The global metalworking fluids market size is projected to reach USD 14.54 billion by 2025, as per the findings of Grand View Research, Inc., progressing at a CAGR of 4.4% during the forecast period. The market is poised to witness an upsurge in the use of metalworking fluids (MWFs) in heavy machinery and automotive applications owing to growing production of sophisticated machines and components. The market is characterized by competitive pricing strategies due to increasing number of medium- and small-scale suppliers.
Demand for synthetic fluids is anticipated to experience sharp rise owing to their superior properties such as excellent surface finishing and increased tool life. Mineral-based oil is a traditionally used MWF and accounted for a volume share of 46.13% in 2017. It can be produced in large quantities owing to abundant availability, easy accessibility, and cost-effectiveness.
Biobased metalworking fluids are likely to witness steady growth in Europe on account of presence of stringent government legislation. For instance, REACH, a European legislation, requires MWF manufacturers to substitute harmful chemicals such as boron, formaldehyde, and chlorinated paraffins with environment-friendly alternatives. In order to comply with the European legislation norms, manufacturers are focused on producing MWFs that are free of boron, formaldehyde, and short- & medium-chain chlorinated paraffins. However, high cost of biobased products can pose a challenge to industry growth during the forecast period.
In 2017, Asia Pacific emerged as the leading market owing to existence of a significant consumer base, primarily in China and India. Globally, production of metals such as titanium and aluminum was dominated by China in 2017. Rising production of aluminum in China, due to production capacity expansion by several manufacturers, is expected to trigger the demand for metalworking fluids over the forecast period.
Read more: Metalworking Fluids Market Worth $14.54 Billion by 2025
