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 temperature and also have excellent chemical resistance property. Metalworking fluids help in reducing the heat in machining tools, and eliminate the small metal chips produced during grinding and cutting of metal pieces.

Global metalworking fluids market was valued at US$ 1080.00 Million in 2021 in terms of revenue, exhibiting a CAGR of 4.4% during the forecast period (2022 to 2030).

Drivers

Increasing production of automobiles is primarily fueling 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 application. Hence, growth in the production of the automobiles is expected to foster the market growth of the metalworking fluids.

Increasing demand for automobiles in U.S. is expected to augment 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 manufacturing sectors. The increasing production of vehicles is the major factor driving demand for metalworking fluids. Besides automotive industries, aerospace, railways, marine, and defense industries are also contributing to the growth of global metalworking fluids market.

The global economy has 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 sharpest declines. Small and medium-sized enterprises (SMEs) have been hit hard globally. This reduced demand for metalworking fluids during the pandemic.

Figure 1. Global Metalworking Fluids Market Value Share (%), By Region, 2021

Market Restraints

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

Metalworking Fluids Market Report Coverage

Report Coverage	Details
Base Year:	2021	Market Size in 2021:	US$ 1080.00 Mn
Historical Data for:	2017-2020	Estimated Year:	2022
Forecast Period 2022 to 2030 CAGR:	4.4%	Forecast Period:	2022-2030
Geographies covered:	Region: North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
Segments covered:	By Application: Removal Fluids, Forming Fluids, Protecting Fluids, Treating Fluids
Companies covered:	Apar Industries Ltd., Castrol Limited, Chevron Phillips Chemical Company LP, Chem Arrow Corporation, Exxon Mobil Corporation, FUCHS, Houghton, Lukoil Lubricants, and The Lubrizol Corporation
Growth Drivers:	Increasing production of automobiles Growing steel & metal fabrication industry
Restraints & Challenges:	Environmental and Health related issues associated with workers.

Market Trends

The growing aerospace industry in the North America region is expected to drive demand for metalworking fluids and this is attributed to growing travel & tourism trends. According to USA Government, the U.S. aerospace industry is the largest in the world. In 2018, the industry contributed US$151 billion in export sales to the U.S. economy. The foreign direct investment (FDI) into the U.S. aerospace industry totalled around US$ 22 billion in 2018.

The establishment of new facilities in machinery and tools by manufacturers for increasing production capacities is a growing trend in the industry. This trend is expected to foster the market growth. For instance, in February 2019, Quaker Chemical Corporation held the grand opening of its state-of-the-art manufacturing facility in Dahej, India. The site will produce rolling oils and metalworking fluids for the steel and metalworking market in India, Middle East, and East Africa.

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

On the basis of application in 2021, removal fluids segment accounted for the largest market share of 49.4%, in terms of value, followed by forming fluids and protecting fluids segment respectively.

Recent Developments

• In October 2019, Master Fluid Solutions, a leading manufacturing working at Perrysburg, Ohio acquired Wilhelm Dietz GmbH, a pipe and tube expansion, forming, wire drawing and metal working company based in Dusseldorf, Germany to expand its metalworking fluids market and gain manufacturing capabilities in Europe.
• In October 2020, Biosynthetic Technologies engaged in manufacturing of bio-based synthetic compounds launched Biocea, their new product line of novel additives for the metalworking fluids
• In February 2019, Castrol, one of the world’s leading lubricant brands began an collaboration with Gehring, a worldwide machine tool firm that will combine Castrol’s lubrication and metalworking fluids expertise with Gehring’s precision machine tooling expertise for Castrol’s lubricant production.

Competitive Section

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.