The global metalworking fluids market size was valued at USD 10.24 billion in 2018 and it is projected to reach USD 14.31 Billion by 2026, exhibiting a CAGR of 4.3% during the forecast period.

Metalworking fluids are used daily in various industries for operations such as milling, drilling, cutting, stamping, and grinding. Metalworking fluids are usually a complex mixture of chemicals and other chemicals are also added in order to enhance their operational lifespan. These fluids reduce friction between cutting tools and the working surfaces, reduce wear rate, protect surface characteristics, and carry away heat, chips and fine residues.

Metalworking fluids market is classified on the basis of function, type, application, and end-use industries. On the basis of function, the market has been segmented into neat cutting oils, water cutting oils, corrosion preventive oils, and others depending upon their physical properties and operational requirements. Major types considered in the report scope include mineral, synthetic, and bio-based. Mineral holds the largest share in the metalworking fluids market as it is easily available and also cost-effective as compared to synthetic and bio-based. Few of the major applications are construction, electrical & power, agriculture, automotive & transportation, telecommunication, and healthcare. According to metalworking fluids market trends, automotive & transportation segment holds the largest share as large quantities of metalworking fluids are used in automotive components manufacturing. On the basis of end-use industries, the market has been segmented into metal fabrication, transportation equipment, machinery and others. Metalworking fluids are used in various workshops at the time of cutting and forming of metals which helps in preventing burning and smoking of metal or work piece at the time of operation. In 2018, machinery accounted for over 40.18% of the share in the global market.

MARKET DRIVERS

“Growing Demand from Automotive & Transportation Industry to Drive the Market”

The recovery of automotive sector, especially in the U.S. post recession, is expected to augment the growth of metalworking fluids over the forecast period. Moreover, emerging economies such as India, China, Russia, and Brazil have witnessed a significant growth in the automotive and transportation manufacturing sectors and thus increasing production of vehicles is the major factor influencing the demand for metalworking fluids. Besides the automotive industry, aerospace, railways, marine, and defense industries are also contributing to the metalworking fluids market growth.

Furthermore, metalworking fluids continue to be used extensively in the machinery industry. The machine shop is the core of the manufacturing sector, as manufacturers not only focus on the productivity and cost cutting, but also on the adoption of sustainable processes and technologies for long term business. The newer technologies and machine shops are gaining momentum for customized specialty products are expected to drive the metalworking fluids market revenue.

SEGMENTATION

 By Function Analysis

“Neat Cutting Oils Segment to Generate the Highest Revenue During the Forecast Period”

Neat cutting oils segment holds the largest share in the metalworking fluids market. Neat cutting oils are usually used for heavy duty cutting gears such as tapping, broaching, hobbing, grinding, and drilling operations. They mainly act as lubricants, as fatty acids are mainly incorporated in it.

Water cutting oils segment holds prominent share in the global market, as water is best solution for cooling. Water is easily available and possesses best heat carrying capability. Unlike neat cutting oils, water cutting oil does not possess lubrication properties and thus it can also lead to corrosion.

Corrosion prevention oils are an integral part of the metalworking fluids market, as they are widely used for preventing rust formation and corrosion on work pieces, machine part, and metal tools. The corrosion prevention oils chemical composition varies according to their chemical structure.

By Type Analysis

In terms of type, the market is segmented into mineral, synthetic, and bio-based. Mineral grade metalworking fluid is most commonly used as it is cost-effective than synthetic and bio-based fluids, as per the recent metalworking fluids market trends. Moreover, metalworking fluids are predominantly used working fluid for lubricating and cooling purposes. Mineral oil generally consists of one or more refined mineral-based oil, together with pressure additives and anti-corrosion additives.

Synthetic type holds the largest share in the global market. Synthetic fluids do not contain oil generated from petroleum. In synthetic oil, end-users mostly use detergent-like components and other types of additives to moisten the work piece. Operations performed using synthetic oils are more pleasant to work with as the shop floors are less oily and slippery. Machines also stay cleaner as less dirt and oil are deposited on the surfaces.

Bio-based types hold smaller share in this market as the costumers are not convinced using bio-based fluids. Moreover, its limitations such as inadequate availability and relatively high price is expected to affect the market for bio-based fluids and thus expected to grow at less CAGR.

By Application Analysis

“Automotive & Transportation Segment to Exhibit a Significant CAGR”

Automotive manufacturers extensively use metal working fluids for the manufacturing of various automotive parts and equipment, and thus, the automotive & transportation segment holds the largest share in the metalworking fluid market. Further, metalworking fluids are closely connected to the automotive industry as large volumes of sheet metal and finished components are supplied to this industry. Other transportation industries such as marine and aerospace have application of metalworking fluids for the manufacturing of their big parts or components.

