Global Metalworking Fluids Market: Snapshot

Also sometimes termed as cutting fluids, metalworking fluids are used as lubricants and coolants fabrication, machining, and other metalworking processes. Among the consumers, the growing inclination toward synthetic fluids that contain lubricants is a reflection of their benefits over conventional fluids, owing to their advanced functions and forms. Moreover, metalworking fluids offer improved tramp oil control, are accurate in measuring concentration, extend pump life by reducing oil contamination, reduce mist, resist fire, and generate less form. Overall, the improved efficiency and performance under load in low viscosity formulations is driving the demand in the global metalworking fluids market, although the premium cost of these fluids and low consumption to concentration ratio is obstructing the market from achieving its complete profitability.

The global metalworking fluids market had an evaluated opportunities worth US$9.91 bn in 2015, and is estimated to reach a valuation of US$14.78 bn by the end of 2024, rising at a 4.6% during the forecast period of 2016 to 2024. Application in various end-use industries such as automation, metal fabrication, steel, and original equipment manufacturers (OEM) are favoring the market expansion, although environmental issues and health risk to workers is hindering the growth rate.

Automotive Industry Maintains Removal Fluids as Most Important Application Segment

Application-wise, the global metalworking fluids market is segmented into removal fluids, protecting fluids, treating fluids, and forming fluids. Out of these, removal fluids application segment accounted for the maximum shares at 50.8% in 2014, and is expected to remain dominant throughout the forecast period. Metalworking fluids are used widely in the metalworking process in industries such as automotive and metal fabrication. The fluids are generally employed in applications such as metal removal, metal forming, metal protecting, and metal treating. In terms of volume, the removal fluids application segment is projected to reach 1,876.1 kilo tons by 2024.

North America Remains Most Profitable Region

Region-wise, the global metalworking fluids market is segmented into North America, Latin America, Asia Pacific, Europe, and the Middle East and Africa. In terms of volume, North America accounted for the maximum 26.1% shares in 2014. Country-wise, the U.S. contributed to nearly three-fourth of the demand from North America, with removal fluids holding the position of most in-demand application segment. The metalworking fluids market in North America is projected to expand at a steady pace compared to the global growth rate, primarily due to the increasing application of removal fluids and forming fluids in the region. Asia Pacific is estimated to expand at the most prominent growth rate, owing to thriving automotive industry, with China producing most of the demand for metalworking fluids.

The global metalworking fluids market is fragmented in nature with the presence of several global players, and emergence of a number of domestic players who are providing products of similar quality to eat into the global shares. Exxon Mobil Corporation, FUCHS, and Houghton are three of the leading global players in this market who held maximum shares in 2014. LUKOIL Lubricants Company, Chevron Phillips Chemical Company, Castrol Limited, The Lubrizol Corporation, Total, and Chem Arrow Corporation are some of the other prominent players in the global market for metalworking fluids.

Global Metalworking Fluids Market: An Overview

The global metalworking fluids market is expected to garner a stellar growth during the forecast period.

Metalworking fluids are range of liquids used to cool down metalwork piece after machining, grounding and milling. It includes a range of oils and other liquids.  Majorly, metalworking fluids are primarily used to reduce heat and friction between cutting tool and work piece, and help prevent burning and smoking.

Global Metalworking Fluids Market: Notable Developments

Some of the latest development in the global metalworking fluids market are-

Key manufacturers in the metalworking fluids market are focusing to improve distinct properties of metalworking fluids. This will help improve functioning of metalworking fluids at the time of drilling, reaming, roll forming, polishing, honing, and lapping.

Along with this, key players are emphasis on manufacturing of biosynthetic metalworking fluids. This is mainly because of the stringent regulations imposed by several governments regardin use of metalworking fluids. This can be attributed by the fact that Castrol, a key players in the metalworking fluids market have  launched a biosynthetic products called Castrol Hysol SL 36 XBB and Castrol Alusol SL 61 XBB supports the industry’s interest in cost and harmful chemical reduction.

Apart from this, players are constantly working to enhance their market share owing to this lot of turbulence are happing in the metalworking fluids market. For instance, in November 2014, Castrol Limited entered into a strategic partnership with the BLOODHOUND Land Speed Record Project by Jaguar to supply advanced lubricant supply. 

Some of the prominent players operating in the global metalworking fluids market are Total S.A., Chevron Corporation , Indian Oil Corporation Ltd , Henkel AG & Co. KGaA,  HPCL , Exxon Mobil Corporation, Houghton International Inc. , Shell , BP , Croda International Plc., and China Petrochemical Corporation.

Global Metalworking Fluids Market: Key Trends

The global metalworking fluids market is expected to rise at a steady pace during the forecast period. This is mainly due to the unprecedented rise in end use industry of the metal working fluids. Metalworking fluids are primilarly used as removal fluids, forming fluids, protecting fluids and treating fluids in the several industry sectors. Constution, oil and gas, metallurgy and chemical are some of the primary end user industries of metalworking fluids.

Apart from above, metalworking fluids are increasingly used in automotive and heavy machinery industries. These fluids help increase vehicles engine by fighting sludge, abrasion and resistance.

Moreover, the quality of metalworking fluids to improve efficiency of machining processes is a major factor expected to expand the global metalworking fluids market.  This is helps increase their production volumes in the industries. As a result, metalworking fluids are expected to witness a steady demand over the forecast period.

However, factors such as capital-intensive nature of metalworking fluids, gradual in use of metal parts in automotive, and volatility of crude oil are some of the prominent factors restraining the growth of the global metalworking fluids market during the forecast period. Nevertheless, increasing application of metalworking fluids market in aerospace, defense, and marine is expected to offer several new opportunities in the metalworking fluids market.