EMEA Metalworking Fluids Market Size, Share & Industry Analysis, By Function (Neat Cutting Oils, Water Cutting Oils, Corrosion Preventive Oils, and Others), By Type (Mineral, Synthetic, and Bio-based), By Application (Metal Fabrication, Transportation Equipment, Machinery, and Others), By End-use Industry (Construction, Electrical & Power, Agriculture, Automotive & Transportation, Telecommunication, and Healthcare), and Regional Forecast, 2024-2032

The EMEA metalworking fluids market size was valued at USD 3,235.85 million in 2023 and is projected to grow from USD 3,313.63 million in 2024 to USD 4,330.66 million by 2032, exhibiting a CAGR of 3.4% during the forecast period.

Metalworking Fluids (MWF) is a segment within the broader industrial fluids industry, encompassing a variety of liquids and gases utilized in metalworking processes. These fluids play a significant role in enhancing the efficiency, quality, and longevity of metalworking operations across diverse sectors, such as automotive, aerospace, machinery, and construction. Metalworking involves shaping, cutting, milling, grinding, and other processes to transform raw metal materials into finished products. These operations generate substantial heat, friction, and wear on both the tools and workpieces. MWFs are designed to mitigate these challenges by lubricating, cooling, and protecting the cutting tools and workpieces. EMEA is projected to display significant growth in the market. The increasing development of high-end machinery and equipment for industrial applications is expected to drive the market growth in this region.

The COVID-19 pandemic had a significant impact on the market, particularly in 2020 and early 2021. The metalworking fluid industry relies on complex global supply chains for raw materials, additives, and packaging. Lockdowns and restrictions on movement disrupted transportation and logistics, leading to delays in the delivery of raw materials and finished products. However, as the world adapted to the pandemic and industries began to recover, the market started showing signs of recovery. Manufacturers increasingly adopted digital solutions for remote monitoring of MWF systems, predictive maintenance, and real-time inventory management, enhancing operational efficiency and resilience.

EMEA Metalworking Fluids Market Trends

Increasing Adoption of Bio-Based and Environmentally Friendly Formulations to Drive Innovation in Market

Bio-based MWFs are formulated using renewable, plant-based ingredients, such as vegetable oils, esters, and bio-surfactants, offering several environmental and performance benefits. These fluids are biodegradable, non-toxic, and low in Volatile Organic Compounds (VOCs), making them safer for workers and reducing environmental impact during their use and disposal. Additionally, bio-based fluids often exhibit superior lubricity, cooling, and corrosion protection properties compared to conventional Metalworking Fluids (MWFs), enhancing machining performance and tool life.

With increasing demand for sustainable solutions, metalworking fluid manufacturers in the EMEA region are investing in R&D to develop innovative bio-based MWF formulations tailored to specific machining applications and materials. These formulations may incorporate a combination of bio-based oils, additives, and surfactants to achieve optimal performance and environmental compatibility.

Furthermore, regulatory initiatives and incentives in the region support the adoption of bio-based MWFs as part of broader efforts to promote sustainability and reduce dependence on fossil fuels. For example, in Europe, the European Union's Renewable Energy Directive (RED) encourages the use of bio-based products and renewable energy sources to achieve climate targets and reduce greenhouse gas emissions.

EMEA Metalworking Fluids Market Growth Factors

Growing Demand from Automotive and Transportation Industries to Drive Market Growth

Technological advancements and innovation are driving significant transformations in the MWFs market in the Europe and Middle East & Africa (EMEA) region. As manufacturers and end-users seek to enhance productivity, efficiency, and sustainability in metalworking operations, they are increasingly turning to cutting-edge technologies and novel formulations to meet evolving demands.

One significant area of innovation in MWFs is the development of advanced fluid formulations tailored to specific machining processes and materials. Manufacturers are investing in research and development to create high-performance fluids that offer superior lubrication, cooling, and corrosion protection while minimizing environmental impact and health risks.

Additionally, MWFs are the integration of smart technologies for real-time monitoring and control of fluid performance. Sensor-equipped machining systems can continuously assess fluid condition parameters such as pH, conductivity, and concentration, enabling proactive maintenance and optimization of fluid performance.

RESTRAINING FACTORS

Environmental Regulations and Compliance is Anticipated to Hinder Market Growth

In Europe, the REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) regulation is a comprehensive legislative framework that governs the registration, evaluation, authorization, and restriction of chemical substances. Compliance with REACH is mandatory for manufacturers, importers, and downstream users of chemicals, including MWFs. Companies must register substances they manufacture or import in quantities exceeding one ton per year and provide detailed information on their properties, uses, and safe handling practices.

Additionally, REACH restricts the use of certain hazardous substances in MWFs, such as carcinogenic and toxic chemicals, to protect workers' health and prevent environmental pollution. Manufacturers are required to reformulate their products to comply with these restrictions or seek authorization for their continued use under specific conditions.

