Metalworking Fluids Market

Metalworking Fluids Market by End Use— Metal Fabrication, Heavy Machinery, Transportation Equipment, and General Manufacturing for 2021-2031

Metalworking Fluids Market Snapshot

As per the newly released data by Future Market Insights, the global metalworking fluids market is poised to total US$ 9.6 Bn in 2021, expanding at a 3.7% CAGR.  Demand for removal fluids is projected to rise at 3.5% to top 1,354,497 Tons in terms of volume, while the forming fluids segment is expected to grow at 2.7% to total 772,256 Tons.

Increasing adoption of lightweight materials in high performance applications, especially in the automotive industry is spurring demand for metalworking fluids. Manufacturing of complex geometrics with lightweight metals requires proper lubrication, which in turn is boosting sales of metalworking fluids. 

Key Points Covered in Metalworking Fluids Market Study

  • Market estimates and forecast 2016-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Global Metalworking Fluids Market and How to Navigate
  • Recommendation on Key Winning Strategies

Metalworking Fluids Market Historic Sales Compared to 2021-2031 Forecast Outlook

Demand for metalworking fluids grew at 1.0% CAGR between 2016 -2020. Ongoing economic slowdown induced by the COVID-19 outbreak dampened sales prospects of metalworking fluids.

However, with resumption in production activities across various sectors, recovery of the global metalworking fluids market is on card. Growing demand for lightweight components in high performance applications such as heavy machinery, transportation equipment, automotive and construction industries will continue boosting sales of metalworking fluids in the forthcoming years.        

Moreover, ongoing research and development activities have resulted in innovative manufacturing techniques for the production of complex geometric shapes. This requires more lubrication as compared to usual ones. Backed by these factors, consumption levels of metalworking fluids are expected to increase at a steady pace over the forecast period.

The adoption of advanced machines that perform multiple operations at a time is bolstering sales of multifunctional lubricants. Key manufacturers are focusing on developing lubricants that are more efficient and can be used in more than one operations to gain a competitive advantage in the market.

In addition to this, increasing awareness regarding sustainability and use of eco-friendly products is boosting demand for water-soluble lubricants in the metalworking fluids industry. This trend is expected to continue in the forthcoming years as concerns regarding adverse effects of synthetic chemicals present in fluids continue to rise.

Owing to the aforementioned factors, Future Market Insights projects sales of metalworking fluids to grow at a CAGR of 3.7% over the forecast period 2021-2031.

What Is the Impact of Emission Regulations on the Metalworking Fluids Market?

Demand for metalworking fluids increased at a sluggish rate during 2016-2020 owing to the impact of the COVID-19 pandemic. Other factors such as implementation of stringent regulations to prevent health hazards further stagnated growth of the market.

Increasing demand for metalworking fluids can be attributed to high production volume of metals, used as in key components in high performance applications. Metals used in transportation industry and production of heavy machinery requires proper lubrication to adhere to manufacturing standards. As a result, sales of metalworking fluids are anticipated to rise.

However, various government regulations imposed over the use and production of harmful synthetic metal working fluids, coupled with shifting consumer preference towards environment friendly products is hindering sales metalworking fluids.

This is making selection of right product for specific application difficult for end-use industries. To overcome this challenge, key manufacturers are engaging in research and development activities to create innovative solutions. Improvements in water soluble fluids, launch of bio-based fluids, and improving portfolio of multifunctional fluids are anticipated to create lucrative opportunities for metalworking fluid producers.

What Are The Key Opportunities in the Global Metalworking Fluids Market?

Key manufacturers are investing in research and development activities to launch innovative products catering to industry-specific requirements. Development of bio-based lubrication solutions to comply with government regulations regarding harmful synthetic chemicals used in fluids is positively shaping the demand outlook for metalworking fluids.

Furthermore, emergence of multi-functional fluids to reduce incompatibility in technologically advanced machinery is leading to developments in the metalworking fluids market. Along with this, shifting consumer preference towards environment friendly products can create attractive opportunities for the manufacturers in the forthcoming years.

In addition to this, industries such as aerospace, marine, nuclear, and others often face challenges while selecting the right blend of fluids and components to tackle heat generation at the cutting zone. In response to this, key market players are offering high performance fluids to gain a competitive edge in the market.

What Is the Impact of COVID-19 Crisis on Metalworking Fluids Market?

Lockdown imposed across various countries to contain the COVID-19 outbreak resulted in limited production and transportation-related delays. With the consecutive waves of the novel coronavirus tightening its noose, the disruption of economic activities had a negative impact on the metalworking fluids market.

Despite the slowdown, economies are steadily recovering with the advent of expedited vaccine drives. Against this backdrop, sales of metalworking fluids are projected to recover over the assessment period, with steady growth projections in terms of medium-term and long-term outlook.

Country-wise Insights

Why is the Demand for Metalworking Fluids High in the U.S.?

The metalworking fluids market in the U.S. is projected to grow by 3.0% year on year in 2021, bucking initial scepticism about how the market would perform during a global pandemic. Across North America, the demand for metalworking fluids is expected to reach 689,102 Tons.

The region is predicted to remain one of the most attractive markets during the forecast period, opines FMI. According to the study, the U.S. is expected to continue its dominance over the forecast period. Growth can be attributed to the presence of key market players and high demand from end-use industries including metal fabrication, transportation equipment and various others.

How Will the Metalworking Fluids Market Expand Across Germany?