The demand for metalworking fluids for construction applications is increasing owing to the rise in building and construction activities. Metalworking fluids are extensively used in steel shaping and cutting processes. These products are also used in the manufacturing of construction equipment such as bulldozers and others. Thus, metalworking fluids holds great significant in construction applications.

The other multiple applications for metalworking fluids include electrical & power, agriculture, telecommunication, and healthcare. Electrical & power also held prominent share in the market due to the demand from the applications such as gas & steam turbine, wind turbines, engines, and transformers.

By End-use Industry Analysis

“Machinery Segment is to Grow at an Impressive Rate”

Metalworking fluids have major application in the machinery segment. These fluids are majorly used in workshops for forming and cutting of metals. The main purpose of metalworking fluids is to cool the surface, lubricate tools, work-piece, and machineries. Various kinds of machineries operate in different industries such as automotive, electrical & power, and construction and metalworking fluids are an important part of machineries used in these industries.

Metalworking fluids are used for the manufacturing of various transport equipment such as cranes, conveyors, trucks, and others. Increase in demand for transportation equipment due to rising construction activities is augmenting the demand for metalworking fluids. Furthermore, they also have application in metal fabrication operations such as metal shaping, surface finishing, and surface preparation for the industries such as furniture, domestic appliances, defense, and others.

REGIONAL ANALYSIS

Asia-Pacific is anticipated to remain a key region in the metalworking fluids market during the forecast period owing to the rising demand from the automotive & transportation industry. The market in Asia-Pacific is the largest owing to the robust manufacturing base in China and India. Strong support and initiatives taken by the governments of China and India for the manufacturing sector is aiding the dominance of the region in the metalworking fluids market share.

Emerging economies such as China and other Southeast Asian countries have witnessed the significant growth in their manufacturing sectors. Growing consumption coupled with favorable regulations is likely to attract the market for metalworking fluids. Moreover, rise in demand from the automotive sector is expected to promote the demand in this region over the forecast period.

On the other hand, Europe is projected to witness significant growth in the metalworking fluids market. Robust automotive manufacturing base in Germany and Russia is the key factor driving the market in Europe.

Latin America and the Middle East & Africa would showcase lower growth in this market compared to the other regions owing to fewer manufacturing units and low demand due to less population in these regions.

INDUSTRY KEY PLAYERS

“Market Players Such as Chevron Phillips Chemical and Exxon Mobil Corporation to Strengthen the Market Position with Novel Solutions”

The global market is fragmented in nature with the presence of several domestic as well as global players. Producers located in North America and Europe are aiming to increase their presence in Asia-Pacific in order to strengthen their position in the market and to drive the business growth of their organizations. The key players in the market have, therefore, developed strong regional presence, distribution channels, and product offerings.

LIST OF KEY COMPANIES PROFILED:

• Houghton International Inc.


• Castrol


• Chevron Phillips Chemical


• Exxon Mobil Corporation


• Total S.A.


• Lubrizol


• Quaker Chemical Corporation


• Henkel


• Fuchs Petrolub SE


• BP plc.


• Other

REPORT COVERAGE

A growing trend is observed in the penetration of the metalworking fluids market across the industries. 

The metalworking fluids market report offers qualitative as well as quantitative insights on this market with a detailed analysis of the growth rate and market trends for different segments covered in the report. The metalworking fluids market is segmented by function, type, application, end-use industry and geography. Based on function, the market is classified into neat cutting oils, water cutting oils, corrosion preventive oils and others. By type, the market is segmented into mineral, synthetic and bio-based.

By application, this market is divided into construction, electrical & power, agriculture, automotive & transportation, telecommunication and healthcare. By end-use industry, the market is segmented into metal fabrication, transportation equipment, machinery and others.  Geographically, the metalworking fluids market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. These regions are further analyzed at country level.

Along with this, the report provides an elaborative analysis of the metalworking fluids market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in this market, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key industry trends, competitive landscape, and company profiles.

Report Scope & Segmentation

Key Industry Developments

• October 2019, Master Fluid Solutions, leading metalworking fluids and associated chemicals manufacturer in Perrysburg, Ohio, announced the acquisition of Wilhelm Dietz GmbH, a pipe and tube expansion, forming, wire drawing and metalworking company based in Düsseldorf, Germany, to expand its global footprint and gain manufacturing capabilities in mainland Europe.


• December 2018, the European Commission approved the acquisition of Global Houghton, Ltd., a provider of specialty chemicals, oils and lubricants headquartered in U.S by Quaker Chemical Corporation, a producer of process fluids and specialty lubricants. This acquisition was done to to expand its production and marketing of products in the new regions.