Similarly, other regulatory directives and regulations, such as the Biocidal Products Regulation (BPR) and the Classification, Labeling, and Packaging (CLP) Regulation, impose additional compliance obligations on manufacturers and users of MWFs. These regulations constrain the use of certain harmful materials, such as mutagens in MWF formulations to protect human health and the environment, thereby affecting the EMEA metalworking fluids market growth.

EMEA Metalworking Fluids Market Segmentation Analysis

By Function Analysis

Neat Cutting Oils to Witness Notable Surge in Adoption Due to Rising Demand from End-use Industries

Based on function, the market is segmented into neat cutting oils, water cutting oils, corrosion preventive oils, and others.

The neat cutting oils segment held the highest EMEA metalworking fluids market share in 2023 and is estimated to record a significant growth rate during the forecast period. Neat cutting oils, also known as straight oils, are MWF used in machining operations, where the cutting tool is in direct contact with the workpiece. These oils are used for various metalworking processes, such as grinding, drilling, milling, and turning. EMEA has experienced significant industrial growth in recent years, particularly in sectors such as oil and gas, automotive, construction, and manufacturing. This growth drives the demand for MWFs, including neat cutting oils, to support machining operations in various industries.

The water cutting oils segment will register significant growth during the forecast period. Water cutting oils are a type of metalworking fluid used in machining operations, where water is the primary component. These fluids can be categorized into various types, including water-soluble oils, semi-synthetic fluids, and synthetic fluids. They are commonly used in industries such as automotive, aerospace, and manufacturing for a wide range of machining applications. The growth of these industries is expected to drive the segment growth in the region.  

By Type Analysis

Mineral Segment Captures Largest Market Share Owing to its Superior Properties

Based on type, the market is segmented into mineral, synthetic, and bio-based.

The mineral segment holds the largest market share owing to its properties, such as essential lubrication, cooling, and protection provided by mineral fluids for metalworking processes in manufacturing and industrial applications. Mineral-grade metalworking fluid is the most commonly used metalworking fluid, as it is more cost-effective than synthetic and bio-based fluids. Moreover, MWFs are the most predominantly used working fluid for lubricating and cooling purposes. Mineral oil generally consists of one or more refined mineral-based oils, together with pressure additives and anti-corrosion additives.

The synthetic segment is predicted to witness notable growth in the coming years. Synthetic metalworking fluids are industrial lubricants used in metalworking processes formulated from synthetic base oils and additives. Unlike mineral MWFs, which are derived from petroleum, synthetic fluids are synthesized from chemically engineered compounds. Synthetic fluids are often preferred for high-speed machining, extreme temperature conditions, and applications requiring tight tolerance machining, driving the segment's growth.

By Application Analysis

Machinery Segment Dominated Market due to Increasing Regional Production of Machinery and Equipment

Based on application, the market is segmented into metal fabrication, transportation equipment, machinery, and others.

The machinery segment accounted for the largest market share in 2023. EMEA has a strong machinery & equipment manufacturing sector, producing industrial machinery, agricultural equipment, construction machinery, and other heavy equipment. Europe is a significant producer of automotive machinery and equipment, including manufacturing machinery for automobile assembly lines, automation systems, and specialized tools and equipment used in automotive production. Metalworking fluids contribute to the efficiency, reliability, and longevity of machinery and equipment used in automotive and other industries.

The transportation equipment segment is expected to observe considerable growth during the forecast period. MWFs play a vital role in transportation equipment manufacturing by enabling efficient and high-quality production processes, prolonging tool and equipment life, and ensuring the durability and performance of finished components. Key segments within the transportation equipment sector include automotive, aerospace, rail, marine, and commercial vehicles. The region is experiencing steady growth, driven by various factors, such as increasing urbanization, economic development, infrastructure investments, and technological advancements.

By End-Use Industry Analysis

Automotive & Transportation Segment Dominated Market Due to Technological Advancements and Innovations

Based on the end-use industry, the market is segmented into construction, electrical & power, agriculture, automotive & transportation, telecommunication, and healthcare. 

The automotive & transportation segment emerged as the fastest-growing segment owing to the advancements in autonomous driving, connectivity, and digitalization. MWFs are extensively used in the production of automotive components, such as engine blocks, transmission parts, and chassis components. They aid in machining processes, such as milling, turning, and grinding to ensure precision, surface finish, and dimensional accuracy. Europe is one of the world’s largest automotive manufacturing regions, with Germany, France, Italy, Spain, and the U.K. being prominent producers of automobiles. Europe has witnessed significant growth in EV adoption, driven by infrastructure development, government incentives, and consumer awareness. Automakers are investing in electric vehicle production and expanding their EV model lineup to meet the growing demand, thereby driving the demand for MWFs in the automotive industry.

