METALWORKING FLUIDS MARKET ANALYSIS

Metalworking fluid is a formulation that is used to enhance the efficiency of machining tools during various operations such as drilling and grinding. These fluids are highly stable at high and low temperatures and also have excellent chemical resistance properties. Metalworking fluids help in reducing the heat in machining tools, and eliminate the small metal chips produced during the grinding and cutting of metal pieces.

The global metalworking fluids market was valued at US$ 1,230.7 Mnin 2022 in terms of revenue, exhibiting a CAGR of 4.7% during the forecast period (2023 to 2030).

Drivers

 Increasing production of automobiles

Increasing production of automobiles is primarily fuelling the market growth of metalworking fluids. Metalworking fluids are widely used as coolants across metal treating, metal removal, metal forming, and metal protecting in metalworking applications. Hence, growth in the production of automobiles is expected to foster the market growth.

Increasing demand for automobiles in the U.S. is expected to augment the growth of the metalworking fluids market over the forecast period. Emerging economies, such as India, China, Brazil, and Russia, are witnessing significant growth in automotive and transportation services, specially the manufacturing sector. The increasing production of vehicles is the major factor driving the demand for metalworking fluids. Besides thr automotive industry, the aerospace, railways, marine, and defense industries are also contributing to the growth of the global metalworking fluids market.

The global economy suffered a negative impact during and after the COVID-19 pandemic. It has hit major industrial hubs of the world, which has resulted in supply chain disruptions and production halts. Manufacturing and industrial production in many countries witnessed the sharpest declines. Small and Medium-sized Enterprises (SMEs) have been hit hard globally. This reduced the demand for metalworking fluids during the pandemic.

Figure 1. Global Metalworking Fluids Market Value Share (%), By Region, 2022

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Market Restraints

Environmental and health-related issues associated with workers

Environmental issues like contamination of soil, groundwater, seawater, and health risks, such as asthma, chronic bronchitis, cancer, and skin diseases associated with the workers on the floor, is expected to hinder the market growth of metalworking fluids. Metalworking fluids release various toxic waste that creates environmental issues. Moreover, the chemicals present in metalworking fluids lead to cancer, respiratory, and skin diseases in workers. All these factors are expected to hamper the market growth of metalworking fluids during the forecast period.

Market Trends

• The growing aerospace industry in the North America region is expected to drive the demand for metalworking fluids, and this is attributed to the growing travel and tourism trends. In 2021, the U.S. exported a substantial amount of transportation equipment, including aircraft, helicopters, and aircraft parts. In 2021, the A&D industry exports rose by 11.2 percent to a total value of USD $100.4 billion. From sustainable aviation technologies to defense systems, partners around the world trust U.S.-based companies to provide the best capabilities at the best value.
• The establishment of new facilities in machinery and tools by manufacturers for increasing production capacities is a growing trend in the market. This trend is expected to foster the market growth. For instance, in October 2022, CF Industries and ExxonMobil 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.

Figure 2. Global Metalworking Fluids Market Value Share (%), By Application, 2021

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On the basis of application in 2022, the removal fluids segment accounted for the largest market share of 49.4%, in terms of value, followed by the forming fluids and protecting fluids segments respectively.

Key Developments

• In December 2022, SKF and Castrol collaborated to provide access to industrial lubricant recycling. The collaboration entails providing 'oil as a service' by combining the SKF RecondOil solution with Castrol's metal working lubricants.
• In October 2020, Biosynthetic Technologies, engaged in manufacturing of bio-based synthetic compounds, launched Biocea, its new product line of novel additives for metalworking fluids.
• In February 2023, Univar Solutions and Milliken signed an agreement to automate the liquid dyes market in North America for lubricants and metal working fluids

Competitive Section

The major players operating in the global metalworking fluids market include Apar Industries Ltd., Castrol Limited, Chevron Phillips Chemical Company LP, Chem Arrow Corporation, Exxon Mobil Corporation, FUCHS, Houghton, Lukoil Lubricants, and The Lubrizol Corporation.