Metalworking Fluids Market

The global metalworking fluids market size was valued at USD 10.8 billion in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 3.8% from 2022 to 2030. The product demand is anticipated to be driven by increased demand for automotive and heavy industry machinery. Individual end-use sectors, such as machinery, metal fabrication, and transportation equipment, are driving the expansion of the Metalworking Fluids (MWFs) market.The most basic raw source utilized to make the product is crude oil. The crude oil is refined, treated, and blended to create the neat cutting oils, soluble oils, and corrosion-preventive oils that are sought. Base oil, derived from crude oil, is a primary raw material that accounts for approximately 40% of the total MWF cost.

Base oil is manufactured from the refining and heating process of crude oil. It is used to manufacture motor oils, lubricants, and MWFs.The growth of the automobile industry is expected to be one of the key drivers of product demand. The product is used in the automobile industry because it can reduce friction between the work piece and the tool, eliminate metal chips, offer a good surface quality, and extend tool life. Metalworking fluids help improve the efficiency of machining processes, resulting in higher machine production volumes. As a result, the demand for metalworking fluids is likely to be stable over the forecast period.

Manufacturing is one of the core industries in North America and Europe. Advances in the manufacturing methods for the production of sophisticated end-use products, coupled with an increase in the exports of construction machinery and power, agricultural, and automotive equipment, have fueled the market growth. The market growth in North America and Europe is also attributed to the robust growth of end-use industries in Asia Pacific. In Asia Pacific, an increasing number of consumers are preferring advanced machinery and equipment in agriculture, automotive, and construction industries.

This has led to increased market penetration of MWFs in machinery and transportation equipment end-use industries.The growth of the heavy machinery industry in developing economies of Asia Pacific and Central & South America is anticipated to drive the market. Increasing exploration & production activities of oil & gas in these regions, especially from Chinese petroleum companies, have been a major factor in influencing the demand for MWFs in the oilfield equipment industry.

The mineral segment dominated the market accounting for the largest share of more than 48.1% of the global revenue in 2021. The high share is attributed tothe consumption of mineral-based oils owing to their lowcost. Due to price-conscious consumers, small- and medium-scale manufacturers typically use mineral oil-based MWFs. Over the forecast period, this is expected to have an impact on the market growth. Mineral-based fluids are also utilized in a variety of machining processes, such as turning, grinding, broaching, drilling, and milling.Synthetic MWFs are anticipated to witness the fastest CAGR over the forecast period.

The growth is anticipated due to the characteristics imparted by MWFs, such as enhanced tool life and excellent surface finish. Synthetic oils are in high demand due to their ability to reduce friction between work pieces, eliminate waste, and extend sump life. Large-scale manufacturers in many countries have embraced semi-synthetic MWFs, resulting in an increase in synthetic MWF penetration over the last few years, which is expected to continue during the projected period.Growing concern regarding the usage of petroleum products has resulted in strict environmental restrictions and government measures to promote environmentally friendly products. As a result, the manufacturing of bio-based MWFs has increased.

The machinery segment dominated the market in 2021 and accounted for the largest share of more than 41.00% of the global revenue due to high product demand. The demand is attributed to a rise in the consumption of MWFs in agriculture equipment, earth moving equipment, and automotive components. Significant growth of the MWFs market is projected to be aided by the rising demand from construction equipment makers. Metalworking fluids are used in machining operations to extend the life of the sump, which saves manufacturers money in the long run. Small-scale enterprises have increased the usageof MWFs owing to their limited procurement budgets.

The transportation equipment segment is expected to grow at the fastest CAGR over the forecast period. The growth is attributed to the high product demand in transportation equipment along with development in infrastructure. Metalworking fluids are used in operations where heat dissipation is critical for effective machining and to aid in the production of high-quality products. They are found in a variety of transportation equipment, including high-performance railway engines, ships, and planes. The main areas where these oils are employed to improve engine performance are Maintenance, Repair, & Overhauling (MRO).

The neat cutting oil segment accounted for the largest share of more than 42.00% of the global revenue in 2021. The growth is attributed to a rise in demand from the automobile, aerospace, marine, and construction sectors. They are utilized in a wide range of machining processes, as well as in a variety of cutting operations. Because of their capacity to supply cost-effective solutions, they have significant demand from the high-volume manufacturing industry in Asia Pacific’s emerging economies. The use of high-alloy steels in the heavy equipment manufacturing sector is also likely to drive the demand for neat cutting oils over the forecast period. The water-cutting oil segment accounted for the second-largest market share in 2021.

The growth is credited to the increase in the consumption of these fluids in various complex machining operations. These fluids are utilized in a variety of procedures where heat dissipation is critical for a successful machining process and high-quality products. They are diluted in water before using in the machine shop and are used for various cutting activities, such as drilling, milling, and grinding. These fluids are used in heavy equipment production to keep the temperature of the machining operation under control. The semi-synthetic cutting oil segment in water cutting oil is anticipated to grow at a considerable CAGR from 2022 to 2030.

The growth is credited to its application in cast iron, aluminum components, and machining operations, such as sawing, drilling, turning, and milling. The rising use of these oils in the aforementioned applications is expected to boost the segment growth over the forecast period.Corrosion preventive fluids are also expected to grow at a steady CAGR over the forecast period. These oils are utilized in machining processes where the risk of harming the tool is significant; as a result, these oils are responsible for extending the sump life, resulting in lower overhead expenses for manufacturers. On account of their low production quantities and limited cost structures, small-scale enterprises have increased their usageof corrosion preventative oils.

On the basis of geographies, the global market has been divided into Asia Pacific, North America, Europe, Middle East & Africa, and Central & South America. Asia Pacific region dominated the global market in 2021 and accounted for the largest revenue share of more than 41.00%. The regional market is estimated to expand further at the fastest CAGR from 2022 to 2030. The high product demand is attributed to a rise in the number of manufacturing units in the Asia Pacific region. China and India, in particular, are projected to dominate the demand for mineral and synthetic MWFs. The market for synthetic MWFs is expected to grow in this region.

This is due to the increased requirement for superior lubrication performance in automotive grinding and machining operations. The market in the North America region is also anticipated to witness significant growth, in terms of value, during the forecast period. Mineral, synthetic, and water-soluble oils are available from MWF producers in North America and are suited for machining and grinding operations on ferrous and non-ferrous metals. Metalworking fluids can be used with ferrous metals and alloys including cast iron, steel, and stainless steel, as well as non-ferrous metals and alloys, such as aluminum, nickel, copper, and magnesium.