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US Refrigeration Oil Market

ID: MRFR/CnM/18584-HCR
111 Pages
Chitranshi Jaiswal
October 2025

US Refrigeration Oil Market Research Report: By Type (Mineral Oil, Synthetic Oil, Refrigerant) and By Application (Refrigerator and Freezer, Aftermarket, Automotive AC Systems, Air Conditioners, Chillers, Others) - Forecast to 2035

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US Refrigeration Oil Market Infographic
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US Refrigeration Oil Market Summary

As per Market Research Future analysis, the US refrigeration oil market size was estimated at 0.28 USD Million in 2024. The US refrigeration oil market is projected to grow from 0.294 USD Million in 2025 to 0.48 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 5.0% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The US refrigeration oil market is experiencing a notable transition towards sustainability and efficiency.

  • The market is witnessing a shift towards synthetic oils, driven by their superior performance and environmental benefits.
  • Regulatory compliance and sustainability initiatives are increasingly influencing product development and consumer preferences.
  • Compatibility with low-GWP refrigerants is becoming essential, reflecting a broader trend towards eco-friendly solutions.
  • Technological advancements in refrigeration systems and rising demand from the food and beverage sector are key drivers of market growth.

Market Size & Forecast

2024 Market Size 0.28 (USD Million)
2035 Market Size 0.48 (USD Million)
CAGR (2025 - 2035) 5.02%

Major Players

Honeywell (US), Shell (GB), ExxonMobil (US), BP (GB), TotalEnergies (FR), Fuchs Petrolub (DE), Chevron (US), Idemitsu Kosan (JP), Petrobras (BR)

US Refrigeration Oil Market Trends

The refrigeration oil market is currently experiencing notable shifts driven by various factors, including technological advancements and evolving regulatory frameworks. As the demand for energy-efficient cooling systems rises, manufacturers are increasingly focusing on developing high-performance lubricants that enhance the efficiency and longevity of refrigeration systems. This trend is further supported by the growing emphasis on sustainability, prompting companies to explore environmentally friendly formulations that comply with stringent regulations. The integration of synthetic oils is becoming more prevalent, as these products offer superior thermal stability and reduced environmental impact compared to traditional mineral oils. In addition to technological innovations, the refrigeration oil market is influenced by the changing landscape of refrigerants. The transition towards low-GWP (Global Warming Potential) refrigerants necessitates the use of compatible lubricants, which can effectively operate under varying conditions. This shift is likely to drive research and development efforts aimed at creating oils that not only meet performance standards but also align with environmental goals. As the market evolves, stakeholders must remain vigilant to adapt to these changes, ensuring that their products meet the demands of both consumers and regulatory bodies. Overall, The refrigeration oil market appears poised for growth. Opportunities are arising from advancements in technology and a commitment to sustainability..

Shift Towards Synthetic Oils

The refrigeration oil market is witnessing a significant shift towards synthetic oils, which are favored for their superior performance characteristics. These oils provide enhanced thermal stability and improved lubrication properties, making them suitable for modern refrigeration systems. As manufacturers prioritize energy efficiency, the adoption of synthetic formulations is likely to increase.

Regulatory Compliance and Sustainability

Regulatory frameworks are evolving, pushing the refrigeration oil market towards more sustainable practices. Companies are increasingly focusing on developing environmentally friendly lubricants that comply with stringent regulations. This trend reflects a broader commitment to sustainability, as stakeholders seek to minimize the environmental impact of their products.

Compatibility with Low-GWP Refrigerants

The transition to low-GWP refrigerants is reshaping the refrigeration oil market. As these refrigerants become more prevalent, the demand for compatible lubricants is rising. This necessitates the development of oils that can effectively function with new refrigerant types, ensuring optimal performance and compliance with environmental standards.

Market Segment Insights

By Type: Mineral Oil (Largest) vs. Synthetic Oil (Fastest-Growing)

In the US refrigeration oil market, the market share distribution is prominently influenced by Mineral Oil, which has established itself as the largest segment due to its widespread usage in various refrigeration applications. Synthetic Oil, while smaller in share, is rapidly gaining traction and becoming a significant player in the market. Refrigerants, on the other hand, play a supportive role in the market, primarily used in conjunction with synthetic and mineral oils for optimal performance. The growth trends within this segment are driven by increasing regulatory pressures toward environmentally friendly products, pushing consumers towards Synthetic Oil, which is perceived as a more sustainable option. Moreover, the expansion of refrigeration technologies and the growing demand for refrigeration in the food and beverage industry are bolstering the need for efficient oils, with Synthetic Oil expected to become the fastest-growing segment as manufacturers innovate to meet market needs.

