The global metalworking fluids market size was estimated at USD 11.23 billion in 2019 and is anticipated to witness a revenue-based CAGR of 4.4% over the forecast period. Growing exploration and production activities of oil and gas, especially in Asia Pacific, followed by North America are anticipated to drive the demand. Metalworking Fluids (MWF) are a range of oils and lubricants used for smooth functioning of metal pieces in machinery during various industrial operations. These fluids also help extend tool life and improving its performance. Crude oil and base oil are the primary raw materials for the production of MWFs. The raw materials are heated, extracted, and refined for producing different fluids such as motor oils, lubricants, and petrol.
The U.S. metalworking fluids demand witnessed severe fluctuations, until 2014, owing to the economic downturn of 2008 and subsequent recovery. The market is expected to witness moderate growth over the forecast period on account of consolidation in the metal fabrication industry coupled with competition from international markets. Modest growth in the construction and automotive sectors is expected to hamper the MWF industry over the forecast period.
The demand from U.S. is projected to be driven by the rising consumption of neat cutting oil, which is majorly used for aluminum products. The manufacturing sector in U.S. is witnessing a shift from steel machinery to aluminum products, due to its easy molding and lightweight properties. The rising usage of aluminum is thus anticipated to generate lucrative opportunities for the consumption of neat cutting oil. This segment is expected to witness a CAGR of 2.7% from 2020 to 2027.
Growth of heavy machinery industry in the developing economies of Asia Pacific and Central and South America is anticipated to drive the market for metalworking fluids. This industry includes construction equipment, cement, textile, metallurgical and mining machinery, oil field equipment, and material handling equipment. These machines have a high demand for synthetic and semi-synthetic-based fluids which offer better machining performance, corrosion resistance, and increased tool life. The growth in heavy machinery industry is thus predicted to increase the penetration of semi-synthetic- and synthetic-based MWF over the forecast period.
Emerging markets of China, India, and Brazil are projected to witness huge investments in different sectors such as transportation, infrastructure, and power. These sectors, in turn, result in the demand for devices such as construction equipment parts, compressors, engines, and generators, further propelling the need for lubricants that enhance operational efficiency. The increasing competition among manufacturers also drive the demand for metalworking fluids as they offer efficiency.
However, the penetration of plastic components in the automobile industry has increased considerably over the past few years owing to their lightweight, robust performance, high resistance to corrosion, and durability and efficiency. Plastic components have largely replaced metal parts in various sectors, hindering the market growth. Also, plastics offer durability, improve navigation ability, improve fuel economy, and help in extending the flight range. This has driven plastic use in military and defense aircraft and carriers, which is expected to have a negative impact on the global demand for MWF.
Commercially, different types of metalworking fluids are available globally and have been categorized based on their raw materials. The widely available MWF types include bio-based fluids synthetic-based, and mineral-based. Mineral-based fluid was the largest product segment and accounted for 48.14% of the global metalworking fluids market volume in 2019. This type of metalworking fluids are generally produced on a large scale and currently have a high market penetration mainly due to their cost-effectiveness.
Small and medium-scale producers usually adopt mineral oil-based metalworking fluids owing to their price-sensitive customers. However, the large scale companies, including Indian Oil Co-operation Limited and ExxonMobil, have adopted captive consumption practices for mineral oil-based products, due to their environmental hazards. This is expected to have a negative impact on market growth over the forecast period.
Synthetic metalworking fluids have witnessed strong demand in recent years on account of their superior capabilities in terms of increasing tool life and providing an excellent surface finish. As a result, the segment is expected expand at a CAGR of 4.7% from 2020 to 2027.
The different end uses of MWF include metal fabrication, transportation equipment, machinery, and others such as power cables, insulation applications, telecommunication cables, and electrical equipment. Machinery was the largest application segment in 2019 and accounted for 41.34% of the revenue share. The market is expected to witness significant growth owing to the rising use of metalworking fluids in agricultural equipment, earth moving equipment, and automotive components.
The metal fabrication industry uses metalworking fluids in large volumes owing to their ability to increase the strength of tools, provide an excellent surface finish and increase the efficiency of workpieces, and provide high-quality fabrication. These are the primary factors responsible for their high penetration in the industry over the past few years. The demand is projected to be driven by the growth in construction, electrical and power, and agriculture industries. The complexity involved in manufacturing various components necessitates the use of metalworking fluids, thus registering a significant CAGR of 4.1% from 2020 to 2027.
