Metalworking Fluids Market (By Product: Mineral, Synthetic; By End-use: Machinery, Transportation Equipment; By Industrial End-use; By Application) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030

The global metalworking fluids market was valued at USD 10.91 billion in 2021 and it is predicted to surpass around USD 15.24 billion by 2030 with a CAGR of 3.78% from 2022 to 2030.

Report Highlights

• The mineral segment dominated the market accounting for the largest share of more than 48.21% of the global revenue in 2021. The mineral segment dominated the market accounting for the largest share of more than 48.21% of the global revenue in 2021. 
• The machinery segment dominated the market in 2021 and accounted for the largest share of more than 41.08% of the global revenue due to high product demand. 
• The construction segment dominated the market with the largest revenue share of 28.79% in 2021.
• The neat cutting oil segment accounted for the largest share of more than 42.31% of the global revenue in 2021. 
• Asia Pacific region dominated the global market in 2021 and accounted for the largest revenue share of more than 41.18%. 

The demand is attributed to arise in demand for automotive and industrial machinery. Individual end-use sectors, such as machinery, metal fabrication, and transportation equipment, are driving the expansion of the market.

The market is also expected to be driven by strong development in the machinery and transportation equipment end-use industries over the projected 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 the increase in the exports of construction machinery and power, agricultural, and automotive equipment, have fueled the market growth.

The sector is expected to benefit from increased production of construction machines and related parts for industrial, residential, and commercial construction. The rise in public-private partnerships is expected to boost the demand for a variety of construction components that use MWFs during their production. Because of the expanding building activities in these nations, emerging economies are likely to be critical for product growth.

The increasing demand for electricity and upgrading of the existing infrastructure for electricity generation, transmission, and distribution, is anticipated to fuel the market for electrical & power equipment and related components. These components are manufactured using ferrous and non-ferrous metal parts, which consume MWFs during manufacturing.

Scope of The Report

Product Insights

The mineral segment dominated the market accounting for the largest share of more than 48.21% of the global revenue in 2021. The high share is attributed to the consumption of mineral-based oils owing to their low cost. 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.

End-use Insights

The machinery segment dominated the market in 2021 and accounted for the largest share of more than 41.08% 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).

Industrial End-use Insights

The construction segment dominated the market with the largest revenue share of 28.79% in 2021 due to increased demand for construction machinery and related parts required for industrial, residential, and commercial construction. The construction industry manufactures various types of equipment, such as excavators, loaders, forklifts, cranes, dozers, and others. Along with this, the industry uses various ferrous and non-ferrous components in interior and exterior applications, such as garage doors, gates, sealing angles, shutters, balconies, window frames, staircase grills, shades for parking spaces, and others. Rapid urbanization, along with a rise in investments in building & construction activities, is likely to fuel the segment growth over the forecast period.

The automobile industry is anticipated to witness the fastest CAGR over the forecast period owing to a rise in spending capacity on luxurious cars across the globe. Different metals, such as steel, aluminum, and others, need the machine shop to use particular metalworking processes to increase productivity and optimize the cost. The machine shops need different MWFs during various product processing operations, which is expected to fuel the segment growth during the forecast period. Increasing awareness about the use of advanced equipment in farming for enhanced productivity will support the demand for agricultural equipment and tools, thereby boosting the demand for MWFs. Low per capita land holding is a major reason leading to the high demand for and rapid modernization of farm machinery, which, in turn, will drive the segment.

Application Insight

The neat cutting oil segment accounted for the largest share of more than 42.31% 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.

Regional Insights

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 41.18%. 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.

Key Players

• Houghton International, Inc.
• Blaser Swisslube AG
• BP plc
• Exxon Mobil Corp.
• Total S.A.
• FUCHS
• Chevron Corp.
• China Petroleum & Chemical Corp.
• Kuwait Petroleum Corp.

Market Segmentation

• By Product Outlook

• Mineral
• Synthetic
• Bio-based
• By Application Outlook
• Neat Cutting Oils
• Water Cutting Oils
• Corrosion Preventive Oils
• Others
• By End-use Outlook
• Metal Fabrication
• Transportation Equipment
• Machinery
• Others
• By Industrial End-use Outlook
• Construction
• Electric & Power
• Agriculture
• Automobile
• Aerospace
• Rail
• Marine
• Telecommunication
• Healthcare
• By Regional Outlook
• North America

• U.S.
• Canada
• Mexico
• Europe
• Germany
• Russia
• France
• Spain
• U.K.
• Italy
• Switzerland
• Denmark
• Norway
• Belgium
• Poland
• Czech Republic
• Turkey
• Sweden
• Finland
• Asia Pacific
• China
• India
• Japan
• South Korea
• Singapore
• Malaysia
• Thailand
• Australia
• New Zealand
• Central & South America
• Brazil
• Middle East & Africa