London, UK: According to a report by Frost and Sullivan, end-users are driving the global metalworking fluids market. Analysis from the company found that the market earned revenues of US$8.83 billion in 2013 and estimates this to reach US$12.09 billion in 2020.
Particularly in China, India, Russia, Turkey, Brazil and Southeast Asian countries where industrial production is on the rise, regulations on waste water treatment and disposal are compelling end users to optimise the use of mineral-oil based metalworking fluids.
Regulations on wastewater treatment will also be a major driver in Europe and North America. In addition, the burgeoning Asian automotive industry and niche applications such as medical machining will boost sale volumes.
This is expected to increase the adoption of semi-synthetic and synthetic metalworking fluids that offer good balance between cost and performance. In turn, the metalworking additives segment will grow rapidly as synthetic-based metalworking fluids require a stronger additive package.
Nonetheless, challenges exist in the face of growth. Srinivas Venkatesan, Chemicals, Materials and Food research associate at Frost & Sullivan, believes that to a certain extent, the replacement of metals with plastics and composites in several applications will slow down demand for metalworking fluids.
"For instance, the automotive and aerospace industries use plastics and composites for light-weighting. Similarly, the preference for cartons over beverage cans is likely to impact the demand for metalworking fluids from the packaging industry," he said.
In addition, the development of technologies such as minimum quantity lubrication, high pressure machining, and near-net-shape casting could replace conventional metalworking processes, thereby reducing the demand for metalworking fluid. Advancements in 3-D printing could further hamper uptake as materials processed through laser sintering technology have good mechanical properties and an excellent surface finish.
In the face of these challenges, product differentiation is essential to succeed in the market. Metalworking fluid manufacturers must undertake research activities in collaboration with customers to develop cost-effective solutions that can satisfy constantly changing end-user requirements.
"Extending support services such as troubleshooting and periodic reports on health of metalworking fluids will enhance consumer loyalty," Mr Venkatesan added.
As established manufacturers look to broaden their portfolios, mergers with and acquisitions of regional vendors possessing specialised capabilities and a strong customer base will gain pace in the global metalworking fluids market.