Mineral Oil (Dominant) vs. Synthetic Oil (Emerging)

Mineral Oil continues to dominate the US refrigeration oil market, valued for its cost-effectiveness and compatibility with various refrigerants. This segment enjoys a strong foothold due to its historical usage and established supply chains. Synthetic Oil, emerging as a competitor, offers superior thermal stability and energy efficiency, attracting environmentally conscious consumers and businesses looking to enhance their refrigeration systems' performance. As regulations tighten and the push for eco-friendly solutions intensifies, Synthetic Oil's unique properties become increasingly attractive, positioning it for significant growth in upcoming years. The competition between these two segment values reflects the broader shift towards more sustainable practices within the refrigeration industry.

By Application: Refrigerators and Freezer (Largest) vs. Automotive AC Systems (Fastest-Growing)

The application segment of the US refrigeration oil market is predominantly led by Refrigerators and Freezer, which holds the largest share due to the widespread use of cooling appliances in both commercial and residential settings. Following closely are Air Conditioners and Chillers, contributing significantly to the market. Other segments like Aftermarket and Others also play a role but on a smaller scale, reflecting diverse but limited demand across different applications. Growth trends indicate a robust increase in demand for Automotive AC Systems, positioning it as the fastest-growing segment. Key drivers include the rising automotive sector and heightened consumer expectations for better cooling efficiency and performance. Additionally, the growing emphasis on environmentally friendly refrigerants is influencing product development, paving the way for innovative solutions in the market.

Refrigerators and Freezer (Dominant) vs. Automotive AC Systems (Emerging)

Refrigerators and Freezer represent the dominant application in this segment, driven by their essential role in food preservation and the booming retail sector. They are widely adopted in households and commercial establishments, which contributes to their established market position. In contrast, Automotive AC Systems are emerging due to increasing vehicle ownership and a growing preference for enhanced passenger comfort. These systems are continually innovating, focusing on efficiency and sustainability, which makes them an attractive segment in the market. As regulations tighten around emissions and environmental impact, both segments are adapting to meet new standards, positioned to capture consumer interest and drive future growth.

Get more detailed insights about US Refrigeration Oil Market

Key Players and Competitive Insights

The refrigeration oil market is characterized by a competitive landscape that is increasingly shaped by innovation, sustainability, and strategic partnerships. Key players such as Honeywell (US), ExxonMobil (US), and Shell (GB) are actively pursuing strategies that emphasize technological advancements and eco-friendly solutions. For instance, Honeywell (US) has focused on developing low-global warming potential (GWP) refrigerants, which aligns with the growing regulatory pressures for environmentally sustainable products. This strategic positioning not only enhances their market share but also reinforces their commitment to sustainability, thereby influencing the competitive dynamics of the market.

In terms of business tactics, companies are localizing manufacturing and optimizing supply chains to enhance efficiency and responsiveness to market demands. The competitive structure of the refrigeration oil market appears moderately fragmented, with several key players exerting significant influence. This fragmentation allows for a diverse range of products and innovations, while also fostering competition among established and emerging companies.

In October 2025, ExxonMobil (US) announced a partnership with a leading technology firm to develop advanced synthetic refrigeration oils aimed at improving energy efficiency in commercial refrigeration systems. This strategic move is likely to position ExxonMobil (US) as a frontrunner in the high-performance segment of the market, catering to the increasing demand for energy-efficient solutions. The collaboration underscores the importance of technological innovation in maintaining competitive advantage.

Similarly, in September 2025, Shell (GB) launched a new line of biodegradable refrigeration oils, which are designed to meet the stringent environmental regulations being adopted across various states. This initiative not only reflects Shell's commitment to sustainability but also addresses the growing consumer preference for eco-friendly products. By diversifying their product offerings, Shell (GB) is likely to capture a larger share of the market, particularly among environmentally conscious consumers.

In August 2025, Honeywell (US) expanded its production capacity for low-GWP refrigerants in response to increasing regulatory demands and market trends favoring sustainable solutions. This expansion is expected to enhance Honeywell's (US) ability to meet the rising demand for environmentally friendly refrigeration oils, thereby solidifying its competitive position in the market. The proactive approach taken by Honeywell (US) illustrates the critical role of adaptability in a rapidly evolving market landscape.

As of November 2025, the refrigeration oil market is witnessing trends that emphasize digitalization, sustainability, and the integration of artificial intelligence (AI) in product development and supply chain management. Strategic alliances are becoming increasingly vital, as companies seek to leverage shared expertise and resources to enhance their competitive positioning. Looking ahead, it appears that competitive differentiation will increasingly hinge on innovation and technological advancements rather than solely on price. The shift towards sustainable practices and reliable supply chains is likely to redefine the competitive landscape, compelling companies to invest in R&D and strategic partnerships to maintain their market relevance.