Industrial end use includes construction, electrical and power, agriculture, healthcare, rail, marine, telecommunication, automotive, and aerospace. Construction was the most dominant industrial end use in 2019 and accounted for 28.63% of revenue share. Rising manufacturing of construction machinery and related parts required for industrial, residential, and commercial construction is expected to boost the segment over the forecast period.
Metalworking fluids are consumed in large volumes during the manufacturing of construction equipment and related components owing to their ability to increase the strength of tools, provide an excellent surface finish to workpieces, increase the efficiency of workpieces, and provide high-quality fabrication. These are the primary factors responsible for their high penetration in this industry over the past few years.
Electric and power generation industries are anticipated to register a strong CAGR of 4.7%, over the forecast period, as the sector utilizes high-value components that require lubrication and cooling. The growing demand for reliable electricity networks is a major factor positively influencing the demand for electrical and power equipment.
The applications of MWF include neat cutting oil, water cutting oils, corrosion preventive oils, and others which include various protective and forming fluids. Water cutting fluids is the second-largest application after neat cutting oils. Water cutting fluids are mainly used in operations where heat dissipation is an important factor for proper machining processes, resulting in high-grade products.
Other applications of water cutting fluids include drilling, milling, and grinding. This segment accounted for a significant market share of 36.01% in 2019. Different water cutting oils, such as soluble, synthetic, and semi-synthetic cutting oils, are used across a wide range of applications. For instance, semi-synthetic cutting oils are used in various types of CNC machining operations, such as gear tooth grinding, centering, and facing, whereas tapping, drilling, and grinding are performed using soluble cutting oils.
The other applications of metalworking fluids that have registered a very less market penetration are of rolling oils, grinding oils, and other similar cutting oils. These oils are used in various operations such as cold and hot rolling. Increasing demand for cost-reduction machining processes is anticipated to increase the consumption of various types of rolling oils, which, in turn, is expected to promote the growth of different types of cutting oils in the manufacturing sector, resulting in a CAGR of 3.3% from 2020 to 2027.
In 2019, Asia Pacific held the largest market share of 40.64% in terms of revenue. The positive outlook of the manufacturing sector in India, China, and Indonesia is anticipated to dominate consumption. The growing investments from multinational companies to set up their manufacturing facilities in these countries owing to the cheap land and labor costs are expected to further propel the market.
Growing production volumes in several sectors including aerospace, automotive, defense, and marine are likely to be another major factor driving the regional market. According to OICA, the automotive production of the region grew from 47.98 million units in 2015 to 52.45 million units in 2018.
On the contrary, the demand for MWF across Europe is anticipated to be hindered by the stringent regulations by the European Commission (EC), which have largely affected the regional manufacturing sector. These factors have resulted in the shift in preference towards bio-based MWF, which is expected to expand at a CAGR of 3.2% from 2020 to 2027. However, the expensive nature of these products is expected to result in low market penetration.
The market is characterized by the presence of numerous global players, such as FUCHS, Blaser Swisslube AG, CIMCOOL Fluid Technology LLC, Kuwait Petroleum Corporation, and MORESCO Corporation. The competition among the market players is high as they compete to acquire higher market share by providing end users with application-specific products.
The fast-changing technological trends in machining operations are causing the MWF manufacturers to adopt new manufacturing methods to produce customized and cost-competitive products. This offers the manufacturers providing application-specific products a slight upper hand over their competitors and aids to expand their market share.
Base year for estimation
Actual estimates/Historical data
2016 - 2018
2020 - 2027
Volume in Kilotons, Revenue in USD Million & CAGR from 2019 to 2027
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa
U.S., Canada, Mexico, Germany, Russia, France, U.K., Spain, Switzerland, Denmark, Norway, Italy, Belgium, Poland, Czech Republic, Turkey, Sweden, Finland, China, India, Japan, Singapore, South Korea, Malaysia, Thailand, Australia, New Zealand, Brazil
Revenue forecast, company share, competitive landscape, growth factors and trends
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This report forecasts revenue growth at a global, regional, and country level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global metalworking fluids market report on the basis of product, application, end use, industrial end use, and region:
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Neat Cutting Oils
Water Cutting Oils
Corrosion Preventive Oils
End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Industrial End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Electric & Power
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Central & South America
Middle East & Africa
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