Growing demand for metalworking fluids in automotive and heavy machinery owing to its properties of increasing efficiency is expected to drive market growth. Competitive pricing due to a large number of small suppliers in the market is expected to be a key feature of the industry over the next seven years.
The report noted that the market size was estimated at US$9.34 billion in 2014.
Synthetic fluids are expected to witness significant growth on account of their capabilities such as increasing tool life and providing excellent surface finish. However, customers in the Asia Pacific region are still consuming mineral oil-based fluids due to their price sensitive nature.
Mineral oil-based is the traditional metalworking fluid and constituted 52.1 percent share by volume in 2014. They can be produced in large quantities owing to their abundant availability and their cost effectiveness.
Asia Pacific has been leading the demand for metalworking fluids due to the presence of a large-scale consumer base, particularly in India and China.
As the largest market, Asia Pacific is expected to witness gains at a compound annual growth rate (CAGR) of 4.4 percent from 2015 to 2022. Increasing production volumes in various sectors including automobile, defence, marine and aerospace are expected to be a major factor driving the market in the region.
In Europe, the bio-based metalworking fluids market was valued at US$277.5 million in 2014. Europe is expected to witness a strong demand for the bio-based products in the face of strong government regulations. However, the expensive nature of these products is expected to hinder growth.
Corrosion preventive oils demand was at 514.4 kilo tonnes in 2014. Corrosion preventive oils are used in machining operations where possibility of damaging the tool is very high. These oils are responsible for improving the sump life which eventually leads to reduction in the overhead costs for manufacturers. This has resulted in increasing demand from small scale manufacturers on account of their tight cost structures and low volumes.
Key industry players include Chevron Corporation, Quaker Chemical Corporation, British Petroleum, ExxonMobil Corp, Royal Dutch Shell, and Houghton.
Intensive research and development investments by organisations including Cimcool, Fuchs, Blaser Swisslube, Total S.A., ENI S.p.A, Ashland and Croda International are expected to propel market demand.
