SAN FRANCISCO, March 18, 2020 /PRNewswire/ -- The global metalworking fluids market size is projected to reach USD 15.85 billion by 2027, exhibiting a revenue-based CAGR of 4.4% over the forecast period, according to a new report by Grand View Research, Inc. Automobile industry is expected to be one of the key factors driving the demand for Metalworking Fluids (MWF).
Automobile industry is largely dependent on MWF owing to their abilities to reduce friction between two metal components, provide excellent surface finish, prolong tool life, and remove metal chips. According to the data published by OICA, the global automotive production grew from 90.9 million units in 2015 to 95.3 million units in 2018. Original Equipment Manufacturers (OEMs) are investing in R&D activities to produce energy efficient vehicle components.
Key suggestions from the report:
Synthetic metalworking fluids was the second-largest product segment in 2019 and accounted for 40.91% of revenue share. Product utility in reducing friction between the workpieces, elimination of any kind of waste, and improving the sump life is anticipated to fuel the segment growth
Corrosion preventive oils is anticipated to witness a strong CAGR of 3.8% from 2020 to 2027, attributed to exclusive property of the product to prevent metals from rusting or other damages, which eventually leads to the reduction in overhead costs for the manufacturers
Installation of new railway tracks in the emerging economies in Asia Pacific, coupled with the rise in urbanization is a major factor expected to boost the growth. This development has resulted in a strong CAGR of 4.9% of MWF in rail industry from 2020 to 2027
Manufacturing sector in Central and South America has experienced a slowdown over the last few years owing to weak government policies, overproduction, and poor performance of the Brazilian economy, resulting in a poor market share in 2019
British Petroleum plc, Exxon Mobil Corporation, Chevron Corporation, and Total SA among others are the large scale companies involved in the production of metalworking fluids. Some other small and medium-sized companies include PratapTex-Chem Pvt. Ltd., Texxol Global. and Swisslube AG.
Metalworking fluids aid in increasing the efficiency of machining processes, used across various end-use industries including construction, automobile, healthcare, aerospace and others, thus, increasing the production volumes of those machines. This factor is expected to significantly drive the demand for metalworking fluids over the forecast period.
Neat cutting oils dominated the application of MWF, due to their utilization in various complex machining operations. They are used in a wide variety of machining processes such as drilling, broaching, turning, and honing as they help to enhance the surface finish along with increasing the tool life.
In 2019, transportation equipment was the second-largest end-use segment of these fluids. Maintenance, Repair, and Overhauling (MRO) is the major area where metalworking fluids are used for improving the the engine performance. They are used in all kinds of transportation equipment, including high-performance engines of trains, ships, and aircraft.
However, growing concern regarding the use of petroleum products has led to strict environmental regulations and government initiatives in order to promote products that do not damage the environment. This has led to increasing production of bio-based metalworking fluids over the synthetic and mineral based ones.The increasing interest in bio-based metalworking fluids because of various regulations pertaining to workplace safety is further projected to boost the demand, especially in the markets from Europe and North America.
U.S. held the dominant share of the North America metalworking fluids market with 83.49% in 2019. MWF manufacturers in North America produce a wide variety of mineral, synthetic, and water-soluble oils suitable for machining and grinding operations of both ferrous and non-ferrous metals. MWFs are suitable for ferrous metals such as cast iron, steel, and stainless steel as well as for non-ferrous metals and alloys such as aluminum, nickel, copper, and magnesium.
Grand View Research has segmented the global metalworking fluids market based on product, application, end use, industrial end use, and region:
Thermic Fluids Market– The global thermic fluids market size was USD 2.48 billion in 2018. Thermic fluids have various applications in number of processes across various industries.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.