Market Projections and Growth Drivers
The global metalworking fluids market is projected to reach USD 11.60 billion by 2027. This significant growth is largely fueled by increased investments in research and development aimed at creating more cost-effective and efficient products. According to a report by Fortune Business Insights, titled “Metalworking Fluids Market Size, Share & Industry Analysis,” the market, valued at USD 10.25 billion in 2019, is expected to grow at a compound annual growth rate (CAGR) of 4.3% from 2020 to 2027. The report provides a detailed analysis by function (including neat cutting oils, water cutting oils, and corrosion preventive oils), type (mineral, synthetic, and bio-based), and application sectors such as construction, electrical & power, agriculture, automotive & transportation, telecommunications, and healthcare, along with end-use industries like metal fabrication and machinery.
Market Overview
Metalworking fluids play a crucial role in the operation of heavy machinery and equipment by minimizing friction and heat between surfaces. The growth of this market is propelled by increasing investments aimed at developing low-cost and efficient fluid solutions. Furthermore, the rising adoption of heavy machinery across various industries, spurred by global industrial and manufacturing expansion, is expected to fuel market growth. The presence of numerous large-scale manufacturers is also a positive factor influencing market dynamics.
Key Industry Players
Prominent companies featured in the report include:
Houghton International Inc.
Castrol
Chevron Phillips Chemical
Exxon Mobil Corporation
Total S.A.
Lubrizol
Quaker Chemical Corporation
Henkel
Fuchs Petrolub SE
BP plc
Others
Industry Trends
Rise in Mergers and Acquisitions
The industry has seen a surge in mergers and acquisitions, particularly among major manufacturers and fluid producers. Large corporations are increasingly acquiring start-ups and small to medium enterprises (SMEs) to enhance their market positions. For example, Quaker Chemical Corporation's acquisition of Lubricor Inc. in August 2020, a company specializing in lubricants and metalworking fluids, is indicative of this trend. Such strategic moves are anticipated to further stimulate market growth in the future.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/metalworking-fluids-market-101391
Regional Insights
Asia Pacific Leading the Way
The report covers market trends across North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The Asia Pacific region is expected to lead the market growth, driven by the proliferation of industrial manufacturing facilities in countries like India and China. The region's substantial market share and growing population are significant factors contributing to the increased demand for metalworking fluids. In 2019, the Asia Pacific market was valued at USD 4.11 billion, with significant growth projections in the forthcoming years.
Conclusion
The global metalworking fluids market is poised for substantial growth, underpinned by rising investments in research and development, increasing industrial production, and strategic mergers and acquisitions. With Asia Pacific at the forefront of market expansion, key industry players are well-positioned to leverage these opportunities, thereby enhancing their market footprint.