Global metalworking fluids market size was USD 9.34 billion in 2014 and is expected to witness significant growth over the next seven years owing to increasing demand from the automobile sector in emerging economies including China and India.
The recovery of the automobile sector in the U.S. post the recession in 2008-09 is expected to augment growth over the forecast period. This has been a major factor for growth in North America, especially in the U.S., which has led to manufacturers increasing their production volumes and the region has improved its manufacturing output over the past few years.
Asia Pacific is the largest market owing to a robust manufacturing base in China and India. Strong government initiatives in China to support the manufacturing sector have led to a better production output, which is expected to have a positive impact on the industry.
Crude oil price volatility has impacted base oil price which is used to produce metalworking fluids. Base oil suppliers are at a competitive advantage owing to the oversupply of crude oil. This has resulted in improving their margins over the past couple of years.
Emerging economies including India, China, Brazil, Russia, and other Southeast Asian countries have been witnessing significant growth in the industrial manufacturing sector. Increasing production and exploration activities of crude oil in Asia Pacific, especially from Chinese petroleum companies, has been a major factor in influencing demand for the product in the region over the past few years.
U.S. metalworking fluids market volume, by product, 2012 - 2022 (Kilo Tons)
Synthetic based products are expected to witness rapid growth at a CAGR exceeding 3.5%, in terms of volume, from 2015 to 2022. Excellent surface finish, wear resistance, and ability to increase tool life have resulted in its increased demand from several end use industries including automobile, marine, and aerospace.
Semi-synthetic based products are expected to increase their penetration over the next seven years owing to their excellent machining capabilities. Captive consumption of the product by companies which are integrated across the value chain has contributed toward growth.
Mineral based metalworking fluids market exceeded USD 4.50 billion in 2014 on account of its low price and abundant availability. For instance, small and medium scale producers opt for mineral oil based products owing to their price sensitive customers.
Neat cutting oil accounted for 44.5% of the global volume in 2014. The market is expected to witness significant growth owing to its increasing demand from the automobile, aerospace, marine and defense sectors.
Water soluble cutting oils are the second largest segment accounting for 726.3 kilo tons in 2014. They are used in a concentrated form which has led to a rise in their penetration levels over the past few years. Also, adoption of new coolant cycling programs to improve lubrication system and machining process will fuel its demand over the forecast period.
Asia Pacific metalworking market accounted for over 40% of the global volume share in 2014. Positive outlook towards the manufacturing sector in China, Malaysia, and India in light of growing domestic consumption coupled with favorable regulations to attract investments is expected to augment expansion. Moreover, high consumption of metalworking fluids in the automotive sector is expected to promote demand over the forecast period.
North America market was USD 2.70 billion in 2014 and is expected to witness significant rise on account of high consumption of the product in the automobile sector in the U.S. Robust manufacturing base of automobile industry coupled with growing demand in Germany, and Russia is expected to augment demand in Europe over the forecast period
Metalworking fluids is a highly competitive and fragmented market. The global industry is dominated by a few companies including Houghton International, Blaser Swisslube, BP, Total S.A., ExxonMobil Corp, Fuchs, Quaker Chemical Corporation and Cimcool. Other key participants include Eni S.p.A, Chevron Corporation, Ashland, Inc, Motul, Kuwait Petroleum International, Indian Oil Corporation Limited, and PETRONAS.
In February 2015, Quaker Chemical Corporation launched a new product portfolio of advanced metal removal fluids. In August 2015, Cimcool launched “Cimpulse” which has helped metalworking shops to use only one fluid for various metal operations.
In January 2016, Hindustan Petroleum Corporation Limited announced plans to import crude oil from Iran for the first time since 2012, which will increase its production volume. In December 2013, MCC Petroli Hong Kong Corp. Ltd. and MCC Holding Hong Kong Corp. Ltd. acquired approximately 18% stake in Sinopec’s oil and gas business.
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