The global metalworking fluids market size was valued at USD 10.75 billion in 2018 and is projected to expand at an estimated CAGR of 4.4% from 2019 to 2025. The increasing demand for Metalworking Fluids (MWFs) from automotive and heavy machinery industries, especially in emerging economies from Asia Pacific such as China, India, Malaysia, and Thailand is expected to drive the growth.
Automobile industry relies on MWFs owing to their abilities to reduce friction between work pieces and tools, remove metal chips, provide excellent surface finish, and prolong tool life. Original Equipment Manufacturers (OEMs) conduct R&D activities for producing higher volumes of automobile components that lead to energy efficiency in vehicles.
Metalworking fluids aid in increasing the efficiency of machining processes, thus, increasing their production volumes. As a result, metalworking fluids are expected to witness steady demand over the forecast period.
In 2014 and 2015, the Chinese economy has witnessed a slow growth owing to the overcapacity and oversupply in steel and iron industry. However, it has exported a major portion of its production of essential commodities including steel and iron to various countries in Europe and North America at a lower price and penetrated their markets. The proposed tariff on Chinese imports by the U.S. government might challenge steel export sector. However, the China’s economic recovery is expected to drive the domestic demand for various metals, thereby boosting growth of MWFs market.
Increasing exploration and production activities of oil and gas in Asia Pacific, especially from Chinese petroleum companies, have been influencing the demand for metalworking fluids from oilfield equipment industry. According to Subsea U.K., China’s total expenditure on exploration and production activities of oil and gas was approximately USD 80 billion in 2017, which gradually increased from USD 62 billion in 2015.
The market is a highly competitive and fragmented in nature. Price volatility of crude oil has influenced the prices of mineral base oil, which is used to produce metalworking fluids. Suppliers of vegetable and ester base oils are at a competitive advantage owing to the oversupply of crude oil in the industry, and this has resulted in improving their profit margins over the past couple of years.
Based on product, the metalworking fluids market has been segmented into mineral-based, synthetic-based, and bio-based fluids. Mineral-based oil was the largest product segment in 2018, these metalworking fluids are the conventional option and are produced in large volumes owing to their cost-effectiveness.
Synthetic MWFs have witnessed a strong demand in the recent years on account of their superior capabilities in terms of increasing tool life and providing an excellent surface finish. They are expected to witness a better CAGR over the forecast period than bio-based metalworking derivatives owing to the aforementioned properties.
Neat cutting oils is anticipated to witness significant growth owing to the increasing demand from automobile, aerospace, marine, and construction sectors. Neat cutting oils are used in concentrated form, which has led to a rise in their demand over the past few years. The trend is expected to continue as manufacturers are adopting new coolant cycling programs to improve their lubrication system and machining processes.
Water cutting fluids are used in many operations where heat dissipation is a significant factor for proper machining process, which results into high-grade products. They are used for different types of cutting operations such as grinding, milling, and drilling and are diluted in water before using at the machine shop.
Machinery was the largest application segment in 2018 and accounted for over 41.13% of the global market share in terms of revenue. It is expected to witness significant growth over the forecast period owing to increasing use of MWF in agricultural equipment, earth moving equipment, and automotive components.
Metal fabrication sector uses MWF in large volumes owing to their ability to increase the strength of tools, provide an excellent surface finish and increase the efficiency of work pieces, and provide high-quality fabrication. These are the primary factors responsible for their high penetration in the industry over the past few years.
On the basis of industrial end use, the market is segmented into construction, electrical and power, agriculture, automobile, aerospace, rail, marine, telecommunication, and healthcare. Construction was the largest industrial end use segment in 2018 and accounted for 28.64% of the global market share in terms of revenue. Growth in manufacturing of construction machinery and related parts required for industrial, residential, and commercial construction is expected to boost the market over the forecast period.
Rise in public-private partnerships is likely to further spur demand for various types of construction components, which consume MWF during their manufacturing process. Emerging economies are expected to be essential for the growth of MWF sector owing to the rising construction activities in these economies.
An increase in the global population has fueled the demand for agricultural products. Agricultural producers across the globe are looking at more efficient and productive machinery to enhance the quality and quantity of agricultural commodities. In addition, governments in various developing economies are offering subsidies for purchasing agricultural equipment.
In 2018, Asia Pacific held the largest market share of 40.31%. Positive outlook of manufacturing sector in China, Indonesia, and India owing to the growing domestic consumption, coupled with favorable government policies augmenting the manufacturing sector, is expected to propel the growth in the forthcoming years. Asia Pacific is followed by North America, which accounted for 29.56% of the global MWF sector in terms of revenue in 2018.
Growing manufacturing base of automobile industry, along with increase in demand for automotive components, in Russia and Germany is expected to drive the demand for metalworking fluids from Europe over the forecast period. In Europe, MWFs market is regulated and the European Chemicals Agency (ECHA) has listed the approved biocidal substances for use in MWF. The demand for formaldehyde-free biocides is increasing in Europe.
The value chain of this market consists of raw material suppliers and MWF manufacturers, including refineries and blenders, distribution channels, and end use applications.Houghton International, Inc.; Blaser Swisslube AG; BP plc; Exxon Mobil Corporation; Total S.A.; FUCHS; and Chevron Corporation are some of key market players.
Manufacturers are adopting acquisitions and collaborations strategies, which is expected to be a key feature of the market. In April 2017, Quaker Chemical Corporation and Houghton International, Inc. announced their agreement to combine their operations to enhance their MWF production capabilities. In December 2015, Indian Oil Corporation signed a Memorandum of Understanding (MoU) with Rosneft for collaboration in exploration and production and geological survey of hydrocarbons in onshore assets in the Russian Federation.
Base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 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, company share, 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, Brazil
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest 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 Oil
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 and South America
Middle East and Africa
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