Metalworking Fluid Additives Market

Metalworking Fluid Additives Market Overview

Metalworking Fluid Additives Market size is forecast to reach $14.7 billion by 2027, after growing at a CAGR of 4.6% during 2022-2027. Metalworking Fluids are used in multiple functions in the machinery processes because of their chemical formulations. The main usage of metalworking fluids is due to their high level of performance and precision in machine processing. Metalworking fluids are used for varied purpose which include dry machining, flood coolant, for reducing friction between the tools and the work piece, etc., protecting machine from burning. The growth in the market is due to the increase in the usage of metalworking fluid additives for various industries like aerospace and defense, energy and power, oil and gas, automobiles, manufacturing, and others.

COVID-19 Impact

The emergence of COVID-19, which is declared a pandemic by the World Health Organization, is having a noticeable impact on global economic growth. Currently the metalworking fluids market has been affected due to COVID-19 pandemic where most of the industrial activity has been temporarily shut down. According to World Trade Organization (WTO), global trade volumes are projected to decline between 13-32% in 2020. The pandemic has impacted the industrial segment and hence the degradation of the market. This in turn has restricted the growth in year 2020 and a few months in 2021.

Metalworking Fluid Additives Market Report Coverage

The report: “Metalworking Fluid Additives Market- Forecast (2022-2027)” covers an in-depth analysis of the following segments of the Metalworking Fluid Additives Industry.

By Class: Straight Oils, Soluble Oils, Semisynthetic Fluids and Synthetic Fluids.

By Processes: Metal Forming (Wire Drawing, Tube Drawing, Stamping, Can Drawing and Blanking) and Metal Removal (Grinding, Machining Surface Metal and Machining Internal Metal).

By Additives: Sulphurized / Chlorinated Compounds, Corrosion Inhibitors, Extreme Pressure Additives, Antimist Agents, Emulsifiers, Alkanolamines, Biocides, Stabilizers, Dispersants, Antifoamers, Colorants/ Dyes and Fragrances.

By Application: Dry Machining, Minimum Quantity Lubrication (MQL), Spray Misting, Flood Coolant and High-Pressure Coolant.

By End Use Industry: Automotive, Power & Energy, Aerospace, Manufacturing, Marine and Others.

By Geography: North America, South America, Europe, APAC, and RoW.

Key Takeaways

• Asia Pacific is largely dominated by the suppliers and distributors leading towards the growth of Metalworking Fluid Additives Market.
• The market drivers and restraints have been assessed to understand their impact over the forecast period.
• The report further identifies the key opportunities for growth while also detailing the key challenges and possible threats.
• The other key areas of focus include the various applications and end use industry in Metalworking Fluid Additives Market and their specific segmented revenue.
• Due to the COVID-19 pandemic, most of the countries have gone under temporary shutdown, due to which operations of Composite testing related industries has been negatively affected, thus hampering the growth of the market.

Soluble oils held the largest share of more than 30% in the metalworking fluid additives Market in 2020. This growth is mainly attributed to the increasing demand for soluble oils in all forms of metal cutting and metal grinding. Soluble Oils contains 30-85% of ultrarefined mineral oils and emulsifiers to dissolve the oil in water to form a milky appearance. It is used on the light to heavy duty machinery. It provides lubrication and cooling to the machinery. It is the most used metalworking fluid additive. The use of Semisynthetic fluids is also increasing because it is formulated to be bio-stable and it combines the lubricity of soluble oils and cleanliness of synthetics to form a unique working fluid.

The metal removal process held the largest share of more than 25% in the metalworking fluid additives market in 2020. The metal removal process includes grinding, turning, milling, gear shaping, broaching, drilling, tapping, reaming, and others. Metalworking is the process of creating individual parts with the metal. These parts are created using heavy duty machines and different mechanisms. Different manufacturing technologies are involved in metal forming, bending, and forging which are performed using heat and mechanical loads.

Extreme Pressure Additives are used widely in metalworking fluid additives market in 2020. The extreme pressure additives are a very special type of boundary lubricity additive which form a metal salt layer between the malting surface which in tend limit the friction, wear & tear, and damage. Some extreme pressure additives used are Zinc dialkyl dithiophosphate (ZDDP), chlorinated paraffins, sulfurized lard oils, phosphate esters and over based calcium sulphonates. Also, corrosion inhibitors are used in metalworking to prevent the fluid from corroding the machine surface, machine tools, metal work piece and cutting tools.

