poised for substantial growth owing to its superior performance characteristics, energy efficiency, and environmental benefits.

Semi-synthetic oils, which are a blend of mineral oil and synthetic oil, offer a balance between performance and cost. They provide improved miscibility and lubricating ability compared to conventional mineral oil, making them suitable for applications where older systems are being transitioned to newer refrigerant technologies. The segment is expected to witness steady growth during the forecast period due to its balanced performance and cost-effectiveness compared to synthetic oils.

By Gas Type Analysis

Hydrofluorocarbon (HFC) Segment Dominated Owing to Wide Utilization

By gas type, the market is classified into Hydrochlorofluorocarbon (HCFC), Hydrofluorocarbon (HFC), Hydrofluoro-olefins (HFO), isobutane, ammonia, Carbon Dioxide (CO2), and others.

The Hydrofluorocarbon (HFC) segment accounted for the major share in 2023. Hydrofluorocarbons (HFC) are widely used in the EMEA region, although they are facing a gradual phase-down due to high global warming potential refrigeration under the European Union’s F-Gas Regulation. Synthetic and semi-synthetic oils are commonly used with HFC refrigerants such as R-134a and R-410A. The segment is expected to witness a decline due to the ongoing phase-out of high global warming potential refrigerants and the transition toward more environmentally friendly alternatives.

Hydrochlorofluorocarbon (HCFC) is phased out in many developed nations, including the European Union due to its ozone-depleting potential and under the Montreal Protocol agreement. However, they are still used in developing regions such as in the Middle East & African countries. Despite this, due to its hazardous environmental impacts, HCFC refrigerant is being phased out in these regions as well. As a result, the segment is projected to experience a decline during the forecast period.

Hydrofluoro-olefins (HFO) are the new generation low GWP refrigerants, such as R-1234yf and R-1234ze. These refrigerants require specialized synthetic oils such as polyol esters for optimal miscibility and lubrication. In industrial settings, HFOs are employed in refrigeration systems for processes such as food storage, chemical manufacturing, and pharmaceutical production. The segment is expected to witness significant growth during the forecast period, driven by the increasing adoption of low global warming potential refrigerants and stringent environmental regulations.

Isobutane (R-600a), a hydrocarbon refrigerant with a low GWP, is increasingly being used in domestic and commercial applications across the EMEA region. It requires specialized synthetic oils such as polyol esters or polyalphaolefins for compatibility. Isobutane is often utilized in compressor systems, where it functions as a refrigerant for the compressor. In certain refrigeration applications, especially in smaller refrigerator units, it is used as a refrigerant for its effective cooling capabilities. The segment is experiencing steady growth owing to its environmental profile as low global warming potential and natural refrigerant, particularly in light commercial and residential refrigeration applications.

By Application Analysis

Cold Storage Warehouses Segment Dominated Due to Increasing Demand for Cold Chain Logistics

In terms of application, the market is segregated into cold storage warehouses, refrigerated transport, industrial process refrigeration, commercial ice machines, and others.

The cold storage warehouses segment held the largest EMEA compressor oil for refrigeration market share in 2023. Cold storage warehouses, which rely on robust refrigeration systems and compressor oils, commonly use synthetic compressor oils. Synthetic oils are preferred in this application due to their low-temperature performance and compatibility with modern refrigerants. The segment is projected to exhibit robust growth due to the rising demand for efficient cold chain logistics and the increasing need for preserving perishable goods across the food and pharmaceutical industries.

Refrigerated transport sectors, including refrigerated trucks, trailers, and shipping containers, have a significant demand for compressor oils. Synthetic oils are preferred in this application due to their low-temperature performance and compatibility with modern refrigerants. The EMEA region is witnessing an increasing adoption of transport refrigeration units, driving the demand for compressor oils in this sector. The demand for refrigerated transport was further propelled by the uncertain emergence of the COVID-19 outbreak, which resulted in high demand for vaccines. The segment is witnessing robust growth fueled by the increasing demand for temperature-controlled transportation of perishable goods across the region’ expanding logistics and supply chain networks.

In the commercial ice machines sector, synthetic oils are preferred for their low-temperature performance and compatibility with HFCs and HFOs. The expanding food service industry in urban areas across the EMEA region is driving the demand for ice machine compressor oils. The segment is expected to experience steady growth during the forecast period, driven by the rising demand for ice in the hospitality, food service, and healthcare sectors.

REGIONAL INSIGHTS

By region, the EMEA compressor oil for refrigeration market is segmented into Europe and the Middle East & Africa.

Europe occupied the dominant share of the EMEA compressor oil for refrigeration market in 2023, exhibiting significant growth due to stringent environmental regulations, the presence of major market players, and the increasing adoption of energy-efficient refrigeration systems across various end-use industries. The regulation has hastened the use of low-GWP refrigerants and suitable compressor oils. Furthermore, the emphasis on energy efficiency and sustainability has resulted in increased demand for synthetic and bio-based compressor oil in Europe. Refrigeration systems are widely used by major end-user sectors such as pharmaceuticals, food & beverages, and chemicals.

Rapid urbanization, infrastructural development, and rising demand for refrigeration systems are propelling compressor oil for refrigeration market forward in the Middle East & Africa. The food and beverage industry, notably in GCC countries, is a major consumer of compressor oils. Growth in sectors such as food processing, pharmaceuticals, and organized retail is driving the demand across the MEA region. The need for energy-efficient and environmentally friendly products is increasing in the region; however, the pace of adoption is slower compared to Europe; thus, it is anticipated to grow moderately over the assessment period.

List of Key Companies in EMEA Compressor Oil for Refrigeration Market

Key Players Unveil High-Performance Compressor Oils to Align with Sustainability

Exxon Mobil Corporation, TotalEnergies, FUCHS, Shell Plc, and ENEOS are some of the key players in the compressor oil for refrigeration market. Key players are focusing on creating advanced synthetic and bio-based compressor oil formulations that are compatible with new-generation low-GWP refrigerants such as HFOs and natural refrigerants. They also emphasize sustainability by offering biodegradable and energy-efficient products, technical support, training programs, and comprehensive lubrication solutions to customers.

LIST OF KEY COMPANIES PROFILED:

• Chevron Corporation (U.S.)


• ENEOS Holdings, Inc. (Japan)


• Exxon Mobil Corporation (U.S.)


• FUCHS (Germany)


• Repsol (Spain)


• Shell PLC (U.K.)


• TotalEnergies (France)


• Atlantic Grease and Lubricants (UAE)


• DANA LUBRICANTS FACTORY LLC (DANA LUBES) (UAE)


• Gulf Oil International Ltd (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2023 – FUCHS launched RENISO UltraCool 68, which is a universal synthetic solution for refrigeration compressors operating with NH3. This oil is the ideal lubrication solution for cold compressors.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, oil types, gas, and application of the product. Besides this, it offers insights into the market and current industry trends, and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the market's growth.

Report Scope & Segmentation