Metalworking Fluids Industry Overview

The global metalworking fluids (MWFs) market was valued at an estimated USD 12.17 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 4.9% from 2024 to 2030. This growth is primarily driven by the rising demand for products from the automotive and heavy machinery industries. Key end-use sectors such as machinery, metal fabrication, and transportation equipment are major contributors to the expansion of the MWFs market. Crude oil serves as the fundamental raw material for the production of metalworking fluids. Through processes like refining, treating, and blending, crude oil is transformed into neat cutting oils, soluble oils, and corrosion-preventive oils, which are vital for industrial applications. Base oil, a derivative of crude oil, plays a critical role in this production chain and accounts for approximately 40% of the total cost of MWFs.

Base oil, produced through the refining and heating of crude oil, is widely used in manufacturing motor oils, lubricants, and metalworking fluids. One of the key drivers of MWF demand is the growth of the automobile industry, where these fluids are used to enhance the efficiency of machining processes. Metalworking fluids significantly reduce friction between the tool and workpiece, eliminate metal chips, improve surface quality, and extend the lifespan of tools. These benefits contribute to increased machine efficiency and production volumes, ensuring stable demand for MWFs throughout the forecast period.

The manufacturing sector, a cornerstone of economic activity in North America and Europe, has also contributed to the growth of the metalworking fluids market. Technological advancements in manufacturing processes for sophisticated end-use products, along with increased exports of construction machinery and agricultural, automotive, and power equipment, have fueled market expansion. Additionally, the market growth in North America and Europe is closely linked to the rapid development of end-use industries in the Asia Pacific region, where demand for advanced machinery and equipment in agriculture, automotive, and construction sectors continues to rise.

Increased market penetration of MWFs in machinery and transportation equipment industries is evident in the Asia Pacific region, supported by the growth of heavy machinery industries in developing economies of Central and South America. Furthermore, the rising exploration and production activities in the oil and gas sector, particularly by Chinese petroleum companies, have significantly boosted the demand for MWFs in the oilfield equipment industry. Collectively, these factors are expected to sustain the growth of the metalworking fluids market in the coming years.

Gather more insights about the market drivers, restrains and growth of the Metalworking Fluids Market

Regional Insights:

Global Geographical Segmentation:

• The global metalworking fluids (MWFs) market is segmented into five key regions: Asia Pacific, North America, Europe, Middle East & Africa, and Central & South America.

Asia Pacific Metalworking Fluids Market:

• Asia Pacific dominated the global market in 2023, holding a revenue share of over 42.0%.
• The region is expected to grow at the fastest CAGR from 2024 to 2030.
• The growth is attributed to a surge in manufacturing activities across the region.
• China and India are predicted to lead the demand for both mineral and synthetic MWFs, reflecting their robust industrial expansion.
• The demand for synthetic MWFs in the Asia Pacific region is particularly high due to their superior lubrication properties, which are critical for automotive grinding and machining operations.

North America Metalworking Fluids Market:

• North America is anticipated to experience significant growth in terms of value during the forecast period.
• MWF producers in the region offer a variety of products, including mineral, synthetic, and water-soluble oils, tailored for machining and grinding operations.
• These fluids are compatible with a wide range of materials, including:
  • Ferrous metals and alloys, such as cast iron, steel, and stainless steel.
  • Non-ferrous metals and alloys, including aluminum, nickel, copper, and magnesium.
• The region’s demand is supported by advanced industrial activities and the availability of versatile MWFs suited for diverse applications.

Browse through Grand View Research's Petrochemicals Industry Research Reports.

• The global lubricants market size was estimated at USD 139.44 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 3.8% from 2024 to 2030.
• The global agriculture equipment market size was valued at USD 163.97 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 5.3% from 2023 to 2030.

Key Metalworking Fluids Company Insights

Key companies are adopting several organic and inorganic growth strategies, such as capacity expansion, mergers & acquisitions, and joint ventures, to maintain and expand their market share.

• On January 2023, Univar Solutions B.V. entered a distribution agreement with Graphics Services Ltd. for their products such as inks, rust preventive oils, coatings, lubricants, and metalworking fluids in Europe.
• On September 2022, Clariant announced the extension of support for metalworking fluid manufacturers globally by offering their additives to develop high lubricity and fully-synthetic metalworking fluids.

Key Metalworking Fluid Companies:

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

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