Metalworking Fluids Market Analysis

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.