Metalworking Fluids Market

Market Overview

The global metalworking fluids market size was valued at USD $10.59 billion in 2022. It is projected to reach USD $14.56 billion by 2031, growing at a CAGR of 3.6% during the forecast period (2023–2031).

Since the advent of urbanization and industrialization, the manufacturing sector has been on the rise. There has been a substantial increase in population and disposable income due to higher-paying jobs, consumerism, and enhanced product visibility. This has led to increased demand for products, necessitating the establishment of manufacturing facilities for processing the final product. Transportation has significantly increased as a result of enhanced connectivity and infrastructure. There have been extraordinary improvements in trade relations between different trading economies, as evidenced by the fact that approximately a quarter of global output is exported.

Consistent efforts are made to link disparate regions of a nation via roads, railroads, and waterways. These projects require a substantial amount of infrastructure construction and metalwork. The demand for metal works for various purposes has increased due to enhanced commerce and the constant need for enhanced connectivity. This growing demand is expected to translate into growth in metalworking fluids in the near future.

Market Dynamics

Market Drivers

• The growth of the automobile industry

Due to the increasing production of automobiles, the growing automotive industry is primarily fueling the market growth of metalworking fluids. Metalworking fluids are widely used as coolants for metal treatment, removal, forming, and protection in metalworking applications. Hence, growth in the production of automobiles is expected to foster the market growth of metalworking fluids.

• Enhancing the culture of the industry

Metalworking fluids (MWFs) are applied in various manufacturing processes to ensure workpiece quality, reduce tool wear, and improve the overall process productivity. The particular chemical composition of an applied MWF should be intensely dependent on the scope of application. Even small changes in the MWF composition can considerably influence the performance of MWFs in manufacturing processes. Besides defined variations of the composition, the MWF chemistry changes over the fluid's service life.

Market Restraints

• Environmental and health issues due to metalworking

Environmental and worker health concerns will slow metalworking fluids' expansion. As a result of the different hazardous waste disposals released by metalworking fluids, environmental problems have arisen. In addition, the chemicals in metalworking fluids pose several health hazards to employees. Metalworking fluids' expansion is likely to be hampered by all of these problems.

Market Opportunities

• Increase in agricultural equipment

The market for metalworking fluids is likely to benefit from an increase in the use of these fluids in agricultural machinery. This can also be linked to the rise in the use of high-yield agricultural equipment in the agricultural sector. A rise in agricultural demand for high-performance metalworking fluids is thus predicted to drive the market's expansion.

Metalworking fluids are predicted to benefit from the increasing complexity of manufacturing equipment components. There is a growing need for construction equipment and related components, which is projected to fuel market expansion soon. Increased demand for high-quality workpiece surface finish and improved tool efficiency drive market expansion.

Segmental Analysis

The global market for metalworking fluids is segmented by product, application, end-use, and industrial end-use.

Based on product, it is subdivided into mineral, synthetic, and bio-based segments. Mineral-oil-based fluids are used in various applications, including grinding, turning, milling, and drilling, to name a few. In addition, the market for synthetic metalworking fluids is anticipated to grow significantly due to their eco-friendliness. However, the high price of bio-based metalworking fluids is anticipated to limit the expansion of this market segment.

Based on application, the market is subdivided into neat cutting oils, water cutting oils, soluble cutting oils, semi-synthetic cutting oils, synthetic cutting oils, corrosion preventive oils, and others. As a result of their use in various machine operations and the vast majority of operations requiring cutting, neat cutting oils are expected to gain the largest market share. Due to its use in metalworking to dissipate heat, water-based cutting oils can also anticipate significant growth.

Based on end-use, it is classified into machinery, transportation equipment, and metal fabrication. Machinery is expected to be the largest segment in this market owing to the rising demand for heavy machinery such as construction and agricultural equipment. Emerging markets are expected to contribute heavily to this segment of the metalworking fluids market.

Based on industrial end-use, it is segmented based on construction, electrical & power, agriculture, automobile, aerospace, rail, marine, telecommunication and healthcare. The construction segment is expected to witness the highest growth owing to rapid urbanization, infrastructure developments in emerging economies, and infrastructure upgrades in developed economies.

Regional Analysis

The global market for metalworking fluids is divided into four regions: North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa (LAMEA).

Asia-Pacific is anticipated to experience the highest market growth. This is attributable to a number of development projects and the emergence of the manufacturing sector in countries such as China, India, and others. China has substantial metals exports, including coated flat-rolled iron, metal mountings, and iron structures, valued at approximately USD 11 billion, USD 10 billion, and USD 9.5 billion, respectively. In addition, industrial printers, integrated circuits, and large construction vehicles require metalworking fluids when cutting the metal into precise shapes and sizes. This market should benefit from the production of this equipment. Japan's exports of integrated circuits and industrial printers were valued at approximately USD 26 billion and USD 13 billion. These factors are anticipated to stimulate the market for metalworking fluids over the forecast period.

The metalworking fluids market in North America is anticipated to experience significant growth in the coming years. This is due to factors including the presence of economically developed nations and the availability of superior technology relative to other regions. Heavy machinery manufacturing is anticipated to contribute significantly to the expansion of this market. Heavy machinery fabrication requires forging, machining, bending, and forming, among other processes that utilize metalworking fluids to provide the metal with a better shape. In 2021, the United States exported a substantial amount of transportation equipment, including aircraft, helicopters, and aircraft parts.

Europe is expected to witness considerable growth in this market owing to several manufacturers producing parts and products requiring metal works. In 2021, the export value of machinery with specific functions was approximately USD 19 billion in Germany. Metalworking fluids are also used to give specific shapes and sizes to automobile parts, and Europe was one of the top exporters of automobiles in 2021.  

Latin America, the Middle East and Africa are expected to witness healthy growth in the metalworking fluids market. This is due to economies such as Brazil, which exports construction vehicles to many countries. For instance, Brazil exports large construction vehicles to the USA, Canada and Mexico.

Recent Developments

• April 2022, Henkel Australia powers adhesives sites with 100% renewable energy

• October 2022- Quaker Houghton, a global pioneer in process fluid solutions presents a wide range of industrial products at FABTECH 2022, Booth B5159.
• October 2022- CF Industries and ExxonMobil have signed the most significant commercial arrangement of its type to capture and permanently store up to 2 million metric tonnes of CO2 emissions yearly from CF Industries' Louisiana manufacturing complex.

Metalworking Fluids Market Segmentation

By Product

• Mineral
• Synthetic
• Bio-based

By Application

• Neat Cutting Oils
• Water Cutting Oils
• Soluble Cutting Oils
• Semi-Synthetic Cutting Oils
• Synthetic Cutting Oils
• Corrosion Preventive Oils
• Others

By End Use

• Machinery
• Transportation Equipment
• Metal Fabrication

By Industrial End-Use

• Construction
• Electrical & Power
• Agriculture
• Automobile
• Aerospace
• Rail
• Marine
• Telecommunication

By Regions

North America

• U.S.
• Canada
• Mexico

Europe

• UK
• Germany
• France
• Italy
• Spain
• Rest of Europe

Asia-Pacific

• China
• India
• Japan
• South Korea
• Australia
• Rest of Asia-Pacific

LAMEA

• Brazil
• Saudi Arabia
• South Africa
• Rest of LAMEA