Our research indicates APEJ to be a region of high growth in the global metalworking fluids market over the forecast period
The APEJ region was estimated to account for a little more than 30% market share of the global metalworking fluids market by 2016 end and is likely to gain more than 200 BPS in its market share by 2026 over 2016. The region is anticipated to register high Y-o-Y growth throughout the forecast period. In 2017, the APEJ region is projected to account for a major market share and is expected to reach a value of more than US$ 2,500 Mn. The region is likely to expand at the highest CAGR of 4.3% over the forecast period. APEJ dominated the global metalworking fluids market in revenue terms in 2015, and the trend is projected to continue throughout the predicted period. APEJ is anticipated to be the most prominent regional market in the global metalworking fluids market during the predicted period.
China is the most lucrative market for metalworking fluids in the APEJ region with a projected compound annual growth rate of 4.3% and a market attractiveness index of 5.0 during the forecast period. India, on the other hand, is estimated to hold more than 30% market share in the APEJ metalworking fluids market and is projected to reach a value of more than US$ 1,000 Mn by 2026, recording a market attractiveness index of 4.2 during the forecast period.
Modernisation and rising disposable income are the important factors fuelling the growth of the metalworking fluids market in the APEJ region
The constant increase in rising disposable income and per capita spending has led to a boom in the automotive sector, especially in countries in the Asia Pacific region such as China, India and other South East Asian countries. Automotive companies have also invested heavily in new technology and vehicle concepts leading to the demand for more precise components and parts. Additionally, the increasing focus of consumers on fuel economy rather than performance has led auto manufacturers to develop better machining technology using high-quality lubricants and fluids. All these factors are creating a positive impact on the growth of the metalworking fluids market in the APEJ region.
Increasing productivity while keeping costs low is a priority for manufacturers of industrial equipment in the APEJ region in order to remain competitive, and this involves using modern equipment to increase efficiency and reduce production loss due to plant downtime. Considering the need for high-performance equipment in most industrial manufacturing hubs in the APEJ region, the requirement of components used in machining such as metalworking or cutting fluids is likely to increase throughout the forecast period.
Use of exotic metals such as titanium, platinum, palladium, gallium etc. in both engine and powertrain production in automobiles and other applications has also increased the demand for the use of cutting fluids, as demand for hybrid and electrical vehicles over traditional combustion engines and use of high-performance metals for niche applications has grown in the APEJ region. These factors are fuelling the demand and revenue growth of the APEJ metalworking fluids market.
Transportation Equipment anticipated to be the major end use market for metalworking fluids in the APEJ region
The Transportation Equipment end use segment in the APEJ metalworking fluids market is projected to exhibit the highest Y-O-Y growth during the forecast period and is also slated to be the most lucrative segment in the APEJ metalworking fluids market with a market attractiveness index of 5.0. The Machinery and Metal Use segments are the least lucrative segments by end use in the APEJ metalworking fluids market.
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