Cutting Fluid Market size is expected to cross USD 66 billion by the end of 2036, growing at a CAGR of 5% during the forecast period i.e., 2024-2036. In the year 2023, the industry size of cutting fluids was over 11 billion. Cutting fluids are seeing significant expansion in the market mainly because of the expanding automotive sector brought on by the rising production of automobiles. In metalworking applications, they are frequently utilized as coolants for metal treatment, removal, forming, and protection. Therefore, it is anticipated that an increase in auto production will stimulate the cutting fluids industry. In the year 2022, somewhere around 85 million motor vehicles were produced all over the world.
Increasing demand for sustainable products is predicted to drive the growth of the cutting fluid market. Nowadays, manufacturers are focusing on providing sustainable cutting fluids that are high in demand among consumers. Owing to environmental concerns and other reasons consumers' interest in sustainable products is growing rapidly.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024 – 2036 |
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CAGR |
~5% |
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Base Year Market Size (2023) |
~USD 11 billion |
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Forecast Year Market Size (2036) |
~USD 66 billion |
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Regional Scope |
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Source (Bio-based, Synthetic Based)
In terms of source, the bio based segment in the cutting fluid market is anticipated to hold a significant revenue share by the end of 2036. Growth can be driven by increasing concern for the environment and a need to develop more environmentally friendly solutions within the manufacturing sector. Some of the advantages, such as improved lubrication tool & equipment and increased tool life, compared to traditional petroleum oils are offered by these fluids. The regions with stringent environmental legislation and an emphasis on sustainability are forecast to be particularly attractive for the growth of the bio-based cutting fluids industry.
Product Type (Water Based Cutting Fluids, Neat Oils)
Cutting fluid market from the neat oil segment is anticipated to record substantial growth during the forecast period. This growth is driven by an increase in demand from the automotive, aeronautics, marine, and construction sectors. It is used in many types of machining, as well as for a variety of cutting operations. They are highly sought by the large volume manufacturing sector of emerging Asia Pacific economies, in view of their ability to provide cost-effective solutions. The utilization of high alloy steels in heavy manufacturing industries is predicted to drive the neat oil segment in the projected period.
Our in-depth analysis of the global cutting fluid market includes the following segments:
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Product Type |
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Source |
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End Use |
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Asia Pacific Market Forecasts
The cutting fluid market in the Asia Pacific region is expected to hold the largest market share of 33% during the time period between 2024 – 2036. Asia Pacific dominates the market mainly due to growing demand from the agriculture and construction sectors. Increasing industrialization and economic development is driving the growth of heavy machinery industry in countries like China, India, Japan, etc. The heavy machinery industry includes many different sub-sectors, such as machine tools, heavy electrical equipment, cement, machinery, material handling machinery, plastic processing machinery, processing plant equipment, earthmoving, construction and mining equipment, among others. China's 14th Five-Year Plan provides an opportunity for China to promote agricultural and rural transformation, directly related to increased use of heavy machinery in agricultural and construction activities.
North America Market Statistics
The cutting fluid market in the region is set to grow substantially by the end of project ted period. This is due to factors such as the presence of economically developed countries and the availability of superior technology compared to other regions. Heavy machinery manufacturing is expected to contribute significantly to the expansion of this market. Heavy-duty machine manufacturing requires forging, machining, bending and forming, along with other processes that use cutting fluids to give metal better shape. In 2021, the United States exported a significant 4,444 pieces of transportation equipment, including airplanes, helicopters, and aircraft parts.
Author Credits: Smruti Ranjan, Rajrani Baghel
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