Demand for metalworking fluids in Germany is expected to grow at a CAGR of 3.5% over the forecast period. Germany is home to a robust automotive industry. Growing preference for lightweight vehicles is boosting the sales of metalworking fluids in the country.

Owing to this trend, automotive manufacturers in Germany are creating compact and lightweight components using metals such as aluminium and copper. Manufacturing of these components requires efficient lubrication, which in turn is bolstering sales of metalworking fluids.

Why is China Considered an Attractive Metalworking Fluids Market?

Sales of metalworking fluids are projected to grow at a 5.1% CAGR over the forecast period, positioning China as a lucrative pocket in East Asia market. Strong manufacturing capacity in the automotive industry, coupled with increasing adoption of synthetic and semi-synthetic oils will continue augmenting growth of the metalworking fluids market in China.

Category-wise Insights

Sales of Straight Oil Metalworking Fluids to Remain High 

As per FMI, sales of straight oil are expected to grow by 3.1% year-over-year in 2021. Demand for semi synthetic oils is expected to increase by 2.5% between 2020 and 2021, giving the combined global metalworking fluids market year-over-year growth of 3.2% in 2021.

Which is the Most Widely Used Product Type of Metalworking Fluids?

Metal removal fluids, also known as metal cutting fluids, are the most widely used product type of metalworking fluids. Metal removal or metal cutting is the most common in metal fabrication industry.

Manufacturing with any metal requires cutting to obtain certain geometric shapes. This process requires effective metalworking fluids for precision. Owing to this, the segment is anticipated to hold around 50% of total metalworking fluids sales over the forecast period.

Applications of metalworking Fluids in the Transportation Equipment Segment to Continue Rising

Metalworking fluids are most widely consumed by the transportation equipment sector, followed by metal fabrication and heavy machinery industry. Transportation equipment require production of complex and high strength components, leading to high consumption of metalworking fluids.  As a result, the transportation equipment is anticipated to consume more than 50% of the metalworking fluids produced globally.

Competitive Landscape

The global metalworking fluids market is highly competitive, with key players accounting for about 50% of the total market share. Key market participants are targeting high-growth regions like North America for investments owing to high end-use demand and high energy consumption rate. Moreover, key manufacturers are engaging in mergers, acquisitions and collaborations to expand their global footprint in the market. For instance:

  • In 2021, Idemitsu announced the beginning of its lubricant business in Pakistan through its subsidiary Idemitsu Lube Pakistan Co. Ltd. The new subsidiary aims to expand the company’s geographic presence.
  • In 2021, Shunichi Kito, the CEO of Idemitsu Kosan Co., Ltd., announced the commencement of production and operation at its Huizhou plant in China.
  • In 2021, Idemitsu and IHI Corporation announced that they had concluded a joint agreement to establish a supply chain network for ammonia.
  • In 2019, Quaker acquired the operating divisions of Norman Hay plc, which is a UK-based specialty chemicals, operating equipment, and service provider to industrial end-markets.
  • In 2021, Quaker Chemical Corporation announced the beginning of a new joint venture with Grindaix GmbH, which is a German provider of high-tech coolant control solutions and delivery systems.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value and Tons for Volume

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, Poland China, Japan, South Korea, India, ASEAN, ANZ, GCC Countries, Turkey, and South Africa, BENELUX

Key Segments Covered

Category, Product Type, End-Use and Region

Key Companies Profiled

  • ExxonMobil Corporation
  • Idemitsu Kosan, Co., Ltd
  • Quaker Chemical Corporation
  • Fuchs Petrolub SE
  • BP plc.
  • Apar Industries Ltd.
  • TotalEnergies SE
  • Yushiro Chemical Industry Co. Ltd.
  • Cimcool Industrial Products LLC
  • Metalworking Lubricants Company

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is the current metalworking fluids market value?

    The metalworking fluids market is anticipated to total US$ 9.61 Bn in 2021.

  • At what rate did the metalworking fluids market grow between 2016 and 2020?

    The metalworking fluids market registered growth at a 1.0% CAGR between 2016 and 2020.

  • What are the key trends driving metalworking fluids sales?

    Increasing adoption of synthetic and semi-synthetic oils, coupled with ongoing innovations in blends and other lubricants for various end-use requirements are the key trends driving metalworking fluids sales.

  • Who are the leading players in the metalworking fluids market?

    Leading players operating in the metalworking fluids market include Quaker Chemical Corporation, ExxonMobil Corporation, TotalEnergies SE, Idemitsu Kosan Co. Ltd. and BP plc.

  • What will be the demand outlook for North America metalworking fluids market?

    North America metalworking fluids market is projected to grow at a steady 3.3% CAGR during the forecast period.

  • What is the market share of leading players in metalworking fluids market?

    Leading players in the global metalworking fluids market are estimated to account for 45-55% of the total market share.

  • What will be the metalworking fluids market share in Europe?

    The metalworking fluids market in Europe is anticipated to expand at a 3.1% CAGR between 2021 to 2031.

  • What is the current market share of Japan and South Korea in the global metalworking fluids market?

    Japan and South Korea are anticipated to hold 9.7% of the global metalworking fluids market share collectively.

Metalworking Fluids Market by Category

By Category:

  • Straight Oil
  • Emulsified Oil
  • Semi-Synthetic oils
  • Synthetic Oils

By Product Type:

  • Removal Fluid
  • Protection Fluids
  • Forming Fluids
  • Treating Fluids

By End-Use:

  • Metal Fabrication
  • Heavy Machinery
  • Transportation Equipment
  • General Manufacturing

By Region:

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

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