Metalworking Fluids Market - Forecast (2022 - 2027)

The Emergence of COVID-19 Pandemic

However, the end-use industries got affected due to the COVID-19 pandemic, as most of the countries issued lockdown. Metalworking fluids or cutting oils are used to reduce the friction of metal parts. But these fluids are derived from crude oil. Thus, the less production of crude oil has hampered the production of fluids. According to BP static, Global oil production fell by 60,000 barrel per day was more than offset by a decline in Organization of the Petroleum Exporting Countries (OPEC) production, led by the U.S, (-2 million b/d), Iran (-1.3 million b/d) Venezuela (-560,000 b/d) and Saudi Arabia (-430,000 b/d). Furthermore, other sectors such as automotive, aerospace, construction are also affected during Covid-19. This factor has limited the consumption and production of metalworking fluids.

 

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Report Coverage

The report “Metalworking Fluids Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Metalworking Fluids Industry.
By Type of Fluids: Straight Oils, Water Soluble Oils, Synthetic Fluids, Semi-Synthetic Fluids, and Others
By Application: Removal Fluids, Protective Fluids, Forming Fluids, and Others
By End-Use Industry: Automotive, Aerospace, Energy, Healthcare, Metal Fabrication, Industrial Equipment, and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa)

Key Takeaways

Asia Pacific dominates the metalworking fluids market due to increasing consumption of various types of fluid such as synthetic oils, water-soluble, oils, and others in heavy automotive machines in developing Asian Countries such as Indian and China.

There is increasing consumption of synthetic fluids in the metalworking process, as it has a natural tendency to emulsify less oil and easily applied under high fluid pressures.
Increasing usage of metalworking fluids in an automotive machine, aerospace tools, industrial & construction equipment, process plant equipment, and other machines due to lubricants usage which reduce friction on the metal surfaces.

Furthermore, alkalonamines are used in metalworking functional fluid to adjust the pH level and provide base strength & capacity to the fluids, which helps to increase the production of metalworking fluids.

Figure: APAC Metalworking Fluids Market Revenue, 2021-2026 (US$ Billion)

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Metalworking Fluids Market Segment Analysis – By Type of Fluids

Synthetic fluid leads the global demand for the metalworking fluids market in 2020. Synthetic fluids are more transparent which makes the tools and workpiece more visible. Synthetic fluid is widely used in grinding metal parts as it improves visibility and helps to reduce machine setup duration. On the other hand, alkanolamines are the optimal choice for synthetic metalworking fluids that offer biostability and enhanced emulsion stability of fluids. Synthetic fluids are inherently lower foaming than water-soluble oils or semi-synthetics. Synthetic fluids are easier to apply in metal parts and reduce disposable costs. Thus, this fluid is widely used in the metalworking process.

 

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Metalworking Fluids Market Segment Analysis – By Application

Removal fluids segment dominated the metalworking fluids market in 2020 and is growing at a CAGR of 3.1% during the forecast period 2021-2026. Removal fluid offers low foam and works as a corrosion inhibitor for machine components. They are supplied in concentrated form and require mixing with water at the point of use. These fluids help to increase the efficiency and process productivity of grinding operations. Removal fluids are engineered for various levels of cooling and lubrication, which help to improve tools' life. Thus, removal fluids are used in various machine tools which, in turn, is increasing the metalworking fluids market during this projected year.

Metalworking Fluids Market Segment Analysis – By End-use Industry

Automotive sector segment held the global demand of the metalworking fluids market in 2020 due to growing demand for various applications such as cutting, abrading, and metal forming in automotive machines. Metalworking fluids are used as heavy-duty cleaners for the cleaning of components, tools, and other parts of the machine. On the other hand, synthetic fluid is a highly required fluid in machine parts due as it improves fluid management during the metalworking process. Hence, growing consumption as corrosion inhibitors, for reducing operational costs, and increasing the efficiency & tools life is estimated to grow the demand for metalworking during the projected year.

Metalworking Fluids Market Segment Analysis – By Geography

Asia Pacific dominated the Metalworking Fluids Market with a share of 37% in 2020 owing to the increasing demand for metalworking fluids from the aerospace and automotive industry. Metalworking fluids are in deep drilling, grinding, and tapping for metal parts. Thus, increasing the production of vehicles, airplanes, metalworking fluids consumption will also increase. The Chinese government expects the production of automobiles to reach 35 million units by 2025, according to the International Trade Administration (ITA). According to the India Brand Equity Foundation (IBEF), The MRO (maintenance, repair, and overhaul) aerospace industry is likely to grow over US$ 2.4 billion by 2028 from US$ 800 million in 2018. Also, the number of airplanes is expected to reach 1,100 by 2027. Hence, all such factors are expected to grow the consumption of metalworking fluids.

Metalworking Fluids Market Drivers

Growth of the Heavy Machinery

Metalworking fluids are extensively used in heavy machinery and equipment as it increases the productivity level of metal parts. Thus, the growing heavy machinery is estimated to grow the consumption for the manufacturing process. For Instance, in 2021, Hitachi introduced the ZW220-7, Stage V-compliant wheel-loaded machine with a heaped bucket capacity of 2.8–10.0 cubic meters. It's operating weight of 18,190–19,450kg and a net power of 157kW (210hp). In February 2021, Manitex Valla launched the all-new V110R Electric Mobile Crane which is controlled by remote. It has a capacity for lifting weights of around 11,000 kg at 10.4 meters of height. This factor is growing the demand for fluids.

Increasing Automotive Production is estimated to grow the Consumption for Metalworking Fluids

Growing automotive production leads to the consumption of metalworking fluids due to reducing friction during cutting the machine tools, used as corrosion inhibitors, and for grinding application. Thus, increasing vehicle demand is surging the consumption of fluids. According to the Australian Bureau of Statistics, the Australian market sold 1.2 million new passenger cars, SUVs, and commercial vehicles in 2017, an increase of 0.9 % from 2016. According to the International Organization of Motor Vehicle Manufacturers (IOMVM), the production of light commercial vehicles has increased in the APAC region by 10.2 % in 2018. Light commercial vehicle production has increased from 2,249,348 in 2018 to 2,254,153 in 2019, an increase of 0.2 % in Europe. The increasing automotive industry is expected to increase the requirement of fluids in machine parts, which act as a driver for market growth.

Volatility in Raw Material Prices

Business development is expected to be threatened by fluctuating prices of curing agents like crude oil. Crude oil is the raw material for the production of metalworking fluids. Thus, the crude oil fluctuation can hamper market growth. According to BP Statics, oil prices declined to US$64.21/bbl in 2019 as compared with US$71.31/bbl in 2018. Hence, the volatility of raw materials is limiting the demand for metalworking fluids.

Hazardous for Human Health is limiting the Consumption of Metalworking Fluids

Metalworking fluids are irritating workers' skin during exposure. It causes lipoid pneumonia, occupational asthma, chronic bronchitis, oil acne, folliculitis, and another disease. During exposure to straight oil, also causes skin diseases such as skin cancer and folliculitis. Hence, such health-hazardous may limit the consumption of metalworking fluids in upcoming years.

 

 
Metalworking Fluids Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the metalworking fluids market. Major players in the Metalworking Fluids Market include:

BASF
Lubrizol
Dow Chemical
Evonik Industries
QualiChem Metalworking Fluids
ExxonMobil Corporation
FUCHS
Total
BP plc
Chevron U.S.A. Inc., and among others.