Key Companies in the US Refrigeration Oil Market market include

Industry Developments

The US Refrigeration Oil Market has recently witnessed several significant developments. TotalEnergies and ExxonMobil are expanding their product lines to meet the rising demand for environmentally-friendly refrigerants. Notably, in May 2023, Dow Chemical announced the launch of a new synthetic refrigeration oil designed for use with low Global Warming Potential refrigerants, pushing the boundaries of sustainability in the sector.

The market value for companies like Shell and Mobil is on an upward trajectory due to increased investments in Research and Development for innovative oil formulations that enhance energy efficiency. Over the last couple of years, Phillips 66 made strategic moves to expand its distribution channels after the acquisition of a smaller competitor in February 2022, which was aimed at enhancing market penetration.

Moreover, government initiatives focusing on the reduction of greenhouse gas emissions are driving companies like Afton Chemical and PetroCanada to innovate and modify their existing product portfolios. As of October 2023, ongoing trends indicate a shift towards synthetic and bio-based refrigerants, particularly in light of regulatory changes emphasizing eco-friendly solutions within the refrigeration industry.

Future Outlook

US Refrigeration Oil Market Future Outlook

The refrigeration oil market is projected to grow at a 5.02% CAGR from 2024 to 2035, driven by rising demand for energy-efficient cooling solutions and regulatory changes.

New opportunities lie in:

  • Development of bio-based refrigeration oils for eco-friendly applications.
  • Expansion into emerging markets with tailored product offerings.
  • Investment in advanced synthetic oil technologies for enhanced performance.

By 2035, the refrigeration oil market is expected to achieve robust growth, driven by innovation and sustainability.

Market Segmentation

US Refrigeration Oil Market Type Outlook

  • Mineral Oil
  • Synthetic Oil
  • Refrigerant

US Refrigeration Oil Market Application Outlook

  • Refrigerators and Freezer
  • Aftermarket
  • Automotive AC Systems
  • Air Conditioners
  • Chillers
  • Others

Report Scope

MARKET SIZE 20240.28(USD Million)
MARKET SIZE 20250.294(USD Million)
MARKET SIZE 20350.48(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)5.02% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Million
Key Companies Profiled["Honeywell (US)", "Shell (GB)", "ExxonMobil (US)", "BP (GB)", "TotalEnergies (FR)", "Fuchs Petrolub (DE)", "Chevron (US)", "Idemitsu Kosan (JP)", "Petrobras (BR)"]
Segments CoveredType, Application
Key Market OpportunitiesAdoption of environmentally friendly refrigeration oils driven by regulatory changes and consumer demand for sustainability.
Key Market DynamicsGrowing demand for environmentally friendly refrigeration oils drives innovation and regulatory compliance in the market.
Countries CoveredUS

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FAQs

What is the expected market size of the US Refrigeration Oil Market in 2024?

The US Refrigeration Oil Market is expected to be valued at 279.3 million USD in 2024.

What is the projected market size of the US Refrigeration Oil Market by 2035?

By 2035, the US Refrigeration Oil Market is projected to reach a value of 459.83 million USD.

What is the expected CAGR for the US Refrigeration Oil Market from 2025 to 2035?

The expected CAGR for the US Refrigeration Oil Market from 2025 to 2035 is 4.637%.

Which sector holds the largest share in the US Refrigeration Oil Market?

As of 2024, Synthetic Oil is expected to hold a significant share, valued at 130.0 million USD.

What is the market value for Mineral Oil in the US Refrigeration Oil Market by 2035?

The market value for Mineral Oil in the US Refrigeration Oil Market is projected to be 160.0 million USD by 2035.

Who are the key players in the US Refrigeration Oil Market?

Major players in the market include TotalEnergies, ExxonMobil, and Royal Dutch Shell.

What is the expected market size for Refrigerants in the US Refrigeration Oil Market in 2024?

The market size for Refrigerants in the US Refrigeration Oil Market is expected to be 49.3 million USD in 2024.

What are the opportunities driving growth in the US Refrigeration Oil Market?

The market is driven by increasing demand for energy-efficient refrigeration systems and advancements in oil formulations.

What applications are leading the demand in the US Refrigeration Oil Market?

Applications in HVAC systems and commercial refrigeration are the primary drivers of demand in the market.

What is the projected growth rate for Synthetic Oil in the US Refrigeration Oil Market from 2025 to 2035?

The growth rate for Synthetic Oil in the US Refrigeration Oil Market is expected to be substantial, with a projected market size of 215.0 million USD by 2035.

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