The Minimum Quality Lubrication (MQL) held the largest market share of more than 25% in the metalworking fluid additives market in 2020. MQL is the method provides a significant level of lubricity to the machine operations without generating the flood coolant. It is a technological advancement over dry machining and an alternative to flood coolants. MQL typically involves sprays of compressed air and a small amount of oil to provide the function of an MWF without the large amount of waste. The high-pressure coolant is also used as high volume, high velocity, and higher pressure. The cutting fluid works to reduce the contact area between tool and the chip, and its efficiency depends on the ability of penetrating in the chip-tool interface and to create a thin layer in the short available time.

Manufacturing Industry dominates the metalworking fluid additives market in the year 2020, growing at a CAGR of 6.5%. This is due to the growing demand of new manufactured products due to increase in the population. The demand is particularly in the regions of Asia-Pacific, North America, and Europe. China holds the top place in case of global manufacturers and most of the companies in top 10 are from Asia Pacific region driving the growth of the manufacturing market. According to sustainable development report 2018 the five largest economies driving the market are China, India, Indonesia, Mexico, and Brazil with a share of 55% and among this China alone hold the share of 15%. The segment is witnessing growth due to the rising penetration from untapped markets. First-mover advantage in untapped regions and relatively low acquisition costs remain key driving forces in this application market. Furthermore, R&D in metalworking fluids will support the growth of the metalworking fluids additives market.

Asia Pacific region held the largest share in the Metalworking Fluid Additives Market in 2020, with market share up to 41%, owing to the increasing automotive industry in the region. According to China Automotive Association, in 2018 the vehicle production has increased by 30% and the number of newly registered passenger vehicles increased by 23.14 million. The growth was attributed to its FDI policy which has favored China’s automobile industry and has attracted many well-established foreign brands to invest in their automotive industry. Total demand for passenger cars and commercial vehicles in Japan in 2017 was 5.19 million units, an increase of 2.2% from the previous fiscal year, with sales of passenger cars and CVs, excluding mini-vehicles, totaling 3.34 million units, down 0.7% from fiscal 2016, and sales of mini-vehicles reaching 1.86 million units, up 7.9%. The commercial vehicle sector in South Korea accounts for 10% of the country’s automotive market. In 2017, there were 4.2 million vehicles manufactured in South Korea, of which 3.6 lakh vehicles were commercial vehicles.

Metalworking Fluid Additives Market Drivers

Industrialization is driving the Metalworking Fluid Additives market

Industrialization has led to the increase in demand for metalworking fluids in various industries like automotive, marine, aerospace and other for different purposes. According to United Nation Industrial Organization (UNIDO) the industrialization is an outcome of demand. The demand for metalworking fluids in firearms, defense equipment’s, electronic tools, and many others are riding. The use of metalworking fluids is now increased in plastics and aluminum as the use of these two materials is being increasing in the manufacturing industry.

Rise in demand in building & construction Industry

The rise in demand is due to the increase in the need for the construction equipment parts, compressors and generators. According to invest India the construction industry will reach $738.5 billion by 2022. This rise is due to the increasing smart cities development projects, industrial corridors, railway, mega ports, and commercial space. This rise requires a very high amount of heavy machinery and metalworking fluids.

Metalworking Fluid Additives Market Challenges

Health risks to workers

Metalworking fluids are cause risk to the workers such as infections, inhalation of bio- aerosols and can cause cancer due to biocides which are used in the controlling of the microorganisms. According to National Center for Biotechnological Information (NCBI) the 50-70% of the workers gets prone to diseases who work in direct contact with the metal working fluids. Many of the additives are banned including nitrites and short-chained chlorinated paraffins. Also, there is a growing pressure on further eliminating the additives which are harmful for the environment and the workers.

Metalworking Fluid Additives Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Metalworking Fluid Additives Market. In 2020 the Metalworking Fluid Additives Market has been consolidated by the top five players accounting for xx% of the share. Major players in the Metalworking Fluid Additives Market are BASF, Dow Chemicals, Evonik Industries, Chevron USA Inc., Exxon Mobil Corporation and Others.

Acquisitions/Technology Launches/ Product Launches

• In October 2020, Italy’s Italmatch Chemicals has entered into an agreement to acquire Afton Chemical Corp.’s metalworking fluid (MWF) business. This acquisition will strengthen Italmatch Chemicals Group in the industrial lubricants and metalworking fluid with integration with the wide product range for high performance of metal processing.
• In January 2017, Evonik completes the acquisition of specialty additive business of US company Air Products Inc. The integration plans will provide the profitable growth in the attractive specialty additives market and provide benefits in tax with the increase in the net present value.

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