The construction segment is expected to witness rapid growth during the forecast period. Governments in the MEA are investing heavily in infrastructure development to support economic growth, improve connectivity, and enhance quality of life. Infrastructure projects include transportation networks, energy facilities, and public services such as schools and hospitals. Machinery manufacturers supply construction equipment, earthmoving machinery, cranes, concrete equipment, and other machinery and tools for construction activities across the region, driving the metalworking fluids market share.

The telecommunication segment will register significant growth during the forecast period. MWFs are used in the fabrication process of metal components used in telecommunication equipment. The adoption of IoT devices, smart sensors, and connected systems is growing rapidly in Europe, driving demand for telecommunication services. Telecommunication providers are expanding their offerings to cater to the growing IoT market in the region. These factors are likely to drive the demand for MWFs in the telecommunication segment.

REGIONAL INSIGHTS

By region, the market is segmented into Europe and the Middle East & Africa.

Europe occupied the dominant share of the EMEA metalworking fluids market and is projected to showcase significant growth. The increasing development of high-end machinery and equipment for industrial applications is expected to drive the market in this region. Europe is home to a diverse manufacturing sector, including the automotive, aerospace, machinery, and electronics industries, all of which are major consumers of MWFs. The demand for high-performance fluids to optimize machining processes and ensure product quality drives market growth. Moreover, stringent environmental regulations in Europe have led to the development and adoption of eco-friendly MWFs that minimize health and environmental risks. There is a growing demand for bio-based and water-based fluids that offer effective performance while reducing environmental impact.

The Middle East & Africa market is projected to grow moderately over the assessment period. The MEA region has observed significant industrial development, particularly in sectors such as automotive, aerospace, oil and gas, and construction. The growing manufacturing activity drives the demand for MWFs to optimize machining processes and ensure product quality. Further, rapid urbanization and infrastructure development projects in the MEA region are driving the demand for MWFs in the fabrication of structural steel, machinery, and equipment used in construction projects such as buildings, bridges, and transportation networks.

List of Key Companies in EMEA Metalworking Fluids Market

Key Players to Adopt Organic and Inorganic Business Growth Strategies to Maintain Dominance in Market

The EMEA metalworking fluids market is extremely fragmented with many small players in the market. The existing players have developed proprietary products and they maintain a competitive edge over other players owing to their unique product offerings. Furthermore, companies are involved in technological developments and adopting new development strategies, such as agreements, partnerships from business operations, ownership stakes, and decision-making strategies with the local players. The major manufacturers of MWFs in this market are Exxon Mobil Corporation, TotalEnergies, Chevron Corporation, PETRONAS, and FUCHS.

LIST OF KEY COMPANIES PROFILED:

• Exxon Mobil Corporation (U.S.)


• TotalEnergies (France)


• FUCHS (Germany)


• Chevron Corporation (U.S.)


• Sinopec (China)


• CONDAT Group (France)


• Klüber Lubrication (Germany)


• PETRONAS (Malaysia)


• Dow Inc. (U.S.)


• Chem Arrow Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2024: Fuchs acquired LUBCON Group, a family-run firm based in Maintal, in Hessen, Germany. LUBCON Group has considerable experience in developing, manufacturing, distributing, and marketing various lubricants, such as oil and grease. The LUBCON Group's advanced products have applications in several sectors, such as in rail transport and the paper, pharmaceutical, textiles, wind, and food industries. The group consists of 13 subsidiaries with manufacturing facilities in Germany, Poland, the U.S., India, and the Philippines.


• November 2023: FUCHS PETROLUB AG, the lubricants company, acquired its French subsidiary, the industrial lubricants business of Parker Hannifin, which operates under the brand name of WYNN'S. This acquisition will boost FUCHS' sales of special industrial lubricants in France and will add to its position as market leader in the field of metalworking fluids worldwide.


• March 2022: TotalEnergies Marketing UK displayed a range of groundbreaking products at MACH 2022, the U.K.'s biggest event for inspiring, innovating, and connecting manufacturing. At the core of TotalEnergies' offering to exhibition visitors was the game-changing FOLIA, a unique range of water-based metalworking fluids. FOLIA is a revolutionary product for the metalworking industry, offering better results than any conventional lubricant. Diluted with water or used neat, FOLIA fluids cool and lubricate a wide selection of machining operations and are suitable for both ferrous and non-ferrous metals.

REPORT COVERAGE

The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, applications, and end-use industries. In addition, it offers insights into market trends and highlights vital industry developments. It also encompasses various factors contributing to the market's growth in recent years. It further includes historical data and forecasts revenue growth at regional and country levels and analyzes the industry's latest market dynamics and opportunities.

Report Scope & Segmentation