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Metalworking Fluids Market Size
Global metalworking fluids market revenue in 2019 was USD 11.6 billion and will grow with a CAGR over 4.8% during the forecast period driven by the augmenting demand for designing applications and metal processing in general manufacturing and automobiles industries. Indispensable use of these fluids across automotive and metal fabrication industries will complement business growth by 2026.
Increasing product demand in the industries such as automation, metal fabrication, steel and original equipment manufacturers (OEM) is analysed to be a major factor propelling the global metalworking fluids market share by 2026. The product is majorly used for metal removal, protection, forming metal treating applications in these industries.
Volatility in the crude oil prices owing to geopolitical scenario in the Middle East may hamper its demand at some extent over the forecast period. Furthermore, strict government dumping regulations of metalworking fluids shall act as a major downside to the market. However, many manufacturers are seen to innovate new dumping and treatment processes to comply with the ongoing regulations, which shall create new growth avenues in the future.
| Report Attributes | Details |
|---|---|
| Base Year: | 2019 |
| Market Size in 2019: | 11,654.7 Million (USD) |
| Forecast Period: | 2020 to 2026 |
| Forecast Period 2020 to 2026 CAGR: | 4.8% |
| 2026 Value Projection: | 16,079.3 Million (USD) |
| Historical Data for: | 2016 to 2019 |
| No. of Pages: | 394 |
| Tables, Charts & Figures: | 488 |
| Segments covered: | Product type, Application, End-User and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Metalworking Fluids Market Analysis
Synthetic fluids will observe maximum gains of 5.2% CAGR between 2020 and 2026 on account of its superior and consistent performance. Neat oils will showcase potential growth prospects over the projected timeframe owing to their multiple benefits including rust prevention, metal finishing, higher evaporation capability and lubricity.
They assist in chip formation and prevent overheating resulting in extending the service life of machine tools. Growing requirements for lowering the operational costs and increasing the efficiency & life of machinery will positively contribute towards escalating the metalworking fluids market revenue over the projected timeframe.
Removal fluids accounted for more than 50% of the overall volume in 2019 and is expected to grow with a highest CAGR of 4.9% during the forecast timespan. These fluids offer a wide range of performance capabilities for meeting industrial requirements in grinding and machining operations.
Automotive industry had the largest share in 2019 and accounted for over 35% of the overall volume. Increasing disposable income and living standards in countries such as India, Indonesia, among others will further fuel the automotive demand over the forecast period. For instance, according to the OICA, China automotive production in 2015 was 24.5 million units and reached to 27.8 million units in 2018.
Asia Pacific led the market in 2019 and accounted for 45% of the overall industry volume. Increasing automotive customer base in China and India along with robust industrialization in the region will substantially boost the product demand in the coming years. Europe Metalworking Fluids industry witness around 5.4% CAGR during the forecast period owing to the Increasing product demand for automation, metal fabrication, and steel from original equipment manufacturers.
Expansion of manufacturing facilities and production capacities is prominently increasing the product penetration. For instance, in August 2018, Volkswagen Group opened its new FAW-Volkswagen plant in China with production capacity of 1,200 vehicle units per day. In addition, rising government support in India and China to strengthen their manufacturing industries will further complement the metalworking fluids market growth in the near future.
Metalworking Fluids Market Share
The major players involved in metalworking fluids industry held more than 50% of the total industry share. The ecosystem has presence of some multi-national giants such as
- FUCHS
- Castrol
- Quacker
- Chem Arrow Corporation
- ExxonMobil
- The Lubrizol Corporation
- Total S.A.
Every company has a wide product portfolio which includes metalworking fluids with specifications for almost every application. Furthermore, industry players are adopting various organic and inorganic growth strategies to attain a larger share in the overall market. For instance, Exxon Mobil in 2017 expanded its hydrocarbon fluids capacity by 250,000 tons per year.
The players can also be seen adopting inorganic strategies such as mergers, acquisitions and partnerships to attain strategic dominance over their competitors. For instance, in August 2018, Yushiro Chemical Industries, a manufacturer of metalworking chemicals in Asia Pacific region announced strategic partnership with North America based Qualichem. This partnership agreement is in accordance with their strategy to share technology and material expertise.
Metalworking fluids market report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue in Kilo Tons and USD million from 2015 to 2026, for the following segments:
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By Product
- Neat Oil
- Soluble Oil
- Semi-Synthetic Fluids
- Synthetic Fluids
By Application
- Removal Fluids
- Forming Fluids
- Protecting Fluids
- Treating Fluids
By End-user
- Automotive
- Aerospace
- Construction
- Electrical & power
- Agriculture
- Marine
- Healthcare
- Others
The above information is provided on a regional and country basis for the following:
By Region
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- APAC
- China
- India
- Japan
- Australia
- Indonesia
- Malaysia
- LATAM
- Brazil
- Mexico
- MEA
- South Africa
- Saudi Arabia
- UAE
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