The global metalworking fluids market size was valued at USD 10.30 billion in 2017. It is projected to progress at a CAGR of 4.4% from 2018 to 2025. Metalworking fluids are extensively used in the manufacturing sector for lubrication purpose across the globe. Their use aids in extending tool life and improving its performance. They provide excellent surface finish, help remove metal chips, and reduce friction in the workpieces.
Rising environmental and safety concerns related to wastewater facilities in the machining industry are encouraging technological developments pertaining to metalworking fluids. Surging demand for environmentally-safe fluids is one of the key trends stoking market growth.
Asia Pacific is the leading regional market for metalworking fluids owing to presence of a raft of manufacturers and consumers. Growing production volume in various sectors, including defense, automobile, aerospace, and marine, is expected to be a one of the key growth stimulants for the market in the region.
Dynamics of the market in APAC are largely influenced by a large number of suppliers and distributors. This has resulted in stiff competition in the market and led to various suppliers adopting aggressive pricing strategies to consolidate their position. Growing investments by multiple automobile companies to expand their business presence in the region are estimated to create an upswing in the demand for metalworking fluids.
Rapid urbanization, increasing government investments, and improving consumer spending ability are triggering economic growth in Asia Pacific. This, in turn, is projected to work in favor of the market. Emerging economies such as China, India, South Korea, Malaysia, and Thailand are sights of high growth rates in this region.
In North America and Europe, developing a technology that conforms with stringent government regulations is becoming a challenge for metalworking fluid formulators. Manufacturers who are capable of formulating MWF products with reduced exposure to toxic chemicals and those which enhance machinery productivity are expected to have a competitive advantage over other industry players. Spiraling demand for environmentally compliant products in North America and Europe is poised to open new avenues for market players.
Mineral oil-based metalworking fluids have traditionally been the most consumed fluids. They are used in concentrated forms in various machining operations including turning, grinding, broaching, drilling, and milling. Rising number of machine shops is projected to trigger the demand for mineral oil-based MWFs over the forecast period.
Synthetic MWFs have witnessed a high demand over the past few years on account of their superior capabilities such as augmenting the tool life and providing excellent surface finish along with their property of being environment-friendly.
Stringent environmental regulations pertaining to use of MWFs across the globe are poised to play a pivotal role in stimulating the demand for biobased MWFs. However, lack of cost-competitive biobased metalworking fluids is anticipated to pose a challenge to market growth over the forecast period.
Neat cutting oils are used in a wide variety of machining operations, including most of the cutting operations. Since the past few years, these oils have been witnessing a surge in demand from the manufacturing sector owing to high-volume manufacturing in Asia Pacific. With use of high alloy steel in the heavy equipment manufacturing sector, the neat cutting oils segment is estimated to register strong growth over the forecast period. The segment accounted for 42.08% of the global revenue in 2017.
Water cutting fluids are primarily used in operations where heat dissipation is an important factor for proper machining process, resulting in high-grade products. They are used for different types of cutting operations such as drilling, milling, and grinding and are diluted in water before being used in machine shop. These fluids find application in heavy equipment manufacturing, wherein temperature of machining operation needs to be controlled.
Machinery was the largest application segment in the global metalworking fluids market in 2017 in terms of revenue. The segment is likely to experience significant growth owing to soaring demand from the agricultural equipment and earth moving equipment sectors as well as increasing production activities of various machinery equipment. Emerging markets such as India, China, and Singapore are expected to contribute notably to the growth of the machinery segment owing to rising manufacturing activities in these countries.
Metalworking fluids are used in providing cooling & lubrication during manufacturing of all kinds of transportation equipment including high-performance engines of trains, ships, and various types of aircraft. Globally, aluminum is the leading material used in manufacturing of automobile engines and wheels. In order to cater to rising demand for aluminum, manufacturers such as Cimcool, Castrol, and Exxon Mobil developed MWFs that are suitable for machining of aluminum alloys.
Construction was the largest industrial end-use segment in 2017 in terms of revenue. Rising manufacturing of construction machinery and related parts required for industrial, residential, and commercial construction is estimated to drive the market over the forecast period. Rise in public-private partnerships is projected to spur the demand for various types of construction components, which involve use of metalworking fluids during their manufacturing process.
Increasing commercial passengers along with cargo fleets, especially in Asia Pacific and Europe, is fueling the demand for aircraft, which, in turn, is poised to boost the production of new types of aircraft over the forecast period. Different types of metal alloys are used to manufacture various aircraft components that require precise dimensional measurements. Rising use of MWFs for manufacturing these components in order to meet required dimensional accuracy is anticipated to contribute to the growth of the aerospace segment.
North America is anticipated to witness healthy growth over the forecast period owing to flourishing automotive industry. The heavy machinery industry in the region is likely to generate strong demand for metalworking fluids. Some critical processes involved in the production of machinery includes machining, forging, forming, bending, and stamping, which are used to shape individual pieces of metal. Processes such as assembling and welding are used to join distinct parts together.
Strict regulations by the European Commission regarding use of MWFs in industries, owing to various safety and environmental concerns, have compelled manufacturers to use semi-synthetic and biobased metalworking fluids over the past few years and the trend is expected to continue over the coming years. Furthermore, increasing focus on reducing overhead costs and providing high-performance cutting and forming fluids is manufacturers to opt for semi-synthetic and biobased products.
The market is characterized by numerous global players such as FUCHS, Blaser Swisslube AG, CIMCOOL Fluid Technology LLC, Kuwait Petroleum Corporation, and MORESCO Corporation. Market players are focusing on providing end users with application-specific products in order to augment their share in the market.
Rapid growth in automotive, aerospace, and other end-use sectors is making the Asia Pacific region a global center for metalworking fluids. Increasing utilization of titanium, aluminum, and steel in Asia Pacific is compelling MWF manufacturers to formulate novel products and meet challenging physical property changes posed by these metals in end-use industries. CIMCOOL and Castrol introduced new metalworking fluids aimed at meeting demand of customers using aluminum, nickel, and titanium alloys in the aerospace industry. However, customers in Asia Pacific are price sensitive and hence, MWF manufacturers face threat from the unorganized sectors in the region.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2018 - 2025
Volume in Kilotons, Revenue in USD Million & CAGR from 2018 to 2025
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa
Revenue forecast, volume forecast, competitive landscape, growth factors and trends
U.S., Canada, Mexico, Germany, Russia, France, Spain, Italy, U.K., Switzerland, Denmark, Norway, Belgium, Poland, Czech Republic, Turkey, Sweden, Finland, China, India, Japan, South Korea, Singapore, Malaysia, Thailand, Australia, New Zealand, and Brazil
15% free customization scope (equivalent to 5 analyst working days)
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization
This report forecasts revenue and volume growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. 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, 2014 - 2025)
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Neat Cutting Oils
Water cutting oils
Soluble cutting oils
Semi-synthetic cutting oils
Synthetic cutting oils
Corrosion Preventive Oils
End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Industrial End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Electrical & Power
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Central & South America
Middle East & Africa
Avail customized purchase options to meet your exact research needs:
Get your queries resolved from an industry expert.
Design an exclusive study to serve your research needs.
A testimonial for service in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.
"The quality of research they have done for us has been excellent..."