Global Metalworking Fluid Additives Market - 2023-2030

Overview

Global Metalworking Fluid Additives Market reached US$ 4.8 billion in 2022 and is expected to reach US$ 6.6 billion by 2030, growing with a CAGR of 4.2% during the forecast period 2023-2030.

In the industrial sector, the global market for metalworking fluid additives plays a crucial role by offering additives that improve the longevity and performance of metalworking fluids. In machining operations such as metal cutting, grinding and forming, these additives enhance lubrication, corrosion resistance, cooling and anti-wear qualities. The market is constantly expanding as a result of growing demand from the machinery, aerospace and automotive industries.

The focus on eco-friendly and sustainable additives, growing industrialization and technical improvements are the main drivers of market expansion. Furthermore, strict laws that support environmental and worker safety also aid in the development of novel additives and the growth of the market. Reformulated metalworking fluids are being used for high-speed operations, downstream compatibility, processes and regulatory compliance.

For instance, Russia has a substantial automotive sector and is one of the world's top manufacturers of the metals like steel and aluminum and also Germany produces a significant portion of Europe's metals. Thus, Europe holds the more than 1/3rd of the global market share.

Dynamics

Automobile Industry's Shift to Lightweight Materials

The automobile industry's need for fuel efficiency and lower emissions has led to a trend towards lighter vehicle parts, which has a substantial impact on production processes and, as a result, the market for metalworking fluid additives. Lightweight materials like aluminum, magnesium and high-strength steel are becoming more and more popular among automakers and producing these parts requires complex machining and shaping processes.

Specialized metalworking fluids and additives are needed by producers to meet the problems presented by these materials. Specialized fluid additives for metalworking are created to meet the unique requirements of machining these light materials. It helps to preserve the integrity of these complex parts during the manufacturing process while increasing cutting efficiency, decreasing friction, dispersing heat and improving surface polish.

Growing Demand from Industrial and Automotive Applications

The rigorous needs of industrial, automotive and marine applications are fulfilled by synthetic ester oils. When operational scenarios need a lubricant that is bio-derived, fire-resistant, suitable for food or environmentally friendly, specialized chemistry that is optimized for severe circumstances is required.

For instance, one of ZSCH's key initiatives is metalworking. Because the metalworking sector is always changing, lubricants with the ability to eliminate heat, lower friction, prolong tool life and enhance surface polish are necessary. Additives to metalworking lubricants are necessary for reduced friction and wear, corrosion prevention, emulsion stability and extended coolant life. Metalworking formulators have to change to meet the demands of evolving material metallurgy, operator health and safety and increased operational efficiency.

Z&S provides a wide range of sulfur-free and halogen-free metalworking additives for lubricants to meet your formulation needs. With the aid of innovative products that move towards sustainability, the company continuously strives to improve everyone's quality of life through scientific curiosity and inventiveness.

Fluctuating Raw Material Costs

Manufacturers experience cost challenges due to fluctuations in the costs of raw materials, especially chemicals and additives derived from petroleum. Unexpected increases in the cost of raw materials can drive up manufacturing costs and have an impact on profit margins.

It is difficult for manufacturers to forecast and stabilize product prices due to the volatility of raw material costs. It may become challenging for companies to sustain competitive pricing strategies as a result of these price variations brought on by this volatility. Variations in the price of raw materials have an impact on profit margins, which restricts businesses' capacity to spend expenditure on R&D for novel formulations. The restriction impedes the development of complex and reasonably priced metalworking fluid additives.

Growing Partnerships and M&A Activities

Companies can increase their market presence through partnerships and collaborations as they give them access to new markets, consumers and distribution channels. Through M&A activities, companies might buy out rivals or complementary companies to increase their market share and diversify their product offerings.

Joint R&D and knowledge sharing are common components of collaborations. Through partnerships, businesses can pool resources and knowledge to produce innovative metalworking fluid additives with improved performance and attributes that match changing market expectations.

For instance, on May 3, 2023, a new exclusive agreement with Solvay has been announced by Univar Solutions China Company Limited, a subsidiary of Univar Solutions Inc. The agreement expands the two companies' partnership for a wide range of lubricant and metalworking fluid additives for multiple markets in Eastern China, including Shanghai, Jiangsu, Zhejiang, Anhui, Hunan and Jiangxi.

Segment Analysis

The global metalworking fluid additives market is segmented based on type, application, metalworking activity, end-user and region.

