As per the newly released data by Future Market Insights, the global metalworking fluids market is poised to total US$ 9.6 Bn in 2023, expanding at a 3.7% CAGR. Demand for removal fluids is projected to rise at 3.5% to top 1,354,497 Tons in terms of volume, while the forming fluids segment is expected to grow at 2.7% to total 772,256 Tons.
The increasing adoption of lightweight materials in high-performance applications, especially in the automotive industry is spurring demand for metalworking fluids. Manufacturing of complex geometrics with lightweight metals requires proper lubrication, which in turn is boosting sales of metalworking fluids.
Metalworking Fluids Market Historic Sales Compared to 2021-2031 Forecast Outlook
Demand for metalworking fluids grew at 1.0% CAGR between 2016 -2020. Ongoing economic slowdown induced by the COVID-19 outbreak dampened sales prospects of metalworking fluids.
However, with resumption in production activities across various sectors, recovery of the global metalworking fluids market is on card. Growing demand for lightweight components in high performance applications such as heavy machinery, transportation equipment, automotive and construction industries will continue boosting sales of metalworking fluids in the forthcoming years.
Moreover, ongoing research and development activities have resulted in innovative manufacturing techniques for the production of complex geometric shapes. This requires more lubrication as compared to usual ones. Backed by these factors, consumption levels of metalworking fluids are expected to increase at a steady pace over the forecast period.
The adoption of advanced machines that perform multiple operations at a time is bolstering sales of multifunctional lubricants. Key manufacturers are focusing on developing lubricants that are more efficient and can be used in more than one operations to gain a competitive advantage in the market.
In addition to this, increasing awareness regarding sustainability and use of eco-friendly products is boosting demand for water-soluble lubricants in the metalworking fluids industry. This trend is expected to continue in the forthcoming years as concerns regarding adverse effects of synthetic chemicals present in fluids continue to rise.
Owing to the aforementioned factors, Future Market Insights projects sales of metalworking fluids to grow at a CAGR of 3.7% over the forecast period 2021-2031.
What Is the Impact of Emission Regulations on the Metalworking Fluids Market?
Demand for metalworking fluids increased at a sluggish rate during 2016-2020 owing to the impact of the COVID-19 pandemic. Other factors such as implementation of stringent regulations to prevent health hazards further stagnated growth of the market.
Increasing demand for metalworking fluids can be attributed to high production volume of metals, used as in key components in high performance applications. Metals used in transportation industry and production of heavy machinery requires proper lubrication to adhere to manufacturing standards. As a result, sales of metalworking fluids are anticipated to rise.
However, various government regulations imposed over the use and production of harmful synthetic metal working fluids, coupled with shifting consumer preference towards environment friendly products is hindering sales metalworking fluids.
This is making selection of right product for specific application difficult for end-use industries. To overcome this challenge, key manufacturers are engaging in research and development activities to create innovative solutions. Improvements in water soluble fluids, launch of bio-based fluids, and improving portfolio of multifunctional fluids are anticipated to create lucrative opportunities for metalworking fluid producers.
What Are The Key Opportunities in the Global Metalworking Fluids Market?
Key manufacturers are investing in research and development activities to launch innovative products catering to industry-specific requirements. Development of bio-based lubrication solutions to comply with government regulations regarding harmful synthetic chemicals used in fluids is positively shaping the demand outlook for metalworking fluids.
Furthermore, emergence of multi-functional fluids to reduce incompatibility in technologically advanced machinery is leading to developments in the metalworking fluids market. Along with this, shifting consumer preference towards environment friendly products can create attractive opportunities for the manufacturers in the forthcoming years.
In addition to this, industries such as aerospace, marine, nuclear, and others often face challenges while selecting the right blend of fluids and components to tackle heat generation at the cutting zone. In response to this, key market players are offering high performance fluids to gain a competitive edge in the market.
Why is the Demand for Metalworking Fluids High in the U.S.?
The metalworking fluids market in the U.S. is projected to grow by 3.0% year on year in 2021, bucking initial scepticism about how the market would perform during a global pandemic. Across North America, the demand for metalworking fluids is expected to reach 689,102 Tons.
The region is predicted to remain one of the most attractive markets during the forecast period, opines FMI. According to the study, the U.S. is expected to continue its dominance over the forecast period. Growth can be attributed to the presence of key market players and high demand from end-use industries including metal fabrication, transportation equipment and various others.
Competitive Landscape
The global metalworking fluids market is highly competitive, with key players accounting for about 50% of the total market share. Key market participants are targeting high-growth regions like North America for investments owing to high end-use demand and high energy consumption rate. Moreover, key manufacturers are engaging in mergers, acquisitions and collaborations to expand their global footprint in the market. For instance:
- In 2021, Idemitsu announced the beginning of its lubricant business in Pakistan through its subsidiary Idemitsu Lube Pakistan Co. Ltd. The new subsidiary aims to expand the company’s geographic presence.
- In 2021, Shunichi Kito, the CEO of Idemitsu Kosan Co., Ltd., announced the commencement of production and operation at its Huizhou plant in China.
- In 2021, Idemitsu and IHI Corporation announced that they had concluded a joint agreement to establish a supply chain network for ammonia.
- In 2019, Quaker acquired the operating divisions of Norman Hay plc, which is a UK-based specialty chemicals, operating equipment, and service provider to industrial end-markets.
- In 2021, Quaker Chemical Corporation announced the beginning of a new joint venture with Grindaix GmbH, which is a German provider of high-tech coolant control solutions and delivery systems.
