- August 26, 2019
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Global Metalworking Fluids Market Worth Expected to Rise to $15.49B
An increase in demand has seen the market value attributed to metalworking fluids (MWF) rise. According to a report by Data Bridge Research, the Global Metalworking Fluids Market Forecast is expected to rise to a staggering $15.49 billion USD by 2026, which is $4.9 billion USD more than in 2018.
Metalworking fluids include synthetic, semi-synthetic, bio-based, straight, mineral and emulsified oils used in processes such as machining. They play a crucial part in any transport, industrial machinery, automotive, construction and metal fabrication application.
The Global Metalworking Fluids Market Forecast report states an estimated compound annual growth rate (CAGR) of 4.87% from 2019 – 2026. While another report by Grand View Research has estimated a CAGR of 4.4% from 2018 – 2025.
Either way, it seems MWF values are on the rise.
The Reason For A Projected Value Rise In The MWF Market
“The global vehicle sale marked nearly 80 million units in 2017 and it is expected to grow at a significant rate in the coming years due to rising demand for passenger vehicles from the emerging economies.”
—Market Research Future, May 2019
As previously mentioned, the projected value rise in the metalworking fluids market really comes down to demand. And that demand is a result of developing regions, industrialisation and urbanisation within the automotive, construction and metals markets, among others. View an overview of the market share within these industries in the graph below.
According to Grand View Research, the top 3 industries include:
- Transportation Equipment
- Metal Fabrication
Machinery has the largest share, 41.13%, for end use of metalworking fluids in 2018. This is due to the recent increase in the use of metalworking fluids in earthmoving and agricultural equipment, and automotive components. And according to Grand View Research, this increase is expected to continue over their forecast period (2019 – 2025).
Global Market Insights suggests metals are used in vehicles to provide durability and structural strength. This means metalworking fluids are a necessity within the automotive industry, as they are used as coolants and lubricants. So it’s clear to see why machinery, transportation equipment and metal fabrication are the top industries.
Another driving force behind the rise in value is thanks to the ongoing advancements within the industry. It’s thought these advancements are a direct result of the increase in demand, but can also be attributed to development, which has seen production costs lower and the use of harmful additives renounced. This results in a more cost-effective production system and drives market growth.
Key Global Regions Contributing To The MWF Market Value Increase
The MWF market is divided into 5 key regions: Asia Pacific, North America, Europe, Latin America and lastly, the Middle East and Africa region. So when it comes to these metalworking market leaders, which has the most influence on the industry?
Asia Pacific is a major contributor to growth and one of the fastest growing leaders in the industry. Their growth is thanks to a rapid increase of major end users in the building and construction industries. The Asia Pacific regions include dynamic economies from India, Japan, South Korea and China.
According to Global Market Insights, this region is likely to retain their market share by 2025 and undergo substantial growth. Asia Pacific is currently seeing an increase in automotive sales and industrialisation, which are major factors contributing to the demand of MWF.
“China was a major growth contributor in Asia Pacific with a market share of 43.07% in 2018 and is expected to continue witnessing growth over the forecast period.”
— Grand View Research, April 2019
North America is the second key global region to contribute to the MWF market value increase. This region has seen the automotive industry recover, even after the economic downturn of the United States. A consistent growth of MWF in the steel and fabrication industry is another contributor to North America’s influence on the global MWF market value.
How Oil Usage And Application Affects The MWF Market
It’s clear how the metalworking market is influenced by key regions and industries, but how do MWF products and application affect the overall market demand? As previously mentioned, the metalworking fluids include synthetic, semi-synthetic, bio-based, straight, mineral and emulsified oils.
In 2018, Grand View Research found that the mineral-based oil had the largest segment of the market. Mineral-based metalworking fluids are the most conventional and tend to be produced in large volumes for cost efficiency. View the spread of metalworking fluids market, by product, for market leader China in the graph below.
Grand View Research and Global Market Insights both state that synthetic fluids are likely to see an increase in demand. This is due to the unique properties making them ideal for increasing tool life and their use as substitutes for petroleum-refined oils when operating in extreme temperatures.
MWF Market Restraints
While there has been, and continues to be, consistent demand for MWF, it’s worth noting some restraints that may affect the market growth in years to come.
According to Global Market Insights, the rising awareness of hazardous waste dumping has contributed to a wealth of environmental issues and natural resource pollution in a big way. These effects on the environment could see a decrease in the MWF market size.
Another factor to consider is the harmful effects the chemicals and microorganisms have on workers’ health and wellbeing. Worker health and safety, as well as environmental impact, is paramount to MWF manufacturers, which is why there has been an implementation of recycling programs.
Global Market Insights notes that the introduction of this strict legislation could affect the demand for MWF products. Data Bridge Market Research also notes that there are available substitutes in the market which could hinder the growth of the MWF market.
Overall, it’s clear to see that the global metalworking fluids market is expected to rise thanks to the important role that this material plays in the automotive, machining, transportation and metal fabrication industries. What do you think of these forecasts? Do you think the MWF market will continue to rise over the coming years? Let us know below!
Sources: grandviewresearch.com, marketresearchfuture.com, ustrademedia.com, Metalworking Fluids Market Research Report- Forecast till 2023 press release, Global Metalworking Fluids Market Forecast 2019-2026 press release, Metalworking Fluids Market press release.