Metalworking fluids are chemical solutions used to improve the performance of the machining tools during manufacturing operations. They have excellent resistance to chemicals and provide lubricants to various metal parts. They are classified into forming fluids, removal fluids, protecting fluids, and treating fluids. Automotive, metal fabrication, machinery, and manufacturing industry are some of the major end-user of the metalworking fluids.

Global metalworking fluids market is estimated to account for around US$ 11,756.3 million in terms of value in the year 2019 and it predicted to grow at a CAGR of 4.6% during the forecast period (2020-2027).

Drivers:

The rise in the manufacturing industries around the globe coupled with rapid urbanization is expected to spur the market growth of metalworking fluids. The growing need for oils and lubricants for the smooth functioning of the machinery in various industrial operations is also contributing to the market growth. Moreover, increasing demand for metalworking fluids for extending the life expectancy of the tool and enhance its performance is further anticipated to bolster the market growth of the metalworking fluids.

Market Opportunities

The emergence of bio-based metalworking fluids is expected to serve major growth opportunities to the market of metalworking fluids. For instance, in May 2019, ABITEC has launched multifunctional emulsifiers for the lubricant and metalworking fluid market. ABITEC’s CAPMUL® Multifunctional emulsifiers are naturally-derived, bio-based ingredients and suitable for use as part of an emulsifier system for industrial applications.

Market Restraints

Increasing use of plastic in place of metals across various manufacturing industries is expected to hinder the market growth of metalworking fluids. Plastics offer various benefits such as they are highly durable and enhance fuel economy. This has driven their demand across various industries, thereby restricting the market growth of metalworking fluids.

Key Takeaways

On the basis of region, Asia Pacific region dominated the global metalworking fluids market in 2019 with a 41.2 % of market share in terms of value, followed by North America and Europe respectively.

On the basis of application, removal fluids segment dominated the global metalworking fluids market in 2019 with a 49.4 % of market share in terms of value, followed by forming fluids and protecting fluids respectively.

Market Trends

Increasing investment by major players to cater to growing demand around the globe is a major trend in the market and this trend is expected to augment the market growth. For instance, in January 2017, Evonik Industries has invested through its venture capital arm in Nanotech Industrial Solutions, Inc. (NIS) holds a minority share in the company. NIS produces oil additives for engine oils, oil, and water formulations for metalworking fluids, industrial oils, and additive formulations for greases.

Partnership and collaboration among major manufacturers for regional as well as global presence is a major trend in the market. For instance, in August 2018, Yushiro Manufacturing America, Inc., a subsidiary of Yushiro Chemical Industry Co., Ltd. and QualiChem, Inc. announced that they have entered into a global strategic partnership. The announcement brings together two metalworking fluids manufacturers in the industry. Yushiro is a supplier of metalworking fluids in the Asia Pacific region, and QualiChem is a metalworking fluids business in North America.

Metalworking Fluids Market - Impact of Coronavirus (Covid-19) Pandemic

Manufacturing sector is expected to be most affected by coronavirus crisis. The crisis is expected to disrupt both demand as well as supply chains and capability of companies to deliver goods to market. The virus has struck the core global value chain regions including China, Europe and U.S. According to World Economic Forum, industrial output in China has fallen by 13.5% in first two months of 2020 compared with the previous year. The slowdown in manufacturing is expected to impact demand of metalworking fluids from this sector.

Competitive Section:

Company Names 

  1. Apar Industries Ltd.
  2. Castrol Limited
  3. Chevron Phillips Chemical Company LP
  4. Chem Arrow Corporation
  5. Exxon Mobil Corporation
  6. FUCHS
  7. Houghton
  8. Lukoil Lubricants
  9. The Lubrizol Corporation

Few Recent Developments

In March 2017, ExxonMobil Chemical Company, a division of Exxon Mobil Corporation, announced that it is planning to expand the capacity of its global hydrocarbon fluid assets by more than 250,000 tons per year at its world-scale petrochemical sites in Antwerp, Belgium; Baytown, Texas; and Jurong Island, Singapore.

Segmentation

By Application

  • Removal Fluids
  • Forming Fluids
  • Protecting Fluids
  • Treating Fluids

By Region

  • North America
  • Europe 
  • Asia Pacific
  • Latin America
  • Middle East
  • Africa
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