Owing to Complex Machining Requirements and Emphasis on Efficiency and Durability

Engine, gearbox and chassis parts are machined with great precision in modern car manufacture. To maintain accuracy, lower friction, dissipate heat and enhance surface smoothness, these activities require high-performance metalworking fluids and additives.

To prolong the life of tools, minimize wear and strain on equipment and boost overall productivity in the automotive production process, metalworking fluid additives are essential. The necessity for advanced additives designed for automotive machining requirements is fueled by this focus on efficiency and durability. Therefore, the above mentioned requirements drive the automotive segment, which holds for majority of the total global segmental share.

Geographical Penetration

Higher Manufacturing in the Region Drives the Market Growth

Greater industrial self-sufficiency is achieved in the region by offering alternatives to imported metalworking fluid additives. The strengthens the region's standing in the international market while simultaneously attending to local requirements and possibly creating export opportunities.

For instance, on August 11, 2023, Chaoshui Technology Co. officially completed a 30,000 metric Tons annual metalworking fluid production facility last week to provide substitutes for imports. One of the primary industrial hubs of the country, Foshan, in the southern Guangdong province, appears to be hub of the production line of the corporation. The quasi-governmental Jihua Laboratory in Foshan and Tsinghua University in Beijing provided support for the development of the facility. Hence, Asia-Pacific acquires nearly half of the total global market shares.

COVID-19 Impact Analysis

Lockdowns and limitations imposed by pandemics caused disruptions in global supply chains, which had an impact on the acquisition of additives and raw materials. As a result, there were shortages, production delays and higher manufacturing expenses.

Lockdowns and lower customer demand resulted in temporary shutdowns or curtailed operations for several industries, including manufacturing, automotive and aerospace. As a result, there was less of a need for metalworking additives and fluids. The pandemic's shift to remote work and decreased travel affected the demand for cars, which in turn affected the automotive sector, which is a significant user of metalworking fluids. There was less of a need for related additives as a result of decreased car production.

Russia-Ukraine War Impact Analysis

Raw materials may become more expensive as a result of geopolitical conflicts, especially if those materials come from impacted areas. Production prices for additives used in metalworking fluids may increase due to increased pricing of essential components.

Increased geopolitical tensions frequently cause economic unpredictability, which has an impact on investor confidence and choice-making. Market expansion may be impeded by uncertainty as businesses grow more cautious about their intentions for expansion and investments. Companies may decide to put more emphasis on domestic sourcing and manufacturing to reduce the risk of geopolitical unrest. The change in emphasis may result in variations in local markets and changed supplier-buyer dynamics.

By Type

• Surfactant Additives and Emulsifiers
• Corrosion Inhibitors
• Extreme Pressure Additives
• Stabilizers
• Antifoamers
• Alkanolamines
• Antimist Agents
• Colorants/dyes
• Others

By Application

• Soluble Oils
• Straight Oils
• Semisynthetic Fluids
• Synthetic Fluids

By Metalworking Activity

• Milling
• Drilling
• Grinding
• Honing
• Tapping
• Others

By End-User

• Automotive
• Aerospace
• Machinery and Equipment Manufacturing
• Power and Energy
• Marine
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On August 11, 2023, Chaoshui Technology Co. officially completed a 30,000 metric Tons annual metalworking fluid production facility last week to provide substitutes for imports. One of the primary industrial hubs of the country, Foshan, in the southern Guangdong province, appears to be hub of the production line of the corporation. The quasi-governmental Jihua Laboratory in Foshan and Tsinghua University in Beijing provided support for the development of the facility.
• On May 3, 2023, a new exclusive agreement with Solvay has been announced by Univar Solutions China Company Limited, a subsidiary of Univar Solutions Inc. The agreement expands the two companies' partnership for a wide range of lubricant and metalworking fluid additives for multiple markets in Eastern China, including Shanghai, Jiangsu, Zhejiang, Anhui, Hunan and Jiangxi.
• On October 28, 2020, Biosynthetic Technologies announced the introduction of Biocea, a new line of innovative additives for the metalworking fluids market.

Competitive Landscape

The major global players in the market include: Lubrizol Corporation, Dow, Evonik Industries AG, FUCHS, Solvay, LANXESS, Knoll Packaging, Ashland, Italmatch Chemicals S.p.A. and Kao Corporation.

Why Purchase the Report?

• To visualize the global metalworking fluid additives market segmentation based on type, application, metalworking activity, end-user and region, as well as understands key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of metalworking fluid additives market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Metalworking Activity mapping available as excel consisting of key metalworking activities of all the major players.

The global metalworking fluid additives market report would provide approximately 69 tables, 79 figures and 210 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies